General Outlook

FY 2026

no prior guidance

Optimistic outlook with growth accelerating and “firing on all pistons” "

no prior guidance

Funding Environment

FY 2026

no prior guidance

Favorable conditions in the capital markets "

no prior guidance

Product Mix

FY 2026

no prior guidance

Monthly 0% loans to remain a share of the mix; targeting the high end of the 3%-4% ROTC range "

no prior guidance

Enterprise Merchant Transition

FY 2026

no prior guidance

Expectation that an enterprise partner will wind down going into fiscal Q2 "

no prior guidance

International Expansion

FY 2026

no prior guidance

Testing in the UK with Shopify and plans to expand further in Europe " "

no prior guidance

Marketing and Sales Strategy

FY 2026

no prior guidance

Plans to continue marketing with partners without dramatic additional brand investment "

no prior guidance

0% APR Financing and Margin Pressure

In Q1–Q3, executives repeatedly described 0% APR as a key growth tool for attracting new consumers and merchants—with Q1 noting its role in boosting consumer acquisition " , Q2 highlighting its broader rollout and slight margin dilution but emphasizing network effects " " " , and Q3 stressing strong traction, high-quality customer conversion, and merchant interest despite lower margins. " " " "

Q4 focused on record growth with doubled merchant adoption (7% of the merchant base), continued profitability despite lower margins, and reinforced competitive underwriting for 0% APR loans. " " " " " "

There is a clear continuity in leveraging 0% APR financing; however, Q4 shows an increased emphasis on profitability via enhanced merchant adoption and improved underwriting, indicating a maturing and more confident growth strategy.

Credit Performance and Underwriting Discipline

Across Q1–Q3, Affirm consistently emphasized strong credit performance and rigorous underwriting. Q1 detailed stable approval and re-engagement with repeat consumers " " while Q2 and Q3 underscored individual transaction-level underwriting, robust repayment rates, and the ability to adapt to changing credit signals. " " " " "

In Q4, the discussion centered on highly consistent credit performance with the highlight that 95% of transactions came from repeat borrowers, reinforcing the disciplined approach in underwriting under varying conditions. " "

The focus has remained stable, with Q4 placing additional emphasis on repeat borrower metrics, reflecting a deepening of a long-established commitment to credit quality and risk management.

GMV Growth and Sustainability Concerns

Q2 and Q3 focused on ambitious GMV targets, broad-based strength across categories, and sustainable growth models, with Q3 citing 40% YoY growth in March and Q2 discussing scaling towards a $50B GMV target while maintaining credit standards. " " Q1 did not elaborate on this topic.

Q4 highlighted record-setting, accelerated GMV growth and stressed increased demand for Affirm’s services while addressing sustainability via careful capital partner selection and funding discipline. " "

Affirm’s robust GMV trajectory continues with further acceleration in Q4; the sustainability concerns are being managed through strategic funding and disciplined risk practices, reflecting ongoing confidence despite heightened growth.

Active Consumer Growth and Direct-to-Consumer Initiatives

Q1 emphasized a deliberate focus on boosting active consumer frequency from one to three and even five transactions per year. " Q2 provided details on active user growth (23% YoY increase) and highlighted direct-to-consumer initiatives led by products such as the Affirm card. " " Q3 mentioned strong growth in its direct-to-consumer services driven by the card. "

Q4 did not include specific commentary on active consumer growth or direct-to-consumer initiatives.

While previous periods stressed consumer re-engagement and D2C expansion, the Q4 discussion shifted focus away from these themes, suggesting that attention may have moved more toward merchant partnerships and international growth.

Merchant and International Partnerships

Q1 featured strong merchant enthusiasm for 0% promotions and early steps in UK engagement. " " Q2 detailed merchant promotions via industrialized 0% loan programs and wallet integrations, and Q3 highlighted strategic partnerships with Costco, Walmart, and Adyen. " " " " "

Q4 showcased significant progress with merchant partnerships—doubling the rate of merchants funding 0% APR offerings—and emphasized a focused “friends and family” testing phase in the UK with key partners like Shopify. " " "

There is a steady, cross‐period focus on deepening merchant relationships and expanding internationally; Q4 reinforces this with stronger adoption rates and more advanced international testing, demonstrating a maturing partner strategy.

International Expansion and UK Market Challenges

Q1 set the stage with early UK market entry using longer-term products and a dedicated local sales team. " " " Q2 described initial UK launches with early merchant interest and outlined plans for scaling. " " Q3 underscored the need for educating UK merchants and adapting to an upstart brand environment. "

Q4 revealed that the UK expansion is progressing into a “friends and family testing” phase with Shopify, while being mindful of local product preferences (short-term versus longer-term loans) and underwriting standards. " "

The international expansion effort, particularly in the UK, has evolved from initial entry and educational challenges to a more mature, testing-phase approach in Q4, with affirmative signals regarding product fit and merchant engagement.

Funding Structure and Cost Sustainability

Q1 highlighted robust forward flow and successful ABS execution with stable diversified funding. " " Q2 detailed new partnerships (e.g., Sixth Street), emphasizing durable funding costs and efficiency. " " Q3 discussed diversification through ABS deals, forward flow partnerships, and even considerations of a bank charter, reinforcing a well-managed cost structure. " " "

Q4 reported a 55% year-over-year increase in funding capacity managed through selective long-term capital partnerships, while maintaining cost sustainability within a targeted 3–4% ROTC range. " "

There is consistent emphasis on disciplined, diversified funding with clear cost management; Q4 reflects further improved capacity and a refined focus on sustainable profitability.

Technological Innovation (Adapt AI and Checkout Enhancements)

Q2 discussed the longstanding use of AI for underwriting, fraud detection and improved operational efficiency—including early checkout enhancements—while Q3 expanded on AI and generative AI for productivity but did not mention a specific automation tool for checkout. " " "

Q4 introduced Adapt AI as an AI-powered configuration tool for adaptive checkout, showing a quantifiable boost (5% GMV increase) and an evolution from manual optimization to automated, data-driven personalization. "

The technological innovation focus has advanced from general AI applications to a targeted, automated tool (Adapt AI) that refines the checkout experience, marking a significant development and increased emphasis on operational efficiency in Q4.

Integration and Execution Uncertainties in New Channels

No specific mentions were made in Q1–Q3 regarding uncertainties in integrating new channels.

Not mentioned in Q4.

This topic has not been a focus in any period, indicating it is not currently viewed as a major concern in Affirm’s strategic updates.

Pricing Initiatives and Revenue Growth Limitations

Q1 included discussions on pricing initiatives that improved interest income and reinvestment into growth (e.g., 0% APR incentives) while Q2 touched on similar themes indirectly via promotions; Q3 did not explicitly address these topics. " " "

No specific discussion of pricing initiatives or revenue growth limitations was mentioned in Q4.

Earlier period discussions have receded in Q4, suggesting that pricing and revenue strategies have stabilized, reducing the need for renewed commentary on potential limitations.

Sales and Marketing Expense Management

Q2 explained a sequential increase in sales and marketing spend to support new program launches " " , and Q3 reported a step-down in expenses due to the end of warrant amortization. " Q1 did not provide detailed commentary on this topic.

Q4 did not feature specific remarks on sales and marketing expense management.

The focus on expense management has been stable in earlier quarters with measured increases and subsequent normalization; its absence in Q4 suggests that expense levels remain steady without new concerns.

Apple Pay Trends Impact on GMV

Q3 featured an analyst’s question on Apple Pay where executives affirmed broad-based GMV strength but did not delve deeply into Apple Pay’s direct impact. " Q1 and Q2 did not mention the topic.

Q4 did not address Apple Pay trends or their impact on GMV.

Apple Pay has been an intermittent area of discussion, receiving only a brief mention in Q3 and no focus in Q4, indicating it is not a central driver in current GMV conversations.

Repeat Borrower Base Dynamics

Q1 discussed efforts to re-engage consumers to increase transactions from one to three or even five per year, reflecting an early stage focus on repeat business. " Q2 and Q3 did not emphasize this aspect.

Q4 highlighted that 95% of transactions came from repeat borrowers, underscoring the maturity and consistency of the borrower base. "

There is an increased and more explicit focus on repeat borrower dynamics in Q4, showing that the strategy to boost consumer activity is maturing and yielding high repeat business.

Risks of Aggressive Reinvestment into Promotions

Q1 acknowledged a cautious approach while being able to be aggressive due to strong unit economics " , and Q2 explicitly discussed potential margin dilution and the need to balance growth initiatives with credit risk across 0% promotions. " " " Q3 did not explicitly revisit these risk discussions.

Q4 did not mention risks related to aggressive reinvestment into promotions.

Earlier periods highlighted measured risk considerations for reinvestment in promotions; the absence of such commentary in Q4 suggests improved confidence in the economics and execution of these growth initiatives.