Affirm Q1 2027: Revenue Beats, EPS Misses Expectations

Affirm's fiscal first quarter of 2027 delivered a split verdict that hinges almost entirely on how you read the earnings-per-share miss. GAAP diluted EPS came in at $0.47, missing expectations of $0.86. Two specific charges drove the gap: $51.1 million of enterprise partner warrant expense and income tax expense of $40.9 million, up sharply from $2.3 million in the same quarter a year earlier. Neither item reflects a deterioration in the underlying lending business.

The revenue picture was meaningfully stronger. Affirm posted $1.26 billion in revenue, beating the $1.21 billion consensus by 4.24% and rising 35% year over year. The engine behind that growth was gross merchandise volume, which climbed 34% to $14.4 billion. That marked the twelfth consecutive quarter of GMV growth above 30%, a streak that few fintech companies of Affirm's scale have sustained. The Affirm Card was a standout contributor, with GMV from that product nearly doubling to $3.3 billion and active cardholders more than doubling to 6.0 million.

Management's forward guidance was notably ambitious. Affirm projected fiscal Q2 revenue of $1.44 billion to $1.47 billion, implying continued strong top-line momentum. For the full fiscal year, the company expects GMV above $65.25 billion. CEO Max Levchin pointed to a new transformer-based underwriting model as a growth lever, saying it delivered an incremental 3.4% of end-to-end conversion through higher credit approvals while keeping credit losses flat, meaning the company believes it can profitably lend to a broader pool of borrowers.

The clearest risk in the quarter is delinquency creep. Loans 30 or more days past due rose 35 basis points sequentially to 2.9%. That is a number investors will be tracking closely across coming quarters, particularly given the company's own acknowledgment of macroeconomic risks including inflation, tariffs, and broader consumer credit conditions. Funding costs also ticked up 27 basis points sequentially as benchmark rates rose, and management flagged that rates are expected to stay elevated into fiscal 2027.

Looking at the recent EPS history adds useful context. Affirm has had quarters where it dramatically exceeded estimates, most visibly Q4 2026 when it reported $4.62 against a $0.33 estimate, and quarters where it fell short, as it did in Q3 2025 at $0.19 against a $0.40 estimate. The Q1 2027 miss sits closer to the latter pattern, though the accounting-driven explanation distinguishes it from a fundamental earnings shortfall. The more durable signal remains whether the delinquency trend stabilizes or continues to drift higher in Q2.