Affirm Holdings Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.63%.
Did AFRM Beat Earnings? Q4 2025 Results
Affirm closed fiscal Q4 2025 with a landmark quarter, delivering earnings per share of $0.20 against a consensus estimate of $0.1228 — a 62.87% beat — while revenue climbed 33.0% year-over-year to $876.42 million, ahead of the $835.68 million the Street had expected. The headline story, however, was the company's first-ever GAAP operating profit, a $58.06 million gain that represented a $132 million swing from the prior year's loss and fulfilled a commitment CEO Max Levchin made twelve months ago. The catalyst behind the profitability inflection was a $116 million increase in Revenue Less Transaction Costs, aided by declining enterprise warrant expenses. Gross Merchandise Volume surged 43% to $10.40 billion, with the Affirm Card emerging as a particular standout — Card GMV more than doubled to $1.20 billion as active cardholders reached 2.3 million. <a href="https://247wallst.com/investing/2025/11/07/todays-market-moving-stocks-affirm-holdings-expedia-and-globus-medical/">shares rallied on the results</a>, reflecting investor confidence in full-year FY26 guidance targeting more than $46 billion in GMV and an adjusted operating margin above 26.1%.
- GMV grew 43% to $10.4 billion driven by strength with largest merchant partners, 0% APR monthly installment loans, and direct-to-consumer business
- 0% APR monthly installment GMV grew 93% with merchants funding these offers more than doubling to over 25,000
- Affirm Card GMV grew 132% to $1.2 billion with active cardholders nearly doubling to 2.3 million
- Direct-to-consumer GMV grew 61% to $3.1 billion
- In-store Card spend grew 187%
- Average annualized cost of funds declined approximately 90 basis points year-over-year to 6.8%
- Revenue per employee reached approximately $1.5 million in FY'25
- 30+ day delinquencies ex-Peloton declined 15 basis points quarter-over-quarter and 18 basis points year-over-year
- Transactions per active consumer increased to 5.8 from 4.9
- Top five merchant and platform partners collectively grew GMV 41%
“Only a few moments ago it was a matter of some debate (outside our walls, of course) whether Affirm would so much as survive the rising Fed funds rate, let alone turn a profit. And a few before that, whether it was possible to make money in consumer lending without the profit pools afforded by late fees and compounding interest.”
Affirm CEO, on the earnings call
Forward Guidance & Outlook
For FQ1'26, Affirm expects GMV of $10.10-10.40 billion, revenue of $855-885 million, operating margin of 1-3%, and adjusted operating margin of 23-25%, with weighted average basic shares outstanding of 330 million and diluted shares of 348 million. For full fiscal year 2026, the company expects GMV of more than $46 billion, revenue at approximately 8.4% of GMV, RLTC at approximately 4% of GMV, operating margin above 6.0%, and adjusted operating margin above 26.1%, with basic shares of 335 million and diluted shares of 352 million. The mix of 0% APR GMV is expected to increase year-over-year. An enterprise merchant is expected to substantially transition its pay-later volumes to its own wallet solution by FQ2'26. Enterprise warrant expense in FQ1'26 is expected to be similar to FQ4'25, with FY'26 enterprise warrant expense expected to decrease at least 30% from FY'25. Short-term benchmark interest rates are expected to decline modestly during FY'26. ECR ratio is expected to remain below 5%. International expansion is not expected to be a material growth contributor during FY'26.
AFRM YoY Financials
AFRM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.