Affirm Holdings Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did AFRM Beat Earnings? Q1 2026 Results
Affirm Holdings posted a mixed first fiscal quarter of 2026, delivering a revenue beat that underscored the buy now, pay later platform's broadening scale while a sharp earnings miss tempered the celebration. Revenue climbed 33.6% year over year to $933.34 million, clearing the $883.36 million consensus estimate by 5.66%, yet adjusted EPS of $0.23 fell well short of the $0.6164 Wall Street had expected — a 62.69% miss. The standout driver was gross merchandise volume, which hit a record $10.80 billion, up 42% year over year even in a quarter light on shopping holidays, with Affirm Card GMV alone soaring 135% to $1.40 billion as active cardholders reached 2.8 million. The company also swung to GAAP operating income of $63.66 million from a $132.62 million loss a year ago. <a href="https://247wallst.com/investing/2025/11/07/todays-market-moving-stocks-affirm-holdings-expedia-and-globus-medical/">Affirm shares moved sharply</a> on the results, with analysts remaining broadly constructive. Looking ahead, the company guided fiscal Q2 revenue of $1.03 billion to $1.06 billion and full-year GMV above $47.50 billion.
- Record GMV of $10.8 billion, up 42% YoY, with about half from direct merchant POS integrations, a third from D2C led by Affirm Card, and remainder from wallets
- Affirm Card GMV surged 135% YoY to $1.4 billion with active cardholders reaching 2.8 million
- 0% APR monthly installment GMV grew 74% with merchant count tripling to over 40 thousand
- Average funding costs declined 98 basis points YoY to 6.7%
- Revenue less transaction costs grew 60% to $455 million, exceeding 3-4% long-term target at 4.2% of GMV
- Active consumers grew 24% to 24.1 million, seventh consecutive quarter of accelerating growth
- Transactions per active consumer increased to 6.1 from 5.1 YoY
“We delivered another set of stellar results to get fiscal 2026 started, in both growth and profitability rubrics.”
Affirm CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q2 2026, Affirm expects GMV of $13.00-$13.30 billion, revenue of $1,030-$1,060 million (approximately 8.4% of GMV), revenue less transaction costs of $510-$525 million (approximately 4% of GMV), operating margin of 6.5-8.5%, and adjusted operating margin of 28-30%. For full fiscal year 2026, the company expects GMV of more than $47.5 billion, operating margin of more than 7.5%, and adjusted operating margin of more than 27.1%. Enterprise warrant expense in FQ2'26 is expected to decrease approximately 25% compared to FQ2'25, and FY'26 enterprise warrant expense is expected to decrease at least 30% from FY'25. Short-term benchmark interest rates are expected to decline modestly during FY'26. The ECR ratio is expected to remain below 5%. International expansion is not expected to be a material growth contributor during FY'26. An enterprise merchant substantially completed transitioning its Pay Later volumes to its own wallet solution during FQ1'26.
AFRM YoY Financials
AFRM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.