What was Affirm's overall financial performance for the fiscal year ended June 30, 2026?

Affirm Holdings, Inc. demonstrated strong financial performance, with Gross Merchandise Volume (GMV) reaching $50.2 billion, a 37% increase year-over-year. Total revenue grew by 32% to $4.26 billion, and the company achieved an operating income of $417 million, a significant turnaround from the previous year's loss. This performance was driven by increased consumer engagement and a diversified revenue stream.

How is Affirm expanding its business and what are its growth drivers?

Affirm is focused on expanding its network and product offerings. Key growth drivers include increasing consumer transaction frequency and in-store usage, particularly through the Affirm Card, which saw a 44% increase in transactions per active consumer. The company is also expanding its merchant reach, deepening penetration with existing partners, and pursuing international growth, with a recent limited launch in Australia and plans for further international expansion. Product innovations like AdaptAI and Affirm Edge are also contributing to its growth strategy.

What is Affirm's stance on risk management and credit quality?

Affirm emphasizes its proprietary technology, underwriting, and risk management capabilities as key competitive advantages. Its data-driven models, built on extensive loan data, are designed to price risk at a transaction level, aiming for lower fraud rates and higher approval rates compared to traditional models. The company also offers loan modification programs for borrowers facing financial difficulty to help manage delinquency rates.

What is the impact of the release of the valuation allowance on Affirm's financials?

During the fiscal year ended June 30, 2026, Affirm concluded that it was more likely than not that a significant portion of its domestic deferred tax assets would be realized. Consequently, the company released a substantial portion of its valuation allowance, resulting in a non-cash income tax benefit of approximately $1.5 billion. This significantly improved its net income for the period.

AFRM 10-K FY2026 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.

Affirm Holdings, Inc. reported robust growth in Gross Merchandise Volume (GMV) for the fiscal year ended June 30, 2026, reaching $50.2 billion^a, a 37% increase year-over-year.

This growth was driven by a 21% increase in active consumers to 27.8 million and a 20% rise in transactions per active consumer, highlighting increased customer engagement and repeat usage, particularly with the Affirm Card. The company's revenue also saw a significant 32% increase to $4.26 billion^b. Affirm's expansion into new markets, including a limited launch in Australia, and product innovations such as AdaptAI and Affirm Edge, position it for continued growth.

The company also made progress in its financial operations, including releasing a significant portion of its domestic valuation allowance for deferred tax assets, resulting in a substantial income tax benefit. Financially, Affirm's profitability improved, with operating income turning positive at $417 million^c compared to a loss in the prior year. This improvement was supported by strong revenue growth and disciplined expense management, although sales and marketing expenses decreased year-over-year due to lower warrant expenses.

The company's funding strategy remains diversified, and it continues to manage its capital efficiently. Affirm's focus on technology and data-driven risk models remains a core competitive advantage, enabling it to serve a broad spectrum of consumers and merchants.

02—Key points

Key Highlights

Gross Merchandise Volume (GMV) increased by 37% to $50.2 billion for the fiscal year ended June 30, 2026.
Active consumers grew by 21% to 27.8 million, with transactions per active consumer increasing by 20% to 7.0, indicating strong customer engagement.
Total revenue grew by 32% to $4.26 billion.
The company achieved operating income of $417 million, a significant improvement from a loss in the prior fiscal year.
Affirm successfully released a substantial portion of its domestic valuation allowance for deferred tax assets, leading to a significant income tax benefit.
International expansion efforts are underway, with a limited launch in Australia and plans for further expansion in Europe.
The Affirm Card continues to drive consumer engagement, representing an increasing percentage of total transactions.

03—Questions

Frequently Asked Questions

What was Affirm's overall financial performance for the fiscal year ended June 30, 2026?
Affirm Holdings, Inc. demonstrated strong financial performance, with Gross Merchandise Volume (GMV) reaching $50.2 billion, a 37% increase year-over-year. Total revenue grew by 32% to $4.26 billion, and the company achieved an operating income of $417 million, a significant turnaround from the previous year's loss. This performance was driven by increased consumer engagement and a diversified revenue stream.
How is Affirm expanding its business and what are its growth drivers?
Affirm is focused on expanding its network and product offerings. Key growth drivers include increasing consumer transaction frequency and in-store usage, particularly through the Affirm Card, which saw a 44% increase in transactions per active consumer. The company is also expanding its merchant reach, deepening penetration with existing partners, and pursuing international growth, with a recent limited launch in Australia and plans for further international expansion. Product innovations like AdaptAI and Affirm Edge are also contributing to its growth strategy.
What is Affirm's stance on risk management and credit quality?
Affirm emphasizes its proprietary technology, underwriting, and risk management capabilities as key competitive advantages. Its data-driven models, built on extensive loan data, are designed to price risk at a transaction level, aiming for lower fraud rates and higher approval rates compared to traditional models. The company also offers loan modification programs for borrowers facing financial difficulty to help manage delinquency rates.
What is the impact of the release of the valuation allowance on Affirm's financials?
During the fiscal year ended June 30, 2026, Affirm concluded that it was more likely than not that a significant portion of its domestic deferred tax assets would be realized. Consequently, the company released a substantial portion of its valuation allowance, resulting in a non-cash income tax benefit of approximately $1.5 billion. This significantly improved its net income for the period.

04—Continue

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