01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Affirm Holdings, Inc. reported a significant turnaround in its financial performance for the three months ended September 30, 2025, compared to the same period in the prior year.
The company achieved a net income of $80.7 milliona, a substantial improvement from a net loss of $100.2 million in the prior year period. This positive shift was driven by robust revenue growth of 34%, reaching $933.3 million, coupled with a well-managed increase in operating expenses, which grew by 5%. The company demonstrated strong operational execution, with Gross Merchandise Volume (GMV) increasing by 42% to $10.8 billion, supported by a 24% rise in active consumers and a 20% increase in transactions per active consumer.
Key drivers of this performance include strong growth in merchant network revenue, card network revenue, and significant gains on the sale of loans. While provision for credit losses and funding costs saw modest increases, the overall increase in revenue outpaced operating expense growth, leading to a significant swing to profitability and a strong operating income of $63.7 millionb. This quarter's results highlight Affirm's ability to scale its operations efficiently while improving credit management and maintaining robust growth across its platform.
02—Key points
Key Highlights
- Net income of $80.7 million, a significant improvement from a net loss of $100.2 million in the prior year's comparable quarter.
- Total revenue increased by 34% to $933.3 million, driven by strong performance across network revenues, interest income, and loan sales.
- Gross Merchandise Volume (GMV) grew by 42% to $10.8 billion, indicating strong platform adoption and transaction activity.
- Active consumers increased by 24% to 24.1 million, and transactions per active consumer rose by 20% to 6.1, demonstrating enhanced customer engagement.
- Operating expenses increased by only 5%, significantly less than the revenue growth, leading to a substantial increase in operating income to $63.7 million from a loss of $132.6 million.
- The company reported a healthy increase in cash from operations, reaching $374.6 million, up from $196.9 million in the prior year period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed November 6, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $933.34M$698.48M | +33.6% |
| Operating Expenses | $869.68M$831.10M | +4.6% |
| Operating Income | $63.66M-$132.62M | +148.0% |
| Interest Expense | $110.03M$104.14M | +5.6% |
| Net Income | $80.69M-$100.22M | +180.5% |
| EPS (Basic) | $0.24$-0.31 | +177.4% |
| EPS (Diluted) | $0.23$-0.31 | +174.2% |
| Shares Outstanding (Basic) | 330.24M318.23M | +3.8% |
| Shares Outstanding (Diluted) | 348.28M318.23M | +9.4% |
05—Questions
Frequently Asked Questions
What was Affirm's net income/loss for the quarter ended September 30, 2025?
For the three months ended September 30, 2025, Affirm reported a net income of $80.7 million, a significant improvement from a net loss of $100.2 million in the same period of the prior year.
How did Affirm's revenue perform in the quarter?
Affirm's total revenue, net, increased by 34% to $933.3 million for the three months ended September 30, 2025, compared to $698.5 million in the prior year period. This growth was driven by increases in merchant network revenue, card network revenue, interest income, and gains on sales of loans.
What is the trend in Affirm's Gross Merchandise Volume (GMV)?
Affirm's GMV saw robust growth, increasing by 42% to $10.8 billion for the three months ended September 30, 2025, compared to $7.6 billion in the same period of the prior year. This growth was attributed to an increase in active merchants, active consumers, and average transactions per consumer.
How is Affirm managing its credit risk and provisions?
The provision for credit losses increased slightly by 2% to $162.8 million for the three months ended September 30, 2025. This increase was primarily due to a higher average balance of loans held for investment and a slightly higher allowance rate, which was partially offset by an increase in recoveries. The company continues to monitor loan performance and offers loan modifications for borrowers experiencing financial difficulty.
06—Continue