10-QPeriod: Q1 FY2026

Affirm Holdings, Inc. Quarterly Report for Q1 Ended Sep 30, 2025

Filed November 6, 2025For Securities:AFRM

Summary

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 million, 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 million. This quarter's results highlight Affirm's ability to scale its operations efficiently while improving credit management and maintaining robust growth across its platform.

Financial Highlights

37 data points
Beta

Revenue

$933.34M

Net Income

$80.69M

8.6% Net Margin

EPS (Diluted)

$0.23

Total Assets

$11.48B

Cash & Equivalents

$1.43B

Free Cash Flow

$320.21M

Financial Statements
Beta
Revenue$933.34M
Operating Expenses$869.68M
Operating Income$63.66M
Interest Expense$110.03M
Net Income$80.69M
EPS (Basic)$0.24
EPS (Diluted)$0.23
Shares Outstanding (Basic)330.24M
Shares Outstanding (Diluted)348.28M

Key Highlights

  • 1Net income of $80.7 million, a significant improvement from a net loss of $100.2 million in the prior year's comparable quarter.
  • 2Total revenue increased by 34% to $933.3 million, driven by strong performance across network revenues, interest income, and loan sales.
  • 3Gross Merchandise Volume (GMV) grew by 42% to $10.8 billion, indicating strong platform adoption and transaction activity.
  • 4Active consumers increased by 24% to 24.1 million, and transactions per active consumer rose by 20% to 6.1, demonstrating enhanced customer engagement.
  • 5Operating 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.
  • 6The company reported a healthy increase in cash from operations, reaching $374.6 million, up from $196.9 million in the prior year period.

Frequently Asked Questions

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.

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.

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.

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.