10-QPeriod: Q2 FY2026

Affirm Holdings, Inc. Quarterly Report for Q2 Ended Dec 31, 2025

Filed February 5, 2026For Securities:AFRM

Summary

Affirm Holdings, Inc. reported strong top-line growth in its fiscal second quarter of 2026, with total revenue increasing by 30% year-over-year to $1.12 billion. This growth was primarily driven by a significant 36% increase in Gross Merchandise Volume (GMV) to $13.8 billion, indicating robust consumer adoption and merchant participation on the platform. The company also achieved a significant operational milestone by turning an operating loss into an operating income of $117.6 million, a substantial improvement from a $4.3 million loss in the prior year's quarter. This improved profitability is a testament to effective cost management and scaling efficiencies, with total operating expenses growing at a slower pace than revenue. The balance sheet reflects substantial growth in loans held for investment, which increased to $8.3 billion net of allowance, demonstrating the company's expanding lending portfolio. However, the provision for credit losses also increased by 40% year-over-year, reflecting a proactive approach to managing potential credit risks associated with portfolio growth. Despite increased credit provisions and higher operational costs in areas like technology and processing, the company's ability to translate revenue growth into profitability is a key positive takeaway for investors, signaling operational leverage and a move towards sustainable financial health.

Financial Highlights

39 data points
Beta

Revenue

$1.12B

Net Income

$129.59M

11.5% Net Margin

EPS (Diluted)

$0.37

Total Assets

$12.96B

Cash & Equivalents

$1.53B

Free Cash Flow

$118.03M

Financial Statements
Beta
Revenue$1.12B
Operating Expenses$1.01B
Operating Income$117.63M
Interest Expense$111.72M
Net Income$129.59M
EPS (Basic)$0.39
EPS (Diluted)$0.37
Shares Outstanding (Basic)334.27M
Shares Outstanding (Diluted)349.37M

Key Highlights

  • 1Total revenue surged by 30% year-over-year to $1.12 billion, driven by strong GMV growth.
  • 2Gross Merchandise Volume (GMV) increased by 36% year-over-year to $13.8 billion, indicating significant platform expansion.
  • 3The company achieved operating income of $117.6 million, a substantial improvement from an operating loss of $4.3 million in the prior year's quarter.
  • 4Loans held for investment grew by 22% to $8.3 billion (net of allowance), showcasing portfolio expansion.
  • 5Provision for credit losses increased by 40% to $214.2 million, reflecting proactive risk management amidst portfolio growth.
  • 6Active consumers grew by 23% to 25.8 million, and transactions per active consumer increased by 20% to 6.4, demonstrating enhanced customer engagement.
  • 7Sales and marketing expenses decreased by 27%, largely due to a reduction in warrant expense related to commercial agreements.

Frequently Asked Questions

Affirm Holdings, Inc. reported a 30% year-over-year increase in total revenue for the three months ended December 31, 2025, reaching $1.12 billion. This growth was primarily fueled by a substantial 36% increase in Gross Merchandise Volume (GMV) to $13.8 billion. Merchant network revenue and interest income also contributed positively to the top line.

The company demonstrated significant progress in profitability, achieving an operating income of $117.6 million for the quarter, a stark contrast to the operating loss of $4.3 million reported in the same period last year. This turnaround was driven by revenue growth outpacing operating expense growth and strategic reductions in sales and marketing expenses.

Loans held for investment, net, increased to $8.3 billion as of December 31, 2025, indicating continued expansion of the company's lending activities. Concurrently, the provision for credit losses rose by 40% year-over-year to $214.2 million. This increase suggests Affirm is proactively setting aside more capital to cover potential loan defaults as its portfolio grows, a prudent measure in managing credit risk.

Affirm's active consumer base grew by 23% to 25.8 million, and transactions per active consumer increased by 20% to 6.4. This enhanced engagement is attributed to platform growth, strong merchant and partner relationships, expansion of direct-to-consumer products like the Affirm Card, and a high retention rate of existing customers.