10-QPeriod: Q3 FY2026

Affirm Holdings, Inc. Quarterly Report for Q3 Ended Mar 31, 2026

Filed May 7, 2026For Securities:AFRM

Summary

Affirm Holdings, Inc. reported a strong financial performance for the nine months ended March 31, 2026, showcasing significant growth across key metrics. Total revenue surged by 32% year-over-year to $3.1 billion, driven by robust increases in merchant network revenue and interest income. The company demonstrated improved profitability, with operating income turning positive at $269.7 million compared to a loss in the prior year, and net income reaching $313.2 million. This growth was fueled by a substantial 37% increase in Gross Merchandise Volume (GMV) to $36.1 billion, supported by a 22% rise in active consumers to 26.8 million and a 20% increase in transactions per active consumer, indicating strong customer engagement. The company also maintained a healthy balance sheet with total assets growing to $13.1 billion, supported by a solid cash position of $1.7 billion. Affirm's strategic focus on expanding its network, diversifying funding relationships, and optimizing its credit risk models appears to be paying off. The increase in GMV was broad-based, with notable growth in Pay-in-X and 0% APR monthly installment loans, alongside continued strength in interest-bearing loans. The company's efforts to manage funding costs and leverage capital markets effectively are reflected in its improved profitability. Despite macroeconomic uncertainties, Affirm's strong operational execution and strategic initiatives position it well for continued growth and market leadership in the Buy Now, Pay Later sector.

Financial Highlights

39 data points
Beta

Revenue

$1.04B

Net Income

$102.90M

9.9% Net Margin

EPS (Diluted)

$0.30

Total Assets

$13.14B

Cash & Equivalents

$1.72B

Free Cash Flow

$325.10M

Financial Statements
Beta
Revenue$1.04B
Operating Expenses$950.34M
Operating Income$88.43M
Interest Expense$113.76M
Net Income$102.90M
EPS (Basic)$0.31
EPS (Diluted)$0.30
Shares Outstanding (Basic)337.14M
Shares Outstanding (Diluted)348.10M

Key Highlights

  • 1Total revenue for the nine months ended March 31, 2026, increased by 32% to $3.1 billion, driven by strong performance in merchant network revenue and interest income.
  • 2Gross Merchandise Volume (GMV) grew by 37% to $36.1 billion for the nine months ended March 31, 2026, demonstrating significant platform adoption and transaction growth.
  • 3The company achieved a positive operating income of $269.7 million for the nine months ended March 31, 2026, a substantial improvement from a loss in the prior year period.
  • 4Net income reached $313.2 million for the nine months ended March 31, 2026, reflecting enhanced profitability and effective cost management.
  • 5Active consumers increased by 22% to 26.8 million as of March 31, 2026, highlighting successful consumer acquisition and engagement strategies.
  • 6Transactions per active consumer rose by 20% to 6.7, indicating increased customer loyalty and repeat usage of Affirm's services.
  • 7Total assets grew to $13.1 billion as of March 31, 2026, with cash and cash equivalents standing at $1.7 billion, providing a strong liquidity position.

Frequently Asked Questions

Affirm's revenue growth is primarily driven by the substantial increase in Gross Merchandise Volume (GMV), which rose by 37% to $36.1 billion for the nine months ended March 31, 2026. This growth in transaction volume, coupled with strategic merchant agreements and effective consumer product offerings like the Affirm Card, has bolstered merchant network revenue and interest income.

Affirm has shown significant improvement in profitability, achieving a positive operating income of $269.7 million for the nine months ended March 31, 2026, compared to a loss in the prior year. This is attributed to strong revenue growth, effective cost management across operating expenses, and optimization of its credit risk models, leading to improved net income of $313.2 million.

The company is experiencing strong consumer adoption and engagement. Active consumers grew by 22% to 26.8 million as of March 31, 2026, and transactions per active consumer increased by 20% to 6.7. This indicates a growing and loyal customer base, driven by expansion in active merchants and platform partnerships, and increased repeat usage of Affirm's services, including the Affirm Card.

Affirm employs a capital-efficient model with diverse funding sources, including warehouse credit facilities, securitization trusts, and forward flow arrangements. As of March 31, 2026, the company reported $1.7 billion in cash and cash equivalents and $5.1 billion in available funding debt capacity, alongside $330 million under its revolving credit facility. This diversified funding strategy and strong liquidity position are crucial for supporting ongoing loan volume growth and strategic initiatives.