Affirm Holdings, Inc. (AFRM) · Nov 5, 2026 · Earnings

Affirm earnings beat as Card growth lifts FY27 outlook

Beat — GAAP diluted EPS $0.47 vs ~$0.38 consensus; revenue $1.262B vs ~$1.21B

Affirm earnings beat revenue and EPS expectations, while Card growth, stronger underwriting and funding capacity pushed FY27 profitability guidance higher.

Affirm is scaling from a point-of-sale lender into a broader consumer-credit network, with Affirm Card, AI underwriting and diversified merchant distribution carrying the next leg of growth. The quarter advances that strategy materially: actual results beat both the company’s prior Q1 targets and published expectations, while the full-year profitability outlook moved higher. The prior Q1 guide called for $13.7-$14.0 billion of GMV, $1.190-$1.220 billion of revenue, and 28.0%-30.0% adjusted operating margin; the published consensus was roughly $1.21 billion of revenue and $0.38 of EPS.

The core business cleared a high bar, not just a low comparison. GMV reached $14.4 billion, revenue $1.262 billion and revenue less transaction costs $617 million—above the prior Q1 guidance ranges on all three measures. GAAP operating income reached $187 million, versus $64 million a year earlier, while adjusted operating margin reached 30.1%, above the prior 28%-30% range. The result is a genuine earnings beat: revenue was about 4% above the published consensus, and diluted GAAP EPS of $0.47 was above the roughly $0.38 estimate.

Affirm Card is becoming a meaningful growth engine rather than a side product. Card GMV rose 117% to $3.3 billion and represented 23% of total GMV; active cardholders doubled to 6 million, helping direct-to-consumer GMV grow 55%. That mix shift matters because it diversifies Affirm away from a handful of large merchants—the top-five partner share fell to 40% from 44%—but it also pushes more volume toward interest-bearing products.

The margin improvement was real, but credit costs are the main counterweight. Revenue as a percentage of GMV rose to 8.79%, and funding costs improved year over year, but RLTC margin only reached 4.30% because provision for loan losses rose 29 basis points. Thirty-day delinquencies increased to 2.9%, up 9 basis points year over year and 35 basis points sequentially; the allowance for credit losses also rose to 6.3% of loans held for investment from 5.9% a year earlier. The filing’s new underwriting model is encouraging—management says it added 3.4% of conversion while keeping credit losses flat—but the portfolio is still showing some deterioration as growth accelerates.

Management raised the full-year profitability framework, strengthening the execution story. FY27 GMV guidance increased to more than $65.25 billion from more than $64.0 billion previously, while the minimum operating-margin outlook rose above 14.75% from above 14.5% and adjusted operating margin above 30.75% from above 30.5%. Funding capacity also expanded to $31.7 billion, enough under Affirm’s assumptions to support more than $70 billion of annual GMV.

Bottom line: This was a broad operational beat, not merely a revenue surprise: growth accelerated, Card scaled, profitability exceeded the prior framework and FY27 margins moved higher. Rising delinquencies keep credit performance as the key qualification, but the filing clearly strengthens Affirm’s current expansion-and-profitability story.

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Original filing on SEC EDGAR

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