Key Highlights
- Fiscal Q3 revenue reached $1.04 billion, marking a 33% year-over-year increase and surpassing analyst projections of $995.3 million.
- The company achieved $11.6 billion in gross merchandise volume, representing 35% growth and marking its tenth consecutive quarter exceeding 30% GMV expansion.
- Earnings per share hit $0.30, significantly outpacing the consensus forecast of $0.17 and delivering a 79.5% positive surprise.
- The company elevated its fiscal-year GMV projections to $49.27–$49.57 billion and boosted revenue expectations to $4.18–$4.21 billion.
- AFRM shares have declined approximately 9.5% year-to-date, trailing the S&P 500’s 7.6% advance.
Affirm Holdings delivered impressive fiscal third-quarter results on Wednesday, exceeding Wall Street expectations across key metrics and upgrading its full-year projections for the second consecutive time.
The buy-now, pay-later provider generated $1.04 billion in revenue, representing a 33% jump from the $783 million recorded in the same period last year. This performance exceeded the Street’s consensus estimate of $995.3 million. The company’s earnings per share of $0.30 crushed analyst expectations of $0.17 by nearly 80%, marking the fourth consecutive quarter of beating earnings projections.
Gross merchandise volume, which serves as the primary metric for transaction volume across Affirm’s platform, jumped 35% to reach $11.6 billion. In his shareholder letter, CEO Max Levchin highlighted this achievement as the company’s “tenth consecutive quarter of over-30% growth.”
Shares edged up roughly 1.2% during Thursday’s premarket session. However, AFRM remains down approximately 9.5% in 2026 compared to the S&P 500’s 7.6% gain.
The platform’s active user base expanded to 26.8 million, while transactions per user climbed 20%. The active merchant count increased to 515,000.
The Affirm Card product emerged as a major growth driver. Active cardholders more than doubled on a year-over-year basis to 4.4 million. Card-related GMV skyrocketed 146% to $2.1 billion.
The company generates revenue through multiple channels including merchant fees, interest charged on installment financing, and its debit card offering. All revenue streams contributed positively to the third-quarter performance.
Company Elevates Full-Year Projections
Based on third-quarter momentum, Affirm increased its fiscal-year GMV forecast to $49.27–$49.57 billion, up from the previous guidance range of $48.3–$48.85 billion issued in February.
Full-year revenue expectations now stand at $4.18–$4.21 billion. The Street had been anticipating $4.14 billion.
For the upcoming quarter, analysts are forecasting EPS of $0.29 with revenue of $1.08 billion. Full-year consensus estimates call for $1.08 in earnings per share on $4.14 billion in revenue.
Credit Performance Remains Stable
A growing concern within the buy-now, pay-later industry centers on increasing delinquency trends. A recent LendingTree survey revealed 47% of BNPL users experienced a late payment over the past year, climbing from 41% in a prior survey and 34% in 2024.
Affirm countered this broader industry trend, asserting it “continued to drive positive credit outcomes” during Q3. The company disclosed that delinquency rates across 30-day, 60-day, and 90-day categories remained relatively stable on a sequential basis.
The fintech industry overall has faced headwinds throughout 2026. SoFi Technologies experienced its worst single-session decline on record last month despite reporting an earnings beat. The iShares Fintech Active ETF has dropped more than 8% year-to-date.
Affirm currently carries a Zacks Rank of #3 (Hold), indicating the stock is projected to deliver market-like performance in the near term.
Delinquency metrics spanning 30-, 60-, and 90-day timeframes showed sequential stability throughout the March quarter.
