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Affirm

AFRM Q2 2026 Earnings

Reported Feb 5, 2026 at 4:09 PM ET · SEC Source

Q2 26 EPS

$0.37

MISS 55.83%

Est. $0.84

Q2 26 Revenue

$1.12B

BEAT +6.38%

Est. $1.06B

vs S&P Since Q2 26

+16.3%

BEATING MARKET

AFRM +20.6% vs S&P +4.3%

Market Reaction

Did AFRM Beat Earnings? Q2 2026 Results

Affirm delivered a mixed second fiscal quarter of 2026, posting revenue of $1.12 billion, up 29.6% year over year and 6.38% ahead of the $1.06 billion consensus, while earnings per share of $0.37 fell well short of the $0.84 analyst estimate, missing… Read more Affirm delivered a mixed second fiscal quarter of 2026, posting revenue of $1.12 billion, up 29.6% year over year and 6.38% ahead of the $1.06 billion consensus, while earnings per share of $0.37 fell well short of the $0.84 analyst estimate, missing by 55.83%. The headline profit gap belied an otherwise operationally strong quarter: Gross Merchandise Volume surged 36% to $13.80 billion, and the company's Affirm Card emerged as the standout driver, with Card GMV nearly tripling to $2.20 billion and active cardholders more than doubling to 3.7 million. A record Black Friday/Cyber Monday season and the company's inaugural 0% APR promotional event in October, which contributed roughly 15% of all October GMV, provided meaningful volume momentum heading into the back half of the fiscal year. With analysts increasingly constructive on the stock, Affirm guided full-year FY2026 revenue of $4.09 billion to $4.15 billion and flagged the potential release of its US deferred tax valuation allowance by fiscal year-end if earnings momentum holds.

Key Takeaways

  • • GMV grew 36% YoY to $13.8 billion, accelerating from 35% growth in the prior year period
  • • Affirm Card GMV grew 159% to $2.2 billion with active cardholders more than doubling to 3.7 million
  • • Direct-to-consumer GMV grew 52% to $4.3 billion
  • • 0% APR product GMV inclusive of Pay-in-X grew 60%, outpacing overall growth
  • • Average funding costs declined approximately 109 bps YoY to 6.2%
  • • Total transactions grew 44% to 54.9 million
  • • Active consumers increased 23% to 25.8 million; transactions per active consumer up 20% to 6.4
  • • Active merchant count increased 42% to 478 thousand

AFRM Forward Guidance & Outlook

For FQ3 2026, Affirm guides GMV of $11.00–$11.25 billion, revenue of $970–$1,000 million, RLTC of $450–$465 million, operating margin of 4.5–6.0%, and adjusted operating margin of 24.5–25.5%. For FQ4 2026, guidance is GMV of $12.75–$13.05 billion, revenue of $1,060–$1,090 million, RLTC of $510–$525 million, operating margin of 8.5–10.5%, and adjusted operating margin of 26.5–28.5%. Full-year FY2026 guidance calls for GMV of $48.30–$48.85 billion, revenue of $4,086–$4,146 million, RLTC of $1,958–$1,988 million, operating margin of 7.7–8.6%, and adjusted operating margin of 27.4–28.1%. The mix of 0% APR GMV is expected to increase year over year. International expansion is not expected to be a material growth contributor during FY2026. Short-term benchmark interest rates are expected to decline modestly. Equity Capital Required as a percent of Total Platform Portfolio is expected to remain below 5%. If the earnings trajectory continues, the company expects a potential release of a significant portion of the US deferred tax valuation allowance by the end of FY2026.

24/7 Wall St

AFRM YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

AFRM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 23 Q2 26

“We delivered another round of excellent results in Affirm's second quarter of FY'26.”

— Max Levchin, Q2 2026 Earnings Press Release

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