Key Highlights
- Fiscal Q3 revenue reached $1.04 billion, representing a 33% year-over-year increase and surpassing analyst projections of $995.3 million.
- The company achieved 35% growth in gross merchandise volume to $11.6 billion, marking the tenth consecutive quarter exceeding 30% GMV expansion.
- Earnings per share landed at $0.30, significantly exceeding the consensus forecast of $0.17 with a 79.5% positive variance.
- The company elevated its full-year GMV outlook to $49.27–$49.57 billion and revenue projections to $4.18–$4.21 billion.
- AFRM shares have declined approximately 9.5% year-to-date, lagging the S&P 500’s 7.6% advance.
Affirm Holdings delivered robust fiscal third-quarter results on Wednesday, surpassing Wall Street expectations on both the top and bottom lines while elevating its full-year projections for the second consecutive time.
The company generated $1.04 billion in revenue, marking a 33% increase from $783 million in the same period last year. This performance exceeded analyst expectations of $995.3 million. Earnings per share of $0.30 outpaced the $0.17 forecast by nearly 80%, extending the company’s winning streak to four consecutive quarterly earnings beats.
Gross merchandise volume, serving as the primary metric for transaction activity across Affirm’s platform, expanded 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 experienced a modest 1.2% uptick in premarket trading Thursday. Year-to-date in 2026, AFRM has decreased around 9.5% while the S&P 500 has gained 7.6%.
The platform’s active customer base reached 26.8 million, with transactions per customer climbing 20%. The active merchant network expanded to 515,000.
The Affirm Card emerged as a particularly strong performer. Active cardholders more than doubled year over year to reach 4.4 million. Card-related GMV surged 146% to $2.1 billion.
The company generates revenue through merchant service fees, interest income on installment loans, and its debit card offering. All these revenue channels contributed positively to the Q3 performance.
Management Enhances Full-Year Projections
Following the quarterly results, Affirm increased its fiscal-year GMV forecast to $49.27–$49.57 billion, representing an upgrade from the previous range of $48.3–$48.85 billion announced in February.
Full-year revenue guidance now stands at $4.18–$4.21 billion. The analyst community had previously anticipated $4.14 billion.
Looking ahead to the current quarter, Wall Street analysts expect EPS of $0.29 alongside revenue of $1.08 billion. Full-year consensus estimates call for $1.08 EPS and $4.14 billion in revenue.
Credit Performance Remains Stable
The buy-now, pay-later industry faces ongoing scrutiny regarding delinquency trends. A recent LendingTree survey revealed 47% of BNPL users experienced a late payment in the past year, climbing from 41% previously and 34% in 2024.
Affirm addressed these industry concerns, stating the company “continued to drive positive credit outcomes” during Q3. Management reported that delinquency rates across 30-day, 60-day, and 90-day periods remained relatively stable on a sequential basis.
The fintech sector overall has faced challenges throughout 2026. SoFi Technologies experienced its largest single-day decline on record last month following its earnings announcement. The iShares Fintech Active ETF has fallen more than 8% year-to-date.
Affirm currently carries a Zacks Rank of #3 (Hold), indicating expectations for the stock to perform roughly in line with broader market performance in the near term.
Delinquency metrics spanning 30-, 60-, and 90-day categories maintained sequential stability throughout the March quarter.
