Affirm 2026 Q1 Earnings Record Net Income Surges 180.5% from Turnaround

Affirm Holdings (AFRM) reported its fiscal 2026 Q1 earnings on Nov 6, 2025, delivering a dramatic turnaround with $80.69 million net income—180.5% higher than the $-100.22 million loss in the prior-year period. The company exceeded analyst expectations, posting $0.24 EPS (up from -$0.31) and guiding to FY26 GMV of $47.5B+.

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Revenue**

Affirm’s total revenue surged 33.6% to $933.34 million in Q1 2026, driven by robust demand for its buy-now-pay-later services. The 42% growth in gross merchandise value (GMV) to $10.8B underscored broader merchant and consumer adoption of the platform.

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Earnings/Net Income**

The company returned to profitability with $0.24 EPS, reversing a $0.31 loss in 2025 Q1. Net income of $80.69 million marked a record high for a fiscal Q1, reflecting disciplined cost management and operational efficiency. The 180.5% net income turnaround and 177.4% EPS improvement highlight Affirm’s successful cost management and operational efficiency.

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Price Action**

Despite the earnings beat, Affirm’s stock faced downward pressure, dropping 7.28% in the latest trading day, 4.27% over the week, and 13.95% month-to-date.

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Post-Earnings Price Action Review**

While the earnings report spurred an 11% post-announcement surge in after-hours trading, the stock’s subsequent decline reflected mixed market sentiment. Investors grappled with the company’s strong profitability metrics versus broader macroeconomic uncertainties, including potential interest rate adjustments. The drop in price action over the following days and weeks highlighted lingering concerns about sustainability of margins and credit risk management.

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CEO Commentary**

Max Levchin emphasized Affirm’s “stellar results,” citing 53% D2C GMV growth and 135% Affirm Card GMV growth. He underscored the importance of trust and data-driven credit models while stressing disciplined execution.

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Guidance**

Affirm projected FY26 GMV of $47.5B+, with revenue expected to remain ~8.4% of GMV. Operating margin is targeted at >7.5%, and adjusted operating margin above 27.1%. The company anticipates declining warrant expenses and benchmark interest rates, supporting long-term funding capacity beyond $60B GMV annually.

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Additional News**

Affirm announced a conference call and webcast on Nov 6, 2025, at 2:00 PM PT, featuring CEO Max Levchin and CFO Rob O’Hare. The company also reiterated its commitment to expanding AI-driven product innovations and international markets, though these are not expected to significantly impact FY26 growth.

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