Affirm Holdings 2026 Q1 Earnings Record Net Income Surges 180.5%

Affirm Holdings (AFRM) reported Q1 2026 earnings on Nov 6, 2025, with revenue of $933.34 million, surpassing estimates and marking a 33.6% year-over-year increase. The company returned to profitability with EPS of $0.24, reversing a $0.31 loss in Q1 2025. Affirm raised its FY2026 guidance, projecting GMV over $47.5 billion and operating margins exceeding 7.5%.

Revenue

Affirm’s total revenue surged to $933.34 million in Q1 2026, a 33.6% increase from $698.48 million in Q1 2025. The Merchant Network segment drove growth with $251.15 million in revenue, reflecting a 36.2% year-over-year rise. The Card Network contributed $69.33 million, up 46% annually. Interest income expanded to $454.12 million, a 20.4% increase, while Servicing Income reached $39.69 million, up 52.8%. Additionally, Gain on Sales of Loans totaled $119.05 million, representing an 87.2% year-over-year jump.

Earnings/Net Income

Affirm returned to profitability in Q1 2026, reporting EPS of $0.24 and net income of $80.69 million, a 180.5% turnaround from a $100.22 million loss in Q1 2025. This marked a record high for Q1 net income in seven years. The company’s ability to reverse losses underscores its improved operational efficiency and strategic execution.

Price Action

Affirm’s stock price declined 7.28% on the latest trading day, 4.27% over the week, and 13.95% month-to-date. Despite strong earnings, the post-announcement dip suggests market skepticism about sustainability, possibly influenced by macroeconomic uncertainties and insider selling activity. The mixed price action highlights investor caution ahead of future guidance clarity.

CEO Commentary

CEO Max Levchin emphasized Affirm’s strategic wins, including the renewed U.S. Amazon agreement for five years through 2031. He highlighted the importance of Payment Service Provider (PSP) relationships in accelerating merchant integration and expanding reach. Levchin also noted the success of 0% APR promotions in driving consumer engagement and credit quality, calling it a “unique” differentiator. He expressed optimism about the Affirm Card’s growth trajectory and the company’s ability to adapt to new verticals like services and automotive through data-driven underwriting models.

Guidance

Affirm maintained its 4% target for revenue less transaction cost (RLTC) as a percentage of GMV for FY2026, with CFO Robert O’Hare stating this aligns with long-term growth and profitability goals. The company guided Q2 GMV to $13.0–$13.3 billion and updated operating margin guidance to exceed 7.5% for FY2026.

Additional News

Affirm extended its partnership with Amazon for five years, reinforcing its position in the e-commerce sector. The company also expanded collaborations with Wayfair and Worldpay, integrating its BNPL services into key retail and payment platforms. Additionally, insider selling activity, including CFO Robert O’Hare’s $2.6 million share sale in September, raised investor concerns about confidence in the stock’s valuation.

Additional News