Affirm Holdings Reports Q4 Earnings, Revenue Beat, Boosts FY2026 Guidance

Affirm Holdings' Q4 earnings and revenue exceeded expectations, driven by strong gross merchandise volume growth. The company's stock surged 9.6% in after-hours trading. Affirm issued solid guidance for FY2026, with the momentum from Q4 gains driving the positive outlook.

Affirm Holdings Inc. (AFRM) reported strong fourth-quarter earnings that exceeded market expectations, driving its stock to surge in after-hours trading. The company's revenue and profit figures for the quarter surpassed analyst projections, with revenue growing 33% year-over-year to $876 million [1]. Net profit for the quarter was $69.2 million, compared to a loss of $45.1 million in the same period last year. Earnings per share were $0.20, better than the market expectation of $0.11 [2].

A major contributor to Affirm's success was its high rate of repeat customers, which accounted for 95% of transactions in the fourth quarter. CEO Max Levchin celebrated the company's growth, stating, "We didn't just crush this quarter, we actually set a new record in most of our metrics, which is unusual. Fiscal Q2 is the normal peak, but this is Q4 and yet it is the record ... Just to tell you that our growth is accelerating and we are firing on all pistons" [1].

Affirm's gross merchandise volume (GMV) grew 43% year-over-year to $10.4 billion, indicating robust spending volumes. The company also expanded its merchant network to 377,000 partners and boosted transaction frequency by 20% [4]. These achievements reflect Affirm's ability to maintain strong credit performance and continue its growth trajectory.

The company's stock surged 9.6% in after-hours trading following the announcement, reaching $90.40 per share [1]. Affirm's stock price has increased by 31% this year, surpassing the Nasdaq index's increase of 12% [3].

Looking ahead, Affirm issued solid guidance for fiscal year 2026. The company expects its revenue for the first quarter of fiscal year 2026 to be between $855 million and $885 million, while gross merchandise volume is expected to be between $10.1 billion and $10.4 billion [3]. These projections indicate that the momentum from Q4 gains is driving a positive outlook for the company.

Affirm's growth and success can be attributed to its focus on underwriting consumers and maintaining a watchful eye on their ability to repay loans. The company's strategy of leveraging global partnerships and a reusable technology platform is also key to its expansion. Affirm is currently piloting its Shopify model in the U.K. and foresees further international growth [1].

In conclusion, Affirm Holdings' Q4 earnings and revenue exceeded expectations, driving its stock to surge in after-hours trading. The company's strong performance and solid guidance for fiscal year 2026 indicate a robust rebound for the buy now, pay later (BNPL) company.

References:
[1] https://finance.yahoo.com/news/affirm-stock-firing-pistons-record-152558810.html
[2] https://www.bitget.com/news/detail/12560604939554
[3] https://news.futunn.com/en/post/61353487/the-us-version-of-huabei-affirm-afrmus-exceeded-expectations-in
[4] https://www.ainvest.com/news/affirm-stock-surges-strong-q4-results-record-spending-volumes-upbeat-fiscal-2026-guidance-2508/