Affirm (AFRM) Q1 2027 earnings summary

Executive summary

• GMV rose 34% YoY to $14.4B; revenue increased 35% to $1.262B, and adjusted operating income reached $380M.

• FY'27 GMV guidance exceeds $65.25B; management described 30% growth as a floor, with early Q2 growth in the high 30s.

• Provision for credit losses increased 59% to $259.4M as services, card expansion, underwriting advances and agentic commerce emerged as growth opportunities.

Financial highlights

• Revenue was $1,262M, up 35% YoY; transaction costs were $645M and revenue less transaction costs was $617M, up 36%.

• RLTC excluding provision rose 42% YoY to $876M; Q1 RLTC take rate was 4.3%.

• GAAP operating income was $187.1M versus $63.7M YoY; adjusted operating income was $380M versus $264M. Net income was $164.2M versus $80.7M.

• Operating expenses rose 24% to $1.08B, including provision for credit losses of $259.4M, up 59% YoY.

Outlook and guidance

• FY'27 GMV is expected to exceed $65.25B; revenue as a share of GMV is expected near 8.49% and RLTC as a share of GMV near 4.16%.

• FY'27 GAAP operating margin is expected to exceed 14.75% and adjusted operating margin to exceed 30.75%; management set a 30% GMV growth floor, not a ceiling.

• FY Q2'27 guidance: GMV $17.9B–$18.2B, revenue $1,435M–$1,465M, transaction costs $730M–$745M and RLTC $705M–$720M.

• Early Q2 growth was in the high 30s; international expansion is not expected to materially contribute to FY'27 growth.