Affirm (AFRM) Q2 2026 earnings summary

Executive summary

• Reported Q2 FY2026 GMV of $13.8B, up 36% year-over-year, and revenue of $1.12B, a 30% increase, with strong growth in active consumers and transactions per user.

• Net income rose to $129.6M, up 61% from the prior year, and adjusted operating income reached $337M with a 30% margin.

• Affirm Card GMV increased 159% year-over-year, with active cardholders up 121% and 0% deals on the card rising 190%.

• Repeat customer transactions comprised 96% of total, highlighting high retention and engagement.

• Announced an upcoming investor forum and continued business diversification, including international expansion and new verticals.

Financial highlights

• Revenue for Q2 FY2026 was $1.12B, representing 8.1% of GMV, with revenue less transaction costs at $419M, up 47% year-over-year.

• Adjusted operating income was $337M, with a margin of 30%; GAAP operating loss narrowed to $(4)M.

• RLTC (Revenue Less Transaction Costs) take rates expected to remain slightly above 4% in Q3 and Q4.

• Allowance for losses stood at $478M, or 5.4% of loans held for investment.

• Interest income grew 21% year-over-year to $493.6M, and gain on sales of loans increased 48% to $185.2M.

Outlook and guidance

• FY Q3'26 GMV projected at $11.0–$11.25B, Q4 at $12.75–$13.05B, and full-year at $48.3–$48.85B.

• Revenue guidance for Q3 is $970–$1,000M, Q4 is $1,060–$1,090M, and full-year is $4,086–$4,146M.

• Adjusted operating margin for FY 2026 forecasted at 27.4–28.1%, with margin guidance higher than 90 days ago.

• Product mix expected to shift toward more 0% APR GMV, and funding requirements (ECR ratio) to remain below 5%.

• GMV growth expected to slow to 30% in Q3 and 25% in Q4, mainly due to comping a large retail partner transition.