Affirm (AFRM) Q2 2026 earnings summary

Executive summary

• GMV reached $13.8B in FY Q2'26, up 36% year-over-year, with revenue of $1.12B, a 30% increase, and net income rising 61% to $129.6M, reflecting strong profitability and engagement.

• Active consumers grew 23% to 25.8M, with transactions per active consumer up 20% to 6.4, and repeat customer transactions comprising 96% of total.

• Affirm Card GMV up 159% year-over-year, with active cardholders up 121%, and direct-to-consumer initiatives driving outsized growth.

• Business diversification increased, with the 'other' GMV category now the second largest and growing triple digits, reflecting a broadening merchant base.

• No significant impact observed from aggressive competitor promotions; simplicity and transparency of offerings remain a key differentiator.

Financial highlights

• Revenue for FY Q2'26 was $1.12B, up 30% year-over-year, with revenue less transaction costs at $419M, up 47%, and adjusted operating income at $337M with a 30% margin.

• GMV reached $13.8B, up 36% year-over-year, and Affirm Card GMV up nearly 160%.

• RLTC (Revenue Less Transaction Costs) take rates expected slightly above 4% for Q3 and Q4, with margin expansion and improved FY 2026 guidance.

• Allowance for losses stood at $478M, or 5.4% of loans held for investment, with loss provisions and credit metrics tightly managed.

• Net income for the quarter was $129.6M, up from $80.4M a year ago, and operating income improved significantly.

Outlook and guidance

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

• Revenue guidance for FY Q3'26 is $970–$1,000M, Q4 is $1,060–$1,090M, and full-year is $4,086–$4,146M.

• RLTC margins to remain slightly above 4% for the remainder of the year, with adjusted operating margin for FY 2026 forecasted at 27.4–28.1%.

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

• Continued focus on expanding Affirm Card, international business, and merchant partnerships, with more countries and products in the pipeline.