Affirm (AFRM) Q4 2026 earnings summary

Executive summary

• Achieved the most profitable quarter ever, excluding tax allowance release, with strong core business performance and leadership promotions to drive tighter execution and product innovation.

• GMV reached $14.1B in Q4 FY'26, up 36% year-over-year, with revenue of $1.17B, up 33% year-over-year.

• Active consumers grew 21% to 27.8M, and transactions per active consumer increased 20% to 7.0.

• Continued expansion into multiple financial products, including credit at point-of-sale, cards, accounts, and business purchases, with a focus on long-term product development.

• Significant greenfield opportunity remains, with presence at only 80 of the top 250 e-commerce sites and 10% of e-commerce merchants, indicating substantial runway for merchant acquisition.

Financial highlights

• Annual GMV for FY'26 was $50.2B, with total revenue of $4.26B, and revenue as a percentage of GMV at 8.5%.

• Revenue less transaction costs for FY'26 was $2.08B, up from $1.48B in FY'25.

• Noted 41% growth in Pay in X products, with the largest product nearly matching that pace.

• Direct-to-consumer products now run north of 80% interest-bearing loans, with Affirm Card scaling as a key driver of mix shift.

• GAAP operating income for FY'26 was $417M, with adjusted operating income at $1.23B.

Outlook and guidance

• FY 2027 GMV expected to exceed $64B, with revenue as a percentage of GMV at ~8.5%.

• GAAP operating margin projected above 14.5%, and adjusted operating margin above 30.5%.

• Fiscal 2027 guidance reflects consistent take rates and a stable funding mix, with slight potential skew toward interest-bearing products.

• Affirm Edge pilots are underway, with broader rollout expected to be a needle mover in fiscal 2028.

• Equity capital required as a percent of platform portfolio expected to remain at or below 5%.