Earnings

Affirm Extends 30% GMV Growth Streak to a Twelfth Quarter

The Tip Desk · November 6, 2026 · 4 min read

Gross merchandise volume reached $14.4 billion in the fiscal first quarter, up 34% and faster than the prior quarter, as revenue less transaction costs hit $617 million.

Affirm Holdings (AFRM), the buy-now-pay-later network, posted gross merchandise volume of $14.4 billion in the fiscal first quarter ended September 30, 2026, up 34% from a year earlier and marking a twelfth consecutive quarter of growth above 30%. The company said the pace accelerated sequentially from the fiscal fourth quarter of 2026.

Total revenue grew 35% to $1,262 million. Revenue as a percentage of GMV was 8.79%, above the high end of the company’s 7.5% to 8.5% medium-term range and 11 basis points higher than in the year-ago quarter.

Revenue less transaction costs rose 36% to $617 million. RLTC as a percentage of GMV increased 7 basis points to 4.30%, above the high end of the 3.75% to 4% medium-term target. The company attributed the 7 basis-point lift to an 11 basis-point increase in revenue, a 9 basis-point improvement in loss on loan purchase commitment, a 9 basis-point improvement in funding costs, and a 7 basis-point improvement in processing and servicing expenses, mostly offset by a 29 basis-point increase in provision for loan losses.

Adjusted operating income was $380 million, up 44% from $264 million a year earlier, and the adjusted operating margin was 30%. GAAP operating income was $187 million, or about 14.8% of revenue, compared with $64 million, or 6.8%, in the year-ago quarter. The $187 million of operating income included $51 million of enterprise warrant and share-based expenses tied to warrants granted to two enterprise partners. Net income was $164 million, the eighth consecutive quarter of GAAP profitability.

Direct-to-consumer GMV grew 55% to $5.1 billion, driven almost entirely by Affirm Card GMV, which grew 117% to $3.3 billion. Card accounted for 23% of GMV. Active cardholders increased 112% to 6.0 million, and the card attach rate rose to about 21%. The mix of GMV from the top five partners declined to 40% from 44% a year earlier. All categories grew, with notable strength in services, home/lifestyle, and the “other” category that includes long-tail merchants and wallet partners.

Total transactions increased to 56 million, in line with GMV growth, while average order value declined 1% to $258. The company said the higher transaction count and slight AOV decline were largely attributable to efforts to lower cart floors. Active consumers increased 19% to 28.7 million as of September 30, 2026, and transactions per active consumer rose 19% to 7.3 over the trailing twelve months. Active merchant count increased 48% to 621 thousand; international expansion into Canada and the UK accounted for about 20% of the quarter-over-quarter increase in merchants.

Network revenue grew 23%, slower than GMV, with network revenue as a percentage of GMV down 24 basis points on a mix shift toward D2C. Interest income grew 45%, above the 38% increase in average net loans held for investment; the average APR on interest-bearing loans rose about 40 basis points year over year. Gain on sales of loans grew 36% on 27% growth in loans sold, and gain on sale as a percentage of loans sold rose 17 basis points.

Funding costs declined about 69 basis points year over year to a 6.0% average annualized cost of funds, a tailwind to RLTC as a percentage of GMV, but increased 27 basis points sequentially on higher benchmark rates. Fixed-cost funding represented more than 70% of outstanding on-balance-sheet funding at quarter-end. Thirty-plus day delinquencies excluding Peloton and Pay in X loans increased 9 basis points year over year and 35 basis points quarter over quarter to 2.9%.

Funding capacity increased to $31.7 billion at the end of the quarter, from $30.0 billion at the end of the fiscal fourth quarter of 2026. The company said that capacity can support more than $70 billion in annual GMV based on a weighted-average loan duration of about five months. Net cash was $1.9 billion.

For the fiscal second quarter of 2027, Affirm expects GMV of $17.9 billion to $18.2 billion, revenue of $1,435 million to $1,465 million, RLTC of $705 million to $720 million, an operating margin of 11.50% to 13.50%, and an adjusted operating margin of 29.50% to 31.50%. The company said enterprise warrant expense is expected to be seasonally higher in the second quarter and that a UK enterprise launch in late fiscal first quarter is expected to accelerate the rate at which enterprise warrants are earned.

More on AFRM

August 28, 2026 Earnings Affirm RLTC Growth Accelerates to 41% Year Over Year

Affirm Holdings, Inc. — all coverage and financials