Quick Summary
- Affirm delivered fiscal Q3 revenue of $1.04 billion, representing a 33% year-over-year increase and surpassing analyst projections of $995.3 million.
- The company’s gross merchandise volume surged 35% to reach $11.6 billion, marking the tenth consecutive quarter exceeding 30% GMV expansion.
- Earnings per share hit $0.30, significantly outperforming the consensus forecast of $0.17 with a remarkable 79.5% positive surprise.
- Management elevated full-year GMV projections to $49.27–$49.57 billion and increased revenue expectations to $4.18–$4.21 billion.
- Notwithstanding the impressive results, AFRM shares have declined approximately 9.5% year-to-date, trailing the S&P 500’s 7.6% advance.
Affirm Holdings unveiled impressive fiscal third-quarter results this Wednesday, surpassing Wall Street expectations across key metrics while simultaneously upgrading its full-year projections for the second consecutive time.
The payment platform’s revenue reached $1.04 billion, marking a 33% jump from the $783 million recorded in the same period last year. This performance exceeded the Street’s consensus target of $995.3 million. Earnings per share registered at $0.30, demolishing the $0.17 projection by approximately 80%, extending the company’s streak of quarterly earnings beats to four consecutive periods.
Gross merchandise volume—the critical metric measuring transaction flow through Affirm’s ecosystem—expanded 35% to hit $11.6 billion. In a shareholder communication, CEO Max Levchin highlighted this achievement as the company’s “tenth consecutive quarter of over-30% growth.”
Shares experienced a modest 1.2% uptick during Thursday’s premarket session. However, AFRM has surrendered roughly 9.5% of its value in 2026 while the broader S&P 500 has climbed 7.6%.
The platform’s active user base expanded to 26.8 million, accompanied by a 20% increase in transactions per customer. The active merchant network grew to 515,000 partners.
The Affirm Card product line emerged as a particularly bright spot. Active cardholders more than doubled year-over-year, reaching 4.4 million users. Card-related GMV exploded 146% to $2.1 billion.
Affirm generates revenue through multiple channels including merchant discount fees, interest charges on installment financing, and its debit card offering. All three revenue streams contributed meaningfully to the Q3 outperformance.
Forward Guidance Receives Second Boost
Capitalizing on the quarter’s momentum, Affirm elevated its fiscal-year GMV outlook to $49.27–$49.57 billion, representing an increase from the previous $48.3–$48.85 billion range established in February.
Full-year revenue projections now stand at $4.18–$4.21 billion. The analyst community had previously anticipated $4.14 billion.
Looking ahead to the current quarter, Wall Street forecasts call for EPS of $0.29 on revenue of $1.08 billion. Full-year consensus estimates point to $1.08 in earnings per share on $4.14 billion in revenue.
Asset Quality Remains Stable
A persistent worry shadowing the buy-now, pay-later industry involves escalating delinquency trends. Recent research from LendingTree revealed that 47% of BNPL consumers experienced a late payment within the past year, climbing from 41% in the prior period and 34% in 2024.
Affirm countered this industry narrative, asserting it “continued to drive positive credit outcomes” throughout Q3. Management disclosed that delinquency rates across the 30-day, 60-day, and 90-day windows remained relatively unchanged on a sequential basis.
The wider fintech industry has encountered headwinds throughout 2026. SoFi Technologies experienced its largest single-session decline on record last month despite posting strong earnings. The iShares Fintech Active ETF has retreated more than 8% year-to-date.
Affirm presently carries a Zacks Rank of #3 (Hold), indicating analysts anticipate the stock will deliver market-like performance in the near term.
Delinquency metrics spanning 30-, 60-, and 90-day categories maintained sequential stability throughout the March quarter.
