Affirm (AFRM) · Financial Technology
Affirm Q1 FY2027 earnings: summary, key numbers & outlook
Results filed 5 Nov 2026 · Quarter ended 30 Sep 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Affirm's first fiscal quarter of 2027 delivered total revenue of $1,262 million (+35%), GMV of $14.4 billion (+34%), Operating Income of $187 million and Net Income of $164M.
Affirm had a strong start to fiscal 2027. Total revenue grew 35% to $1,262 million as Gross Merchandise Volume (GMV), the dollars spent through its platform, grew 34% to $14.4 billion. Revenue Less Transaction Costs grew 36% to $617 million. Operating Income was $187 million versus $64 million a year earlier, and net income was $164M. Affirm Card was the engine: Card GMV grew 117% and active cardholders reached 6.0 million.
For the second fiscal quarter, Affirm guides to GMV of $17.9 to $18.2 billion and revenue of $1,435 to $1,465 million. For the full year it expects GMV of more than $65.25 billion. The main tension is credit and funding. Delinquencies and the loan loss provision rose, and funding costs increased 27 basis points from the prior quarter as benchmark rates rose. Management also expects higher enterprise warrant expense in the second quarter.
Key numbers
- Total revenue · GAAP
- $1,262 million
- Net income · GAAP
- $164.2M
- Diluted EPS · GAAP
- $0.47
- Operating income · GAAP
- $187 million
- Operating margin · GAAP
- 14.8%
- Net cash provided by operating activities · GAAP
- $207.1M
- Revenue Less Transaction Costs · non-GAAP
- $617 million
- Adjusted Operating Income · non-GAAP
- $380 million
up 35% from a year ago
up from $80,694 a year ago
up from $0.23 a year ago
a $123 million improvement compared to the $64 million in FQ1’26
compared to 6.8% a year ago
down from 374,572 a year ago
up 36% from a year ago
a 44% increase from the $264 million of Adjusted Operating Income in FQ1’26
| Segment or metric | Value | Change |
|---|---|---|
| Affirm Card GMV | $3.3 billion | up 117% |
| Direct-to-Consumer GMV | $5.1 billion | up 55% |
| Active cardholders | 6.0 million | more than doubled year over year |
| Active consumers | 28.7 million | up 19% |
| Active merchants | 621 thousand | up 48% |
| Total transactions | 56 million | up 34% |
| Interest income | $658.1M | up 45% |
| Funding capacity | $31.7 billion | up from $26.6 billion at the end of FQ1’26 |
Where each number comes from
- Total revenue: “Total revenue grew 35% to $1,262 million. Revenue as a percentage of GMV was 8.79%, above the high end of our 7.5% to 8.5% medium term range”
- Net income: “Income before income taxes $ 205,052 $ 83,019 Income tax expense 40,886 2,326 Net income $ 164,166 $ 80,694 Other comprehensive income (loss)”
- Diluted EPS: “Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.48 $ 0.24 Diluted $ 0.47 $ 0.23 Weighted average common shares outstanding”
- Operating income: “Operating Income was $187 million, a $123 million improvement compared to the $64 million in FQ1’26. Operating Income as a percentage of revenue, or Operating Margin, was approximately 14.8% in the period”
- Operating margin: “Operating Income as a percentage of revenue, or Operating Margin, was approximately 14.8% in the period, compared to 6.8% during FQ1’26.”
- Net cash provided by operating activities: “Net cash provided by operating activities 207,077 374,572 Cash flows from investing activities Purchases and origination of loans held for investment (13,792,617)”
- Revenue Less Transaction Costs: “RLTC grew 36% to $617 million. RLTC as a percentage of GMV increased 7 basis points to 4.30%, above the high end of our 3.75 to 4% medium-term target range.”
- Adjusted Operating Income: “Adjusted Operating Income was $380 million, a $116 million improvement and 44% increase from the $264 million of Adjusted Operating Income in FQ1’26.”
- Affirm Card GMV: “Direct-to-Consumer GMV (D2C GMV) grew 55% to $5.1 billion driven almost entirely by Affirm Card GMV, which grew 117% to $3.3 billion.”
- Direct-to-Consumer GMV: “Direct-to-Consumer GMV (D2C GMV) grew 55% to $5.1 billion driven almost entirely by Affirm Card GMV, which grew 117% to $3.3 billion.”
- Active cardholders: “Active cardholders again more than doubled year over year to 6.0 million as card attach rate increased to approximately 21%, up about two points sequentially”
- Active consumers: “Active consumers increased 19% to 28.7 million as of September 30, 2026, while transactions per active consumer also increased 19% to 7.3”
- Active merchants: “Active merchant count increased 48% to 621 thousand as of September 30, 2026.”
- Total transactions: “Total transactions during the quarter increased to 56 million, growing 34%, in line with overall GMV growth, while Average Order Value (AOV) declined by 1%, to $258.”
- Interest income: “Total network revenue 393,418 320,477 Interest income 658,128 454,122 Gain on sales of loans 162,172 119,049 Servicing income 48,498 39,689”
- Funding capacity: “Funding Capacity increased to $31.7 billion at the end of FQ1’27, up from $26.6 billion at the end of FQ1’26, and $30.0 billion at the end of FQ4’26.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q1 FY2027 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $1.3B | +35.2% | +8.3% |
| Operating income | $187.1M | +193.8% | +27.0% |
| Net income | $164.2M | +103.4% | −89.8% |
| Diluted EPS | $0.47 | +104.3% | — |
| Free cash flow | $144.6M | −54.9% | −36.9% |
| Operating margin | 14.8% | +8.0 pts | +2.2 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| GMV | fiscal Q2 2027 | $17.9 to $18.2 billion |
| Revenue | fiscal Q2 2027 | $1,435 to $1,465 million |
| Revenue Less Transaction Costs | fiscal Q2 2027 | $705 to $720 million |
| Operating margin | fiscal Q2 2027 | 11.50 to 13.50% |
| Adjusted operating margin | fiscal Q2 2027 | 29.50 to 31.50% |
| GMV | fiscal 2027 | More than $65.25 billion |
| Revenue as a % of GMV | fiscal 2027 | Similar to FY'26 as a % of GMV (~8.49%) |
| Revenue Less Transaction Costs as a % of GMV | fiscal 2027 | Similar to FY'26 as a % of GMV (~4.16%) |
| Operating margin | fiscal 2027 | More than 14.75% |
| Adjusted operating margin | fiscal 2027 | More than 30.75% |
| Equity Capital Required as a % of Total Platform Portfolio | fiscal 2027 | at or below 5% |
Key takeaways
Growth stayed above 30% for twelve quarters
GMV grew 34% to $14.4 billion, the twelfth consecutive quarter of GMV growth sustained above 30%. Revenue grew 35% to $1,262 million.
Affirm Card is the main growth driver
Card GMV grew 117% to $3.3 billion, and active cardholders increased 112% to 6 million. Card accounted for 23% of GMV during the quarter.
Profitability improved sharply year over year
Operating Income was $187 million versus $64 million a year ago, and Operating Margin was approximately 14.8% versus 6.8%. Adjusted Operating Margin was 30.1% versus 28.3%.
Credit costs and funding costs rose
Provision for credit losses was $259,357 thousand versus $162,752 thousand a year ago, and 30+ day delinquencies excluding Peloton and Pay in X loans rose to 2.9%. Average funding costs were 6.0%, up 27 basis points sequentially.
Fiscal 2027 outlook points to continued growth
Affirm guides to FQ2 GMV of $17.9 to $18.2 billion and fiscal 2027 GMV of more than $65.25 billion. It expects fiscal 2027 Operating Margin of more than 14.75%.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q2 FY25 | $866.4M |
| Q3 FY25 | $783.1M |
| Q4 FY25 | $876.4M * |
| Q1 FY26 | $933.3M |
| Q2 FY26 | $1.1B |
| Q3 FY26 | $1.0B |
| Q4 FY26 | $1.2B * |
| Q1 FY27 | $1.3B |
Data
| Q2 FY25 | $0.23 |
| Q3 FY25 | $0.01 |
| Q1 FY26 | $0.23 |
| Q2 FY26 | $0.37 |
| Q3 FY26 | $0.30 |
| Q1 FY27 | $0.47 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q2 FY25 | -0.5% |
| Q3 FY25 | -1.1% |
| Q4 FY25 | 6.6% |
| Q1 FY26 | 6.8% |
| Q2 FY26 | 10.5% |
| Q3 FY26 | 8.5% |
| Q4 FY26 | 12.6% |
| Q1 FY27 | 14.8% |
Data
| Q2 FY25 | $268.1M |
| Q3 FY25 | $157.4M |
| Q4 FY25 | $23.5M |
| Q1 FY26 | $320.2M |
| Q2 FY26 | $118.0M |
| Q3 FY26 | $325.1M |
| Q4 FY26 | $229.3M |
| Q1 FY27 | $144.6M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Affirm's key results for the first quarter of fiscal 2027?
Total revenue grew 35% to $1,262 million and GMV grew 34% to $14.4 billion. Operating Income was $187 million and net income was $164.2 million.
How fast is Affirm Card growing?
Affirm Card GMV grew 117% to $3.3 billion, and active cardholders increased 112% to 6 million. Card represented 23% of total GMV in the quarter.
What is Affirm guiding for next quarter and the full year?
For fiscal Q2 2027, Affirm guides to GMV of $17.9 to $18.2 billion and revenue of $1,435 to $1,465 million. For fiscal 2027 it expects GMV of more than $65.25 billion and Operating Margin of more than 14.75%.
How is credit quality trending?
30+ day delinquencies excluding Peloton and Pay in X loans were 2.9%, up 9 basis points year over year and 35 basis points quarter over quarter. Recent monthly installment loan cohorts are tracking toward approximately 3.5% ultimate net charge-offs, in line with expectations.
How did funding and liquidity look?
Funding capacity rose to $31.7 billion from $26.6 billion a year earlier, and average funding costs were 6.0%, down about 69 basis points year over year but up 27 basis points sequentially. Net cash was $1.9 billion.
Documents
SEC filing