# Affirm (AFRM) Q1 FY2027 earnings

Results filed 2026-11-05 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/afrm/2027-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1820953/000162828026071005/0001628280-26-071005-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $1,262 million | up 35% from a year ago | GAAP |
| Net income | $164,166 | up from $80,694 a year ago | GAAP |
| Diluted EPS | $0.47 | up from $0.23 a year ago | GAAP |
| Operating income | $187 million | a $123 million improvement compared to the $64 million in FQ1’26 | GAAP |
| Operating margin | 14.8% | compared to 6.8% a year ago | GAAP |
| Net cash provided by operating activities | 207,077 | down from 374,572 a year ago | GAAP |
| Revenue Less Transaction Costs | $617 million | up 36% from a year ago | non-GAAP |
| Adjusted Operating Income | $380 million | a 44% increase from the $264 million of Adjusted Operating Income in FQ1’26 | non-GAAP |
| Adjusted Operating Margin | 30% | compared to 28% a year ago | non-GAAP |
| Gross Merchandise Volume | $14.4 billion | up 34% from a year ago |  |

## Segments and operating metrics

| Name | 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 | 658,128 | up 45% |
| Funding capacity | $31.7 billion | up from $26.6 billion at the end of FQ1’26 |

## 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

1. **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.
2. **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.
3. **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%.
4. **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.
5. **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%.

## 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.