Quick Summary
- Affirm delivered fiscal Q3 revenue of $1.04 billion, marking a 33% year-over-year increase and surpassing Wall Street’s $995.3 million projection.
- The company’s gross merchandise volume expanded 35% to reach $11.6 billion, maintaining a streak of double-digit percentage growth for ten consecutive quarters.
- Earnings per share hit $0.30, significantly exceeding the analyst consensus of $0.17, representing a 79.5% positive surprise.
- Management upgraded full-year GMV projections to $49.27–$49.57 billion and boosted revenue expectations to $4.18–$4.21 billion.
- AFRM shares have declined approximately 9.5% year-to-date in 2026, trailing the S&P 500’s 7.6% advance during the same period.
Affirm Holdings delivered an impressive fiscal third-quarter performance on Wednesday, surpassing Wall Street expectations across key metrics while upgrading its full-year projections for the second consecutive time.
The buy-now-pay-later platform generated $1.04 billion in revenue, representing a 33% jump from the $783 million recorded in the same period last year. This figure exceeded the Street’s consensus forecast of $995.3 million. Earnings per share of $0.30 sailed past the anticipated $0.17, marking an almost 80% beat and extending the company’s winning streak to four consecutive quarters of earnings surprises.
Gross merchandise volume, which serves as the primary gauge of transaction flow through Affirm’s ecosystem, increased 35% to $11.6 billion. In his shareholder communication, CEO Max Levchin highlighted this achievement as the firm’s “tenth consecutive quarter of over-30% growth.”
Shares edged higher by approximately 1.2% during Thursday’s premarket session. However, AFRM has fallen roughly 9.5% throughout 2026, contrasting with the S&P 500’s 7.6% positive return.
The platform’s active user base expanded to 26.8 million, while transaction frequency per customer climbed 20%. The active merchant network grew to 515,000 partners.
The Affirm Card product line demonstrated exceptional momentum. Active cardholders more than doubled on a year-over-year basis, reaching 4.4 million users. Card-related GMV skyrocketed 146% to $2.1 billion.
Affirm generates revenue through multiple channels including merchant discount fees, interest income from installment financing, and its debit card offering. All revenue streams contributed positively to the third-quarter performance.
Forecast Receives Second Consecutive Boost
Following the strong quarterly showing, Affirm increased its fiscal-year GMV outlook to $49.27–$49.57 billion, raising the bar from its previous February guidance of $48.3–$48.85 billion.
Full-year revenue expectations now stand at $4.18–$4.21 billion. The Street had been anticipating $4.14 billion.
Looking ahead to the current quarter, analyst estimates call for EPS of $0.29 on revenue of $1.08 billion. For the complete fiscal year, consensus projections point to $1.08 in earnings per share on $4.14 billion in total revenue.
Credit Performance Remains Stable
A persistent worry surrounding the buy-now, pay-later industry involves climbing delinquency metrics. A recent LendingTree study revealed that 47% of BNPL consumers experienced a late payment within the past year, an increase from 41% in the prior survey and 34% in 2024.
Affirm countered this industry concern, asserting it “continued to drive positive credit outcomes” throughout Q3. Management disclosed that delinquency rates across 30-day, 60-day, and 90-day categories remained relatively stable on a sequential basis.
The fintech industry overall has faced headwinds in 2026. SoFi Technologies experienced its most significant single-day decline in company history last month despite reporting better-than-expected results. The iShares Fintech Active ETF has retreated more than 8% year-to-date.
Affirm currently carries a Zacks Rank of #3 (Hold), indicating the equity is anticipated to deliver market-level performance in the near term.
Delinquency metrics spanning 30-, 60-, and 90-day timeframes maintained sequential stability throughout the March quarter.
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