Affirm reported the most profitable quarter in its history on August 27, 2026, closing its fiscal year with gross merchandise volume (GMV) growth above 30% for the 11th straight quarter. The US buy now, pay later (BNPL) lender’s fiscal fourth quarter ended June 30. For fiscal 2027, it expects more than $64 billion in GMV.
Revenue rose 33% to $1.17 billion, ahead of the $1.11 billion consensus. GMV, the industry’s benchmark metric, grew 36% to $14.1 billion, against expectations of $13.39 billion.
Adjusted and GAAP margins tell different stories
Adjusted operating income came to $353 million, or 30% of revenue. GAAP operating income was $147 million, a 12.6% margin, up 6 percentage points from a year earlier. The gap between the two measures comes mainly from stock-based compensation, which the adjusted figure excludes.
Reported earnings per share of $4.62, against an expected $0.85, say little about operating performance. They include the release of a valuation allowance on deferred tax assets, a one-time item. Management said the quarter would still have been the company’s most profitable without it.
| Metric | Q4 fiscal 2026 | Fiscal 2026 |
|---|---|---|
| GMV | $14.1B | $50.2B |
| Revenue | $1.17B | $4.26B |
| Adjusted operating margin | 30% | not reported for the full year |
| Prior-year GMV | - | $36.7B |
The Affirm Card drives more frequent use
Volume is growing more from heavier use than from new customers. Active consumers rose 21% to 27.8 million, while transactions per active consumer rose 20% to 7.0. The two effects compound, so volume grows faster than either one on its own.
The main driver is the Affirm Card, a Visa debit card that lets users convert a purchase into installments after the fact. It has 5.2 million active consumers, up 125%. Management cited an attach rate of 19% of active accounts and said cardholders spend about twice as much as the typical Affirm customer.
Credit quality improves, with caveats
The 30-day delinquency rate on monthly installment loans, excluding Peloton and Pay in X products, was 2.5%, down from a range of 2.7% to 2.8% in the previous three quarters. Management said it sees no signs of stress in its delinquency data.
The metric’s own definition flags its limits. It leaves out part of the portfolio, and fast loan growth mechanically flatters the ratio: a book that grows quickly holds a large share of loans too new to be past due.
- The metric excludes Pay in X products, the short-term, interest-free installment plans, whose risk profile differs from amortizing loans.
- The dilution effect from growth holds only as long as volume keeps growing more than 30% a quarter.
- Funding costs, not delinquency rates alone, determine net margin on a short-term credit portfolio.
Affirm guides to margin above 30.5% for fiscal 2027
For the first quarter of fiscal 2027, Affirm expects revenue of $1.19 billion to $1.22 billion and GMV of $13.7 billion to $14.0 billion. For the full year, it targets GMV above $64 billion and an adjusted operating margin above 30.5%. It expects revenue less transaction costs of 4.16% of GMV, above the 3.25% to 4% range it presents as its medium-term target.
The quarterly numbers leave one question open. Topping $64 billion in volume means sustaining high double-digit growth for another 12 months, while rules for short-term consumer credit tighten on both sides of the Atlantic.