Affirm Holdings, Inc.

What they do

Affirm offers point-of-sale installment loans that consumers use to pay for purchases over time. Its three main loan products are Pay-in-X (one to four 0% APR installments), 0% APR monthly installment loans, and interest-bearing monthly installment loans. It earns merchant fees when it converts a sale and interest income on interest-bearing loans it originates or purchases from bank partners. The company says it has charged $0 in late fees since founding and does not charge deferred or compounding interest.

Revenue drivers

• Merchant fees — Affirm typically earns a fee from merchants when it facilitates a transaction, with larger fees generally on 0% APR financing products; in fiscal 2026, Pay-in-X and 0% APR installment loans were 16% and 14% of total GMV, respectively.
• Interest income — Affirm earns simple interest on interest-bearing monthly installment loans it originates or purchases from originating bank partners, with rates set by transaction risk, creditworthiness, term, loan amount and merchant arrangement.
• Affirm Card and consumer app — The consumer app and Affirm Card allow consumers to apply for installment loans, use the card online or in stores, split card transactions into a loan, manage payments, open a high-yield savings account and access a personalized marketplace.
• Commerce enablement and data tools — Affirm provides merchants with demand generation, consumer acquisition and product-level data and insights intended to drive incremental sales and higher average order values.

Recent performance

Fiscal 2026 revenue rose to $1.44B from $1.11B in fiscal 2025, and net income was $1.93B versus $52.2M, with diluted EPS of $5.53 versus $0.15. For the quarter ended March 31, 2026, total revenue, net was $1.04B, up 33% from $783.1M a year earlier, and net income was $102.9M versus $2.8M. Nine-month fiscal 2026 revenue was $3.10B, up 32% from $2.35B, and operating income was $269.7M versus a $145.3M operating loss. Operating cash flow rose to $1.23B in fiscal 2026 from $793.9M in fiscal 2025. Recent quarterly revenue figures were $320.5M, $401.4M, $334.5M and $387.5M for the quarters ended September 30, December 31, March 31 and June 30.

Strategy

Affirm says it is building the next generation payment network and describes its proprietary technology, underwriting and risk management as key competitive advantages. It states its risk models are built on extensive data, including approximately 553 million loans to date, and are designed to improve with each transaction. Management highlights technology and data as core to the business and says it prioritizes building its own technology and investing in product and engineering talent. The company also refers to plans for the establishment of Affirm Bank, without stating timing in the excerpts provided.

Risks

• Partner concentration — Affirm states it relies on a small number of commercial partners, so losing or failing to grow those relationships could materially harm results.
• Intense competition — The company operates in a highly competitive industry, and failing to compete successfully would materially and adversely affect its business and results.
• Funding dependence — Affirm depends on maintaining and replacing funding arrangements and bank partners, and any unwillingness or inability of funding sources to provide capital on acceptable terms could harm the business.
• Regulatory and rate caps — Affirm cites developments in its regulatory environment, including governmental actions to cap interest rates, as a risk factor.

Outlook

Affirm's annual report and latest quarterly filing describe forward-looking expectations for future revenue, expenses and key operating metrics. The company also flags uncertainty from persistent inflation, an elevated interest rate environment, recessionary concerns, and tariffs on global trade. The 10-K lists sustaining profitability in the future and growing revenue among its forward-looking statements. Management has not provided specific numeric guidance in the excerpts provided.