Affirm Holdings reported its fiscal second‑quarter 2026 results on February 5, 2026, delivering revenue of $1.12 billion—up 29% from $866.4 million in Q2 2025—and earnings per share of $0.37, a $0.09 or 32% beat over the consensus estimate of $0.28. The company’s gross merchandise volume grew 36% year‑over‑year to $13.8 billion, driven by a 52% jump in direct‑to‑consumer volume and a 159% surge in card‑based GMV, underscoring the rapid expansion of its two‑sided payment network.
Affirm’s active consumer base rose 23% to 25.8 million, while active merchants expanded 42% to roughly 478,000, reflecting deeper penetration of its merchant and consumer platforms. Credit quality remained stable, with a 30‑day delinquency rate of 2.7% and an allowance for credit losses of 5.4% of loans held for investment. The company disclosed a provision for credit losses of $214.2 million in Q2 2026, up from $153 million a year earlier, highlighting a higher reserve build‑up amid a modest increase in credit risk exposure.
Management raised its full‑year revenue guidance to $4.09 billion–$4.15 billion, an upward revision that signals confidence in continued demand. The company reiterated its gross merchandise volume target of $48.3 billion–$48.85 billion for the year, a level that aligns with the growth trajectory of its card and merchant segments. Adjusted operating margin for the quarter reached 30.0%, up from 28.3% in the prior quarter and 27.4% a year earlier, reflecting improved pricing power and operational leverage as the business scales.
CEO Max Levchin emphasized that “consumer is quite healthy” and highlighted the card business as a key growth engine, positioning the company as a “modern‑day American Express” that balances transparency with expansion. CFO Robert O’Hare noted a shift in the top five merchant partners, which weighed on take‑rate metrics but was offset by the broader merchant network’s growth. The company also highlighted its strategic focus on international expansion, particularly in the United Kingdom, and exploration of new verticals such as rent and B2B services.
Investors reacted cautiously, focusing on a projected slowdown in gross merchandise volume growth—30% in Q3 and 25% in Q4—alongside the higher credit loss provisions. Competition in the buy‑now‑pay‑later space, regulatory uncertainty, and a high valuation multiple of 7.5x EV/sales contributed to a tempered market response, despite the earnings and revenue beats.
The Q2 2026 results demonstrate that while the company is executing well on its growth strategy, it faces headwinds that could temper momentum in the coming quarters. The raised guidance reflects management’s confidence, but the noted slowdown and credit provisions signal areas where the company will need to maintain discipline to sustain its performance.
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