BNPL Fintech Affirm Holdings Inc. (NASDAQ: AFRM) unveiled its fiscal second-quarter 2026 earnings on February 5, 2026, showcasing impressive operational momentum despite broader market uncertainties. The San Francisco-based fintech reported revenue of $1.12 billion, surpassing analyst projections of $1.06 billion by approximately 5.7%.
This marked a substantial year-over-year increase, driven by heightened consumer adoption of flexible payment options during a period of persistent inflation and cautious spending.
A key standout was the company’s gross merchandise volume (GMV), which surged 36% from the prior year, reaching levels that underscored Affirm’s expanding footprint in e-commerce and retail.
This growth persisted even amid challenges, including a major merchant partner transition that temporarily weighed on volumes.
The Affirm Card, a hybrid debit and credit product, emerged as a star performer, with its GMV skyrocketing 160% year-over-year, fueled by a 121% jump in active cardholders.
Active consumers overall grew significantly, contributing to higher transaction volumes and reinforcing Affirm’s strategy to diversify beyond traditional installment loans.
On the profitability front, Affirm delivered an earnings per share (EPS) of $0.37, exceeding consensus estimates of $0.27 by 37%.
This adjusted figure reflects improved operational efficiency, with management emphasizing disciplined credit underwriting and risk management.
However, the company continues to navigate net losses on a GAAP basis, a common trait in the high-growth fintech sector, as investments in technology and partnerships take precedence.
Looking ahead, Affirm provided optimistic guidance, projecting GMV growth of 30% for Q3 and 25% for Q4.
Revenue-less-transaction-costs (RLTC) margins are expected to hover slightly above 4% for the second half of the fiscal year, signaling confidence in sustained profitability amid economic headwinds.
CEO Max Levchin has highlighted the early stages of “agenda commerce” integration, noting ample opportunities for embedding Affirm’s payment buttons across various platforms, including those with human oversight.
He stressed that while no immediate announcements are forthcoming, shareholders should hold the company accountable for expanding its presence in emerging commerce channels.
Market reaction to the report was mixed, with Affirm’s shares dipping 4.41% in after-hours trading on February 5, closing at $59.50.
By the morning of February 6, the stock had stabilized but remained below its 52-week high of $100, reflecting broader investor caution amid volatile tech valuations and interest rate concerns.
Analysts attributed the pullback to profit-taking rather than fundamental weaknesses, pointing to the company’s strong execution as a counterbalance.
Industry experts echoed this sentiment.
Analysts at Goldman Sachs acknowledged Affirm’s “strategic focus and execution,” raising their price target to $95, citing the Affirm Card’s momentum as a key driver for long-term revenue diversification.
Similarly, Wells Fargo’s team noted in a post-earnings note that the 36% GMV expansion “demonstrates resilience in a softening retail environment,” while forecasting full-year fiscal 2026 revenues at $4.05 billion, a 25.7% rise.
Deutsche Bank’s insights highlighted potential upside from partnerships, warning that macroeconomic factors like consumer debt levels could pose risks but affirming a buy rating.
Overall, Wall Street‘s consensus remains bullish, with a median price target of $95 across 38 analysts, implying significant upside from current levels.
