Affirm Holdings (NASDAQ: AFRM) closed fiscal 2026 with another quarter of rapid scale and a sharp jump in reported profit, then pointed investors toward continued growth in the year ahead. The buy-now-pay-later company, which reports results after the US market close on August 27, 2026, said fourth-quarter revenue reached about $1.17 billion, a 33 percent increase from a year earlier and above the roughly $1.11 billion Wall Street had modeled.
Gross merchandise volume rose 36 percent to $14.1 billion, extending an 11-quarter streak of 30 percent-plus GMV growth and topping the company’s own prior outlook.
That volume came from more frequent, slightly smaller tickets.
Transactions climbed 41 percent to 53 million, while average order value slipped about 4 percent.
Active consumers grew 21 percent to 27.8 million, and those customers completed about 7.0 purchases over the trailing year, up 20 percent.
The merchant network expanded even faster, with active merchants rising more than 50 percent to 571,000.
Revenue less transaction costs, Affirm’s preferred measure of unit economics, increased 39 percent to $589 million.
GAAP earnings were distorted by a one-time tax item.
Affirm released a valuation allowance on most of its US deferred tax assets, producing quarterly net income of about $1.62 billion, or $4.62 per share, versus a consensus near $0.35.
Management stressed that the core business still delivered its most profitable quarter even without that accounting benefit.
For the full fiscal year ended June 30, revenue was $4.26 billion, GMV reached $50.2 billion, and reported net income was $1.93 billion.
The Affirm Card remained a standout.
Card GMV more than doubled to $2.8 billion, active cardholders rose 125 percent to 5.2 million, and about 19 percent of active consumers now carry the product.
Pay-in-X short-term interest-free plans grew 41 percent as more large merchants funded ongoing offers.
Founder and CEO Max Levchin called the period “another quarter of sustained profitable growth,” while promoting Michael Linford to president and Pat Suh to lead global markets so Levchin can spend more time on longer-dated products.
Guidance reinforced the beat.
Affirm expects first-quarter fiscal 2027 revenue of $1.19 billion to $1.22 billion, above the $1.16 billion consensus, and GMV of $13.7 billion to $14.0 billion.
For the full year it sketched GMV above $64 billion, a revenue take rate near 8.5 percent of GMV, and higher operating margins, assuming funding costs stay roughly stable.
Shares closed regular trading at $77.49, up 1.35 percent, then jumped about 9 to 12 percent after hours and into Friday pre-market as investors digested the beat and outlook.
Consensus ratings remain constructive, with an average target in the low $90s.
Oppenheimer’s Rayna Kumar, who lifted her target to $100 before the print, had argued BNPL demand and Affirm’s history of beating guidance supported further upside.
Morgan Stanley kept an Equal Weight stance and an $80 target, warning that fiscal 2027 growth could face tougher comparisons.
Wolfe Research stayed more cautious on valuation.
As expected by now, competition is very tight. U.S. shoppers now split BNPL usage almost evenly among Affirm, Klarna, PayPal Pay Later, and Block’s Afterpay, with Sezzle and Zip also in the mix.
Affirm’s edge remains longer-duration installments, interest income, the card, and higher-ticket categories rather than the short-term pay-in-four model that defines many rivals. Whether that mix can keep GMV compounding above 25 percent while credit stays contained is the question the market will test next.