Company Reports

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been effective, as both transaction volume and the number of merchants using Affirm saw rapid growth in fiscal 2026. While we do expect transaction volume growth to slow over time, we see a long runway for growth for Affirm and project average spending volume growth of 22.4% over the next five years, as consumer demand for buy now, pay later loans continues to see strong momentum.

Affirm reported strong results in the fourth quarter of its 2026 fiscal year, driven by robust gross merchandise volume growth and distinguished by expanding operating margins. Revenue increased 33% to $1.17 billion from a year ago, while operating income grew 153% to $147 million.

Affirm has had an excellent fiscal 2026 as it has scaled deeper into profitability amid strong buy now, pay later demand. Additionally, concerns that private credit weakness would affect secondary demand for Affirm's loans have proved to be unfounded, removing an overhang from the shares.

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been effective, as both transaction volume and the number of merchants using Affirm saw accelerating growth in fiscal 2025. While we do expect transaction volume growth to slow over time, we see a long runway for growth for Affirm and project average spending volume growth of 25.1% over the next five years. As a case in point, Affirm has seen only minimal growth deceleration in the first three quarters of its fiscal 2026.

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been unquestionably effective as both transaction volume and the number of merchants using Affirm saw accelerating growth in fiscal 2025. While we do expect transaction volume growth to slow over time, we see a long runway for growth for Affirm and project average spending volume growth of 24.2% over the next five years. As a case in point, Affirm has seen only minimal growth deceleration in the first three quarters of its fiscal 2026.

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been unquestionably effective as both transaction volume and the number of merchants using Affirm saw accelerating growth in fiscal 2025. While we do expect transaction volume growth to slow over time, we see a long runway for growth for Affirm, with our projections calling for average spending volume growth of 24.2% over the next five years. Case in point, Affirm has seen only minimal growth deceleration in the first three quarters of its fiscal 2026.

Affirm enjoyed strong demand for buy now, pay later loans from both consumers and investors in the third quarter of its fiscal 2026, beating our expectations on strong volume growth and better-than-anticipated pricing on sold loans.

Affirm reported strong results in the third quarter of its 2026 fiscal year, thanks to excellent revenue growth and operating margin expansion. Revenue increased 33% from last year to $1.04 billion, while diluted earnings per share increased to $0.30 from only $0.01.

Shares of consumer finance names such as Capital One, American Express, and Affirm traded between 7% and 8% lower intraday on Feb. 23, likely on concerns that AI disruption could lead to future layoffs and structurally higher unemployment, increasing credit costs and lowering payment volume.

Affirm delivered strong results in the second quarter of its 2026 fiscal year thanks to impressive merchandise volume growth and operating margin expansion. Revenue increased 30% from last year to $1.123 billion, while diluted earnings per share rose to $0.37 from $0.23 last year.

On Jan. 9 President Donald Trump called for a temporary 10% cap on credit card interest rates, effective Jan. 20. Consumer finance shares are trading sharply lower in response.

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been unquestionably effective as both transaction volume and the number of merchants using Affirm saw accelerating growth in fiscal 2025. While we do expect transaction volume growth to decelerate in the coming years, we see a long runway for growth for Affirm, with our projections calling for average spending volume growth of 23.2% over the next five years.

We are initiating coverage of Affirm, a leading buy-now, pay-later firm in the United States.