Free cash flow margins remain highly volatile, swinging from 2.7% in 2025Q4 to 121.4% in 2026Q3, largely driven by unpredictable working capital fluctuations.
| Cash from Operations | 1.01B | 793.91M | 450.14M | 12.18M | -162.19M | -193.13M | -78.99M | -92.5M |
| Operating CF Margin % | - | 24.62% | 19.38% | 0.77% | -12.02% | -22.19% | -15.5% | -34.99% |
| Operating CF Growth % | 138.32% | 76.37% | 3595.41% | 107.51% | 16.02% | -144.5% | 14.61% | - |
| Net Income | 382.42M | 52.19M | -517.76M | -985.35M | -707.42M | -441.03M | -112.6M | -120.45M |
| Depreciation & Amortization | 157.53M | 225.08M | 169.04M | 134.63M | 52.72M | 19.98M | 9.44M | 5.27M |
| Stock-Based Compensation | 229.15M | 321.43M | 344.51M | 451.71M | 390.98M | 292.51M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 385K | 36K |
| Other Non-Cash Items | 262.83M | 245.04M | 516.69M | 546.16M | 111.42M | -10.84M | -7.15M | 43.35M |
| Working Capital Changes | -22.24M | -49.83M | -62.35M | -134.97M | -9.91M | -53.75M | 30.98M | -20.69M |
| Change in Receivables | -23.38M | -84.95M | -167.76M | -67.69M | -62.7M | -22.93M | -19.05M | -24.79M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 18.53M | 41.8M | 12.42M | -5.04M | -24.69M | 32.22M | 7.51M | 4.43M |
| Cash from Investing | -1.81B | -1.08B | -1.33B | -1.65B | -2.01B | -1.02B | -253.07M | -353.73M |
| Capital Expenditures | -222.59M | -192.19M | -159.3M | -120.78M | -86.29M | -20.25M | -21.02M | -19.41M |
| CapEx % of Revenue | 6.95% | 5.96% | 6.86% | 7.61% | 6.4% | 2.33% | 4.13% | 7.34% |
| Acquisitions | 0 | 0 | 0 | -16.05M | -6M | -222.43M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 6.71B | -1.28B | -1.32B | -1.97B | -388.7M | -779.35M | -232.05M | 1.41B |
| Cash from Financing | 1.53B | 751.42M | 913.15M | 1.35B | 2.04B | 2.58B | 302.42M | 566.5M |
| Debt Issued (Net) | 1.67B | 1.29B | 1.1B | 1.43B | 2.16B | 962.66M | 325.65M | 274.07M |
| Equity Issued (Net) | -62.95M | -250M | 0 | -109K | -86K | 1.74B | -23.23M | 292.43M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -112.31M | -250M | 0 | -109K | -86K | -813K | -41.45M | -17.13M |
| Other Financing | -79.92M | -292.35M | -183.35M | -80.52M | -125.02M | -123.74M | 0 | 0 |
| Net Change in Cash | 738.35M | 461.02M | 35.45M | -290.86M | -141.82M | 1.36B | -29.64M | 357.77M |
| Free Cash Flow | 787.11M | 601.72M | 290.84M | -108.59M | -273.9M | -213.38M | -100.01M | -113.75M |
| FCF Margin % | 24.59% | 18.66% | 12.52% | -6.84% | -20.3% | -24.51% | -19.63% | -43.03% |
| FCF Growth % | 29.31% | 106.89% | 367.83% | 60.35% | -28.36% | -113.36% | 12.08% | - |
| FCF per Share | 2.26 | 1.76 | 0.94 | -0.37 | -0.97 | -0.79 | -0.39 | -0.44 |
| FCF Conversion (FCF/Net Income) | 2.06x | 15.21x | -0.87x | -0.01x | 0.23x | 0.44x | 0.70x | 0.77x |
| Interest Paid | 204.84M | 404.38M | 318.24M | 163.19M | 51.52M | 41.69M | 28.09M | 27.84M |
| Taxes Paid | -683K | 2.74M | 1.19M | 808K | 220K | 219K | 0 | 0 |
Credit loss provisioning volatility
Based on reported financial statements, Affirm's OCF/NI ratio has fluctuated wildly, reaching a high of 75.03 in 2025Q3, which suggests that GAAP net income is a poor proxy for the actual cash-generating capacity of the underlying lending business due to significant non-cash adjustments.
The extreme variance between net income and operating cash flow indicates that earnings are heavily influenced by accounting estimates, particularly regarding loan loss provisions and gain-on-sale accounting. Investors should monitor whether the recent convergence toward a more stable OCF/NI ratio reflects genuine operational maturity or merely a temporary alignment of accounting assumptions.
As reported in recent filings, Affirm's free cash flow margin has swung from 2.7% in 2025Q4 to 121.4% in 2026Q3, highlighting a highly sensitive cash trajectory that appears tethered to the timing of loan sales and the cyclical nature of consumer credit demand.
The erratic FCF trajectory suggests that the company's ability to generate cash is not yet decoupled from its need to constantly recycle capital through third-party loan buyers. This lack of consistent cash flow generation warrants caution, as it implies that the business remains vulnerable to liquidity crunches in the secondary loan market.
According to quarterly data, working capital changes have been a primary driver of cash flow, with a notable $118.7M inflow in 2026Q3, suggesting that the company's cash position is highly dependent on the timing of collections and the velocity of its loan portfolio turnover.
The significant swings in working capital indicate that Affirm's cash flow is sensitive to the operational efficiency of its lending cycle. If the company experiences a slowdown in loan repayments or a delay in selling its loan packages, the resulting working capital drag could quickly erode the cash buffer.
Based on the provided cash flow data, stock-based compensation remains a persistent non-cash expense, peaking at $94.2M in 2025Q1, which suggests that the company's reported cash flow improvements are partially supported by the dilution of shareholders rather than purely organic operational success.
The reliance on equity-based compensation to manage cash outflows implies that the company is effectively subsidizing its operating expenses with shareholder dilution. Analysts should consider the impact of this ongoing dilution when evaluating the sustainability of the company's path to positive free cash flow.
Quick answers to the most common questions about buying AFRM stock.
Affirm Holdings, Inc. (AFRM) generated $793.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Affirm Holdings, Inc. (AFRM) generated $601.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Affirm Holdings, Inc. (AFRM) spent $192.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Affirm Holdings, Inc. (AFRM) spent $250.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.