Revenue growth has decelerated from over 50% to 24.3% as the hyper-growth phase matures, but operating margin has swung dramatically to 24.3% in Q4 2026, indicating significant operating leverage as SG&A expenses were held flat near $240M per quarter.
Affirm Holdings, Inc. (AFRM) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 |
|---|
| Sales/Revenue | 3.41B | 3.22B | 2.32B | 1.59B | 1.35B | 870.46M | 509.53M | 264.37M |
| Revenue Growth % | 5.88% | 38.8% | 46.29% | 17.69% | 55.01% | 70.84% | 92.74% | - |
| Cost of Goods Sold | 978.97M | 1.05B | 845.11M | 873.16M | 576.46M | 322.91M | 172.21M | 108.74M |
| COGS % of Revenue | - | 32.49% | 36.38% | 54.99% | 42.72% | 37.1% | 33.8% | 41.13% |
| Gross Profit | 2.17B | 2.18B | 1.48B | 714.82M | 772.84M | 547.55M | 337.32M | 155.63M |
| Gross Margin % | 63.47% | 67.51% | 63.62% | 45.01% | 57.28% | 62.9% | 66.2% | 58.87% |
| Gross Profit Growth % | - | 47.29% | 106.75% | -7.51% | 41.14% | 62.32% | 116.75% | - |
| Operating Expenses | 2.67B | 2.26B | 2.09B | 1.92B | 1.64B | 931.22M | 445.11M | 257.17M |
| OpEx % of Revenue | - | 70.22% | 90.13% | 120.64% | 121.46% | 106.98% | 87.36% | 97.28% |
| Selling, General & Admin | 920.84M | 979.9M | 1.1B | 1.22B | 1.11B | 565.94M | 146.27M | 105.77M |
| SG&A % of Revenue | - | 30.39% | 47.43% | 77.12% | 82.25% | 65.02% | 28.71% | 40.01% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 70.81M |
| R&D % of Revenue | - | - | - | - | - | - | - | 26.78% |
| Other Operating Expenses | 4M | 1.28B | 992.04M | 691.01M | 529.05M | 365.28M | 298.83M | 151.41M |
| Operating Income | 535M | -87.27M | -615.85M | -1.2B | -866.05M | -383.67M | -107.79M | -101.55M |
| Operating Margin % | 15.67% | -2.71% | -26.51% | -75.62% | -64.19% | -44.08% | -21.15% | -38.41% |
| Operating Income Growth % | - | 85.83% | 48.72% | -38.66% | -125.73% | -255.94% | -6.15% | - |
| EBITDA | 763.27M | 137.8M | -446.8M | -1.07B | -813.33M | -363.69M | -98.35M | -96.28M |
| EBITDA Margin % | 22.36% | 4.27% | -19.23% | -67.14% | -60.28% | -41.78% | -19.3% | -36.42% |
| EBITDA Growth % | 453.89% | 130.84% | 58.09% | -31.09% | -123.63% | -269.8% | -2.15% | - |
| D&A (Non-Cash Add-back) | 228.27M | 225.08M | 169.04M | 134.63M | 52.72M | 19.98M | 9.44M | 5.27M |
| EBIT | 725.66M | 486.92M | -171.27M | -806.23M | -655.14M | -390.67M | -79.91M | -94.52M |
| Net Interest Income | 226.97M | -425.45M | -344.25M | -183.01M | -69.69M | -52.7M | -32.32M | -25.89M |
| Interest Income | 1.1B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 340.31M | 425.45M | 344.25M | 183.01M | 69.69M | 52.7M | 32.32M | 25.89M |
| Other Income/Expense | -42.27M | 148.74M | 100.32M | 211.62M | 141.22M | -59.7M | -4.43M | 7.02M |
| Pretax Income | 492.73M | 61.46M | -515.53M | -989.25M | -724.83M | -443.37M | -112.22M | -120.42M |
| Pretax Margin % | 14.43% | 1.91% | -22.19% | -62.3% | -53.72% | -50.93% | -22.02% | -45.55% |
| Income Tax | -1.44B | 9.28M | 2.23M | -3.9M | -17.41M | -2.34M | 376K | 36K |
| Effective Tax Rate % | -291.66% | 15.1% | -0.43% | 0.39% | 2.4% | 0.53% | -0.34% | -0.03% |
| Net Income | 1.93B | 52.19M | -517.76M | -985.35M | -707.42M | -441.03M | -112.6M | -120.45M |
| Net Margin % | 56.52% | 1.62% | -22.29% | -62.05% | -52.43% | -50.67% | -22.1% | -45.56% |
| Net Income Growth % | 3597.91% | 110.08% | 47.45% | -39.29% | -60.4% | -291.68% | 6.52% | - |
| Net Income (Continuing) | 1.93B | 52.19M | -517.76M | -985.35M | -707.42M | -441.03M | -112.6M | -120.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.52 | 0.15 | -1.67 | -3.34 | -2.51 | -1.64 | -0.44 | -0.47 |
| EPS Growth % | 4209.13% | 108.98% | 50% | -33.07% | -53.05% | -272.73% | 6.38% | - |
| EPS (Basic) | - | 0.16 | -1.67 | -3.34 | -2.51 | -1.64 | -0.44 | -0.47 |
| Diluted Shares Outstanding | 349.73M | 341.02M | 309.86M | 295.34M | 281.7M | 269.48M | 257.41M | 257.41M |
| Basic Shares Outstanding | 339.06M | 322.85M | 309.86M | 295.34M | 281.7M | 269.48M | 257.41M | 257.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AFRM stock.
For fiscal year 2025, Affirm Holdings, Inc. (AFRM) reported total revenue of $3.22B. This represents a 1119.7% increase compared to $264.4M in 2019.
Affirm Holdings, Inc. (AFRM) is profitable, generating $52.2M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Affirm Holdings, Inc. (AFRM) reported an operating income of $-87.3M, resulting in an operating profit margin of -2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Affirm Holdings, Inc. (AFRM) generated $2.18B in gross profit for the year, representing a gross profit margin of 67.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Interest rate and credit cycle sensitivity
Metrics are mathematically derived from official filings.
Decelerating Growth Amidst Volatility
Affirm's revenue growth has decelerated sharply from over 50% year-over-year in early 2024 to 24.3% in the most recent quarter, suggesting the hyper-growth phase from new merchant integrations is maturing.
The sequential revenue decline from $1.1B in Q2 2026 to $268M in Q3 2026, followed by a rebound to $1.1B in Q4 2026, highlights extreme seasonality and potential lumpy recognition tied to large merchant deals. While year-over-year growth remains positive, the trend indicates a shift from rapid expansion to a more normalized, albeit volatile, growth trajectory as the company laps significant prior-year comparisons.
Gross Margin Stability vs. Operating Leverage
Gross margins have stabilized in the high-60% range, but the path to operating profitability is uneven, with operating margin swinging from -19.0% to 24.3% over the past ten quarters.
The consistent gross margin band suggests disciplined pricing and credit loss management relative to the cost of funds. However, the volatility in operating margin, which turned decisively positive only in the last two quarters, indicates that profitability is highly sensitive to revenue scale and SG&A discipline. The recent 24.3% operating margin in Q4 2026 appears to be a seasonal peak, and investors should monitor whether this level can be sustained outside of the holiday quarter.
Operating Leverage Finally Emerging
After years of operating losses, Affirm demonstrated significant operating leverage in Q4 2026, with operating income scaling to $265.3M on a 24.3% revenue increase, implying fixed costs are being absorbed.
The swing from an operating loss of $73.5M in Q4 2024 to a profit of $265.3M in Q4 2026, on a revenue base that grew 67%, suggests the company's cost structure is becoming more efficient at scale. This inflection point is critical, as it validates the business model's ability to generate profits once a certain transaction volume threshold is reached, though the sustainability of this leverage outside peak quarters remains to be proven.
Net Income Distorted by Non-Operating Items
The reported net income of $1.6B in Q4 2026, representing a 148.4% net margin, is heavily inflated by non-operating gains and does not reflect the core operational profitability of the lending platform.
The massive discrepancy between operating income ($265.3M) and net income ($1.6B) in the latest quarter points to significant non-operating items, likely gains on loan sales or fair value adjustments, which are common in fintech accounting. This makes headline EPS figures unreliable for assessing ongoing operational performance. Analysts must focus on operating income and pre-provision profit to gauge the true health of the business, as the net income figure is subject to significant volatility from accounting treatments.
SG&A Discipline Underpins Profitability Shift
Selling, general, and administrative expenses have been held relatively flat near $240M per quarter despite revenue growth, indicating strong cost control that is a key driver of the recent operating profit.
SG&A expenses peaked at $283.7M in Q1 2025 and have since been reduced and stabilized, even as quarterly revenue has grown from $698.5M to over $1B. This discipline in managing overhead costs, particularly in a growth-oriented tech company, has been essential to converting top-line growth into operating income. The trend suggests management is prioritizing profitability over unchecked expansion of the cost base.
Profitability Tied to Seasonal Peak
The company's recent profitability is heavily concentrated in the fourth calendar quarter, raising questions about the sustainability of earnings through the rest of the year and the true underlying cost structure.
The stark contrast between the $265.3M operating profit in Q4 2026 and the $88.4M profit in the preceding Q3 2026, on a much smaller revenue base, suggests that Affirm's business model may be structurally unprofitable outside of peak holiday spending periods. This seasonality creates significant risk if consumer demand softens or if merchant fee negotiations become less favorable. The reliance on a single quarter for the bulk of annual profitability warrants scrutiny of the company's ability to generate consistent returns throughout the full fiscal year.