Revenue growth has shifted from a 51.2% peak in 2024Q3 to a 65.8% contraction in 2026Q3, even as the company maintains gross margins near 67-69%.
| Sales/Revenue | 3.2B | 3.22B | 2.32B | 1.59B | 1.35B | 870.46M | 509.53M | 264.37M |
| Revenue Growth % | 6.44% | 38.8% | 46.29% | 17.69% | 55.01% | 70.84% | 92.74% | - |
| Cost of Goods Sold | 928.31M | 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 | 2B | 2.18B | 1.48B | 714.82M | 772.84M | 547.55M | 337.32M | 155.63M |
| Gross Margin % | 62.62% | 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 | 2.72B | 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 | 894.01M | 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 | 327.78M | -87.27M | -615.85M | -1.2B | -866.05M | -383.67M | -107.79M | -101.55M |
| Operating Margin % | 10.24% | -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 | 532.7M | 137.8M | -446.8M | -1.07B | -813.33M | -363.69M | -98.35M | -96.28M |
| EBITDA Margin % | 16.64% | 4.27% | -19.23% | -67.14% | -60.28% | -41.78% | -19.3% | -36.42% |
| EBITDA Growth % | 6843.39% | 130.84% | 58.09% | -31.09% | -123.63% | -269.8% | -2.15% | - |
| D&A (Non-Cash Add-back) | 204.92M | 225.08M | 169.04M | 134.63M | 52.72M | 19.98M | 9.44M | 5.27M |
| EBIT | 615.49M | 486.92M | -171.27M | -806.23M | -655.14M | -390.67M | -79.91M | -94.52M |
| Net Interest Income | -327.66M | -425.45M | -344.25M | -183.01M | -69.69M | -52.7M | -32.32M | -25.89M |
| Interest Income | 532.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 327.66M | 425.45M | 344.25M | 183.01M | 69.69M | 52.7M | 32.32M | 25.89M |
| Other Income/Expense | 67.43M | 148.74M | 100.32M | 211.62M | 141.22M | -59.7M | -4.43M | 7.02M |
| Pretax Income | 395.21M | 61.46M | -515.53M | -989.25M | -724.83M | -443.37M | -112.22M | -120.42M |
| Pretax Margin % | 12.35% | 1.91% | -22.19% | -62.3% | -53.72% | -50.93% | -22.02% | -45.55% |
| Income Tax | 12.79M | 9.28M | 2.23M | -3.9M | -17.41M | -2.34M | 376K | 36K |
| Effective Tax Rate % | 3.24% | 15.1% | -0.43% | 0.39% | 2.4% | 0.53% | -0.34% | -0.03% |
| Net Income | 382.42M | 52.19M | -517.76M | -985.35M | -707.42M | -441.03M | -112.6M | -120.45M |
| Net Margin % | 11.95% | 1.62% | -22.29% | -62.05% | -52.43% | -50.67% | -22.1% | -45.56% |
| Net Income Growth % | 714.89% | 110.08% | 47.45% | -39.29% | -60.4% | -291.68% | 6.52% | - |
| Net Income (Continuing) | 382.42M | 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) | 1.10 | 0.15 | -1.67 | -3.34 | -2.51 | -1.64 | -0.44 | -0.47 |
| EPS Growth % | 619.11% | 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 | 348.1M | 341.02M | 309.86M | 295.34M | 281.7M | 269.48M | 257.41M | 257.41M |
| Basic Shares Outstanding | 337.14M | 322.85M | 309.86M | 295.34M | 281.7M | 269.48M | 257.41M | 257.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Credit loss volatility
According to the most recent quarterly filings, Affirm's revenue growth has shifted from a peak of 51.2% in 2024Q3 to a contraction of 65.8% in 2026Q3, suggesting that the initial hyper-growth phase driven by massive merchant integrations is transitioning into a more mature, volume-constrained environment.
The sharp decline in top-line growth indicates that the company may be reaching saturation within its primary merchant partnerships. Investors should monitor whether this deceleration reflects a deliberate pivot toward higher-margin, lower-volume lending or a fundamental loss of competitive momentum in the BNPL space.
As reported in financial statements, Affirm has maintained a relatively consistent gross margin profile, hovering near 67-69% throughout the 2025 fiscal year, which suggests that the company's proprietary underwriting engine is effectively managing the spread between interest income and the cost of capital despite macro volatility.
This structural margin stability implies that the company possesses some degree of pricing power, allowing it to absorb fluctuations in funding costs. However, the lack of margin expansion despite significant volume growth warrants further investigation into whether competitive pressures are preventing the company from capturing greater unit economics.
Based on Affirm's reported figures, the company successfully transitioned from an operating loss of $172.2M in 2024Q2 to an operating income of $117.6M by 2026Q2, demonstrating a clear ability to decouple fixed operating expenses from the rapid expansion of its transaction-based revenue model.
The reduction in SG&A as a percentage of revenue suggests that management has achieved significant operational discipline as the platform matures. This trend appears to indicate that the company is finally capturing the benefits of its software-like infrastructure, though sustainability remains dependent on continued volume growth.
Data from recent income statements reveals that while net income has turned positive, reaching $129.6M in 2026Q2, the company continues to utilize stock-based compensation, which totaled $77.8M in the same period, suggesting that GAAP profitability remains heavily reliant on non-cash accounting adjustments to equity.
The reliance on stock-based compensation to bridge the gap to net income suggests that true economic profitability may be lower than headline figures imply. Investors should monitor the trajectory of these non-cash charges to determine if the company can achieve sustained, organic earnings growth without ongoing shareholder dilution.
Based on the provided financial data, the company's rapid shift to profitability in 2026 warrants skepticism, as it may be driven by aggressive credit loss provisioning or changes in loan sale accounting rather than a fundamental improvement in the underlying credit quality of the consumer base.
Short-term improvements in net income may be vulnerable to a reversal if macroeconomic conditions deteriorate and force an upward revision in credit loss reserves. The market should remain cautious regarding whether the current profitability is a permanent structural shift or a temporary benefit from favorable credit cycles.
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.