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Affirm reported Q4 FY2026 revenue of $1.2 billion, up 33.0% from $876.4 million a year earlier. Revenue exceeded the $1.1 billion consensus by 5.23%. Diluted earnings per share were $4.62, compared with $0.20 a year earlier.
Gross margin rose to 58.8% from 55.6%, while operating margin increased to 12.6% from 6.63%. Affirm reported free cash flow of $229.3 million, compared with $23.5 million in the prior-year quarter.
For the full fiscal year, Affirm said growth in direct-to-consumer products, including the Affirm Card, contributed to higher gross merchandise volume, alongside increases in active merchants, active consumers and transactions per consumer. The company attributed higher annual interest income primarily to contractual interest on interest-bearing loans. Affirm also reported a higher annual provision for credit losses as its average balance of loans held for investment increased.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.2 billion | $876.4 million | 33.0% |
| Diluted EPS | $4.62 | $0.20 | 2,210.0% |
| Gross margin | 58.8% | 55.6% | 3.2 percentage points |
| Operating margin | 12.6% | 6.63% | 6.0 percentage points |
| Free cash flow | $229.3 million | $23.5 million | 875.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $1.2 billion | $1.1 billion | Beat by 5.23% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its annual filing, Affirm attributed growth in active consumers primarily to retention of existing users, including continued adoption and engagement among Affirm Card users. The company said repeat usage also contributed to higher transactions per active consumer.
Affirm said its operating results are affected by the mix of loans held on its balance sheet and those sold to investors. It attributed lower average funding costs to declining interest rates, while noting uncertainty about future rate changes.
Guidance
In its annual filing, Affirm said uncertainty remained over the future direction of the federal funds rate and that deteriorating economic conditions could negatively affect consumer demand and loan repayments.