Affirm Crushes Earnings as Debit Card Gains Traction
Affirm Holdings delivered a stellar fiscal Q1 2026 performance, shattering analyst expectations with earnings of 23 cents per share against an anticipated 11 cents. Revenue surged 34% year-over-year to $933 million, well above the $883 million forecast. Gross merchandise volume leaped 42% to $10.8 billion, buoyed by the firm's nascent debit card contributing $1.4 billion in volume.
The San Francisco-based fintech's operating margin expanded dramatically to 28.3%, a marked improvement from 19% in the prior year period. This profitability turnaround comes after reporting a 31-cent loss per share in Q1 2025. Guidance for Q2 revenue of $1.045 billion aligns with Wall Street projections.
Investors rewarded the strong results, sending AFRM stock soaring 11% in after-hours trading to $73.32. The earnings beat underscores Affirm's successful pivot to profitability amid accelerating adoption of its payment products.
