Results
We delivered 35% GMV growth, our 10th consecutive quarter of over-30% growth – without compromising unit economic discipline.
7Revenue grew 33% and RLTC 41%.
While top-line growth continues at a very brisk pace, Affirm is maturing like fine wine further down the P&L. Our Operating Margin increased 10 percentage points, to 9% of Revenue.
4Adjusted Operating Margin was 27%, up 5 points year over year.
Our Incremental Margins were similarly very strong: over 70% of RLTC dollar growth flowed to Adjusted Operating Income.
All comparisons on a year-over-year basis unless otherwise indicated This is what happens when you find a genuine product market fit: your growth is natural, your credit and capital market results are excellent and harmonious, and your team is getting more and more productive every day.
Developer productivity There is a tremendous amount of ink being spilled about amazing feats of productivity achieved in software engineering by AI-first startups.
But what can a dev team firmly in its second decade and with millions of human- made lines of code do, measurably, to benefit from AI?
Turns out, a lot, you just have to be disciplined about it.
Management commentary
3 Affirm FQ3’26 Shareholder Letter Consumer health The Affirm consumer remains financially healthy.
We see neither a change in demand nor in our consumers’ ability to repay.
Delinquencies were up in line with expectations, with roughly half of the increase coming from a reduced denominator primarily due to stronger tax refund seasonality.
Additionally, very strong unit economics (RLTC over 4.3% of GMV), gave us room to capture demand that delivered great returns – credit continues to be a setting we choose for our business.
Zesty capital markets demand was a resounding vote of confidence in our approach to credit.
We grew capacity despite the lower seasonal volume of our third fiscal quarter.
We also priced our third consecutive revolving ABS transaction under a 5% blended yield in March, and our average annualized cost of funds reached the lowest level in three and a half years.
Earlier this quarter we took a full week as a development team to re-tool Affirm software engineering to be truly AI- first.
You can see the difference below, with agentically- written code dominating non-agentic essentially overnight after this effort.
The chart shows pull requests per week (each pull request is a product feature, a major bug fix, etc) as a function of time.
We think an order of magnitude gain in software development productivity is entirely plausible, yet we expect to modestly grow our development team – the limiting factor for Affirm has always been engineering cycles, not ideas for what to do with them.
Pull requests (PRs) merged per week
4 Affirm FQ3’26 Shareholder Letter When asked at an all-hands Q&A a few weeks ago whether I thought Affirm was still a startup, I responded with an emphatic affirmative.
There are plenty of risks and even more opportunities.
We have all sorts of plans for very ambitious new initiatives (some of which will surely not work out), cutting-edge AI/ML research profoundly accretive to all parts of our business, and exciting upcoming partnerships. …and yet for all our compounding growth we are but a very small fraction of global commerce.
Nearly 15 years in, we are still a tightly-knit crew of idealist pirates on a mission, trying to improve lives and having a lot of fun doing it.
Thank you to all Affirmers for another great quarter, watching you execute is the great privilege of captaining this ship.
I’ll see many of you in person next week.
Onward, 2 ‘All Forms of Credit Are Not Created Equal’.
Published by Affirm in June 2025.
Lotta ins, lotta outs • We announced the next Big Nothing event, May 13-15.
Stay tuned for great 0% APR offers from thousands of our merchant partners! • Truly excited to add Nordstrom and URBN to our merchant roster in the US. • Sleep Number is also a new addition, with 0% APR offers up to 12 months at launch. • We are ramping our partnerships with Lowe’s and Intuit, and are pleased with the early reads. • The Card continues to scale nicely, now with 4.4 million active Cardholders and $2.1 billion in Card GMV. • Let me go find a cash machine – we don’t brag enough about the cash flow Affirm is already generating.
We added approximately $230 million to our net cash (now at $1.35 billion) since December, and $370 million in the last year.
Results
8Gross Merchandise Volume (GMV) grew 35% to $11.6 billion.3 Approximately 40% of growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to- consumer business and wallet partnerships.
The mix of GMV derived from top five partners declined to 42% compared to 45% during the same period in the prior year.
All categories grew during the quarter, with notable strength in categories such as services, home/lifestyle, and the "other" category that includes GMV from long-tail merchants and wallet partners.
From a product perspective, GMV from 0% APR products inclusive of Pay in X grew 41% and continued to outpace our overall growth rate.
Pay in X growth of 52% represents the fourth consecutive quarter with a growth rate greater than 50%.
5Direct-to-Consumer GMV (D2C GMV) grew 48% to $3.7 billion driven primarily by Affirm Card GMV, which grew 146% to $2.1 billion.
In-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces.
Active cardholders again more than doubled year over year to 4.4 million as card attach rate increased to approximately 17%, up about two points sequentially versus the prior quarter and up eight points year over year.4 FQ3’26 Operating Highlights 5 Affirm FQ3’26 Shareholder Letter Total transactions during the quarter increased to 45 million, growing 45% and outpacing overall GMV growth, as Average Order Values declined by 7% due to the strong growth in Pay in X across several merchants and partners.
Transaction count increased in part due to the growth of Pay-in-X GMV, which increased 52%.
Active consumers, increased 22% to 26.8 million as of March 31, 2026 while transactions per active consumer increased 20% to 6.7 during the same time period.
Active merchant count increased 44% to 515 thousand as of March 31, 2026 with the year-over-year growth rate accelerating 2 percentage points from the prior quarter.
The majority of the increase in merchant count was driven by two wallet partnerships, as well as the scaling of several independent software vendor (ISV) partnerships.
3 All growth rate references are on a year-over-year basis unless otherwise indicated.
4 Card attach rate defined as active cardholders divided by total active consumers during a given period.
1Total revenue grew 33% to $1,039 million.
Revenue as a percentage of GMV was 8.98%, a decrease of 17 basis points compared to FQ3’25.
The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 23%, or slightly below overall GMV growth in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume.
As a percent of GMV, network revenue declined 29 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 32%, driven primarily by a 29% increase in average net loans held for investment.
As a percent of GMV, interest income declined 10 basis points as the GMV mix evolved towards 0% APR products.
Including Pay in X loans, 0% APR products collectively increased from 28% of GMV in FQ3’25 to 29% in FQ3’26, leading to a lower average interest yield on loans than if the product mix had remained constant. • Gain on sales of loans grew 68% and increased by 21 basis points as a percent of GMV.
The increase in gain on sales of loans was driven primarily by a 40% growth in loans sold, which slightly outpaced overall GMV growth.
Gain on sale as a percentage of loans sold increased by 42 basis points due to more favorable loan sale pricing. • Servicing income grew 39% and increased by 1 basis point as a percent of GMV.
Servicing income is primarily driven by the size of the average off-balance sheet platform portfolio, which grew by 39% as we sold more loans in recent quarters.
Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis.
FQ3’26 Financial Highlights 6 Affirm FQ3’26 Shareholder Letter Total Revenue Adj.
Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 9.0% RLTC as a % of GMV 4.3% +19 bps Operating Income as a % of Revenue 8.5% +10 pp All comparisons on a year-over-year basis (17) bps Adj.
Operating Income as a % of Revenue .0% 5 Year-over-Year Change in Revenue as a % of GMV 9.15% (0.29%) (0.10%) 0.21% 0.01% 8.98% FQ3'25 Total network revenue Interest income Gain on sales of loans Servicing income FQ3'26 0% 2% 4% 6% 8% 10%
7 Affirm FQ3'26 Shareholder Letter We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 30% while Pay-in-X volume increased 52%.
Loan Product Mix *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 126 basis points year over year and 34 basis points sequentially to 5.8%.
Average funding costs declined as we continue to execute well in the ABS market and benefit from favorable repricing across all funding channels.
Average Annualized Cost of Funds 5.8% FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 0% 2% 4% 6% 8% RLTC grew 41% to $498 million.
RLTC as a percentage of GMV increased 19 basis points to 4.31%, above the high end of our 3 to 4% long-term target range.
The approximate 19 basis point increase was primarily attributable to a 27 basis point improvement in funding costs, which was partially offset by a (17) basis point decline in revenue.
Year-over-Year Change in RLTC as a % of GMV 4.12% (0.17%) 0.02% 0.27% 0.06% 4.31% FQ3'25 Revenue Provision for credit losses Funding costs Other txn costs* FQ3'26 0% 1% 2% 3% 4% 5% 52% YoY growth 33% YoY growth 30% YoY growth 71% 13% 16%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)
2Adjusted Operating Income Adjusted Operating Income was $281 million, a $107 million improvement and 62% increase from the $174 million of Adjusted Operating Income in FQ3’25.
6Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 27% during the period compared to 22% during FQ3’25.
Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items.
The $107 million increase in Adjusted Operating Income consisted of a $146 million increase in RLTC, which was partially offset by a $39 million increase, or 22% increase, in non-GAAP operating expenses excluding transaction costs.
Within these operating expenses: • Non-GAAP Technology and data analytics increased $21 million, or 29%.
Of this increase, infrastructure expenses grew by $13 million, or 34%, primarily due to the 45% growth in transaction count.
Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Non-GAAP Sales and marketing increased $2 million, or 9%, primarily due to higher comarketing expenses. • Non-GAAP General and administrative increased $15 million, or 18%.
The increase was primarily due to growth in payroll and personnel and software and subscription expenses.
8 Affirm FQ3’26 Shareholder Letter Operating Income Operating Income was $88 million, a $97 million improvement compared to the $8 million loss in FQ3’25.
3Operating Income as a percentage of revenue, or Operating Margin, was approximately 8.5% in the period, compared to (1.1)% during FQ3’25.
The $88 million of Operating Income is inclusive of $44 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners.
The $97 million improvement in Operating Income was driven by a $146 million increase in RLTC and partially offset by a $49 million increase in operating expenses excluding transaction costs.
Within these operating expenses: • Technology and data analytics increased $39 million, or 26%.
The increase was primarily driven by a $16 million, or 27%, increase in amortization of internally- developed software.
Infrastructure expenses also increased $13 million, or 34%, primarily due to a 45% increase in transaction count.
Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Sales and marketing declined $1 million, or 2%, primarily due to a $3 million decline in enterprise warrant expense.
Excluding enterprise warrant expense, sales and marketing expense increased $2 million, or 8%, primarily due to higher comarketing expenses. • General and administrative increased $11 million, or 8%.
The increase was primarily due to growth in payroll and personnel, excluding stock-based compensation, and software and subscription expenses.
Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ3’26 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 29 basis points year over year and increased 7 basis points quarter over quarter to 2.8%.
Allowance for credit losses as a percent of loans held for investment was 6.0%, up from 5.7% in FQ3’25 and 5.4% in FQ2'26.
FY’22 FY’23 FY’24 FY’25 FY’26 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ1’23 through FQ1’26 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts.
Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ3’23 through Nov 2025 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.
Corporate events
Capital and Funding Update Funding Capacity increased to $28.2 billion at the end of FQ3’26, up from $23.3 billion at the end of FQ3’25, and $28.0 billion at the end of FQ2’26.
We estimate this capacity can support more than $65.0 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ3’26.
The main highlights across the funding channels as of the end of FQ3’26 were: • ABS: capacity increased by $1.4 billion year over year and $100.0 million compared to FQ2’26 as we priced and closed our 2026-2 revolving ABS transaction.
Despite macroeconomic uncertainty, the transaction was successfully upsized from $500 to $750 million and remained more than 2x oversubscribed following the upsize.
The transaction also had a three year term, which is one year longer than most of our previous ABS transactions.
Compared to a similar three-year ABS transaction that we priced in September, credit spreads tightened slightly despite funding market volatility.
10 Affirm FQ3’26 Shareholder Letter • Forward flow: capacity increased by $1.8 billion year over year and declined approximately $300 million compared to FQ2’26.
The $300 million decline is largely attributable to the planned maturity of a single fund with a single funding partner.
We pre-emptively replaced that maturing facility with a new facility during 2025, resulting in minimal net change in overall forward flow capacity with this partner.
Our forward flow partnerships are diversified across approximately 20 institutional loan buyers, including insurers, pensions, asset managers, and global banks. • Warehouse and other funding debt: capacity increased by $1.3 billion year over year and approximately $400.0 million compared to FQ2’26.
This capacity increase included the upsizing, favorable repricing, and two-year extension of a $1.9 billion facility, as well as the launch of our inaugural UK warehouse partnership.
Our warehouse facilities are diversified across approximately 15 lenders, primarily major US and international banks.
Capital Allocation and Liquidity At the end of March, we had approximately $2.5 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt.
Our net cash position of $1.4 billion increased by $373 million year over year as cash and securities available for sale increased by $350 million, while convertible debt outstanding decreased by $23 million.
Quarter over quarter, net cash increased by $229 million as cash and securities available for sale increased by $230 million.
On December 17, 2025, the Affirm board of directors authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026.
There were no repurchases under this authorization during FQ3'26.
Outlook
11 Affirm FQ3’26 Shareholder Letter Assumptions embedded within the outlook Product mix The mix of 0% APR GMV inclusive of Pay-in-X products in FQ4'26 is expected to remain stable on a year-over-year basis.Guidance reaffirmed
0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products.
Enterprise partnerships An enterprise merchant that expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26.
Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to remain stable during FQ4'26 compared to FQ3'26.
Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%.
Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26.
Deferred tax asset valuation allowance If our earnings trajectory continues, the Company expects that there may be sufficient positive evidence to support the release of a significant portion of the U.S. deferred tax valuation allowance by the end of fiscal year 2026.
Fiscal Q4 2026 Fiscal 2026 GMV $13.15 to $13.45 billion $49.265 to $49.565 billion Revenue $1,080 to $1,110 million $4,175 to $4,205 million Revenue Less Transaction Costs $535 to $550 million $2,031 to $2,046 million Operating Margin 9.5 to 11.5% 8.9 to 9.4% Adjusted Operating Margin5 27.5 to 29.5% 28.2 to 28.8% Weighted Avg.
Basic Shares Outstanding 341 million 336 million Weighted Avg.
Diluted Shares Outstanding 352 million 349 million Financial Outlook 5 A reconciliation of adjusted operating margin to the comparable GAAP measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future.
Results
13 Affirm FQ3’26 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended March 31, 2026 2025 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 11.6 $ 8.6 Total Transactions (count) 45.3 31.3 Total Revenue, net $ 1,038.8 $ 783.1 Total Revenue as a % of GMV 9.0 % 9.2 % Transaction Costs (Non-GAAP) $ 540.6 $ 430.6 Transaction Costs as a % of GMV 4.7 % 5.0 % Revenue Less Transaction Costs (Non-GAAP) $ 498.2 $ 352.6 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.3 % 4.1 % Operating Income (Loss) $ 88.4 $ (8.4) Operating Margin 8.5 % (1.1) % Adjusted Operating Income (Non-GAAP) $ 280.8 $ 173.7 Adjusted Operating Margin (Non-GAAP) 27.0 % 22.2 % Net Income $ 102.9 $ 2.8 March 31, 2026 June 30, 2025 March 31, 2025 (unaudited) Active Consumers (in millions) 26.8 23.0 21.9 Transactions per Active Consumer 6.7 5.8 5.6 Active Merchants (in thousands) 515.2 376.8 358.4 Total Platform Portfolio (Non-GAAP) (in billions) $ 18.4 $ 15.1 $ 13.7 Equity Capital Required (Non-GAAP) (in millions) $ 827.7 $ 568.9 $ 636.8 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.5 % 3.8 % 4.6 % Allowance for Credit Losses as a % of Loans Held for Investment 6.0 % 5.6 % 5.7 %
44 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.