Affirm Holdings (AFRM) shares advanced 10% in Thursday after-hours trading after upwardly revising its guidance for fiscal-year 2026 gross merchandise volume after delivering a double-beat on Q1 earnings and revenue.
The buy now, pay later financing platform now sees FY2026 GMV of more than $47.5B, compared with the $47.6B Visible Alpha estimate and the prior outlook of over $46B. Adjusted operating margin is now anticipated to be 27.1%, vs. 26.1% in the previous goal. And FY26 revenue is still expected to be ~8.4% of GMV.
For Q2, it expects GMV of $13.0B-$13.3B (midpoint $13.15B), vs. $13.2B Visible Alpha estimate; revenue of $1.03B-$1.06B (midpoint $1.045B), vs. $1.05B consensus; and adjusted operating margin of 28%-30%.
Q1 GAAP EPS of $0.23, topping the $0.11 expected, fell from $0.20 in the prior quarter and -$0.31 a year before.
Total net revenue for the quarter ended Sept. 30, 2025, of $933.3M, vs. $883.4M consensus, increased from $876.4M in Q4 and $698.5M in Q1 2024.
Revenue less transaction costs totaled $455.2M in Q1, up from $425.1M in Q4 and $285.1M in the year-ago period.
GMV was $10.8B in Q1, up from $10.4B in the earlier three-month period and $7.6B in Q1 2024.
The number of active customers rose to 24.1M from 23.0M in the prior quarter and $19.5M a year earlier.
Adjusted operating margin of 28.3% vs. 27.0% in Q4 and 18.6% in last year’s Q1.
Funding capacity was $26.6B in Q1, up from $26.1B in the previous quarter and $16.8B in last year’s Q1.
Conference call at 5:00 p.m. ET.