Affirm Holdings (AFRM) raised its full-year guidance for gross merchandise volume and issued strong revenue guidance for the year, but its Q3 outlook was roughly in line after its fiscal Q2 earnings soundly beat the Wall Street consensus estimates.
Affirm (AFRM) stock dipped 3.2% in after-hours trading.
The buy now, pay later lending platform now expects FY2026 gross merchandise volume of $48.30B-$48.85B (midpoint $48.58B vs. Visible Alpha consensus $48.3B), up from its prior guidance of more than $47.5B. It sees full-year revenue at $4.09B-$4.15B vs. the $4.06B consensus.
Adjusted operating margin is seen at 27.4%-28.1% compared with its previous guidance of over 27.1%.
Affirm (AFRM) expects Q3 GMV of $11.00B-$11.25B vs. Visible Alpha estimate of $11.1B and revenue of $970M-$1.00B vs. $975.7M consensus.
Q2 GAAP EPS of $0.37, topping the average analyst estimate of $0.27, rose from $0.23 in Q1 and $0.23 in last year’s Q2.
Total net revenue of $1.12B for the quarter ended Dec. 31, 2025, beat the $1.06B consensus and increased from $933.3M in the prior quarter and $866.4M in the year-ago period.
Contributing to the revenue growth were: 32% increase in network revenue, a 21% increase in interest income, 48% growth in gain on sales of loans, and a 49% rise in servicing income.
GMV volume climbed to $13.8B from $10.8B in Q1 and $10.1B in the prior year’s Q2, exceeding the $13.3B Visible Alpha consensus.
The number of active consumers, excluding the discontinued Returnly business, rose 23% Y/Y to 25.8M at Dec. 31, 2025, while transactions per customer increased 20% to 6.4 during the same period.
Adjusted operating margin was 30.0% vs. 28.3% in the prior quarter and 27.4% a year ago.
Funding capacity rose to $28.0B at Dec. 31, 2025, from $26.6B at Sept. 30.
Conference call at 5:00 PM ET.