Affirm (AFRM) Stock Falls Despite Blowout Q3 Earnings Beat

TLDR

• Affirm posted fiscal Q3 revenue of $1.04 billion, up 33% year over year, beating analyst estimates of $995.3 million.
• Gross merchandise volume rose 35% to $11.6 billion — the tenth straight quarter of over-30% GMV growth.
• EPS came in at $0.30, crushing the $0.17 consensus estimate for a 79.5% earnings surprise.
• Affirm raised its full-year GMV guidance to $49.27–$49.57 billion and revenue guidance to $4.18–$4.21 billion.
• Despite the beat, AFRM stock is down about 9.5% year-to-date, underperforming the S&P 500’s 7.6% gain.

Affirm Holdings reported a strong fiscal third quarter on Wednesday, beating Wall Street on both revenue and earnings while lifting its full-year outlook for the second time.

Revenue came in at $1.04 billion, up 33% from $783 million a year ago. That topped the analyst consensus of $995.3 million. EPS of $0.30 beat the $0.17 estimate by nearly 80%, continuing a streak of four straight quarterly earnings beats.

Gross merchandise volume, the main indicator of transaction activity on Affirm’s platform, climbed 35% to $11.6 billion. CEO Max Levchin called it the company’s “tenth consecutive quarter of over-30% growth” in a letter to shareholders.

Affirm Holdings, Inc., AFRM

The stock ticked up about 1.2% in premarket trading Thursday. But AFRM has lost around 9.5% in 2026 while the S&P 500 is up 7.6%.

Active customers reached 26.8 million, with transactions per customer rising 20%. Active merchant count grew to 515,000.

The Affirm Card continued to be a standout. Active cardholders more than doubled year over year to 4.4 million. GMV from the card surged 146% to $2.1 billion.

Affirm earns money through merchant fees, interest on installment loans, and its debit card product. Those streams all contributed to the Q3 gains.

Guidance Gets Another Upgrade

On the back of the quarter, Affirm raised its fiscal-year GMV target to $49.27–$49.57 billion, up from the prior range of $48.3–$48.85 billion set in February.

Full-year revenue is now guided at $4.18–$4.21 billion. Analysts had been looking for $4.14 billion.

For the current quarter, Wall Street is projecting EPS of $0.29 on revenue of $1.08 billion. The full-year consensus sits at $1.08 EPS on $4.14 billion in revenue.

Credit Quality Holds Steady

One concern hanging over the buy-now, pay-later space is rising delinquency rates. A recent LendingTree survey found 47% of BNPL users reported a late payment in the past year, up from 41% previously and 34% in 2024.

Affirm pushed back on that narrative, saying it “continued to drive positive credit outcomes” in Q3. The company reported that 30-day, 60-day, and 90-day delinquency rates remained fairly steady quarter over quarter.

The broader fintech sector has had a rough 2026. SoFi Technologies dropped to its worst single-day loss on record last month after its own earnings beat. The iShares Fintech Active ETF is down more than 8% year-to-date.

Affirm currently holds a Zacks Rank of #3 (Hold), suggesting the stock is expected to perform roughly in line with the market near term.

Delinquency rates across 30-, 60-, and 90-day buckets held steady sequentially through the March quarter.

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