Affirm Q2 2026 Earnings Show GMV-Fueled Surge
Affirm Q2 2026 earnings showed revenue strength from GMV growth and a return to profitability, prompting a wide Q3 revenue band traders must weigh.
KEY TAKEAWAYS
- Revenue rose to $1.1 billion on GMV growth to $13.8 billion.
- Returned to quarterly profitability with net income of $130 million and EPS $0.37.
- Q3 revenue guided $970 million to $1.0 billion while FY revenue was raised to $4.1 billion.
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Affirm Holdings Inc. reported Affirm Q2 2026 earnings on Feb. 5, 2026, showing a merchandise-volume-driven revenue surge that returned the company to profitability and prompted guidance that left traders weighing near-term momentum against margin sustainability.
Quarter Results and Profitability
Affirm issued a press release and furnished a shareholder letter on Form 8-K reporting its fiscal second-quarter results ended Dec. 31, 2025. Revenue rose roughly 30% year over year to $1.12 billion, driven primarily by a 36% increase in gross merchandise volume (GMV) to $13.8 billion.
Net income reached $129.6 million for the quarter, up from $80.4 million a year earlier, while net income for the six months ended Dec. 31, 2025, totaled $210.3 million. Diluted earnings per share (EPS) rose to $0.37, beating the estimate of about $0.28 and reversing the prior-year loss to return Affirm to quarterly profitability.
Active customers increased about 23% to 25.8 million, and active merchants grew roughly 42% to 478,000. These gains expanded the platform’s transaction base alongside the GMV growth.
On the balance sheet, loans held for investment totaled $8.77 billion, representing about 67.5% of total assets, which stood at $13.0 billion. Shareholders’ equity was $3.55 billion as of Dec. 31, 2025.
Guidance and Outlook
Management set Q3 revenue guidance between $970 million and $1.0 billion and raised full-year revenue guidance to a range of $4.086 billion to $4.146 billion. Consensus EPS estimates are near $0.16 for the coming quarter and about $1.01 for the fiscal year. The wide Q3 revenue range leaves room for variability and tests whether the GMV-driven momentum can sustain margin improvement.
The combination of restored quarterly profitability, expanded customer and merchant bases, and raised annual revenue targets signals a potential earnings inflection for Affirm. Investors will assess whether rising merchandise volume can translate into consistent earnings gains amid the near-term guidance band.
"Affirm Holdings, Inc. today reported financial results for its fiscal 2026 second quarter ended December 31, 2025," the company said in its press release.
