What Happened to Affirm Holdings, Inc. (AFRM) Stock?

Affirm Holdings, Inc., founded in 2012 by PayPal co-founder Max Levchin, emerged as a prominent player in the Buy Now, Pay Later (BNPL) market, offering consumers flexible installment payment options at the point of sale. The company went public on January 13, 2021, listing on Nasdaq under the ticker AFRM, raising approximately $1.2 billion in its initial public offering. Its stock price initially surged, reflecting strong investor confidence in the burgeoning BNPL sector. Affirm's business model generates revenue through merchant fees, interest charged to borrowers, and does not impose late fees, differentiating it from traditional credit cards.

Key turning points for Affirm have included major partnerships with e-commerce giants. In August 2021, Affirm announced a significant partnership with Amazon, expanding in November 2021 to become Amazon's exclusive BNPL partner in the United States until January 2023. Further expanding its reach, Affirm integrated its installment loans with Apple Pay in September 2024 and formed partnerships with retailers like Target. The company also expanded its product offerings, notably launching the Affirm Card, which by March 2025 accounted for approximately 10% of its transactions and continued to grow rapidly, reaching 4.4 million active cardholders by Q3 FY26.

Financially, Affirm has demonstrated a path towards consistent profitability. For the fiscal year ended June 30, 2025, Affirm reported $3.22 billion in revenue and a net income of $52 million, alongside processing $36.7 billion in Gross Merchandise Volume (GMV). The company continued this positive trend into fiscal year 2026. In Q3 FY26 (ended March 31, 2026), Affirm achieved record results with GMV reaching $11.6 billion, up 35% year-over-year, and revenue at $1.04 billion, a 33% increase. Net income for the quarter was $102.9 million. Active consumers grew to 26.8 million, with transactions per active user increasing to 6.7.

As of August 27, 2026, Affirm reported robust fiscal Q4 2026 results (ended June 30, 2026), significantly exceeding analyst expectations. The company announced a diluted EPS of $4.62, compared to an estimated $0.35, and revenue of $1.17 billion, surpassing the consensus of $1.11 billion. For the full fiscal year 2026, Affirm reported a profit of $1.93 billion on revenue of $4.26 billion. This strong performance led to an 8.48% surge in its stock price in after-hours trading. Looking ahead, Affirm provided optimistic guidance for Q1 FY27, projecting GMV between $13.7 billion and $14.0 billion and revenue between $1.19 billion and $1.22 billion, exceeding prior estimates. The company also expects adjusted operating margins of 28.0% to 30.0%, signaling continued improving profitability.

Regulatory scrutiny has been an ongoing factor in the BNPL space. In February 2026, Affirm's application for a banking license was a topic of discussion, with some concerns raised regarding regulatory oversight. However, the company has continued to expand its funding relationships and diversify its loan product mix, with Fitch Ratings taking various rating actions on Affirm's asset securitization trusts in April and May 2026, reflecting ongoing credit performance monitoring. Affirm's focus on AI-driven productivity gains, expanding merchant partnerships (including recent deals with Bed Bath & Beyond brands and Royal Caribbean in June-July 2026), and international expansion (e.g., UK launch in 2024, Shopify partnership in Australia in August 2026) underscore its strategy for sustained growth and market leadership.