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# Affirm Revenue Climbs 35% — Card Growth Cuts Reliance On Its Biggest Partners
- URL: https://www.bullished.co/affirm-revenue-climbs-35-card-growth-cuts-reliance-on-its-biggest-partners-7d53830d/
- Published: 2026-11-06T15:51:24.000Z
- Updated: 2026-11-06T15:51:24.000Z
- Description: Operating profit reached $187.1 million as purchase volume expanded, though overdue installment loans increased.
- Author: Matteo Parrino
- Tags: SEC Filings, AFRM, Industry: Financials

[Affirm Holdings](https://www.bullished.co/tag/afrm/), which lets shoppers spread purchase payments over time, reported unaudited first-quarter revenue of [$1,262.2 million](https://www.sec.gov/Archives/edgar/data/0001820953/000162828026071005/afrm-20261105.htm?ref=bullished.co), up 35% from a year earlier, in a shareholder letter accompanying Thursday’s SEC filing. Operating profit reached $187.1 million from $63.7 million, while rapid Affirm Card growth helped reduce the business’s dependence on its biggest partners.

## Card Reaches 23% Of Purchase Volume

Affirm processed $14.4 billion of purchases, a 34% year-over-year increase and its twelfth consecutive quarter of growth above 30%. Affirm Card accounted for [$3.3 billion](https://www.sec.gov/Archives/edgar/data/0001820953/000162828026071005/affirmfq127shareholderle.htm?ref=bullished.co), up 117%, and represented 23% of total purchase volume.

The five largest partners supplied 40% of purchase volume, down from 44% a year earlier. Affirm attributed that shift to a wider mix of merchants and platform partners, along with growth in products offered directly to consumers. Direct-to-consumer purchase volume increased 55% to $5.1 billion, almost entirely because of Card growth.

Active cardholders rose 112% to 6 million. Across Affirm, active consumers increased 19% to 28.7 million, and transactions per active consumer rose 19% to 7.3 over the trailing twelve months. The active merchant base grew 48% to about 621,000.

Affirm launched with AliExpress and Antom and signed or recently announced partnerships with Farfetch, J. Crew—including J. Crew Factory and Madewell—Sam’s Club and Sur La Table. The company also renewed its Seatgeek partnership and extended it to Canada.

## Interest Income Outpaces Purchase Growth

Interest income increased 45%, exceeding both overall purchase growth and the 38% rise in average net loans held for investment. Affirm’s direct-to-consumer interest-bearing products generally carry higher annual interest rates than its overall average; their growth helped push the average rate on interest-bearing loans higher.

Revenue after transaction-related costs grew 36% to $617 million. That measure excludes technology, marketing and administrative expenses, so it is not operating profit. Adjusted operating profit rose 44% to $380 million; the adjusted measure excludes depreciation and amortization, stock-based pay, and enterprise warrant and share-based expenses.

Under standard accounting, operating margin widened to 14.8% from 6.8%. Net income reached $164.2 million, compared with $80.7 million a year earlier, and diluted earnings per share reached [$0.47 from $0.23](https://finance.yahoo.com/markets/stocks/articles/affirm-holdings-afrm-q1-earnings-223002509.html?.tsrc=rss&ref=bullished.co).

Borrower performance added a caution to the growth figures. Monthly installment loans more than 30 days overdue, excluding Peloton and Pay in X loans, reached 2.9%, up 0.09 percentage points year over year and 0.35 percentage points from the previous quarter. Affirm said recent monthly installment loan groups were tracking toward approximately 3.5% ultimate net credit losses relative to their purchase volume, consistent with its expectations and historical performance.

## Funding For More Than $70 Billion

Funding capacity reached $31.7 billion, compared with $26.6 billion a year earlier and $30.0 billion in the previous quarter. Affirm estimates that capacity can support annual purchase volume exceeding $70 billion, based on a weighted-average loan duration of approximately five months.

At September’s end, Affirm had about $3.0 billion in cash and available-for-sale securities against approximately $1.1 billion in convertible debt. Its resulting $1.9 billion net cash position increased $761 million year over year and $402 million from the previous quarter.

For the second quarter, Affirm forecasts [revenue of $1,435](https://www.sec.gov/Archives/edgar/data/0001820953/000162828026071005/affirmfq127shareholderle.htm?ref=bullished.co) to $1,465 million and purchase volume of $17.9 billion to $18.2 billion. It expects an operating margin of 11.50% to 13.50% and an adjusted operating margin of 29.50% to 31.50%.

AFRM shares fell about 3% to $67.67 in Friday trading, following Thursday’s results announcement.

For the full fiscal year, Affirm forecasts more than $65.25 billion in purchase volume and an operating margin above 14.75%.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Affirm Holdings, Inc. (AFRM)](https://www.sec.gov/Archives/edgar/data/0001820953/000162828026071005/afrm-20261105.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit affirmfq127shareholderle.htm — Affirm Holdings, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001820953/000162828026071005/affirmfq127shareholderle.htm?ref=bullished.co) — SEC EDGAR
- [Affirm Holdings (AFRM) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates](https://finance.yahoo.com/markets/stocks/articles/affirm-holdings-afrm-q1-earnings-223002509.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Affirm Holdings

- [Affirm's Levchin Calls Credit 'Job Number Zero' And Sets Growth Floor At 30%](https://www.bullished.co/affirms-levchin-calls-credit-job-number-zero-and-sets-growth-floor-at-30-ac6a7082/)
- [Affirm CEO Max Levchin's Pay Hits $25.9 Million After His Pre-IPO Award Runs Out](https://www.bullished.co/affirm-ceo-max-levchins-pay-hits-25-9-million-after-his-pre-ipo-award-runs-out-463c66fb/)

[All Affirm Holdings (AFRM) coverage →](https://www.bullished.co/tag/afrm/)