Affirm Holdings, Inc. Class A Common Stock 2026 Q4 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Affirm Holdings reported its most profitable fiscal fourth quarter ever, driven by strong core business performance and growth across products.
- The company highlighted 41% growth in pay-in-four (pay in 4) transactions and noted that the Affirm Card, its largest product, is also growing rapidly with a high proportion of interest-bearing loans.
- Affirm expanded its presence to 80% of the top 250 e-commerce sites and 10% of e-commerce merchants, with a strong sales team continuing to onboard merchants despite long sales cycles and integration complexities.
- The UK market showed solid early results with positive feedback from merchants and consumers, and no significant competitive responses noted.
- Affirm's services vertical nearly doubled year-over-year volume, driven by signing large services platforms and ongoing product adaptation.
- The company emphasized its network effects strategy as key to sustainable growth and profitability, focusing on long-term value rather than short-term gains.
- Affirm continues to control credit risk tightly, approving loans selectively with weekly credit team reviews and no signs of consumer credit stress.
- The company reported strong gain on sale revenue growth, with expectations of similar funding plans in fiscal 2027 as in fiscal 2026.
- Affirm Card usage is about twice that of typical customers, with a 19% attach rate among active users, and the company is working to increase both attach rate and spending per card.
- Affirm Edge, the company’s banking platform, is progressing deliberately with pilots expected in the second half of the year, aiming for future upside.
STOCKNOW INSIGHTS
Continue with outlook and guidance.
Log in to unlock executive comments and Q&A highlights.
Log in for the full summaryStockNow uses AI to translate and summarize earnings calls. Accuracy and completeness are not guaranteed.
Transcript
Preview the first fifteen paragraphs, organized by speaker.
Good afternoon. Welcome to the Affirm Holdings fourth quarter fiscal 2026 earnings call. Following the speaker's remarks, we will open. As a reminder, this conference is being recorded and a replay of the call will be available on our investor relations website for a reasonable period of time after the call. I would now like to turn the call over to Zane Keller, Head of Investor Relations. Thank you. You may begin.
Thank you, operator. Before we begin, I would like to remind everyone listening that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our investor relations website. Our actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings supplement slide deck, which is available on our IR website.
Hosting today's call with me are Max Levchin, Affirm's Founder and Chief Executive Officer, Michael Linford, Affirm's President, and Rob O'Hare, Affirm's Chief Financial Officer. In line with our practice in prior quarters, we will begin with very brief opening remarks from Max before proceeding immediately into your questions. With that, I will turn it over to Max to get us started.
Thank you, Zane. As always, the performance as good as it is, I will keep the impromptu remarks brief. As you may have noticed, fiscal fourth quarter was our most profitable quarter ever, even without the tax allowance release. The company's thriving and the core business is firing on all business. I am excited to announce that our veteran execs, Pat Suh and Michael Linford, are promoted to SVP GM of Global Markets and President respectively, setting us up for an even tighter execution and allowing me to get even deeper into developing our next generation of products and services. With that, happy to address your questions. Back to you, Zane. Okay.
Thank you, Max. Now let's get to your questions. Operator, please begin the Q&A session.
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Adam Frisch with Evercore ISI.
Please proceed. Hey, guys, and congrats to you, Mike, on a well-deserved promotion.
Max, at the Analyst Day, you said you're most excited about things you can't really talk about yet. If precedent holds on the initial guidance and how you ultimately will end the year, growth in fiscal 2027 should again be terrific. But with investors focused on the sustainability of high growth rates, when should we expect to see some of these initiatives start to show up in future years? Do you believe that over the long term, Affirm needs to or should offer consumers multiple financial products and services in addition to what you do today?
Thanks. Thank you. It's a compounded question.
I'll go backwards. We already offer multiple products to consumers today. The answer to should we do that, we think it's yes, otherwise we wouldn't have built all these other things. For the moment, the majority of our products are various expressions of offering credit, but not necessarily at the point of sale. It also comes obviously in the form of a card. We have an account. We have a version of our product that works for business purchases. So we're already spread into several other subcategories, including verticals that we address. There's a bunch of that in my notes as well. So we absolutely expect to continue expanding. In terms of when these things will show up, I think this is probably a question for our CFO and Michael in terms of how we set guidance.
A big part of the expectations from this promotion that Michael got and my own focus is I plan to spend a lot more time working on things that will only show up in fiscal 2029 and so on. The numbers we are putting to the market today reflect our products that are working and growing and printing profits. Some of the crazier ideas from the future are in the future, and we try very hard not to overpromise and underdeliver.
Okay, thanks. I think growth is in good hands with you taking that role.
Thanks, guys. Thank you. Our next question comes to the line of Harry Bartlett with Rothschild.
Please proceed. Hi. Thanks for taking the question.
I just wanted to touch on something that you mentioned in your shareholder letter. I mean, clearly you are doing very well, but you said that you are only available at 80 of the top 250 e-commerce sites and 10% of e-commerce merchants. You are very well integrated with a lot of the major PSPs now and clearly very well known as a brand. I guess the question is, what is the impediment for getting these remaining merchants to sign up, and how do you kind of bridge that gap to get there?
FULL TRANSCRIPT
Continue the full translated transcript in StockNow.
Log in to unlock every statement, the English original, and speaker-by-speaker history.
Log in for the full transcriptCall participants
21 people spoke on this call — only 2 are shown here.
PARTICIPANT LIST
View participant details in StockNow.
Log in to see executives and analysts, their roles, and complete speaking history.
Log in to view all participantsKeep exploring