Affirm’s 32% FY26 revenue growth, rapidly scaling card and improving cash generation support upside, but high credit yields, $9.8 billion of debt and regulatory exposure make returns unusually asymmetric.
Overview
Affirm Holdings is a North American fintech platform offering transparent point-of-sale installment credit through Pay-in-4, 3–36-month loans and the Affirm Card. It monetizes merchant discount fees, consumer interest, loan servicing and loan sales, with APRs from 0% to 36%. Its 26.8 million active consumers, 515,000 merchants and integrations with Shopify, Amazon and major retailers underpin a leading position in BNPL; 96% of GMV comes from repeat transactions. **FY26 revenue grew 32.2% to $4.261 billion and free cash flow reached $992.6 million**, while Q4 GMV rose 36% to $14.1 billion, the eleventh consecutive quarter above 30% growth. Q4 adjusted operating margin expanded 300 basis points to 30.0%, and FY26 GAAP operating income was $417 million. The $1.62 billion Q4 GAAP net income included a non-cash $1.4 billion deferred-tax valuation-allowance release. At roughly $74 per share, valuation was 7.7x FY26 revenue, 25.2x FCF and 59.6x normalized P/E. **Near-term catalysts are FY27 Q1 revenue guidance of $1.19–$1.22 billion and continued Affirm Card adoption**; major offsets are credit, funding and APR-regulation risks.