Key Takeaways:
- Affirm reported Q4 revenue of $1.17B, beating consensus of $1.11B
- Affirm Card attach rate reached 19 percent of active consumers
- Fiscal 2027 take rate guidance of 4.16 percent for revenue less transaction costs
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Affirm's record $1.62B Q4 profit tops estimates as card scales
Affirm Holdings reported fiscal Q4 revenue of $1.17 billion, beating consensus of $1.11 billion, and posted its most profitable quarter ever.
"Fiscal fourth quarter was our most profitable quarter ever, even without the tax allowance release," CEO Max Levchin said on the earnings call. "The core business is firing on all cylinders."
GAAP profit reached $1.62 billion, or $4.62 per share, topping the $0.33 consensus, helped by a tax valuation allowance release. Full-year revenue reached $4.26 billion with profit of $1.93 billion, or $5.53 per share.
Affirm Card attach rate reached 19 percent of active consumers, with card users generating roughly twice the usage of a typical customer. More than 80 percent of direct-to-consumer product volume is now interest-bearing, while Pay-in-X grew 41 percent and services volume nearly doubled year over year. About 30 percent of Affirm Card transactions occur offline.
Management guided fiscal 2027 revenue less transaction costs to a 4.16 percent take rate, supported by funding execution and a broadly stable funding mix. CFO Rob O'Hare said the company completed two nonconsolidated asset-backed securitizations in fiscal 2026 and expects a similar funding approach in fiscal 2027, meaning gain-on-sale revenue may remain concentrated in quarters when those transactions close.
The company guided Q1 fiscal 2027 revenue of $1.19 billion to $1.22 billion. O'Hare said the run-rate GAAP tax rate should land in the mid-to-high 20 percent range, though effective rates may be volatile because of stock-based compensation treatment.
Shares rose after the report. The stock closed at $77.49, up 4 percent since the start of the year.
The record quarter strengthens Affirm's position against Klarna and Block's Afterpay in the buy now, pay later market, while the Affirm EDGE platform — which lets bank partners issue cards on Affirm's infrastructure — remains in development with most technology completed. Levchin said he will shift focus to next-generation products expected to contribute in fiscal 2028 and beyond, including improved offline experiences and deeper integration between Affirm Card and Affirm Money. In the U.K., management reported positive early feedback from merchants and consumers, with no meaningful competitive response observed to date.
Investors will watch the Q1 fiscal 2027 earnings call for updates on Affirm EDGE bank partner launches and in-store product rollouts, which management said are expected over the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
