Key Highlights
- Affirm exceeded Q4 revenue expectations, reporting $1.2 billionāa 33% year-over-year increase
- Total gross merchandise volume climbed 36% to reach $14.1 billion, surpassing the $13.4 billion analyst forecast
- Shares of AFRM climbed 8.9% to close at $84.42 on Friday, marking the strongest daily performance since January
- The company partnered with Shopify to introduce Shop Pay Installments across Australia
- Several Wall Street analysts increased their price targets, including Citi to $115 and J.P. Morgan to $105
Affirm delivered impressive fiscal fourth-quarter results that exceeded Wall Street expectations across key metrics. The fintech company’s shares surged 8.9% to $84.42 on Friday, representing the most significant single-session advance since the start of the year.
The buy-now-pay-later provider reported revenue of $1.2 billion for the quarter ending June 30, representing a 33% year-over-year gain and comfortably exceeding the Street’s $1.1 billion projection.
Total gross merchandise volume reached $14.1 billion, up 36% from the prior year and significantly above the consensus forecast of $13.4 billion. Approximately half of this expansion came from direct point-of-sale merchant integrations.
The company’s GAAP operating margin expanded by six percentage points year-over-year to 12.6%, demonstrating improved operational efficiency and scale benefits.
Michael Linford, who recently assumed the role of president, described the quarter as a “home run,” highlighting that this represented the company’s 11th consecutive quarter of GMV expansion exceeding 30%.
Australian Market Entry Through Shopify Partnership
Coinciding with the earnings release, Affirm revealed plans to broaden its strategic alliance with Shopify by introducing Shop Pay Installments to Australian consumers. Since its 2021 debut, this payment solution has become a top choice for Shopify users throughout the United States, Canada, and the United Kingdom.
This development represents Affirm’s re-entry into the Australian marketplace. Merchants using Shopify in Australia can now provide their customers with flexible bi-weekly or monthly payment plans without imposing late fees.
Linford characterized the expansion as Shopify facilitating Affirm’s entry into additional territories, mirroring the pattern established during last year’s UK market launch.
“Our largest partner, Shopify, is once again pulling us into a new market,” Linford said. “We really think there’s an opportunity here to serve all the markets that Shopify is in.”
Wall Street Responds with Upgraded Targets
Analysts across the Street reacted enthusiastically to the results. Susquehanna analyst James Friedman increased his price objective to $110 from $105, characterizing both the quarterly performance and the fiscal 2027 outlook as “exceptionally strong.”
Bryan Keane of Citi maintained his Buy recommendation with a $115 target price. He described Affirm as a “secular winner in payments” and suggested the company has reached a scale where it’s “too big to be slowed down or disintermediated.”
J.P. Morgan’s Connor Allen boosted his price target to $105 from $90 while maintaining an Overweight stance.
Morgan Stanley analyst James Faucette modestly raised his target to $82 from $80 but maintained a neutral position, pointing to valuation concerns.
Looking ahead to fiscal 2027, Affirm projected GMV surpassing $64 billion, above the Street’s $63 billion estimate. Management is working toward a medium-term goal of $100 billion in GMV, which analysts anticipate the company will achieve by 2029.
Credit quality remained solid, with the company’s 30-day delinquency rate registering 2.5% for the quarter (excluding Peloton and Pay in 4 transactions), an improvement from the 2.7% to 2.8% range observed in the previous three quarters.
Through Friday’s close, Affirm stock has advanced 4.1% in 2026, underperforming the broader market indices. Meanwhile, industry competitors SoFi and Klarna have struggled year-to-date, declining 27% and 52% respectively.
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