Affirm (AFRM) crushes Q1 FY2026, extends Amazon deal to 2031 — shares whipsaw on Nov. 7, 2025

• Beat: EPS $0.23 vs. $0.11 est.; revenue $933.3M (+34% YoY). 1
• Growth: GMV +42% to $10.8B; Affirm Card users hit 2.8M with $1.4B Card GMV. 2
• Guidance: Q2 FY26 revenue $1.03–$1.06B; FY26 GMV raised to > $47.5B; adj. op. margin outlook > 27.1%. 3
• Partnerships: U.S. Amazon agreement extended five years (Feb. 2026–Jan. 2031); auto‑renews annually thereafter. 4
• Today’s trading: After an early pop, AFRM reversed lower intraday (see live chart above for latest). As of early afternoon, Reuters showed ~–7.8% on the day. 1

What happened today

Affirm Holdings (NASDAQ: AFRM) dominated headlines after reporting a blowout Q1 FY2026 (quarter ended Sept. 30, 2025). The company topped Wall Street on both the top and bottom lines and lifted its full‑year outlook, citing momentum in its 0% APR offers, the Affirm Card, and large‑platform partnerships. 1

Adding to the news flow, Affirm disclosed that it restated and extended its U.S. partnership with Amazon. The new agreement takes effect Feb. 1, 2026, runs through Jan. 2031, and automatically renews in one‑year increments unless terminated—further cementing Affirm’s presence across Amazon’s checkout and Amazon Pay surfaces. 4

Markets initially cheered the beat—pre‑market gains topped 8%—but sentiment flipped as the session wore on, with shares sliding by mid‑day amid broader tech volatility and debate over the guidance pace (see live price widget above). 1

By the numbers: Q1 FY2026

• Revenue:$933.3M (+34% YoY) vs. $883M consensus.
• EPS:$0.23 vs. $0.11 expected; a sharp improvement from a ($0.31) loss a year ago.
• GMV:$10.8B (+42% YoY). 1

Affirm Card & user metrics

• Affirm Card GMV: $1.4B; active cardholders:2.8M.
• Total active consumers:~24.1M (Affirm Card now accounts for ~11.6% of that base). 2

Merchant ecosystem

• Active merchants:~419,000, up 30% YoY, helped by wallet integrations and new ISV partners. 5

Guidance & outlook

• Q2 FY2026 (Dec. quarter): revenue $1.03–$1.06B (around in‑line at the midpoint). 3
• FY2026: GMV outlook raised to > $47.5B (from > $46B); adjusted operating margin now seen > 27.1% (prior 26.1%). 1
• Unit economics: Management continues to target a “revenue‑less‑transaction‑costs” (RLTC) upper bound of ~4%—a key guardrail for sustainable growth. 6

Why it matters: The improved FY26 targets and the Amazon extension through 2031 provide visibility for volume and engagement, while the Card’s rapid adoption diversifies Affirm’s revenue mix beyond classic BNPL at checkout. 4

Street reaction

• Citi Research flagged strong profitability, 42% GMV growth, and traction in 0% APR and the debit card as notable positives. 1
• Morgan Stanley kept Equal‑Weight but trimmed its price target to $83, reflecting valuation and execution balance after the run‑up into earnings. 7

What to watch next

1. Consumer credit quality into the holiday quarter (delinquencies/charge‑offs are the swing factor for BNPL names).
2. Card penetration: whether Affirm Card can keep growing above 100% YoY GMV and add materially to revenue. 8
3. Partner funnel: Amazon’s extension is a long‑term anchor; watch for incremental wallet/checkout placements with top merchants to drive GMV density. 4
4. Margin discipline: tracking progress against the >27% adjusted operating‑margin goal and ~4% RLTC ceiling through FY26. 1

Sources: Company press materials and filings; major financial outlets and data services covering today’s developments on Affirm. 9

Disclosure: This article is for information purposes only and is not investment advice.