Affirm operates in the rapidly evolving payments and consumer credit industry, building what it describes as the next generation payment network. The industry is highly competitive and dynamic, with competition intensifying as the pay-over-time industry has low barriers to entry and as large financial incumbents increasingly seek to innovate. The company's platform is broadly available to merchants and eligible consumers in the United States, Canada, and the United Kingdom, with a limited launch in Australia beginning in the first quarter of fiscal year 2027, and it expects to continue expanding internationally in continental Europe and Australia. The regulatory environment is evolving and uncertain, with federal and state governments considering the application of existing laws and adoption of new laws to regulate online lending platforms and BNPL lending specifically.

Affirm's primary competition consists of legacy payment methods such as credit and debit cards provided by card issuing banks including Synchrony, J.P. Morgan Chase, Citibank, Bank of America, Capital One, Bread Financial, and American Express; mobile wallets and other pay-over-time solutions offered by companies such as PayPal, Block, and Klarna; and new pay-over-time offerings by legacy financial and payments companies. Many competitors are substantially larger, with advantages such as more diversified product offerings, larger consumer and merchant bases, greater brand recognition, operational efficiencies, the ability to cross-subsidize offerings, and lower-cost funding. Affirm believes its competitive advantages include strong network effects, engineering and technology infrastructure, data advantages that compound over time, better outcomes generated by proprietary risk models, and deep capital markets expertise. As of June 30, 2026, the company had approximately 571 thousand active merchants, and for fiscal years 2026 and 2025, 96% and 94% of transactions were driven by repeat consumers.

Affirm's business model is designed to align with the interests of both consumers and merchants. From merchants, the company typically earns a fee when it helps convert a sale and facilitate a transaction, with merchant fees depending on individual arrangements and generally larger on 0% APR financing products. From consumers, Affirm earns interest income on interest-bearing installment loans that it originates or purchases from originating bank partners. The company also facilitates the issuance of the Affirm Card, a debit card, and earns interchange revenue shared by card-issuing partners. The business model is predicated on principles of simplicity, transparency, and putting people first, charging $0 in late fees since founding and not charging deferred interest or compounding interest. For fiscal year ended June 30, 2026, Pay-in-X and 0% APR installment loans represented 16% and 14% of total GMV, respectively, while interest-bearing monthly installment loans represented 70% of total GMV.

Affirm's main loan product offerings are Pay-in-X, 0% APR monthly installment loans, and interest-bearing monthly installment loans. Pay-in-X primarily consists of short-term payment plans with one to four 0% APR installments. The company also offers the Affirm Card, a debit card that can be used physically or virtually, allowing consumers to link a bank account to pay in full or apply to pay over time through the Affirm App, and virtual cards issued directly to consumers through the App. The Affirm Money Account, offered in partnership with Cross River Bank, is an FDIC-insured, high-yield savings account with no minimum deposit requirements or fees. During fiscal year ended June 30, 2026, 25% of transactions were initiated through mobile app and website channels as well as Affirm Card.

Affirm's platform includes consumer features such as Affirm at Checkout, consumer-first borrowing, Affirm Card and the Affirm Marketplace, and the Affirm Money Account. Merchant features include Affirm at Checkout integration through direct API or platform partners, flexible offerings of 0% APR and interest-bearing pay-over-time, Affirm prequalification, brand-sponsored and other promotional strategies, merchant dashboard and analytics, and participation in the Affirm Marketplace. The company is developing new products including AdaptAI, an AI-powered personalized promotion platform, and Affirm Edge, which embeds pay-over-time functionality directly into customers' primary banking and credit union apps. For fiscal year ended June 30, 2026, Affirm facilitated consumer purchases of $50.2 billion in GMV.

Affirm has pursued a multi-pronged growth strategy focused on expanding solutions for merchants and consumers, increasing consumer transaction frequency and in-store usage, expanding consumer reach, expanding merchant reach, and expanding to new markets. The company began a limited launch of its platform in Australia in the first quarter of fiscal year 2027 and expects to continue expanding internationally in continental Europe and Australia. As of June 30, 2026, Affirm had approximately 7.0 transactions per active consumer, an increase of approximately 20% compared to June 30, 2025 and an increase of 44% over the two-year period since June 30, 2024. The company relies on two Primary Originating Banks, Celtic Bank and Lead Bank, to originate substantially all partner bank originated loans, and two Card Issuing Banks, Evolve Bank & Trust and Stride Bank, to issue the Affirm Card.

Affirm's financial performance reflects significant growth, with total revenue increasing from $2.716 billion in fiscal 2025 to $3.486 billion in fiscal 2026, representing 28% growth. Net loss improved from $178.9 million in fiscal 2025 to $92.6 million in fiscal 2026. The company's GMV grew from $37.1 billion in fiscal 2025 to $50.2 billion in fiscal 2026, a 35% increase. Operating loss narrowed from $260.4 million in fiscal 2025 to $191.2 million in fiscal 2026. The company's provision for credit losses increased from $449.5 million in fiscal 2025 to $548.2 million in fiscal 2026, reflecting growth in the loan portfolio.

The company's forward-looking statements focus on expectations regarding future revenue, expenses, and other operating results and key operating metrics, but no specific figures are provided.

A key growth vector is expanding solutions for merchants and consumers through innovation on new consumer product solutions, including AdaptAI, Affirm's AI-powered personalized promotion platform, and increasing merchant feature functionality to improve conversion rates, AOVs, and customer satisfaction. The company also aims to increase consumer transaction frequency and in-store usage, with Affirm Card being an important component of this strategy because consumers using Affirm Card often have higher transaction frequency per user and greater in-store usage. As of June 30, 2026, Affirm had approximately 7.0 transactions per active consumer, an increase of approximately 20% compared to June 30, 2025 and an increase of 44% over the two-year period since June 30, 2024.

Another growth vector is expanding consumer reach through continued marketing to increase brand awareness, strengthen web and direct-to-consumer presence, and highlight the value of the platform. The company also intends to continue expanding products to serve a broader range of consumer needs, expecting that as more consumers are added to the network, models become more efficient and robust, enhancing the ability to assess risk and supporting acquisition and approval of a broader spectrum of consumers. Expanding merchant reach involves deepening penetration with existing merchants, as Affirm represents a small percentage of merchants' total transaction volume today, and increasing the number of merchant partnerships through dedicated sales teams and platform partner and merchant acquirer partnerships.

Expansion to new markets is a significant growth vector, with the platform broadly available in the United States, Canada, and the United Kingdom, and a limited launch in Australia in the first quarter of fiscal year 2027. The company expects to continue expanding internationally in continental Europe and Australia, believing that merchants and consumers anywhere can benefit from a more transparent, fair, and honest way to engage in commerce. The company's technology investments are focused on its cloud-first platform, machine learning, artificial intelligence, and data infrastructure, with the goal of creating a flywheel effect that drives incremental data capture and improves efficiency of each transaction.

Affirm's margin and cost outlook is not explicitly quantified in the filing, but the company emphasizes that its costs decrease as a percentage of GMV as its consumer ecosystem expands, with additional data on repeat consumers enabling better underwriting decisions and generally resulting in lower provision for credit losses and processing and servicing expenses from repeat consumers than from first-time consumers. The company's business model is designed to align economic incentives with prudent underwriting and successful consumer loan repayment, with no late fees, deferred interest, or compounding interest.

Affirm's capital allocation strategy is focused on maintaining a diverse and durable funding model consisting of four primary channels: warehouse credit facilities, programmatic issuance of term and revolving securitization transactions, pass-through loan sales, and forward flow loan sale arrangements. The company endeavors to maximize financial flexibility by partnering with a broad spectrum of counterparty profiles including depository institutions, investment banks, hedge funds, pension funds, asset managers, and insurance companies. The company does not pay dividends and does not disclose specific R&D spending or capital expenditure plans in the filing.

Management has explicitly flagged several headwinds and constraints to its growth plan, including the potential for revenue and GMV growth rates to decline in future periods due to increased competition, slowing demand, transaction volume and mix, lower sales by commercial partners, general economic conditions, and changes in the regulatory environment. The company also faces risks related to its reliance on a small number of commercial partners, with a single commercial partner or a small number of commercial partners potentially representing a disproportionately large amount of revenue and/or GMV during any given fiscal period, and the loss of any significant relationship such as with Amazon or Shopify would adversely affect the business.

Regulatory and macroeconomic factors are significant constraints, including the impact of persistent inflation, an elevated interest rate environment and corresponding elevated negotiated interest rate spreads, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, and the potential impact of macroeconomic conditions on the stability of consumers and financial institutions. The company also faces risks from the evolving regulatory framework for BNPL lending, including new state legislation such as New York's Buy-Now-Pay-Later Act and Illinois' Buy-Now-Pay-Later Loan Consumer Protection Act, and new FCA regulations for the BNPL market in the U.K. that came into force on July 25, 2026.

Management's message emphasizes the company's mission to deliver honest financial products that improve lives and its position as a next generation payment network. The tone is confident and forward-looking, highlighting the company's proprietary technology, underwriting, and risk management as key competitive advantages, with the ability to price and assess risk at a transaction level providing a unique advantage compared to legacy payment and credit systems. Strategic priorities emphasized for the period ahead include expanding solutions for merchants and consumers through innovation such as AdaptAI, increasing consumer transaction frequency and in-store usage, expanding consumer and merchant reach, and expanding to new markets including Australia and continental Europe. Management also emphasizes the importance of maintaining a diverse and durable funding model and continuing to build on the company's network effects, with 96% of transactions in fiscal 2026 driven by repeat consumers.

Total revenue for fiscal year 2026 was $3.486 billion , compared to $2.716 billion in fiscal 2025. Net loss was $92.6 million in fiscal 2026, compared to a net loss of $178.9 million in fiscal 2025. Diluted net loss per share was $0.29 in fiscal 2026, compared to $0.57 ⁶ in fiscal 2025. Operating loss was $191.2 million ⁷ in fiscal 2026, compared to an operating loss of $260.4 million ⁸ in fiscal 2025. Provision for credit losses was $548.2 million ⁹ in fiscal 2026, compared to $449.5 million ¹⁰ in fiscal 2025. Total GMV was $50.2 billion ¹¹ in fiscal 2026, compared to $37.1 billion ¹² in fiscal 2025. The company's net cash provided by operating activities was $1.1 billion ¹³ in fiscal 2026, compared to $1.0 billion ¹⁴ in fiscal 2025. As of June 30, 2026, the company had cash and cash equivalents of $1.2 billion ¹⁵ and marketable securities of $1.1 billion ¹⁶. Total debt was $3.4 billion ¹⁷ as of June 30, 2026, compared to $3.1 billion ¹⁸ as of June 30, 2025. The company's revenue mix included interest income of $1.5 billion ¹⁹ in fiscal 2026, compared to $1.2 billion ²⁰ in fiscal 2025, and network revenue of $1.2 billion ²¹ in fiscal 2026, compared to $0.9 billion ²² in fiscal 2025.

The company's business is highly dependent on a small number of commercial partners, with a single commercial partner or a small number of commercial partners potentially representing a disproportionately large amount of revenue and/or GMV during any given fiscal period, and the loss of any significant relationship such as with Amazon or Shopify would adversely affect the business ¹. Affirm relies on two Primary Originating Banks, Celtic Bank and Lead Bank, to originate substantially all partner bank originated loans, and two Card Issuing Banks, Evolve Bank & Trust and Stride Bank, to issue the Affirm Card, and if any of these relationships terminate and cannot be replaced, the business would be materially and adversely affected ². The company's funding model depends on a variety of funding arrangements, including warehouse credit facilities, securitization trusts, master trust facilities, and forward flow arrangements, and if existing funding arrangements are not renewed or replaced or funding sources are unwilling or unable to provide funding on acceptable terms, it could have a material adverse effect ³. The company retains some loans on its balance sheet and bears the entire credit risk in the event of consumer default, and non-performance or significant underperformance of loan receivables could adversely affect the business ⁴. The company faces risks from the evolving regulatory environment, including new state BNPL legislation and new FCA regulations in the U.K., which could impose additional compliance burdens and restrictions ⁵.