Affirm Holdings reported sustained GAAP profitability in its most recent quarter, marking a rare achievement among Buy Now, Pay Later providers. The company delivered 42% year-over-year growth in gross merchandise volume (GMV), driven by higher transaction activity and merchant onboarding. Operating margins expanded by 150 basis points sequentially, reflecting continued leverage in marketing spend and improvements in risk management. Affirm’s net income margin rose to 4.2%, underscoring its ability to scale credit originations without sacrificing underwriting discipline.

Active consumers on Affirm’s platform climbed to 24.1 million, up 28% year-over-year. Transactions per user increased by 20%, a sign of deeper engagement among existing customers. The company also reported that adoption of its branded installment card doubled, with active card users rising by 101% over the past 12 months. These metrics highlight Affirm’s success in driving repeat usage and cross-selling across e-commerce and in-store channels, where installment plans now account for over one third of total transaction volume.

Affirm entered into a national agreement with Bolt to become the default embedded BNPL provider across Bolt’s one-click checkout network. The integration will be rolled out to thousands of online merchants, granting Affirm immediate access to a network that processes over $10 billion in annualized GMV. In parallel, Affirm expanded its collaboration with Fiserv to embed pay-later capabilities into debit card programs for community banks and credit unions, targeting an addressable market of over 50 million cardholders. These partnerships are expected to contribute an incremental 15% to new merchant volume by year-end.

Affirm has filed preliminary applications to establish an FDIC-insured banking subsidiary, a move designed to diversify funding sources and reduce reliance on third-party credit facilities. Management projects that the subsidiary could originate up to 30% of Affirm’s new loans within 18 months of launch, lowering funding costs by approximately 75 basis points. Executives indicate that a bank charter will also enable the rollout of deposit products and savings accounts, further integrating Affirm into consumers’ financial lives and enhancing overall customer lifetime value.