Affirm has reported sustained GAAP profitability for three consecutive quarters, driven by a 42% year-over-year increase in gross merchandise volume (GMV). The company attributes this growth to disciplined underwriting, dynamic pricing algorithms and an expanded merchant network. Operating margins improved by 150 basis points over the past year, reflecting both higher interest income and disciplined cost control in marketing and technology investments.

Active consumers on the Affirm platform grew to 24.1 million, up 18% from the prior year. Transactions per user increased by 20%, as more customers adopted installment plans for everyday purchases. The company’s proprietary Affirm Card saw adoption more than double, with monthly card activations increasing 101%. Repeat usage rates climbed to 68%, indicating stronger loyalty and higher lifetime value per customer.

In January, Affirm secured two major integrations to broaden its merchant reach. The company was selected by Bolt as the default buy-now-pay-later provider across Bolt’s one-click checkout network, rolling out to select merchants this month. Separately, Affirm partnered with Fiserv to embed BNPL capabilities into debit programs at community banks and credit unions, enabling real-time underwriting and funding through existing debit rails. These partnerships are expected to add over 5,000 new merchants by year-end.

While scale and profitability are improving, Affirm faces ongoing regulatory scrutiny around consumer lending practices. New proposed regulations could impose additional capital requirements and reporting standards. On the valuation front, investor skepticism persists until stronger visibility on credit loss trends and regulatory outcomes emerges. Affirm’s management has guided for a stable net charge-off rate below 4.5% and reiterated a commitment to maintaining a CET1 capital ratio above 12% as a buffer against potential policy changes.