Affirm Q2 GMV Soars 36% to $13.8B, Card Volume Jumps 159%
Affirm reported Q2 GMV up 36% YoY to $13.8 billion and revenue increased 30% to $1.1 billion, driven by direct-to-consumer GMV which climbed 52% to $4.3 billion and Card volume surging 159% to $2.2 billion. Active consumers rose 23% to 25.8 million while 0% APR loan GMV grew 60%.
1. Strong Top-Line Growth Driven by Broad GMV Expansion
Affirm reported gross merchandise volume (GMV) of $13.8 billion in its fiscal second quarter, a 36% increase year over year, illustrating accelerated adoption of buy-now-pay-later at checkout. Revenue climbed 30% to $1.1 billion, propelled by growth across point-of-sale integrations, wallet partnerships and the company’s direct-to-consumer channel. This performance outpaced industry peers and underscores Affirm’s ability to capture a larger share of routine transactions previously reserved for big-ticket items.
2. Network Engagement Hits Record Levels
Active consumer counts rose 23% to 25.8 million by quarter-end, while transactions per active consumer increased 20% to 6.4, indicating deeper usage patterns. Merchant sign-ups surged 42% to roughly 478,000, driven by rapid onboarding of small businesses and enterprise partners. The broadened network reflects successful integration efforts with major retailers and point-of-sale systems, positioning Affirm to benefit from continued e-commerce expansion.
3. Zero-Interest and Card Business Propel Direct-to-Consumer Volume
GMV tied to 0% APR products expanded 60%, outpacing overall platform growth, as more than 60% of new customers selected interest-free offers for their first purchase. Direct-to-consumer GMV jumped 52% to $4.3 billion, led by the Affirm Card, which saw volume surge 159% to $2.2 billion. Active cardholders more than doubled to 3.7 million, lifting card attach rates to approximately 14%. The shift toward card-based financing underscores Affirm’s success in embedding BNPL into everyday spending.
4. Stable Credit Performance and Conservative Outlook
Credit metrics remained healthy, with 30-plus-day delinquencies on monthly installment loans at 2.7%, down sequentially, and Pay-in-4 losses below 1% of GMV. The allowance for credit losses held steady at 5.4% of loans held for investment. For the full fiscal year, Affirm guided GMV between $48.3 billion and $48.85 billion and revenue in a range of $4.09 billion to $4.15 billion, forecasting margin improvement in the second half. Management emphasized continued investment in regulatory clarity, highlighted by its pending industrial bank charter application, while maintaining disciplined credit underwriting amid macroeconomic uncertainty.