Affirm Q2 Revenue Jumps 48% to $739M, Loan-Loss Provisions Rise to $214M
Affirm reported fiscal Q2 revenue up 48% year-over-year to $739 million and GMV growth of 36% to $7.5 billion, while narrowing its net loss to $167 million from $322 million a year earlier. The company’s provision for loan losses rose to $214.2 million, reflecting higher credit risk as active consumers climbed 21% to 19.5 million.
1. Strong Q2 Top-Line Growth
Affirm delivered 48% year-over-year revenue growth to $739 million and a 36% increase in gross merchandise volume to $7.5 billion. Active consumers rose 21% to 19.5 million, with transactions per active user reaching a record 4.1, underscoring sustained platform adoption.
2. Improving Losses Offset by Rising Credit Risk
The company narrowed its net loss to $167 million (40 cents per share) from $322 million a year earlier, driven by higher network and servicing income. However, management increased its provision for loan losses to $214.2 million and saw loss on loan purchase commitments grow to $96.1 million, highlighting mounting credit concerns.
3. Zacks-Beating EPS and Merchant Expansion
Affirm posted 37 cents in EPS, beating estimates by 32% as net revenues of $1.1 billion surpassed expectations by 6.3%. Active merchants climbed 42% to 478,000, and GMV on its platform reached $13.8 billion, up 36% year-over-year, supported by new wallet partnerships and point-of-sale integrations.
4. Guidance and Balance-Sheet Position
For Q3, management forecasts GMV of $11–$11.25 billion and revenues of $970 million–$1 billion, with adjusted operating margin near 25%. The company exited Q2 with $1.5 billion in cash and equivalents and $3 billion of funding debt, up from $1.6 billion a year earlier.