Highlights

  • Affirm shows 3,515.00% one-year basic EPS growth, a P/E of 12.67 and PEG of -1.21.
  • Fiscal 2026 net income was $1,929,793 thousand, against $52,186 thousand in fiscal 2025.
  • Gross merchandise volume was $50.2 billion, with 27.8 million active consumers at June 30, 2026.
  • Affirm holds $2.6 billion of cash and securities and $675.0 million of undrawn revolver capacity.

One-year earnings growth of 3,515.00%, paired with a trailing twelve-month P/E of 12.67 and an expected-basis PEG of -1.21, puts Affirm (NASDAQ:AFRM) among undervalued growth stocks, with shares trading at USD 72.60 on October 28, 2026, down 0.11%. In its latest disclosures, the payments network applied for an Affirm Bank charter on January 23, reported fiscal 2026 net income of $1,929,793 thousand in its annual report on August 27, and announced leadership promotions on its fiscal fourth quarter call on August 31.

Affirm Holdings, Inc. is headquartered in San Francisco, California, and is incorporated in Nevada. Founded in 2012, it operates a payment network that lets consumers pay for purchases over time through Pay-in-X, 0% APR monthly installment loans and interest-bearing monthly installment loans, and it facilitates the Affirm Card. The company reports one segment and had 2,358 employees at June 30, 2026.

Growth: Fiscal 2026 Net Income, Revenue and Volume

Net income was $1,929,793 thousand for the fiscal year ended June 30, 2026, against $52,186 thousand a year earlier. Basic net income per share was $5.76 against $0.16, and diluted net income per share was $5.53 against $0.15. The company said the income tax benefit of $1.4 billion mainly reflected releasing a portion of its domestic valuation allowance, a non-cash benefit of approximately $1.5 billion.

Total revenue, net was $4,261,082 thousand against $3,224,412 thousand, up 32%. Operating income was $416,977 thousand against an operating loss of $87,273 thousand. Merchant network revenue rose 30%, interest income 27% and gain on sales of loans 56%.

Gross merchandise volume (GMV) was $50.2 billion, an increase of approximately 37%. Active consumers were approximately 27.8 million, up 21%, and transactions per active consumer were approximately 7.0, up 20%. Management said on the call that the fourth quarter was its most profitable quarter, excluding the tax allowance release.

Valuation: P/E of 12.67, PEG of -1.21 and Cash Generation

The P/E ratio of 12.67 is measured on trailing twelve-month earnings, and the PEG ratio of -1.21 on an expected basis. Net cash provided by operating activities was $1,230,974 thousand against $793,909 thousand. Loans held for investment were $9,466,383 thousand against $6,957,582 thousand, and equity capital was 4% of the total platform portfolio at both June 30, 2026 and June 30, 2025.

The provision for credit losses was $796,650 thousand, up 29%. The chief financial officer said on the call that the funding cost profile built in fiscal 2026 should carry through fiscal 2027.

Funding Capacity, Convertible Notes and Capital Returns

At June 30, 2026, Affirm had $2.6 billion in cash, cash equivalents and available for sale securities, $5.3 billion in available funding debt capacity and $675.0 million of capacity under its unsecured revolving credit facility, which matures June 18, 2029 and had no borrowings outstanding.

Convertible senior notes outstanding were $221.3 million of 0.00% notes due November 15, 2026 and $920.0 million of 0.75% notes due December 15, 2029. Affirm sold loans with an unpaid principal balance of $21.9 billion, against $15.8 billion. It did not repurchase equity securities in the fourth quarter of fiscal 2026 and has never declared or paid cash dividends on its capital stock, intending to retain future earnings.

Disclosed Risks and Outlook for Fiscal 2027

The company disclosed that the volume of loan modifications increased to 0.25% from 0.17%, and that macroeconomic uncertainty, including tariffs, inflation and interest rates, may affect consumer demand and loan repayments. Amazon represented 22% of GMV, and the top five merchants and platform partners represented 44%. Affirm is subject to Consumer Financial Protection Bureau oversight and state regulators, which may bring proceedings that result in financial penalties.

A putative securities class action, Kusnier v. Affirm Holdings, Inc., is on appeal after dismissal, and three related derivative actions are stayed. The company said accrued amounts were not material and that estimable losses would not have a material adverse effect. Its January 23, 2026 applications to the Nevada Financial Institutions Division and the FDIC to establish Affirm Bank, a proposed industrial loan company, are subject to approval.

On the call, management said it expects a funding mix in fiscal 2027 consistent with fiscal 2026 and a similar number of non-consolidated asset-backed securities transactions, and referred to a long-run GAAP tax rate in the mid- to high 20% range, with some volatility. Chief Executive Officer Max Levchin said he plans to spend more time on products that will show up in fiscal 2028 and 2029.