Affirm's Earnings Exceed Expectations Amid Growth and Credit Worries

Earnings Report: Affirm Holdings Inc. reported strong earnings for its fiscal second quarter of 2026, with a 48% year-over-year revenue increase to $739 million, despite a 4% drop in stock price after hours.

Consumer Growth: The company saw a 21% rise in active consumers, reaching 19.5 million, and a significant increase in gross merchandise volume (GMV) by 36% to $7.5 billion, indicating continued momentum in its core business.

Loan Loss Provisions: Affirm increased its loan loss provisions to $214.2 million, reflecting concerns over rising credit risk, although management noted that the overall growth trend remains positive.

Market Position and Risks: Analysts suggest that while Affirm's business is growing, there are risks associated with its business model, particularly regarding high-interest rates and the sustainability of its consumer financing programs.