Affirm Holdings Inc. reported its financial results for the second quarter (Q2) of fiscal year 2026, posting revenue of USD 1.12 billion, an increase of 30% year-over-year. Revenue Less Transaction Costs (RLTC) reached USD 543 million, up 29%. Gross Merchandise Volume (GMV) for the period totaled USD 13.80 billion, reflecting a 36% increase. The company recorded net income of USD 49 million. Operating income as a percent of revenue improved by 11 percentage points to 10.5%, while adjusted operating income as a percent of revenue rose by 3 percentage points to 30.0%. During the quarter, Affirm launched its inaugural "Big Nothing" 0% APR event, collaborating with hundreds of merchant partners and offering no-interest deals for nearly every consumer shopping with Affirm at participating retailers for three days in October. This initiative led to a 5% GMV lift for merchants, with the figure rising to 27% when highlighted on Affirm’s own surfaces, particularly benefiting higher average order value baskets. The company also highlighted the contribution of its internally developed yield optimization technologies, AdaptAI and BoostAI. AdaptAI, now deployed across nearly all Affirm platforms including digital wallets, contributed to an approximate 10% year-over-year improvement in end-to-end checkout conversion. BoostAI further enhanced financing offer optimization through automatic A/B testing at participating merchants. Affirm emphasized its commitment to affordability, noting that its model with no late fees, no deferred interest, and no revolving debt provides consumers with clear, upfront pricing and flexibility at a lower cost compared to many revolving credit cards. The company estimated that U.S. households in 2024 could have saved up to USD 18 billion using Affirm instead of revolving on credit cards, with some households potentially saving up to 30% annually on total borrowing costs.

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