Affirm Holdings, Inc. · Q4 FY2026

The quarter in short

Revenue $1.17B, up 33.0% year over year and 12.2% on the quarter. EPS $4.62. Free cash flow $229M, up 874.9% year over year and down 29.5% on the quarter. EPS beat consensus by 1300%. Rule of 40 score +53.

What we learned

1. The valuation allowance released, and it is 90% of the headline. A $1,447.5 million non-cash tax benefit turned $169.1 million of pre-tax income into $1,617 million of net income and $4.62 of GAAP diluted EPS. Pre-tax income per diluted share was about $0.48 against a $0.33 consensus.
2. The operating beat is real and separate from it. Operating income $147 million , margin 12.6% against a guided 9.5–11.5% and 6.6% a year ago; adjusted operating margin 30% against 27%.
3. GMV grew 36% to $14.1 billion, above the top of the guide, on 53 million transactions (+41%). Revenue was 8.29% of GMV and RLTC 4.19%, both near or above the high end of the company's own ranges.
4. Fiscal 2027 is guided to operating leverage: more than $64 billion of GMV and an operating margin above 14.5% , against 9.8% in fiscal 2026 — while the outlook assumes benchmark rates rise, putting the 5.8% cost of funds at risk.
5. Earnings normalise from here at a mid-to-high-20s GAAP tax rate, the CFO's own run-rate guidance — and the P/E series stays distorted until this quarter rolls off: trailing GAAP EPS of $5.52 takes the multiple from 41.65 to 14.77 , which is the tax benefit, not a re-rating.

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