AFRM Stock Rallies Toward 2-Month Highs After Q4 Beat: CEO Still Sees 'Enormous Amount Of Greenfield' In Merchant Growth

• Affirm ended the fiscal year 2026 with approximately 571,000 active merchants, up 51% year-over-year. 
• Affirm is currently available at about 80 of the top 250 e-commerce sites, while its penetration across e-commerce merchants overall is only around 10%.
• The company reported having 27.8 million active consumers, up 21% year over year. 

Shares of Affirm Holdings Inc. (AFRM) jumped over 10% overnight late Thursday, heading toward early July highs, after the company’s fourth-quarter (Q4) results zoomed past consensus estimates. 

However, CEO Max Levchin said in a call with investors that the company still has significant growth opportunities in the merchant space and in consumer adoption, which could further drive up its gross merchandise volume (GMV). 

AFRM Q4 Snapshot

The buy now, pay later (BNPL) firm posted revenue of $1.17 billion, above Wall Street expectations of $1.11 billion, as per Fiscal.ai. Meanwhile, net income came in at $4.62 per diluted share, up from $0.20 a year earlier and soaring past the $0.85 analysts expected. 

GMV jumped 36% to $14.1 billion, driven higher by accelerating merchant and consumer adoption. Affirm's annual GMV reached $50.2 billion, up 37%. 

For the next quarter, Affirm expects revenue between $1.19 billion and $1.22 billion. The company also forecasts GMV of $13.7 billion to $14.0 billion. 

Merchants Growth Potential 

Affirm ended the fiscal year 2026 with approximately 571,000 active merchants, up 51% year-over-year. Of these, merchants generating more than $1,000 in trailing-12-month GMV increased 53% to approximately 237,000, as per the company. 

CEO Max Levchin told analysts in the call that the company’s addressable merchant base has potential to explore “an enormous amount of greenfield.”

Affirm is currently available at about 80 of the top 250 e-commerce sites, while its penetration across e-commerce merchants overall is only around 10%.

Levchin said that while large merchants can take time to onboard because many have complicated or outdated payment systems, noting that its sales team “has a lot of work to do for probably quite a number of quarters.”

The merchant opportunity is also not limited to signing new customers. Affirm said that it represents only a small percentage of many existing merchants' total transaction volume, with room to grow as consumer demand rises and the company expands across additional merchant channels.

GMV from Affirm’s top five merchants and platform partners rose 26% year over year and 75% over two years in FY26. However, their share of total GMV fell to 44% from 47%, reflecting greater diversification across merchants, platform partners and direct-to-consumer products. Amazon accounted for 22% of total GMV, unchanged from the prior year.

“The larger we get, the more valuable the network becomes, the more activity there happens on the edges of the graph we’re building, and the more people, the more merchants want to join the graph,” Levchin said. 

Affirm’s Consumer Growth 

Meanwhile, Affirm had 27.8 million active consumers, up 21% year over year. Transactions per active consumer increased 20% to 7, compared with 5.8 a year. 

The company said the increase in active consumers was driven by retention and engagement among existing customers, including Affirm Card users, as well as new consumer acquisition through its expanding merchant and platform partnerships.

“The more merchants integrated into our network, the more reasons consumers have to shop with Affirm,” Levchin said. 

Affirm Card also grew during the quarter, with its GMV rising 124% to $2.8 billion in Q4, while active cardholders more than doubled to 5.2 million. Direct-to-consumer GMV increased 49% to $4.7 billion, driven entirely by Affirm Card.

Credit Delinquencies

Affirm said in its filing that it has continued to optimize underwriting to manage delinquency rates and minimize losses, adding that these measures did not adversely affect GMV growth during FY26. Loan modifications increased to 0.25% of the portfolio from 0.17% a year earlier, which the company said can affect the timing of reported delinquencies and charge-offs. 

As of the quarter end, $95.99 million of loans were 30–59 days past due, $77.62 million were 60–89 days past due and $63.89 million were 90–119 days past due.

AFRM Stock: Retail Stance

On Stocktwits, retail sentiment around AFRM stock improved from ‘bullish’ to ‘extremely bullish’ over 24 hours as message volumes jumped 2,337.5%, as per platform data. 

One user said, “$AFRM Significantly undervalued. Might see some manipulation over the next few days, but I think this is going to $125-$150 in the next month or so.”

Another user said, “going for a 20%+ day tomorrow! Huge beat.” 

AFRM stock is up 4.67% so far in 2026. 

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