Affirm Q1 2026 Earnings Call: Strategic Buy or Sell Decision?
As Affirm prepares to report its fiscal first-quarter earnings for 2026, investors are evaluating whether this is the optimal time to buy or sell. The report will cover the period from July to September 2025, coinciding with the start of its fiscal year on July 1. Key metrics such as revenue growth, earnings per share, gross merchandise volume (GMV), credit quality, and developments related to the Affirm Card will be closely scrutinized.
Affirm’s Q1 2026 Earnings Call
The earnings call is scheduled for Thursday, November 6, at 5:00 PM ET. Max Levchin, the CEO of Affirm, is expected to reflect positively on the quarter.
- Key Metrics to Watch:
- Revenue Growth
- Earnings per Share
- Gross Merchandise Volume (GMV)
- Credit Quality
- Active Users of Affirm Card
The Affirm Card has witnessed significant growth, boasting a 97% increase in active users, reaching a total of 2.3 million in Q4.
Market Conditions Favorable for Affirm
Recent shifts in the economic landscape have benefitted the Buy Now, Pay Later (BNPL) sector. The Federal Reserve’s rate cuts have eased funding pressures for lenders like Affirm. This change primarily enhances profit margins and provides more funding flexibility.
Additionally, regulatory uncertainties have diminished. The Consumer Financial Protection Bureau (CFPB) previously considered classifying BNPL services as “credit card providers.” However, following a reversal in its stance in 2025, compliance risks for Affirm have lessened.
Performance Highlights
- Stock Performance: Affirm shares surged 67.1% year-to-date in 2025.
- Price Range: The stock has fluctuated between $30.90 and $100.00 over the last year.
- Financial Turnaround: For the fiscal year ending June 30, 2025, Affirm reported its first annual GAAP net income of $52.19 million.
The company turned a significant corner in its financial health, posting its first quarterly operating profit in Q4 2025, alongside a 43% year-over-year increase in GMV.
Comparison to Industry Peers
Affirm’s focus is primarily within the U.S., but its performance can be compared to that of Klarna (KLAR). As of November 2025, Klarna’s stock trades around $35.66, down more than 10% from its IPO price, reflecting the volatility seen since its launch on September 10, 2025. Analysts continue to support a “Buy” consensus for Klarna, with an average price target of $49.54.
Future Outlook for the BNPL Sector
With the dangers of high interest rates and regulatory pressures easing, the BNPL industry is entering a new phase focusing on diversification. Key players are branching into traditional banking services, launching debit cards and deposit accounts. This shift aims to position BNPL as a primary financial service provider for consumers.
As Affirm moves forward, its strategic decisions and market positioning will be crucial for sustained growth, making the upcoming earnings call an important event for stakeholders.
