Affirm Gets the Last Laugh with a RECORD-BREAKING Quarter After Being Dumped By Walmart…

Pablo Escobar would have killed for this kind of repeat business…

Fun fact: Affirm just proved the American consumer will finance literally anything short of oxygen. The buy-now-pay-later shop posted fiscal Q4 numbers that didn’t just beat… they humiliated estimates. 

(Source: Giphy) 

Earnings came in at $0.20 a share, almost double Wall Street’s $0.11 call. Revenue ripped 33% higher to $876 million, topping consensus by about $20 million. And net income swung to a $69 million profit versus a $45 million loss last year.  Which means, for a company that usually plays in the “unprofitable tech” sandbox, this was record-breaking stuff.

(Source: Yahoo Finance) 

As a result, this is precisely why CEO Max Levchin called it “firing on all pistons”... and for once, the cliché fit. Repeat customers made up 95% of transactions, a stat that would make Pablo Escobar proud. The Affirm Card, Levchin’s pet project, is starting to look less like a joke and more like a real growth engine. Case in point: GMV is up 132% to $1.2 billion, cardholders nearly doubled to 2.3 million, and in-store spend jumped 187%. Zero-percent APR loans tripled and now account for 14% of card volume. Bigly. 

With that said, critics worry Affirm is underwriting too much “free” credit, but Levchin insists the company still tells broke applicants to kick rocks… “compassionately”, that is. Meanwhile, Affirm’s AI toy, AdaptAI, is allegedly juicing merchant volume by 5% on average. In fact, volume jumped 44%, almost a billion dollars ahead of expectations… and that’s after Walmart defected to Klarna. Amazon and Shopify are still in Affirm’s corner, and that proved enough to silence the doubters.

(Source: Giphy) 

Meaning, for investors, this was the quarter that moved Affirm from “BNPL niche” to “consumer credit platform with actual leverage.” Shares have spiked 12% on the day, adding to a 30% run already this year (now sitting at +42% YTD). Additionally, guidance for FY26 is higher, the U.S. consumer is still spending like rates don’t exist, and Affirm looks set to ride it. 

And yet, the only question left going forward is: how long does the plastic-swiping resilience of the American consumer hold? Levchin’s betting it lasts long enough to keep his stock chart vertical… which is understandable considering GDP revisions back that theory up. But for now, he’s got the receipts… presumably in four installments, of course. In the end, keep your eyes on Affirm, and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Amazon as mentioned in the article.