Affirm Holdings, Inc.

Management said fiscal Q4 2026 was the company’s most profitable quarter ever, even without the tax allowance release, but did not give revenue, EPS, or gross margin figures in the transcript provided. On product mix, Max Levchin said direct-to-consumer products are running “north of 80% interest-bearing,” and that Affirm Card attach rate is 19% relative to actives. Rob O’Hare said revenue less transaction costs for fiscal 2027 is guided to 4.16%, above the prior midterm range of 3.25% to 4%, supported by a stable funding mix and similar capital markets execution to fiscal 2026. He also said the GAAP tax rate should run in the mid- to high-20% range on a run-rate basis, with volatility possible.

Max Levchin’s message was highly confident and strategic: he framed Affirm as a network business that gets stronger as scale increases, with more merchants, more consumers, and more product surfaces reinforcing each other. He emphasized that management is deliberately focusing on what works today while reserving more experimental product work for fiscal 2028, 2029, and beyond. He also highlighted leadership promotions for Michael Linford and Pat Suh as part of a push for tighter execution.

Rob O’Hare focused on the durability of the financial model and funding profile. He said the fiscal 2027 revenue less transaction costs outlook of 4.16% reflects strong debt capital markets execution, a stable funding mix versus fiscal 2026, and only a slight expected shift toward interest-bearing products. On tax, he said investors should think of GAAP tax rate as mid- to high-20%s on a run-rate basis, but with volatility from GAAP vs. tax differences and stock-based compensation. He also said nonconsolidated ABS deals can cause quarterly gain-on-sale variability, and fiscal 2027 should look broadly similar to fiscal 2026’s funding plan.

Analysts pressed on merchant expansion, in-store usage, the U.K., product mix, consumer credit quality, Affirm Edge, services, Card attach rates, and competitive positioning. Management repeatedly said large merchant sales cycles are long but the opportunity remains broad, that in-store is a major focus because it is harder than online but potentially large, and that the U.K. has gotten enthusiastic early feedback from both merchants and consumers. On credit, Levchin said Affirm does not see consumer stress and would slow growth before credit deterioration became a real issue; on approval rates, he said competitors can appear better by loosening underwriting, but Affirm prioritizes durable risk sorting over headline approval rates. On Edge, O’Hare and Levchin said bank partners move slowly due to regulatory and technical requirements, but early reception has been positive.