Affirm's GMV Hits $36.7B, Bolstered by Merchant Growth & Risk Tech

TL;DR

Affirm's BNPL model is gaining serious traction with $36.7 billion in GMV, making it a compelling fintech play despite macroeconomic headwinds.

AI Summary

Affirm Holdings, Inc. (AFRM) reported a Gross Merchandise Volume (GMV) of $36.7 billion for the fiscal year ended June 30, 2025, demonstrating significant growth in consumer purchases facilitated through its platform. The company's business model is diversified, with interest-bearing monthly installment loans representing 72% of total GMV in fiscal year 2025, a slight decrease from 74% in fiscal year 2024. Pay-in-X and 0% APR installment loans accounted for 14% and 13% of total GMV, respectively, in fiscal year 2025, compared to 15% and 11% in fiscal year 2024. Affirm continues to expand its merchant network, reaching approximately 377 thousand active merchants as of June 30, 2025, and enhancing its product suite with offerings like the Affirm Card and Affirm Money Account. A key strategic advantage is its proprietary risk model, built on data from approximately 343 million loans, which aims for lower fraud rates and higher approval rates than traditional credit models. The company emphasizes transparency, charging $0 in late fees and no compounding interest, aligning its interests with consumers and merchants. The Affirm marketplace facilitated 24% of transactions during fiscal year 2025, highlighting its growing direct-to-consumer channel. The company's strategic outlook focuses on leveraging its technology and network effects to drive sustained profitability and expand its market presence.

Why It Matters

Affirm's continued growth in GMV to $36.7 billion and expansion to 377 thousand active merchants signals strong adoption of its 'Buy Now, Pay Later' (BNPL) model, impacting traditional credit card companies and banks. For investors, this indicates increasing market share in consumer financing, but also highlights reliance on merchant fees and interest income in a competitive landscape. Employees benefit from a growing company in a dynamic fintech sector, while customers gain flexible, transparent payment options without late fees. The broader market sees a shift in consumer credit behavior, pushing competitors to innovate their own payment solutions.

Risk Assessment

Risk Level: medium — Affirm operates in a highly competitive and rapidly changing environment, as stated in the 'Cautionary Note Regarding Forward-Looking Statements.' Its business model is sensitive to macroeconomic conditions, including inflation and elevated interest rates, which can impact consumer creditworthiness and funding costs. The company's ability to maintain and grow relationships with originating bank partners and secure funding arrangements is crucial, and any disruption could significantly affect its operations.

Analyst Insight

Investors should monitor Affirm's ability to maintain its proprietary risk model's effectiveness amidst potential economic downturns and rising interest rates. Evaluate its funding arrangements and merchant acquisition rates, as these are critical for sustained growth and profitability in the competitive BNPL market.

Financial Highlights

debt To Equity

X.X

revenue

$X

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$X

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+X%

Key Numbers

• $36.7 billion — Gross Merchandise Volume (GMV) (facilitated for the fiscal year ended June 30, 2025)
• 377 thousand — active merchants (as of June 30, 2025, indicating merchant network growth)
• 72% — percentage of total GMV (represented by interest-bearing monthly installment loans for fiscal year 2025)
• 14% — percentage of total GMV (represented by Pay-in-X for fiscal year 2025)
• 13% — percentage of total GMV (represented by 0% APR installment loans for fiscal year 2025)
• 24% — percentage of transactions (occurred on the Affirm marketplace during fiscal year ended June 30, 2025)
• 343 million — loans (data points used to build proprietary risk models)
• $16.6 billion — aggregate market value (of Class A common stock held by non-affiliates as of December 31, 2024)
• 284,917,717 — shares outstanding (Class A common stock as of August 22, 2025)
• 40,732,597 — shares outstanding (Class B common stock as of August 22, 2025)

Key Players & Entities

• Affirm Holdings, Inc. (company) — registrant
• AFRM (company) — trading symbol
• Nasdaq Global Select Market (regulator) — exchange where Class A common stock is registered
• Cross River Bank (company) — partner for Affirm Money Account
• Securities and Exchange Commission (regulator) — filing recipient

FAQ

Risk Factors

• Credit Risk and Loan Losses [high — financial]: Affirm's business is highly dependent on its ability to effectively underwrite and manage credit risk. The company's proprietary risk model, built on data from approximately 343 million loans, aims to mitigate this, but significant increases in loan defaults or credit losses could materially impact financial performance. The company's focus on serving a broad credit spectrum may expose it to higher inherent credit risk.
• Evolving Regulatory Landscape [high — regulatory]: The 'Buy Now, Pay Later' (BNPL) industry is subject to increasing regulatory scrutiny globally. Changes in regulations related to consumer lending, data privacy, and credit reporting could increase compliance costs and impact Affirm's business model and profitability. The company's commitment to transparency and $0 late fees may be tested by new regulatory requirements.
• Technology and Platform Reliability [high — operational]: Affirm's platform is built on modern technology and relies on its continuous operation for all transactions. Any disruptions, security breaches, or failures in its technology infrastructure could lead to significant financial losses, reputational damage, and loss of customer trust. The company's ability to scale its technology to support growth in GMV of $36.7 billion is critical.
• Competition and Market Saturation [medium — market]: The payments and BNPL market is highly competitive, with established financial institutions and new fintech entrants. Affirm faces competition from companies offering similar installment payment solutions. The company's ability to maintain and grow its market share, particularly with its 377 thousand active merchants, depends on its innovation and differentiation.
• Interest Rate Sensitivity [medium — financial]: While Affirm offers 0% APR loans, a significant portion of its GMV (72% in FY25) is from interest-bearing loans. Fluctuations in interest rates can impact the cost of funding for Affirm and the attractiveness of its products to consumers, potentially affecting net interest income and loan origination volumes.
• Merchant Relationships and Integration [medium — operational]: Affirm's growth is dependent on its ability to attract and retain merchants. Challenges in integrating its platform with merchant systems, or a decline in merchant satisfaction, could hinder GMV growth. The company's expansion to 377 thousand active merchants highlights the importance of these relationships.
• Reliance on Funding Sources [medium — financial]: Affirm relies on various sources of funding to originate loans. Disruptions in capital markets or increased costs of borrowing could impact its ability to fund its operations and growth, potentially affecting its lending capacity and profitability.
• Data Security and Privacy [high — legal]: Affirm collects and processes significant amounts of sensitive consumer data. Any breaches or misuse of this data could lead to severe legal penalties, reputational damage, and loss of customer confidence. The company's risk models are built on 343 million loans, underscoring the volume of data handled.

Industry Context

The 'Buy Now, Pay Later' (BNPL) sector is experiencing rapid growth, driven by consumer demand for flexible payment options and merchant interest in boosting sales. However, the industry is becoming increasingly competitive with traditional banks, payment processors, and other fintech companies entering the space. Regulatory scrutiny is also intensifying globally, posing challenges to the existing business models.

Regulatory Implications

Affirm operates in a rapidly evolving regulatory environment. Increased oversight concerning consumer credit, data privacy, and fair lending practices could lead to higher compliance costs and potential restrictions on its business operations. The company's transparent, $0 late fee model may face challenges or require adjustments based on future regulations.

What Investors Should Do

1. Monitor credit loss trends closely.
2. Assess the impact of regulatory changes.
3. Evaluate competitive positioning and differentiation.
4. Analyze the growth and profitability of the Affirm marketplace.

Glossary

Gross Merchandise Volume (GMV)

The total dollar value of merchandise sold through Affirm's platform over a given period. It represents the total value of transactions facilitated by Affirm. (GMV is a key indicator of Affirm's platform activity and growth, showing the volume of consumer purchases enabled by its services. The reported $36.7 billion for FY25 demonstrates significant scale.)

Pay-in-X

A payment option offered by Affirm where consumers pay for purchases in a fixed number of installments, typically over a short period (e.g., Pay in 4). (This is a specific product offering that contributes to Affirm's GMV. Its share of GMV (14% in FY25) indicates consumer preference for different payment structures.)

0% APR installment loans

Loans offered by Affirm that allow consumers to pay for purchases in installments over time without incurring any interest charges, provided payments are made on time. (This product is a core part of Affirm's value proposition to consumers, aiming for transparency and affordability. Its 13% share of GMV in FY25 shows its importance.)

Proprietary risk model

A unique underwriting and credit assessment system developed by Affirm using its own data and algorithms, designed to evaluate borrower creditworthiness more accurately than traditional methods. (This is highlighted as a key competitive advantage, enabling Affirm to manage credit losses and fraud while approving more transactions. It's built on data from approximately 343 million loans.)

Affirm marketplace

The direct-to-consumer channel where Affirm offers its products and services, allowing consumers to discover and use Affirm for their purchases. (The fact that 24% of transactions occurred on the Affirm marketplace indicates the growing importance of Affirm's direct customer engagement and brand presence.)

Average Order Value (AOV)

The average amount of money spent by a customer in a single transaction. (AOV is a metric used by merchants to understand customer spending habits. Affirm's ability to accommodate various AOVs is noted as a differentiator in serving diverse merchant needs.)

Year-Over-Year Comparison

The provided context focuses on fiscal year 2025. A direct comparison to the previous fiscal year (2024) would require data from the prior 10-K. However, the shift in GMV composition, with interest-bearing loans slightly decreasing from 74% to 72% and 0% APR loans increasing from 11% to 13%, suggests a subtle change in the product mix and potentially revenue drivers. The growth in active merchants to 377 thousand indicates continued network expansion.

Key Financial Figures

• $0.00001 — stered Class A common stock, par value $0.00001 per share AFRM The Nasdaq Global Select
• $0 — st. Since our founding, we have charged $0 in late fees for missed payments. We do
• $36.7 billion — have facilitated consumer purchases of $36.7 billion in GMV. Our Platform Our business t

Filing Documents

• afrm-20250630.htm (10-K) — 3613KB
• ex-41xdescriptionofcapital.htm (EX-4.1) — 60KB
• exhibit10-directorandoffic.htm (EX-10.1) — 71KB
• exhibit1021-cashincentivep.htm (EX-10.21) — 75KB
• exhibit1022-officerseveran.htm (EX-10.22) — 117KB
• afrm-63025exx211xsubsidiar.htm (EX-21.1) — 20KB
• afrm-63025exx231deloitteco.htm (EX-23.1) — 2KB
• afrm-63025exx311.htm (EX-31.1) — 11KB
• afrm-63025exx312.htm (EX-31.2) — 11KB
• afrm-6302exx321.htm (EX-32.1) — 4KB
• afrm-63025exx322.htm (EX-32.2) — 4KB
• afrm-20250630_g1.jpg (GRAPHIC) — 108KB
• 0001820953-25-000080.txt ( ) — 20968KB
• afrm-20250630.xsd (EX-101.SCH) — 134KB
• afrm-20250630_cal.xml (EX-101.CAL) — 191KB
• afrm-20250630_def.xml (EX-101.DEF) — 760KB
• afrm-20250630_lab.xml (EX-101.LAB) — 1411KB
• afrm-20250630_pre.xml (EX-101.PRE) — 1113KB
• afrm-20250630_htm.xml (XML) — 3975KB

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 56

Cybersecurity

Item 1C. Cybersecurity 56

Properties

Item 2. Properties 57

Legal Proceedings

Item 3. Legal Proceedings 57

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 57 Part II 90

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 59

[Reserved]

Item 6. [Reserved] 60

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 61

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 79

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 81

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 153

Controls and Procedures

Item 9A. Controls and Procedures 153

Other Information

Item 9B. Other Information 156

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 156 Part III 157

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 157

Executive Compensation

Item 11. Executive Compensation 157

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 157

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 157

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 157 Part IV 158

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 159

Form 10-K Summary

Item 16. Form 10-K Summary 162

Signatures

Signatures 163 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Form 10-K"), as well as information included in oral statements or other written statements made or to be made by us, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Report, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management regarding future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "anticipate," "believe," "continue," "could," "design," "estimate," "expect," "intend," "may," "plan," "potentially," "predict," "project," "should," "will," "would," or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our future revenue, expenses, and other operating results and key operating metrics; our ability to attract new merchant partners and commerce platforms and grow our relationships with existing merchant partners and commerce platforms; our ability to compete successfully in a highly competitive and evolving industry; our ability to attract new consumers and retain and grow our relationships with our existing consumers; our expectations regarding the development, innovation, introduction of, and demand for, our products; our ability to successfully maintain our relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; our ability

BUSINESS

ITEM 1. BUSINESS Company Overview Affirm was founded in 2012 with a mission to deliver honest financial products that improve lives. We are building the next generation payment network. We believe that by using modern technology, strong engineering talent, and a mission-driven approach, we can reinvent payments and commerce. Our solutions, which are built on trust and transparency, are designed to make it easier for consumers to spend and save responsibly and with confidence, easier for merchants and commerce platforms to convert sales and grow, and easier for commerce to thrive. Our Business Legacy payment options, archaic systems, and traditional risk and credit underwriting models can be harmful, deceptive, and restrictive to both consumers and merchants. We believe that they are not well-suited for increasingly digital and mobile-first commerce, and are built on legacy infrastructure that does not support the innovation required for modern commerce to evolve and flourish. Our platform is designed to address these problems. Our company is predicated on the principles of simplicity, transparency, and putting people first. Since our founding, we have charged $0 in late fees for missed payments. We do not profit from consumers' mistakes, and we are transparent in our product offerings. By adhering to these principles, we have built enduring, trust-based relationships with consumers and merchants. We believe that our technology, underwriting, and risk management are key competitive advantages. Our proprietary technology's ability to price and assess risk at a transaction level provides a unique advantage compared to legacy payment and credit systems. Our approach to risk management is core to our business model and has led to lower fraud rates, higher approval rates compared to traditional credit underwriting models, and lower credit losses. Our models have been built on extensive data points, including data from approximately 343 million loans. Further

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