Affirm Shares Surge 9% After Strong Q1 Beat and Upgraded Full-Year Outlook

Core Insights - Affirm Holdings Inc. shares increased over 9% following the release of first-quarter fiscal 2026 results that exceeded analyst expectations and raised full-year guidance [1] Financial Performance - The company reported adjusted earnings per share of $0.23, surpassing the consensus forecast of $0.11 by 109% [2] - Revenue grew 34% year over year to $933 million, exceeding expectations of $881.84 million [2] - Gross merchandise volume (GMV) increased by 42% to $10.8 billion, driven by strong performance in the direct-to-consumer segment [2] Segment Performance - Affirm's Card segment showed remarkable growth, with card GMV rising 135% year over year [3] - Active cardholders increased by 500,000 from the previous quarter to reach 2.8 million, while total active consumers grew 24% to 24.1 million, marking the seventh consecutive quarter of accelerating user growth [3] Future Guidance - For the fiscal second quarter, Affirm projected revenue between $1.03 billion and $1.06 billion, with the midpoint slightly below the consensus estimate of $1.06 billion [4] - The company raised its full-year GMV forecast to over $47.5 billion, up from previous guidance of above $46 billion [5] - Affirm maintained its revenue-to-GMV ratio at approximately 8.4%, indicating revenue above $3.99 billion, and reiterated Revenue Less Transaction Costs (RLTC) guidance of $1.9 billion, about 4% of revenue [5] - The adjusted operating margin target was increased to above 27.1% from more than 26.1% [5]