AFRM Nasdaq Russell 1000 Earnings call
Affirm Holdings, Inc. (AFRM) · Q2 2026 results and valuation
Share price: $67.84 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 27 Aug 2026 and 7 May 2026
Operating income up 66.5% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+66.5%
Operating income vs Q1 2026
Operating income 147.3M vs 88.4M
Revenue +12.2%
Against the same quarter last year (Q2 2025) it is +153.6%, so it is not just seasonal.
2 · How management spoke
Restrained
Less upbeat than 79% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
In Q2 2026, Affirm reported revenue of USD 1.17B, operating income of USD 147.3M, and net income of USD 1.62B.
Valuation
Is Affirm Holdings, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $116.80 a share — the stock trades 42% below it. Today's price assumes 14.1% growth a year.
Current price
$67.84
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+14.1% for 10 yrs
Fair value / share
$116.80
Buy below
$87.60
Price vs fair value
Undervalued 42%
Price vs buy-below price
Undervalued 23%
Read between the lines
-
Dropped
The company will no longer emphasize being a "general purpose tool that works everywhere" because category dispersion begins early and remains wide once customers are exposed to the product.
Source quote
“realize that if they found us or got exposed to us in category X, it takes them some number of months... And so the category dispersion begins a little bit sooner and just stays fairly wide.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And so long as we are given enough time to compare and contrast, very quickly, you start realizing that what looked like a great approval rate on day 1 looks...”
“And the job of the credit policy is to say, after this level of most risky, I don't want to approve anymore because that's the old risk I'm going to...”
“I think we have an exceptionally strong revenue team, and Wayne, that who runs it, is an exceptional executive and deserves every accolade.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.17B | 1.04B | +12.2% | 876.4M | +33.0% |
| Operating income | 147.3M | 88.4M | +66.5% | 58.1M | +153.6% |
| Net income | 1.62B | 102.9M | +1471.1% | 69.2M | +2234.7% |
| EPS | 4.63 | 0.30 | +1443.3% | 0.20 | +2215.0% |
| P/E today 13.5 | 14.7 | 41.7 | −27.0 | 460.9 | −446.2 |
Topics
Most discussed now
- New The typical competitive bake-off often enough includes us launching a checkout experience as Affirm would anywhere else and its esteemed...
- In line with its practice in prior quarters, Affirm will begin with very brief opening remarks from Max before proceeding...
- There's a meaningful long tail of conditions that make approval or tender delivery or even handling things like card size...
Faded since Q1 2026
- Dropped I suspect Michael, who is doing a small victory dance right next to me, will have something to add.
- Fading Affirm moves up and down with the economy, but it believes it has hit a product market fit quite some time...
- Fading Affirm does have some really great economies of scale.
Latest announcements
Official filings, newest first.
- Results of operations; Director or officer change · SEC 8-K
- Material agreement; Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; Results of operations; Unregistered share sale · SEC 8-K
- Director or officer change · SEC 8-K