Affirm Holdings (AFRM) Q2 FY26 earnings call: guidance and Q&A

Inquiring about the dynamics of top 5 merchant growth (23%) versus overall GMV, and if the business is truly widening out given new merchant ads and transactions per active user.

Management clarified that the 'top 5' merchant list changes, making year-over-year comparisons difficult, especially with a large partner transitioning off. They emphasized overall business growth and diversification.

“the top 5 that we disclosed for Q2 of FY '26 is actually a different subset of merchants that we're comparing to in fiscal '25 in the same period. So I think all the more reason not to read too much into that stat.”

asked by Andrew Jeffrey · answered by Robert O'Hare

Asking about the puts and takes in the RLTC margin, given past tailwinds and current guidance, specifically if the 4% range for H2 FY26 is the new anchor despite recent quarters being above 4%.

Management expects RLTC take rates slightly above 4% for Q3 and Q4, citing benefits from lower funding costs (ABS market) offsetting some year-over-year softening in revenue take rates due to increased 0% loan mix.

“we do expect to see RLTC take rates that are slightly above 4%. I think that's true in both Q3 and Q4 in the guidance that we provided.”

asked by William Nance · answered by Robert O'Hare

Asking if increased aggression from competitors (prominent presentment, new merchants, cashback) is impacting Affirm's merchant pricing or go-to-market strategy.

Max stated no discernible impact, attributing Affirm's resilience to its clear, transparent 0% interest offers which are easy for consumers to understand, contrasting with complex competitor promotions.

“we did not see any effect in the sort of some of the more ultra-aggressive, whatever was 50% cash back or I lost track of the exact offers, but we did not see any effect.”

asked by Jason Kupferberg · answered by Max Levchin

Seeking more details on the decision to pursue a bank charter, perceived benefits, new products unlocked, and the timeframe/hurdles.

Max explained the primary motivation is regulatory certainty and stability, acknowledging the changed regulatory climate. He noted the timeline is 'certainly years' and that product implications are far off.

“the 1 line answer is the primary reason of a bank charter is regulatory certainty.”

asked by Unknown Analyst · answered by Max Levchin

Asking for specific call-outs or drivers for the expected slowdown in GMV growth to 30% in Q3 and 25% in Q4.

Management stated there were 'no specific call-outs' beyond the previously discussed transition with a large retail partner, which was already a headwind in Q2.

“No specific call-outs. I mean, we are obviously [indiscernible] in the transition with a large retail partner.”

asked by Robert Wildhack · answered by Robert O'Hare

Inquiring about growth opportunities in new verticals like B2B (QuickBooks Payments) and Rent, and how underwriting might differ.

Max clarified the Rent test is very small and focused on time-shifting payments, not long-term installments, and should not be modeled. The Intuit partnership is B2B2C, integrating Affirm into invoices for services, expanding BNPL to a new transaction type.

“The test we are running is, if we allowed you to time shift i.e, you get paid on the 16th, but you rent to go in the 15th, that's a strain on your personal finances, what if we allowed you to move that or split it into 2 parts.”

asked by Matthew Coad · answered by Max Levchin

Asking if the 42% active merchant growth is due to one relationship or multiple, and how quickly corresponding volumes scale.

Max attributed the inflection to wallet partnerships, which include merchants in the count only if they are active and taking transactions. Scaling volumes is a function of scaling with the merchant.

“the inflection in growth is being driven by some wallet partnerships that we have. We're including merchants from those wallet partnerships in that merchant count.”

asked by Bryan Keane · answered by Max Levchin