For historical non-GAAP financial measures, reconciliations to the most directly comparable GAAP measures can be found in our earnings supplement slide deck, which is available on our investor relations website. Max, could you talk a little bit about the dynamics of your growth, namely the top five merchants growing 23% and blending down as a concentration? I mostly look at the growth of the business through the lens of things like transactions per user, active consumers, active merchant numbers are really important to us. Generally speaking, of course, we want to have less concentration, more diversity, but we also are frequently driven or drafting behind the growth and promotional initiatives of our partners, big and small.
Obviously, the growth numbers are out there in the sprint, so we are not seeing... So it's a little bit selective, but we feel pretty good about both the demand and the ability and willingness to repay. This one might be for Rob, but I was just hoping we could unpack sort of puts and takes in the RLTC margin, just looking back over the last year or so. It seems like, you know, if we look at the guidance in the remainder of the year, it seems like you're kind of still expecting to be hovering around 4%.
I think that's true in both Q3 and Q4 in the guidance that we've provided. You know, we typically don't guide to specific transaction cost line items or even revenue line items. The last deal we just priced was done with a spread of under 100 basis points. And so we're operating and executing in the capital markets really the best we've seen post the rate movement part of the world.
| Metric | Period | Current guidance |
|---|---|---|
| GMV growth | Q3 FY2026 | 30% |
| GMV growth | Q4 FY2026 | 25% |
| RLTC take rate | Q3 and Q4 FY2026 | slightly above 4% |
| Adjusted operating margin expansion | FY2026 | more margin expansion than 90 days ago |
| Metric | YoY | Note |
|---|---|---|
| GMV | +36% | broad-based diversification and new merchant adds despite the large retail partner transition |
| Affirm Card GMV | just under +160% | card now material to the business and creating more high-engagement users |
| Active cardholders | +121% | continued rapid card adoption |
| 0% deals on the card | +190% | growth in 0% promotional mix on the card |
| Active merchants | +42% | wallet partnerships adding active merchants to the count |
| Top five merchants | +23% | a different subset of five merchants vs. prior year plus the large partner transition weighing on the metric |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| 0% / no-interest promotions as a moat | — | Simple, asterisk-free 0% offers drive conversion and are unaffected by competitors' aggressive cashback promotions; GMV uplift rises with basket size | — |
| Affirm Card | positioned as top-of-wallet everyday card | usage is bifurcating: a minority use it top-of-wallet while the majority use it for considered purchases; still the biggest growth engine | — |
| International expansion | — | UK scaling with new deals (Wayfair beta, VMO2, Shopify still below peak run rate); growing consistently, though still smaller than the card | — |
| Bank charter (ILC application) | — | Applied primarily for regulatory certainty; timeline is years, not modelable, and not tied to funding costs or new categories | — |
| Funding / ABS / forward flow | — | Capital markets the best since the rate move; spreads under 100 bps and yields below 4.6%; private-credit demand strong and selective vertical-slice allocation unchanged | — |
| Credit health | — | Consumer healthy, NCO curves tightly managed; modest uptick in loss provisions with room to optimize for RLTC | — |
| New verticals and platforms | — | Chosen by consumer pull (auto parts, medical, home improvement); small rent time-shift test, Intuit/QuickBooks B2B2C, Fiserv/FIS bank distribution | — |
| Agentic commerce | — | Still very early but bullish; structurally benefits from no deferred interest/late fees; expects an Affirm button across all forms of commerce over time | — |
| Boost AI / AdaptAI | — | Boost AI is new and lightly adopted, enabling automated A/B testing and merchant-funded promo dollars in an advertising-like model; not broken out in the guide | — |