Revenue has grown strongly from approximately $2.3 billion in fiscal year 2024 to nearly $3.95 billion in fiscal year 2026, with margins improving significantly in recent quarters. Operating income turned positive and expanded to over $870 million annually, reflecting effective expense control. Net income swung from a loss to a substantial profit of roughly $1.93 billion in FY 2026, driven by income tax benefits and strong operational leverage.

Key revenue drivers include increased consumer adoption of BNPL services and expanding merchant coverage, leading to revenue growth of nearly 70% year-over-year from FY 2024 to FY 2026. The gross profit margin has held steady around 69%, indicating efficient cost of revenue management despite expanding scale.

Gross margins have remained robust near 69% with improving EBITDA margins rising to about 31.6% in FY 2026. Operating margin improved markedly to over 22%, transitioning Affirm into sustained profitability. These margin improvements stem from leveraging scale, optimization of operating expenses, and higher interest income relative to expenses.

Earnings quality is strong, supported by consistent operating income growth and positive cash generation indicators. Significant tax benefits have also enhanced net income, although the sustainability of such tax impacts should be monitored. The absence of research and development expenses suggests a focus on core business operations, while operating expenses are well controlled.

Revenue increased approximately 69.8% from $2.32 billion in FY 2024 to $3.95 billion in FY 2026, representing strong top-line expansion. Quarterly revenue growth is accelerating, with Q2 2026 revenue growing about 65% year-over-year compared to Q2 2024.

Net income improved markedly from a significant loss in FY 2024 to $1.93 billion in FY 2026, while quarterly EPS rose sharply to $4.62 in Q2 2026 from losses the prior year. This reflects a clear positive earnings growth trajectory.

Expansion in merchant partnerships and consumer demand for flexible credit supports growth. Improvements in underwriting and risk management have likely reduced loss provisions, enabling scaling. Interest income from invested funds has also contributed materially.

Growth appears largely organic through increased transaction volume and active user base expansion. The absence of major R&D and acquisition expenses indicates growth is from core operations, favoring quality and sustainability.

Gross margin has trended stably around 69%, while operating margins improved from negative territory in FY 2024 to over 22% in FY 2026. EBITDA margin increased to approximately 31.6% by FY 2026.

ROE and ROA are presumed to have improved substantially given net income growth and operating profitability, although exact balance sheet data is unavailable. This shift to positive profitability indicates efficient capital utilization.

Margins appear sustainable given the scalable business model and controlled operating expenses, though continued pressure from market competition and regulatory scrutiny could pose risks. The tax-related income boosts may not be recurring, which investors should watch.