Affirm Holdings Inc. (NASDAQ: AFRM), a leading Buy Now, Pay Later (BNPL) fintech, saw its stock price tumble sharply following the release of its fiscal second-quarter 2026 earnings on February 5, 2026. The stock dropped to a low of $56, marking a 40% decline from its 2025 high and its lowest level since June 5 of last year. This decline occurred despite the company reporting robust financial results that exceeded analyst expectations.
The company posted revenue of $1.12 billion, a 30% year-over-year increase, beating the median estimate of $1.11 billion. Operational metrics were strong, with Gross Merchandise Volume (GMV) jumping 36% to $13.8 billion. Active customers grew by 23% to over 25.8 million, and transactions per customer rose by 20% to 6.4. The Affirm Card was a standout, with its GMV skyrocketing 160% year-over-year.
However, the positive results were overshadowed by a rise in credit delinquencies. The company's 30+ day delinquencies, excluding Peloton, increased by 18 basis points year-over-year, leading to higher-than-expected credit losses. This was the primary driver behind the stock's sell-off, with shares falling 4.41% in after-hours trading to $59.50.
Looking forward, Affirm provided optimistic guidance, projecting GMV growth of 30% for Q3 and forecasting third-quarter revenue between $970 million and $1 billion. Analysts remain largely bullish, with Goldman Sachs and Wells Fargo highlighting the company's strategic execution and resilience. The median analyst price target sits at $95, implying significant potential upside from current levels.
