Affirm Holdings reported gross merchandise volume of $10.1 billion in its fiscal second quarter ended 31 December 2024, marking the first time the buy-now-pay-later lender has surpassed $10 billion in a single quarter. The figure represented 35% growth year-on-year. Revenue for the quarter came in at $866 million, an increase of 47% on the same period a year earlier.
Net income reached $80.4 million for the quarter, while adjusted operating income came in at $237.8 million, representing an adjusted operating margin of 27.4%.
REVENUE LESS TRANSACTION COSTS
Revenue less transaction costs — a measure Affirm uses to capture the net economics of its lending activity, known internally as RLTC — grew 73% year-on-year to $419 million in the quarter. This metric deducts transaction costs — loan-loss provisions, funding costs and processing and servicing expenses — from revenue to give a clearer picture of the value generated from each loan originated on the platform. Its growth at nearly twice the rate of GMV reflects improved pricing discipline, lower funding costs and loan-loss provisions as a share of GMV, and about $60 million of benefit from loan-sale transactions.
FULL-YEAR GMV GUIDANCE
Management raised its fiscal 2025 GMV outlook to $34.74–35.34 billion, from more than $34 billion previously.