Affirm shares rose 1.5% to $77.54 on Thursday. The company’s new annual filing shows the scale of the change: revenue climbed 32.2% to $4.3 billion, operating income swung from an $87.3 million loss to $417.0 million, and net income reached $1.9 billion.
The less tidy number is cash conversion. Operating cash flow rose 55.1% to $1.2 billion, but net income grew much faster, sending operating cash flow divided by net income from 15.21 times to 0.64 times. Affirm generated more cash, but the earnings number grew far beyond the cash number.
That matters because Affirm is a lender, not a software company waiting for invoices to clear. Its annual cash flows show a business that funds a large loan book, then recycles debt and securitization financing to keep it moving.
Affirm said the revenue increase was tied mainly to more funding debt and securitization notes, along with better pricing terms:
"The increase is primarily due to an increase of funding debt and notes issued by securitization trusts during the year ended June 30, 2026, partially offset by favorable pricing terms."
10-K 2026-08-27; revenue, cash liquidity
In plain English, the growth arrived with a larger financing apparatus. The cash-flow statement says inflows included $23.7 billion from secured-debt issuance and $920.0 million from the 2029 Notes. Outflows included $46.7 billion for purchases and origination of loans held for investment.
The filing also gives a cleaner explanation for the operating-margin swing. Affirm’s operating margin improved from negative 2.7% to 9.8%, helped in part by lower partner-warrant expenses. Shopify’s expense fell by $15.4 million, or 58%, after an amendment extended the amortization period for a commercial agreement asset.
"Additionally, the decrease was also driven by a $15.4 million, or 58%, decrease in Shopify warrant expense during the year ended June 30, 2026, compared to the same period in 2025, primarily due to an amendment made in our partnership agreement, which extended the period of benefit over which we amortize the commercial agreement asset from six to nine years."
10-K 2026-08-27; margin
The reported operating income improved, though part of the comparison reflects the timing of an accounting expense. Amazon warrant expense also fell by $92.4 million, or 32%, because some warrants became fully vested in December 2024. The filing does not say that either item explains the full jump in net income.
The balance sheet grew alongside the business: cash increased to $1.6 billion, while capital spending rose 24% to $238.3 million. Diluted shares increased 2.3% to 348.8 million, a smaller change than the revenue line but still part of the annual math.
At the latest close, Affirm carried a $26.4 billion market capitalization and traded at 506.7 times earnings on the latest annual figures. That multiple makes the denominator unusually important: a $1.9 billion profit produces a very different-looking valuation from a $417 million operating-profit business with $1.2 billion of operating cash flow.
Affirm’s next quarterly report will put a more comparable period around the annual financing picture, with the cash-flow line for purchases and origination of loans to compare against the $46.7 billion reported for the year ended June 30.
Source: Affirm Holdings, Inc. 2026 Form 10-K filed August 27, 2026.