Affirm Raises Fiscal 2027 Growth Floor to at Least 30%

Affirm raised its fiscal 2027 growth floor to at least 30% after gross merchandise volume (GMV) grew 34%, and attributed a 3.4% incremental conversion lift to its new U.S. credit model.

The 34% increase compares fiscal first-quarter 2027 with the same quarter a year earlier. GMV measures the value of purchases made through Affirm’s platform, tracking transaction activity. The raised floor sets a minimum growth target for the full fiscal year. Management’s separate long-term growth target is above 30%.

The company’s new model uses a transformer-based system trained on transaction records spanning 14 years. It is operating in the United States. Affirm linked the model’s conversion gain to higher approvals and reported that credit losses remained flat.

Affirm expects the system to raise approval rates by roughly two to three percentage points without adding risk. That is a company projection; the 3.4% conversion lift and flat credit losses are the results Affirm attributed to the model so far.

Early fiscal second-quarter trends put GMV growth in the high-30% range. Active merchants increased 48% from a year earlier to 621,000, adding a measure of platform expansion alongside purchase volume.

Affirm put its growth targets in the context of room to expand: the company’s share of e-commerce is below 4%, and it operates in four markets. It is also developing artificial-intelligence integrations and software for offline merchants.