Affirm raises growth floor to 30%, unveils new AI underwriting model

What happened

The buy now, pay later provider raised its full-year growth floor for fiscal 2027 to at least 30%, after a first quarter in which gross merchandise volume climbed 34% year over year.

The company also introduced a new AI underwriting model that it says approves more borrowers while keeping credit losses flat. Affirm's AI model and growth strategy could redefine BNPL market dynamics, enhancing competitive edge and investor confidence in sustained demand.

The numbers behind the raise Gross merchandise volume, or GMV, measures the total dollar value of purchases running through Affirm’s platform. It grew 34% in fiscal Q1 2027 compared with the same quarter a year earlier.

That performance gave management enough confidence to lift the floor on its full-year outlook to a minimum of 30%. Early second-quarter trends point to GMV growth in the high-30% range, according to the company’s results discussion.

Revenue rose 35% for the quarter, landing at approximately between $1.26 billion and $1.3 billion.

Add your holdings to find related stories in Pro. Create a free account The merchant side looked even stronger.