Affirm Holdings’ Revenue by Segment (2020-2023)

The chart shows Affirm Holdings’ Revenue by Segment, split between Gains on sales of loans, Interest Income, Servicing Income and Total Network Revenue, reported on a quarterly basis from Q1 2020 onwards.

Affirm Holdings’ Revenue by Segment

The Corporation’s major sources of revenue are generated by four segments i.e. Gain on sales of loans, Interest Income, Servicing Income, and Total network revenue.

(All figures are in millions, except percentages)

Gains on Sales of Loans:

A proportion of the loans that the company generates or acquires through its originating bank partners are sold to third-party investors. When they sell these loans, they record a gain or loss equal to the difference between the selling proceeds, which have been adjusted for the initial recognition of servicing assets and liabilities as of the sale date, and the loan’s carrying value.

The Revenue from Gains on Sales of loans increased from 2022 Q4 to 2023Q1 by 15%. After that, it constantly decreased by 6.28% and 44.46% in Q2 and Q3 2023 respectively.

Interest Income:

The company earns revenue through interest earned on loans facilitated through its platform. Interest income includes interest charged to consumers over the term of the consumers’ loans based on the principal outstanding and is calculated using the effective interest method.

In F.Y. 2023 Revenue from Interest Income Increased by 13.52% from Q1 2023 to Q2 2023. Also, interest income increased by 14.81%  in Q3 2023. It is the highest revenue contributor in the segment.

Service Income:

The Company earns a specified fee by providing professional services to manage loan portfolios on behalf of their third-party loan owners.

Revenue generated by this segment is the lowest among all. It generates almost the same revenue every quarter which is around $21.5 million.

Total network revenue:

Merchant partners (or merchants) are generally charged a fee based on GMV processed through the Affirm platform. The fees differ depending on the specific agreement between the business and each merchant as well as the conditions of the goods being offered.

It is the second-highest contributor in the segment with a 39% contribution in Q3 2023. Revenue generated by this segment in Q3 2023 is slightly lower than the fourth quarter of the year 2022.

About Affirm Holdings:

Affirm Holdings is a US-based financial technology (fintech) business. The company provides a buy-now-pay-later (BNPL) service that enables customers to make purchases and pay for them over time with flexible installment plans. Max Levchin, among the co-founders of PayPal, started Affirm in 2012. The company aims to offer consumers transparent, adaptable, and responsible financing choices at the point of sale.

The company offers a wide range of services which include:

• eCommerce
• Payments
• Installment Loans
• Millennials
• Financial Services
• Online Payments
• Retail
• Personal Finance
• FinTech
• Financial Technology
• Financial Management

Affirm is a publicly traded financial technology company and its stock is listed on the New York Stock Exchange under the ticker symbol “AFRM”.

Did you like Affirm Holdings’ Revenue by Segment statistic?

Access more such KPI data points and segment financials on thousands of US stocks, with Business Quant.

You can get started here.