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

The buy now, pay later lender posted 34% GMV growth and says a transformer-based credit model is approving more shoppers without raising losses Affirm just told investors to expect more. 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. 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. The merchant side looked even stronger. Active merchants jumped 48% year over year to 621,000. A transformer for your credit file The headline technolo...