Affirm Holdings Inc. revenue is generated through a combination of merchant fees, interest income from consumers, and servicing fees. Merchant fees represent a significant portion of revenue, as retailers are willing to pay for increased conversion rates and higher average transaction values enabled by Affirm's financing options. Interest income contributes to revenue when consumers choose longer-term installment plans, although many short-term offerings are interest-free to remain competitive. The company also earns from servicing loans and securitizing receivables, transferring portions of credit risk to capital markets. Affirm's financial performance is closely tied to gross merchandise volume (GMV), which reflects the total value of transactions processed through its platform. Growth in GMV directly drives revenue expansion. However, profitability is influenced by funding costs, credit losses, and customer acquisition expenses. Affirm Holdings Inc. strategy focuses on improving unit economics through better risk modeling, optimizing funding structures, and increasing repeat usage. While revenue growth has been strong, achieving consistent profitability remains dependent on managing credit performance and scaling efficiently.