Allowance for credit losses
Affirm Holdings, Inc. Allowance for credit losses increased by 7.2% to $512.31M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 36.6%, from $374.99M to $512.31M. Over 4 years (FY 2021 to FY 2025), Allowance for credit losses shows an upward trend with a 35.5% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests higher expected defaults or a more conservative risk assessment, while a decrease suggests improved borrower creditworthiness.
Detailed definition
A contra-asset account representing the estimated amount of uncollectible loans and receivables within the company's len...
Peer comparison
Standard for financial institutions; peers with higher-risk loan portfolios will typically maintain higher allowance ratios.
bank_allowance_for_credit_lossesHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $117.76M | $152.02M | $158.29M | $159.48M | $155.39M | $153.03M | $182.10M | $176.34M | $204.53M | $232.07M | $262.20M | $289.09M | $309.10M | $350.61M | $363.83M | $374.99M | $396.93M | $425.80M | $478.10M | $512.31M |
| QoQ Change | — | +29.1% | +4.1% | +0.7% | -2.6% | -1.5% | +19.0% | -3.2% | +16.0% | +13.5% | +13.0% | +10.3% | +6.9% | +13.4% | +3.8% | +3.1% | +5.9% | +7.3% | +12.3% | +7.2% |
| YoY Change | — | — | — | — | +32.0% | +0.7% | +15.0% | +10.6% | +31.6% | +51.7% | +44.0% | +63.9% | +51.1% | +51.1% | +38.8% | +29.7% | +28.4% | +21.4% | +31.4% | +36.6% |
| % of Net loans | 128.6% | 150.6% | 117.6% | 128.0% | 109.4% | 103.6% | 90.3% | 129.8% | 102.7% | 98.2% | 85.3% | 98.5% | 87.6% | 113.7% | 178.7% | 170.2% | 93.1% | 150.1% | 178.3% | 222.1% |
| Share Change | — | +22.0pp | -33.0pp | +10.4pp | -18.6pp | -5.8pp | -13.2pp | +39.5pp | -27.1pp | -4.5pp | -12.9pp | +13.2pp | -11.0pp | +26.1pp | +65.0pp | -8.4pp | -77.1pp | +56.9pp | +28.2pp | +43.8pp |
Allowance for credit losses at Other Companies
Frequently Asked Questions
- What is Affirm Holdings, Inc.'s allowance for credit losses?
- Affirm Holdings, Inc. (AFRM) reported allowance for credit losses of $512.31M in Q1 2026.
- How has Affirm Holdings, Inc.'s allowance for credit losses changed year-over-year?
- Affirm Holdings, Inc.'s allowance for credit losses increased by 36.6% year-over-year, from $374.99M to $512.31M.
- What is the long-term trend for Affirm Holdings, Inc.'s allowance for credit losses?
- Over 4 years (2021 to 2025), Affirm Holdings, Inc.'s allowance for credit losses has grown at a 35.5% compound annual growth rate (CAGR), from $117.76M to $396.93M.
- What does allowance for credit losses mean?
- The reserve set aside to cover potential losses from loans that may not be repaid.