Affirm vs Block: Revenue, Profit and Business Model
Affirm reported $4.3B of revenue in FY2026 and $1.9B of net income. Block reported $24.2B of revenue in FY2025 and $1.3B of net income.
Latest financial snapshot
Financial summary
Affirm
Affirm's results depend on transaction volume, credit performance, funding costs, and loan-sale markets. FY2026 revenue was $4.261 billion on $50.2 billion of GMV. Net income was $1.930 billion, but included a $1.45 billion income-tax benefit from releasing a valuation allowance on domestic deferred tax assets.
Block
Revenue was nearly flat in 2025, $24.19 billion against $24.12 billion, because bitcoin sales fell from $10.36 billion to $8.50 billion. Gross profit, which strips out the cost of the bitcoin Block resells, rose 17% to $10.36 billion and adjusted operating income rose 30% to about $2.3 billion. Net income attributable to common stockholders was $1.31 billion, down from $2.90 billion in 2024, a year lifted by a large fourth-quarter tax benefit. 2026 opened with a $308.7 million first-quarter net loss as layoff costs landed (about $495 million of restructuring charges across the first half), then second-quarter gross profit grew 25% to $3.17 billion with a record 27% adjusted operating margin. Block now guides to $12.51 billion of 2026 gross profit and $3.47 billion of adjusted operating income. It bought back $2.3 billion of stock in 2025, had $4.6 billion of repurchase authorization left at June 30, 2026, and pays no dividend.
Revenue and profit by year
Affirm
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $4.3B | $1.9B | 45.3% | +32.2% | Source |
| FY2025 | $3.2B | $52.2M | 1.6% | +38.8% | Source |
| FY2024 | $2.3B | -$517.8M | -22.3% | +46.3% | Source |
| FY2023 | $1.6B | -$985.3M | -62.1% | +17.7% | Source |
| FY2022 | $1.3B | -$707.4M | -52.4% | +55.0% | Source |
| FY2021 | $870.5M | -$441M | -50.7% | +70.8% | Source |
| FY2020 | $509.5M | -$112.6M | -22.1% | +92.7% | Source |
| FY2019 | $264.4M | -$120.5M | -45.6% | — | Source |
Block
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $24.2B | $1.3B | 5.4% | +0.3% | Source |
| FY2024 | $24.1B | $2.9B | 12.0% | +10.1% | Source |
| FY2023 | $21.9B | $9.8M | 0.0% | +25.0% | Source |
| FY2022 | $17.5B | -$541M | -3.1% | -0.7% | Source |
| FY2021 | $17.7B | $166M | 0.9% | +85.9% | Source |
| FY2020 | $9.5B | $213M | 2.2% | +101.5% | Source |
| FY2019 | $4.7B | $375M | 8.0% | +42.9% | Source |
| FY2018 | $3.3B | -$38M | -1.2% | +49.0% | Source |
| FY2017 | $2.2B | -$63M | -2.8% | +29.5% | Source |
| FY2016 | $1.7B | -$172M | -10.1% | — | Source |
Where the revenue comes from
Affirm
- Merchant network revenue
Not separately reported as a percentage
Fees earned when merchants use Affirm's payment network to facilitate transactions.
- Card network revenue
Not separately reported as a percentage
Network revenue associated with virtual cards and Affirm Card transactions.
- Interest income
Not separately reported as a percentage
Interest earned on loans held for investment.
- Gain on sales of loans
Not separately reported as a percentage
Gains recognized when Affirm sells loans to third-party investors.
- Servicing income
Not separately reported as a percentage
Fees earned for servicing loans owned by third parties.
Block
- Commerce enablement revenue47.6%
$11.51 billion in 2025: Square payment processing, software and hardware for sellers, plus Afterpay.
- Financial solutions revenue17.3%
$4.18 billion in 2025: Cash App Card interchange, instant transfer fees, Borrow and Square Loans, and banking products. It is the fastest-growing line and carries high margins.
- Bitcoin ecosystem revenue35.1%
$8.50 billion in 2025, down from $10.36 billion in 2024. Bitcoin sold to Cash App customers is booked at full value, so gross profit is small: $72 million in the second quarter of 2026.
Business model and strategy
Affirm
How it makes money
Affirm earns merchant-network revenue when consumers use its payment options, interest income on interest-bearing loans, card-network revenue, gains when it sells loans to third parties, and servicing income. Some plans carry 0% APR, while interest-bearing loans disclose a fixed repayment schedule. Affirm says it does not charge late or hidden fees.
Growth strategy
Affirm's disclosed growth priorities include increasing transaction frequency, expanding Affirm Card, adding merchants and platform integrations, entering additional markets, and maintaining diverse funding sources for originated loans.
Competitive advantage
Affirm underwrites each transaction individually in real time and offers fixed payment schedules without late fees. Its distribution includes integrations with major commerce platforms and merchants, while its funding model uses warehouse facilities, securitizations, and loan-sale partnerships.
Block
How it makes money
Block runs a two-sided network. On the seller side, Square charges a fee on each card payment (in the U.S. on its free plan, 2.6% plus 15 cents in person and 3.3% plus 30 cents online) and adds paid software, hardware, payroll, banking and Square Loans. On the consumer side, basic Cash App transfers are free;
Growth strategy
Block's 2026 plan has four parts. Square is selling to larger and international sellers through a field sales team and independent sales organization partners; international GPV grew 28% in the second quarter of 2026. Cash App wants to be the main bank account for people with several income sources, using direct deposit and Cash App Green rewards status;
Competitive advantage
Block's advantage is owning both ends of many small transactions. Cash App's peer-to-peer network spreads by itself, since receiving money means downloading the app, and every added product (the Cash App Card, direct deposit, Borrow, Afterpay) raises revenue per customer without new acquisition cost.
Questions about Affirm vs Block
Which company has higher revenue — Affirm Holdings, Inc. or Block Inc?
Affirm Holdings, Inc. reported $4.3B (FY2026), while Block Inc reported $24.2B (FY2025). By last reported revenue, Block Inc is the larger business, with Affirm Holdings, Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Affirm Holdings, Inc. vs Block Inc?
Affirm Holdings, Inc.'s market capitalisation stands at $24.0B, while Block Inc's is $44.5B. Block Inc carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Affirm Holdings, Inc..
Which is more financially efficient — Affirm Holdings, Inc. or Block Inc?
Affirm Holdings, Inc. generates $1.81M / employee in revenue per employee, while Block Inc generates $2.37M / employee. Block Inc shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Affirm Holdings, Inc. and Block Inc make money?
Affirm Holdings, Inc. and Block Inc generate revenue in fundamentally different ways. Affirm Holdings, Inc.: Affirm earns merchant-network revenue when consumers use its payment options, interest income on interest-bearing loans, card-network revenue, gains when it sells loans to third parties, and servicing income. Block Inc: Block runs a two-sided network.
Which company is valued higher relative to revenue — Affirm Holdings, Inc. or Block Inc?
On a price-to-sales (P/S) basis, Affirm Holdings, Inc. trades at 5.6x P/S and Block Inc at 1.8x P/S. Affirm Holdings, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Block Inc. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Affirm Holdings, Inc. bigger than Block Inc?
By last reported revenue, Block Inc ($24.2B (FY2025)) is the larger company compared to Affirm Holdings, Inc. ($4.3B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Affirm vs Block overview