Affirm Holdings, the provider of buy now, pay later (BNPL) loans, saw its shares soar 15% during extended trading on Thursday after announcing stronger-than-expected earnings and revenue for its fiscal fourth quarter. The company reported earnings per share (EPS) of 20 cents, significantly outperforming analysts’ projections of 11 cents. Additionally, Affirm generated $876 million in revenue, surpassing estimates of $837 million.
This impressive performance marks a 33% increase from the same quarter last year when revenue stood at $659 million. Gross merchandise volume (GMV) also showed considerable growth, rising 43% to reach $10.4 billion, up from $7.2 billion a year earlier. Affirm’s net income during this quarter totaled $69.2 million, or 20 cents per share, a substantial turnaround from a loss of $45.1 million, or 14 cents per share, reported the previous year.
In its shareholder letter, Affirm stated, “This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago.” Looking ahead, the company forecasts first-quarter revenue between $855 million and $885 million, with anticipated GMV ranging from $10.1 billion to $10.4 billion.
Affirm’s stock had already appreciated by 31% this year before the recent after-hours surge, outpacing the Nasdaq’s broader 12% gain. Since its IPO in 2021, Affirm has faced an increasingly competitive e-commerce landscape, building strategic partnerships with major retailers like Amazon and Shopify. However, the recent decision by Walmart to collaborate with competitor Klarna, which is preparing for its own public offering, raises questions about Affirm’s market position. In a noteworthy move last year, Affirm also announced a partnership with tech giant Apple.
Investors and analysts alike are watching closely how Affirm navigates this competitive terrain as it continues to build its brand and improve profitability in the evolving BNPL sector. As the landscape shifts, the focus will be on Affirm’s adaptability and ability to maintain its market share.
Overall, Affirm’s substantial quarterly results not only highlight its operational success but also pave the way for future growth amidst the challenges posed by rising competition in the financial technology space. With the company demonstrating both resilience and an upward trajectory, many in the industry are waiting to see how it will capitalize on its current momentum in the coming quarters.
Original Source: https://www.cnbc.com/2025/08/28/affirm-afrm-q4-2025-earnings-report.html
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Publish Date: 2025-08-29 06:39:00
