Affirm Holdings, Inc. (AFRM) saw its stock surge 10.30% in after-hours trading on Thursday following the release of its fourth fiscal quarter 2025 results, which significantly exceeded analyst expectations. The buy-now, pay-later fintech company reported robust growth across key metrics, demonstrating its strong market position and financial health.
The company reported earnings per share of $0.20, surpassing the analysts' estimate of $0.12. Revenue for the quarter reached $876.4 million, up 33% year-over-year and well above the expected $837 million. Affirm's Gross Merchandise Volume (GMV) showed impressive growth, increasing 43% to $10.4 billion, indicating substantial expansion in transaction volume on its platform.
Affirm's financial performance marks a significant turnaround, with the company swinging to profitability. It reported a net income of $114 million for the quarter, a substantial improvement from the previous year. The company also achieved operating income profitability, constituting 7% of revenue, an 18 percentage point increase year-over-year. Looking ahead, Affirm provided an optimistic outlook for Q1 2026, projecting revenue between $855 million and $885 million, and GMV between $10.10 billion and $10.40 billion. The strong results and positive guidance have clearly resonated with investors, driving the stock's after-hours rally.
