Shares of Affirm Holdings, Inc. (AFRM) surged 15.65% in after-hours trading on Thursday following the release of its fiscal fourth-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.
Affirm 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. The company's Gross Merchandise Volume (GMV) showed impressive growth, increasing 43% to $10.4 billion, indicating substantial expansion in transaction volume on its platform.
Several factors contributed to Affirm's strong performance: 1. Increased adoption of 0% APR loans: GMV from 0% APR monthly installment products nearly doubled, attracting new customers to the platform. 2. Expanding merchant network: The company grew its merchant base by 24% to 377,000 active merchants. 3. Rising consumer engagement: Active consumers increased by 24% to 23 million, with transaction frequency up 20%. 4. Improved profitability: Affirm swung to a profit, reporting net income of $69.2 million for the quarter. Looking ahead, Affirm provided an optimistic outlook for fiscal 2026, projecting GMV of more than $46 billion and revenue of $3.86 billion, both exceeding analyst expectations. This strong guidance, coupled with the company's ability to maintain solid unit economics while growing its user base, has bolstered investor confidence in Affirm's long-term growth prospects.
