Shares of Affirm Holdings, Inc. (AFRM) surged 15.70% in pre-market trading on Friday, August 29, 2025, following the release of its impressive fourth-quarter earnings report for fiscal year 2025. The buy-now, pay-later fintech company significantly outperformed market expectations, demonstrating robust growth across key metrics.
Affirm reported a revenue of $876.4 million for Q4, marking a 33% year-over-year increase and comfortably beating analyst estimates of $837 million. The company's earnings per share (EPS) of $0.20 also surpassed the expected $0.12, showcasing a remarkable turnaround from the loss reported in the same quarter last year.
A key driver of Affirm's strong performance was the substantial growth in Gross Merchandise Volume (GMV), which increased by 43% to reach $10.4 billion. This growth was partly attributed to the success of the company's 0% APR loan offerings, which saw GMV from these products nearly double year-over-year. The expansion of Affirm's merchant network and increased consumer engagement also contributed to the positive results.
Looking ahead, Affirm provided an optimistic outlook for fiscal year 2026, projecting GMV to exceed $46 billion. This forward-looking guidance, coupled with the company's demonstrated ability to maintain solid unit economics while expanding its user base, has bolstered investor confidence in Affirm's long-term growth prospects.
The pre-market stock surge reflects investors' positive reaction to Affirm's strong financial performance and upbeat future outlook, signaling growing market optimism about the company's position in the competitive buy-now, pay-later sector.
