MW Affirm swings to profit as people flocked to its 0% APR loans and other offers
By Claudia Assis
Buy-now, pay-later company swings to profit
Affirm saw "strong uptake" for its 0% APR loans and other products.
Affirm Holdings Inc. late Thursday zoomed past Wall Street's quarterly expectations, as people flocked to its buy-now, pay-later offers and 0% interest loans.
Affirm's (AFRM) revenue jumped more than 30% to $876 million in the fiscal fourth quarter, easily surpassing the FactSet consensus of $837 million.
The company guided for 2026 fiscal first-quarter revenue of $855 million to $885 million, ahead of expectations of $858 million.
It also swung to a profit of 20 cents a share in the quarter, versus a loss of 14 cents in the year-ago quarter and topping consensus for earnings of 20 cents a share.
There was "strong uptake of 0% APR offers during the quarter," with gross merchandise volume from 0% APR monthly installment products nearly doubling, Affirm said.
Such offers also tend to attract a higher mix of new-to-Affirm customers, the company said.
Thursday's result, including the guidance, "defies worries" about lost revenue to Klarna Group (KLAR), which teamed up with Walmart Inc. $(WMT)$ earlier this year, Mizuho analysts Dan Dolev said in a note Thursday.
Overall, the quarter was "very strong," Dolev said.
Affirm also grew its merchant network by 24% and its transaction frequency by 20%. It had 23 million active consumers as of June 20, an increase of 24%.
-Claudia Assis
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August 28, 2025 17:40 ET (21:40 GMT)
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