Affirm Stock Surges as Earnings and Revenue Exceed Wall Street Expectations

Basio badr

ago 3 hours

Affirm Stock Surges as Earnings and Revenue Exceed Wall Street Expectations

Affirm Holdings (AFRM), a notable player in consumer financing, reported impressive fiscal first quarter results that surpassed Wall Street predictions. The company, which operates from San Francisco, released its financial figures following market closure on Thursday.

Strong Earnings and Revenue Growth

Affirm’s earnings per share reached 23 cents, a significant increase compared to a loss of 31 cents per share from the same quarter last year. Analysts had forecasted an 11-cent profit.

The company’s revenue experienced a substantial rise of 34%, totaling $933 million, ahead of the forecasted $883 million. Additionally, gross merchandise volume (GMV) grew by 42% to $10.8 billion, exceeding expectations of $10.38 billion.

Current Performance and Market Response

Affirm stock surged over 10% to $72.74 in extended trading, following the positive earnings report. This follows a volatile Thursday session, where the stock experienced declines due to rising layoff announcements and broader economic concerns. Prior to the earnings release, AFRM stock had seen a 7% increase in 2025.

Guidance for Future Performance

Looking ahead to fiscal Q2, Affirm has set a revenue target of approximately $1.045 billion, aligning closely with analyst estimates. Currently, around one-third of the company’s revenue is sourced from interest income paid by consumers; however, the focus is shifting toward more Buy Now, Pay Later (BNPL) plans that feature no interest.

This strategy includes generating revenue through fees charged to merchants, even though zero percent interest BNPL plans typically offer lower profit margins. These plans tend to attract high-quality consumers who make larger purchases.

Competitive Landscape

Affirm faces stiff competition from other BNPL providers including:

Klarna (KLAR)
Sezzle (SEZL)
Block’s Afterpay
PayPal Holdings (PYPL)

While Walmart has transitioned most of its BNPL offerings to Klarna, Affirm maintains partnerships with prominent companies such as Amazon and Shopify. Upcoming collaborations with Apple, scheduled for 2026, along with potential deals with Wayfair and Fanatics, could prove crucial for future growth.

Technical Ratings and Stock Performance

Affirm’s stock currently holds an IBD Composite Rating of 81, indicative of its strong market position. Notably, this rating standard measures various performance metrics. Stocks with a rating of 90 or above are considered top growth candidates.

Additionally, the stock holds an Accumulation/Distribution Rating of B-minus, suggesting that buying activity has outpaced selling in recent months.