Affirm Flies Past Estimates. The Stock Is Climbing

Affirm Holdings, Inc. (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today reported financial results for its fiscal 2025 second quarter ended December 31, 2024. The results, which include a shareholder letter furnished to the U.S. Securities and Exchange Commission on Form 8-K, can be found in the “Events and Presentations” section of the Company’s investor relations website at .

Affirm will host a conference call and webcast to discuss its financial results today at 5:00pm ET. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company’s investor relations website at .

Affirm's fiscal 2025 second quarter results surpassed analyst expectations, with revenue of $3.16 billion, an increase of 36.16% compared to the previous year's $2.32 billion. Losses were -$517.76 million, -47.45% less than in 2023. The company's strong performance can be attributed to several key factors:

1. Strong Holiday Shopping Season: A robust holiday shopping season, coupled with the continued momentum of buy now, pay later (BNPL) options and zero interest rates, helped push Affirm's gross merchandise volumes higher. This increase in consumer spending contributed to Affirm's revenue growth (PYMNTS, 8 hours ago).
2. Growth in GMV: Affirm's Gross Merchandise Volume (GMV) hit $20.2 billion in fiscal year 2023, marking a substantial 30% increase year-over-year. This growth is underpinned by Affirm's extensive network, which includes over 292,000 merchants and more than 18.1 million active consumers, primarily located in the U.S. and Canada (BofA Global Research, September 2024).
3. Expansion of Merchant Network: Affirm's merchant network has grown significantly, with over 292,000 merchants now offering Affirm as a payment option. This expansion has led to increased consumer adoption and, consequently, higher revenue (Affirm's Business Segment, 2024).
4. Consumer Engagement: The introduction of the Affirm Card and the integration of BNPL services into Apple Pay have enhanced consumer adoption and engagement. These initiatives have contributed to Affirm's revenue growth and earnings beat (Affirm's Business Segment, 2024).
5. Strategic Partnerships: Affirm's strategic partnerships with companies like Apple Pay, Amazon, and Google Pay have expanded its reach and accessibility, enabling it to tap into the extensive user bases of these platforms. These partnerships have also contributed to Affirm's revenue growth and earnings beat (Affirm's Business Segment, 2024).



Affirm's stock price has been climbing in response to the strong earnings report, reflecting investor confidence in the company's growth prospects. The stock price reached $61.75 as of mid-September 2024, up from its 52-week low of $13.67. The company's market capitalization stands at approximately $13.78 billion, reflecting investor optimism in its business model and growth trajectory.

Analysts have expressed bullish sentiments on Affirm's future, with 19 analysts assigning an average rating of "Buy" to the stock. The 12-month stock price forecast is $63.12, which is an increase of 2.22% from the latest price. The average target price predicts an increase of 2.22% from the current stock price of $61.75 (Benzinga, 13 days ago).

Affirm's strategic initiatives, particularly its partnership with Apple Pay and refi, have positioned the company as a strong player in the competitive BNPL landscape. However, the company faces several challenges, including regulatory scrutiny, competition from traditional financial institutions, and the uncertain macroeconomic environment. To mitigate these threats, Affirm should focus on operational efficiency, strategic partnerships, and consumer engagement to maintain its competitive edge and drive long-term growth.

In conclusion, Affirm's strong earnings report and climbing stock price reflect the company's successful execution of its growth strategy. With a solid foundation in the BNPL market and a commitment to innovation, Affirm is well-positioned to continue its upward trajectory in the competitive financial landscape.