Affirm Holdings (AFRM) Surges to New High on Q4 Earnings

Affirm Holdings (AFRM) reached a new record high after Q4 earnings showed a net income of $69.2 million, up from a $45 million net loss in the same period last year. Total revenues grew by 33% to $876.4 million, with a 24% increase in interest income and a 37% increase in network revenues. The company targets revenues of $3.864 billion for FY26 and $855-$885 million for Q1.

Affirm Holdings, Inc. (AFRM) reported robust fourth-quarter earnings, with a net income of $69.2 million, up from a net loss of $45.1 million in the same period last year. The company's total revenues grew by 33% to $876.4 million, driven by a 37% increase in network revenues and a 24% increase in interest income. Affirm's gross merchandise volume (GMV) surged by 43% to $10.4 billion, while active merchants increased by 24% to 377,000 [1].

The company's earnings per share (EPS) of $0.20 exceeded the Zacks Consensus Estimate of $0.11, marking the fourth consecutive quarter of earnings beats. Total operating expenses increased by 11.7% year-over-year to $818.4 million, primarily due to higher loss on loan purchase commitments, funding costs, and technology expenses. However, sales and marketing expenses dropped by 41.2% year-over-year [1].

Affirm's stock surged 9.6% in after-hours trading following the announcement, reaching $90.40 per share [2]. The company's stock price has increased by 31% this year, outperforming the Nasdaq index's increase of 12% [3].

Looking ahead, Affirm issued solid guidance for fiscal year 2026. The company expects its revenue for the first quarter of fiscal year 2026 to be between $855 million and $885 million, while gross merchandise volume is expected to be between $10.1 billion and $10.4 billion [3]. The company's adjusted operating margin is projected to be within 23-25%, and it anticipates GMV to be more than $46 billion for the full year [1].

Affirm's growth can be attributed to its focus on underwriting consumers and maintaining strong credit performance. The company's strategy of leveraging global partnerships and a reusable technology platform is also key to its expansion. Affirm is currently piloting its Shopify model in the U.K. and foresees further international growth [1].

References:
[1] https://finance.yahoo.com/news/affirm-q4-earnings-beat-estimates-162300042.html
[2] https://www.ainvest.com/news/affirm-holdings-reports-q4-earnings-revenue-beat-boosts-fy2026-guidance-2508/
[3] https://www.ainvest.com/news/affirm-holdings-posts-q4-profit-q1-revenue-expectations-stock-rises-14-45-2508/