Affirm Reports Q4 Profit, Revenue Growth, Sets Guidance

Affirm Holdings has reported a fiscal Q4 profit, with revenue rising. The company, which provides a flexible alternative to traditional payment options, saw its platform comprising point-of-sale payment solutions, merchant commerce solutions, and a consumer-focused app drive growth. Affirm Card allows consumers to pay in full or over time through the app, and the company also offers a high-yield savings account.

Affirm Holdings (AFRM) has reported its fiscal fourth-quarter earnings, with a notable increase in revenue and a profit that exceeded Wall Street targets. The company, which specializes in buy now, pay later (BNPL) services, reported a profit of 20 cents per share, compared to a 14-cent loss in the same period last year [1]. This result beat the analysts' consensus estimate of 12 cents per share.

Revenue climbed 33% to $876 million, surpassing the analysts' estimates of $837 million. Gross merchandise volume (GMV) rose by 43% to $10.4 billion, exceeding the estimates of $9.61 billion [1]. The company also provided guidance for fiscal 2026, forecasting GMV to be above $46 billion, compared to the analysts' estimates of 27% growth to $45.53 billion [1].

Affirm's stock price rose more than 10% in extended trading following the earnings report, reaching $88.39 [1]. The company's stock had already advanced by 31% in 2025 before the earnings release [1].

Affirm's product mix has been shifting towards more BNPL plans with no interest, which attract higher credit quality consumers who usually purchase bigger items. This shift has led to lower margins compared to interest-bearing products, but the company garners revenue from fees paid by merchants [1].

The company competes with other BNPL providers such as Klarna (KLAR), Sezzle (SEZL), Afterpay (owned by Block, Inc.), and PayPal Holdings (PYPL). While Walmart (WMT) has shifted most of its BNPL payments to Klarna, Affirm has partnerships with Amazon.com (AMZN) and Shopify (SHOP). A potential partnership with Apple (AAPL) could be material in 2026 [1].

Affirm's stock holds an IBD Composite Rating of 86, indicating strong growth potential [1]. The Accumulation/Distribution Rating of B suggests more funds are buying than selling [1].

References:
[1] https://www.investors.com/news/technology/affirm-stock-afrm-affirm-earnings-news-2026-guidance/
[2] https://www.nasdaq.com/articles/countdown-affirm-holdings-afrm-q4-earnings-look-estimates-beyond-revenue-and-eps
[3] https://www.ainvest.com/news/marvell-technology-autodesk-dell-ulta-beauty-affirm-holdings-estee-lauder-gap-simon-property-group-ambarella-petco-health-wellness-company-expected-report-earnings-hours-august-28-2025-2508/