Affirm Reports 33% Revenue Growth, Stock Surges on Strong Q4 Earnings

Affirm Holdings Inc. delivered a strong fiscal fourth quarter with revenue rising 33% year-over-year to $876 million, surpassing Wall Street estimates and driving the stock price up by over 10% in after-hours trading. The company reported a GAAP profit of 20 cents per share, reversing a loss from the previous year and topping analysts' expectations. Affirm's gross merchandise volume (GMV) jumped 43% to $10.4 billion, reflecting robust growth in its buy now, pay later business, and the company projects GMV to exceed $46 billion in fiscal 2026. The firm is shifting towards 0% APR installment loans that generate merchant fees, targeting higher credit quality customers and aiming for a sustainable revenue model amid competition. Despite strong financials and optimistic guidance, analyst consensus shows a mixed outlook with an average price target slightly below current levels and a notable potential downside according to valuation models. Overall, Affirm continues to expand its market presence and innovate its consumer financing products, maintaining positive momentum in the financial services sector.