Affirm's Stock Rises Following Strong Q4 Results and Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy AFRM?
Source: Benzinga
Affirm Holdings Inc. Earnings Report
Fourth Quarter Performance: Affirm reported earnings of 20 cents per share, significantly surpassing analyst expectations of 10 cents. Revenue reached $876.4 million, exceeding estimates of $837 million and indicating year-over-year growth.
Merchant Network Expansion: The company expanded its merchant network to 377,000 active partners in fiscal 2025, marking a 24% increase. Additionally, there was a 20% rise in transaction frequency, indicating increased customer engagement with Affirm's services.
Credit Performance: Affirm maintained stable credit performance, reporting a 4% return on loans to consumers, which is a critical indicator of the company's lending risk management.
Future Outlook
Guidance for Q1 and Fiscal 2026: For the first quarter, Affirm anticipates revenue between $855 million and $885 million, aligning with or slightly exceeding consensus estimates. The company projects fiscal 2026 revenue at $3.86 billion, significantly higher than the analyst estimate of $3.18 billion, suggesting continued growth momentum.
Investor Reaction: Following the earnings beat and positive guidance, Affirm's stock rose by 9.25% to $87.39, reflecting investor confidence in the company's growth potential and ability to balance expansion with stable credit performance.
Stock Performance Metrics
Current Stock Status: As of the latest publication, Affirm's stock was priced at $87.26, with a notable increase of 9.09%.
Benzinga Rankings: Affirm's stock received high momentum (93.60) and growth (86.78) scores, while its value score was lower at 23.03, indicating a strong performance in terms of growth potential.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 49.760
Low
83.00
Averages
95.50
High
114.00
Current: 49.760
Low
83.00
Averages
95.50
High
114.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growth Outlook Adjustment: While the company anticipates 32%-33% volume growth for fiscal 2026, surpassing the consensus estimate of 29%, analysts expressed disappointment over the fourth quarter's GMV performance, suggesting risks of slowing growth.
- Analyst Rating Changes: JPMorgan analyst Reginald Smith maintained an Overweight rating on Affirm but reduced the price target from $94 to $79, reflecting a cautious outlook on future growth.
- Market Reaction: Affirm's shares fell 1.26% to $59.42 in premarket trading on Friday, indicating investor concerns regarding the company's slowing growth trajectory.
See More
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- Significant Revenue Growth: The company posted revenue of $1.12 billion, exceeding the expected $1.05 billion, demonstrating strong business expansion and market demand, which is likely to drive stock price appreciation.
- Customer and Merchant Growth: Active customers increased by 23% to 25.8 million, while active merchants rose by 42% to 478,000, showcasing Affirm's competitive edge and appeal in the market, potentially laying the groundwork for future revenue growth.
- Guidance Upgrade: Affirm raised its fiscal year 2026 revenue guidance to between $4.08 billion and $4.14 billion, reflecting confidence in future performance, which may enhance market sentiment towards its stock.
See More
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- Stock Performance: Affirm Holdings' stock declined on Friday despite reporting strong fiscal second-quarter earnings.
- Analyst Opinions: Some analysts believe the market reaction to the earnings report is unjustified.
See More
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- Revenue Growth: The company achieved quarterly revenue of $1.12 billion, exceeding Wall Street's expectation of $1.06 billion, reflecting strong market demand that supports future business expansion.
- Strategic Partnership: Affirm's collaboration with Virgin Media O2 introduces transparent and flexible hardware financing options for O2 customers, enhancing O2's competitiveness in the SIM-free market, which is expected to attract more customers and increase sales.
- Positive Outlook: Affirm anticipates Q3 revenue between $970 million and $1 billion, and Q4 between $1.060 billion and $1.090 billion, while raising its FY26 revenue guidance to $4.09 billion to $4.15 billion, demonstrating confidence in future growth.
See More
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- Trump's Drug Price Website: President Trump announced the launch of a new website aimed at lowering drug prices, which will provide consumers access to more affordable prescription medications, potentially impacting pricing strategies in the pharmaceutical industry and raising public awareness about drug accessibility.
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- Stable Treasury Yields: The 10-year Treasury bond yield stood at 4.20%, while the two-year bond yield was at 3.48%, reflecting market expectations of unchanged interest rates; the CME Group's FedWatch tool indicates an 81.3% likelihood of this, which could influence investors' asset allocation strategies.
See More
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- No Hidden Fees: Affirm's financing options cover mobile phones, headphones, and gaming consoles, ensuring customers are not charged late or hidden fees when repaying their loans, which enhances payment transparency and builds trust with consumers.
- Market Expansion Potential: This partnership allows Virgin Media O2 to expand its offerings in the SIM-free market, adding to its existing portfolio of Pay Monthly Handset Bundles and SIM Only options, thereby increasing its competitive edge in the market.
- Future Development Plans: Flexible payment plans are expected to be available to Virgin Media O2 customers later this summer, pending regulatory approval, which will help improve payment convenience for customers and enhance the company's market influence.
See More
