Affirm Shares Soar Following Record-Breaking Fourth Quarter Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Source: Benzinga
Affirm Holdings' Record-Breaking Quarter
Earnings and Revenue: Affirm Holdings reported earnings of 20 cents per share, nearly double analysts' expectations. The company achieved a quarterly revenue of $876 million, marking a 33% year-over-year increase and also exceeding forecasts.
CEO's Remarks: CEO Max Levchin highlighted the company's exceptional performance during the earnings call, noting that they set new records across most metrics, which is atypical for Q4. He emphasized that their growth is accelerating and that they are operating at full capacity.
Customer Engagement and Credit Management
Repeat Customers: A significant factor in Affirm's success is the high rate of repeat customers, which constituted 95% of transactions in the fourth quarter. This strong customer loyalty allows Affirm to focus on effective consumer underwriting.
Credit Monitoring: Levchin stressed the importance of credit management, stating that the executive team receives regular updates on credit performance. He expressed confidence in U.S. consumers' resilience and spending power, indicating a strong ability to repay loans on time.
Future Expansion Plans
- Market Expansion: Affirm is actively expanding into new markets using a reusable technology platform and global partnerships. The company is piloting its Shopify model in the U.K. and anticipates further growth in Europe.
Stock Performance
- Stock Surge: Following the earnings report, Affirm's stock price rose by 13.01%, reaching $90.40 at the time of publication. This reflects strong investor confidence in the company's performance and future prospects.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 95.50 USD with a low forecast of 83.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 65.360
Low
83.00
Averages
95.50
High
114.00
Current: 65.360
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.
Affirm's Bank Charter Application to Drive Long-Term Growth
- Bank Charter Application: Affirm's application for a bank charter is expected to be a significant long-term growth driver, enhancing the company's competitive position in the market according to analysts.
- Rating Upgrade: Needham upgraded Affirm's rating from hold to buy, setting a $100 price target that indicates a 46% upside, reflecting confidence in the company's future performance.
- Lower Funding Costs: By obtaining a bank charter, Affirm will gain access to deposit funding, thereby reducing funding costs and reliance on third parties, which enhances growth and product development potential.
- Product Integration Benefits: Owning a bank will allow Affirm to internalize existing products like the Affirm Money Account and Affirm Card, reducing friction for users and improving unit economics, which is expected to accelerate product launches further.
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