ALAB

Analyst Ratings Updates

• Viant Technology Inc.: DA Davidson analyst Tom White has initiated coverage with a Buy rating and set a price target of $15. The stock closed at $10.03 on Thursday, indicating potential upside.

• Astera Labs, Inc.: CICC has given Astera Labs an Outperform rating with a price target of $190. The shares were priced at $189.15 at the close on Thursday, suggesting a narrow margin for growth.

• Karooooo Ltd.: UBS analyst Taylor McGinnis initiated coverage with a Buy rating and a price target of $60. The stock closed at $52.53, reflecting a favorable outlook.

Stock Performance Insights

• Astera Labs Inc.: The stock is currently trading at $179.80, down 4.94%, with a strong momentum score of 98.18, although growth and quality metrics are not available.

• CoreWeave Inc.: The stock is priced at $100.44, down 2.29%, indicating a slight decline in performance.

• Viant Technology Inc.: Shares are trading at $10.33, showing a 2.99% increase, suggesting positive market sentiment.

• Karooooo Ltd.: The stock is at $52.40, down 0.25%, indicating stability in its price.

• Marvell Technology Inc.: The stock has seen a significant drop, currently at $63.56, down 17.7%, which may raise concerns among investors.

• Vir Biotechnology Inc.: Trading at $4.88, down 3.27%, reflecting ongoing challenges in the market.

Market Data Overview

• The market news and data are provided by Benzinga APIs, emphasizing the importance of staying updated with stock performance and analyst ratings for informed investment decisions.

Affirm Holdings, Inc. Q4 Fiscal 2025 Earnings Report

• Earnings Performance: Affirm reported an earnings per share (EPS) of 20 cents for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of 11 cents and improving from a loss of 14 cents per share in the same quarter last year.

• Revenue Growth: Total revenues reached $876.4 million, marking a 33% year-over-year increase and surpassing management's expectations of $815-$845 million, as well as the consensus estimate by 4.4%.

Key Financial Metrics

• Gross Merchandise Value (GMV): GMV for the quarter was $10.4 billion, up 43% year-over-year, exceeding both management's expectations of $9.4-$9.7 billion and the Zacks Consensus Estimate of $9.5 billion. This growth was driven by strong performance from major merchant partners and attractive financing options.

• Transaction Volume: Total transactions surged by 51.8% year-over-year to 37.5 million, significantly surpassing the consensus mark of 30.3 million, largely due to increased repeat customer transactions.

• Income Sources: Servicing income rose 23% year-over-year to $33.9 million, while interest income increased by 24% to $419.1 million, both exceeding consensus estimates.

Expense and Profitability Analysis

• Operating Expenses: Total operating expenses increased by 11.7% year-over-year to $818.4 million, driven by higher costs related to loan commitments, funding, and technology. The provision for credit losses also rose by 33.2% to $156.6 million.

• Adjusted Operating Income: Affirm reported an adjusted operating income of $237 million, a 58.2% increase year-over-year, with an adjusted operating margin of 27%, surpassing the expected range of 23-25%.

• Net Income: The company achieved a net income of $69.2 million, a significant turnaround from a net loss of $45.1 million in the prior-year quarter.

Balance Sheet and Future Outlook

• Cash and Assets: As of June 30, 2025, Affirm had cash and cash equivalents of $1.4 billion, a 33.7% increase from the previous fiscal year-end, with total assets rising to $11.2 billion, up 17.2%.

• Debt and Equity: Funding debt decreased by 11.7% to $1.6 billion, while total stockholders’ equity rose by 12.3% to $3.1 billion.

• Future Projections: For Q1 fiscal 2026, Affirm anticipates GMV between $10.1-$10.4 billion and revenues in the range of $855-$885 million, with an expected adjusted operating margin of 23-25%. Long-term projections estimate GMV to exceed $46 billion, with revenues expected to be 8.4% of GMV.

Market Position and Comparisons

• Zacks Rank: Affirm currently holds a Zacks Rank #3 (Hold).

• Competitor Performance: Other companies in the technology sector, such as Astera Labs, Reddit, and Penguin Solutions, have shown strong earnings growth and upward revisions in earnings estimates, indicating a competitive landscape.

• Market Trends: The semiconductor market is projected to grow significantly, from $452 billion in 2021 to $971 billion by 2028, highlighting potential opportunities for companies like Affirm that are positioned to benefit from technological advancements.

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