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Affirm shares rose 15% in extended trading on Thursday after the provider of buy now, pay later loans reported better-than-expected earnings and revenue for the fiscal fourth quarter.
Here’s how the company did versus LSEG consensus estimates:
- EPS: 20 cents vs. 11 cents estimated
- Revenue: $876 million vs. $837 million estimated
Revenue climbed 33% in the period from $659 million in the same quarter a year earlier. Gross merchandise volume rose 43% to $10.4 billion from $7.2 billion a year ago.
Affirm reported net income of $69.2 million, or 20 cents a share, after recording a loss a year earlier of $45.1 million, or 14 cents a share.
“This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago,” the company said in its shareholder letter.
For the first quarter, Affirm said revenue will be between $855 million and $885 million, while gross merchandise volume will be $10.1 billion to 10.4 billion.
Shares of Affirm were up 31% this year before the after-hours pop, topping the Nasdaq’s 12% gain.
Affirm, which went public in 2021, faces growing competition in e-commerce. It has partnerships with Amazon and Shopify, but Walmart recently shifted to competitor Klarna, which is expected to go public in the near future. Last year, Affirm announced a deal with Apple.
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