Affirm Surges on Surprise Profit and Strong Holiday Performance

The buy now, pay later company exceeded earnings expectations, reported record growth in key metrics, and issued optimistic guidance for fiscal 2025.

Affirm reported fiscal Q2 earnings of $0.23 per share, significantly beating analyst expectations of a $0.15 loss per share.
Revenue for the quarter rose 47% year-over-year to $866 million, driven by strong holiday sales and increased demand for zero-percent financing options.
Gross merchandise volume (GMV) surpassed $10 billion for the first time, reflecting 35% growth compared to the same period last year.
The company’s active customer base grew 23% to 21 million, with transactions per active customer increasing to 5.3 from 4.4 a year ago.
Affirm maintained its fiscal 2025 revenue guidance of $3.13 billion to $3.19 billion and reaffirmed its goal of achieving GAAP profitability by the end of the fiscal year.