Affirm Soars 15% After Reporting Q4 Earnings Beat, Achieving Operating Income Profitability

In an after-hours trading session on Thursday, Affirm Inc., the provider of buy now, pay later services, experienced a 15% surge in its share price following the release of better-than-anticipated financial results for the fourth quarter of the fiscal year.

A comparison with LSEG consensus estimates reveals:

– A 33% increase in revenue to $659 million compared to the same period a year prior, amounting to $872 million on an annual basis.
– Gross merchandise volume grew by 43%, reaching $10.4 billion from $7.2 billion in the corresponding quarter of the previous year.

Affirm reported net income of $69.2 million, or 20 cents per share, marking a significant improvement over the loss of $45.1 million, or 14 cents per share, recorded during the same period last year. The company attributed this success to consistent execution, which it had previously pledged would deliver operating income profitability in Q4 of the fiscal year 2025.

For the first quarter, Affirm forecasts revenue between $855 million and $885 million, with gross merchandise volume projected to range from $10.1 billion to $10.4 billion.

Prior to the after-hours spike, Affirm’s shares had already increased by 31% year-to-date, surpassing the Nasdaq’s 12% gain. Despite facing growing competition in the e-commerce sector, Affirm has established partnerships with industry heavyweights such as Amazon and Shopify. However, Walmart recently moved to competitor Klarna, which is expected to go public soon. Last year, Affirm announced a strategic partnership with Apple.

It’s worth noting that Affirm made its public debut in 2021.