Affirm Shares Surge 22% on Revenue Beat & Surprise Profit

Affirm stock soared 22.8% after the buy now, pay later (BNPL) company delivered a strong Q2 earnings report, surpassing revenue forecasts and posting an unexpected profit.

📈 Affirm’s Impressive Q2 Financial Performance

The company reported $866 million in revenue, exceeding analyst expectations of $807 million and marking a 47% YoY growth.

Additionally, Affirm delivered a surprise profit, with earnings of 23 cents per share, while analysts had expected a 15-cent-per-share loss.

Key Financial Highlights:

✔ Revenue: $866M (+47% YoY) vs. $807M expected
✔ Earnings Per Share: $0.23 (vs. -$0.15 expected)
✔ Gross Merchandise Volume (GMV): $10.1B (+35% YoY)

🗣 Rob O’Hare, CFO: “We outperformed on adjusted operating income, our bottom-line profitability metric.”

📊 Analysts React to Affirm’s Performance

🔹 Key Takeaways from Analysts:

✔ Affirm’s GMV surpassed $10 billion for the first time, beating Wall Street’s $9.64 billion estimate.
✔ Strong holiday shopping demand boosted revenue, particularly in general merchandise & consumer electronics.
✔ Active users grew 23% YoY, reaching 21 million customers.

🚀 Growth Drivers Behind Affirm’s Success

1️⃣ Holiday Shopping Boom

Strong demand for BNPL services in consumer electronics & general merchandise fueled revenue growth.

2️⃣ Higher Transaction Volumes (GMV Growth)

Affirm’s total transaction value surged 35% YoY, highlighting increased adoption of BNPL financing.

3️⃣ Profitability Milestone on the Horizon

Affirm aims to achieve GAAP profitability by the end of its fiscal fourth quarter, boosting investor confidence.

🔮 What’s Next for Affirm?

For Q3, Affirm forecasts revenue between $755M – $785M, signaling continued strong performance.

With rising BNPL adoption, strong user growth, and increasing transaction volumes, Affirm is well-positioned for long-term success in the fintech space.

📢 Stay tuned for more stock market updates!