Highlights;
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Stock Surge: Affirm’s shares rose 15% in extended trading following strong Q4 results, driven by better-than-expected earnings and revenue.
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Financial Outperformance: The company reported EPS of 20 cents (vs. 11 cents estimated) and revenue of $876 million (vs. $837 million estimated), with a 33% revenue increase from the prior year.
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Growth Metrics: Gross merchandise volume (GMV) grew 43% to $10.4 billion, and the company achieved net income of $69.2 million, reversing the previous year’s loss.
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Competitive Landscape and Partnerships: Despite facing competition, Affirm has key partnerships with Amazon, Shopify, and Apple, though it lost Walmart to Klarna, a rising competitor soon to go public.
Affirm’s shares surged 15% in extended trading following the release of its Q4 earnings, which exceeded expectations. Here are the key highlights from the report:
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Financial Performance:
- Earnings Per Share (EPS): Affirm reported a profit of 20 cents per share, surpassing the expected 11 cents.
- Revenue: The company generated $876 million, beating the estimated $837 million and marking a 33% increase from the previous year’s $659 million.
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Growth Metrics:
- Gross Merchandise Volume (GMV): Climbed to $10.4 billion, a 43% rise from $7.2 billion the previous year.
- Net Income: Affirm achieved a net income of $69.2 million, reversing the prior year’s $45.1 million loss.
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Company Outlook:
- Future Guidance: Affirm projects Q1 revenue between $855 million and $885 million, with GMV expected to range from $10.1 billion to $10.4 billion.
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Market Position and Strategy:
- Affirm has established partnerships with major players like Amazon and Shopify, enhancing its presence in the competitive “buy now, pay later” market.
- Despite losing Walmart to competitor Klarna, Affirm continues to strengthen its position with a recent deal with Apple.
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Stock Performance and Competition:
- Year-to-date, Affirm’s shares have risen 31%, outperforming the Nasdaq’s 12% gain. The company faces growing competition, especially with Klarna’s anticipated IPO, but remains focused on strategic growth and innovation.
This report underscores Affirm’s progress in achieving profitability and navigating a competitive landscape, positioning it as a strong player in the evolving fintech industry.
Source: https://www.cnbc.com/2025/08/28/affirm-afrm-q4-2025-earnings-report.html
