Affirm (NASDAQ:AFRM) Issues Earnings Results, Beats Estimates By $0.09 EPS

Affirm (NASDAQ:AFRM) released its earnings results on Thursday. The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.09, FiscalAI reports. The firm had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Affirm had a return on equity of 7.75% and a net margin of 6.74%.

Here are the key takeaways from Affirm’s conference call:

• Despite a large merchant transition, Affirm reported strong results with GMV up 36% YoY and a widening merchant base — the “other” category is now ~15% of GMV and growing at triple‑digit rates, reflecting diversification.
• The Affirm Card is scaling rapidly (GMV +160% YoY; active cardholders +121%; 0% deals on card +190%), becoming a material growth engine and driving higher engagement.
• Capital markets execution improved materially — a recent ABS priced with spread <100bps and weighted average yield <4.6% — and management expects RLTC take rates around +4% in H2, citing funding cost tailwinds.
• New product and distribution initiatives (early rollouts of Boost AI, Intuit/Fiserv partnerships, Shopify/wallet deals) are positioned to monetize merchant promotions and expand reach across long‑tail merchants.
• Affirm has applied for an industrial bank charter to gain regulatory certainty, but approval is multi‑year and uncertain; the company is closely monitoring the regulatory environment with no immediate BNPL rate caps reported.

Affirm Stock Performance

Affirm stock traded down $2.74 during mid-day trading on Thursday, reaching $59.42. 12,923,846 shares of the company’s stock were exchanged, compared to its average volume of 6,063,928. The business’s fifty day simple moving average is $72.00 and its 200 day simple moving average is $74.34. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. Affirm has a one year low of $30.90 and a one year high of $100.00. The firm has a market capitalization of $19.61 billion, a PE ratio of 88.69, a P/E/G ratio of 2.73 and a beta of 3.56.

Affirm News Roundup

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 results beat expectations — EPS $0.37 vs. $0.28 est. and revenue $1.12B vs. $1.06B est., showing stronger-than-expected top- and bottom-line performance. Press Release
• Positive Sentiment: Revenue growth was driven by higher gross merchandise volume (GMV), a healthy demand signal for Affirm’s core BNPL and merchant services business. Affirm Sales Jump
• Positive Sentiment: Analyst support picked up: Morgan Stanley upgraded Affirm to Overweight, which could support sentiment over a longer horizon. Upgrade Note
• Neutral Sentiment: The company updated guidance: Q3 revenue $970M–$1.0B (vs. $973.6M consensus) and FY revenue ~ $4.1B (in line with consensus). Q4 revenue guidance was ~$1.1B (above prior consensus), so guidance is mixed across periods. (Company guidance releases)
• Neutral Sentiment: Affirm filed the shareholder letter and Form 8‑K with details on results and will host a conference call — useful to parse management commentary for margin and loan performance color. Company Release
• Negative Sentiment: Market reaction appears negative because Affirm did not provide explicit forward EPS guidance (EPS guidance fields were blank in updates), leaving investors uncertain about near-term profitability despite the beat.
• Negative Sentiment: Valuation and technicals may be headwinds: the stock trades below its 50- and 200-day moving averages and carries a high NTM P/E, so even good quarterly prints can be met with profit-taking.

Insider Buying and Selling at Affirm

In related news, CEO Max R. Levchin sold 666,666 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $80.62, for a total transaction of $53,746,612.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Robert O’hare sold 36,401 shares of Affirm stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $80.00, for a total transaction of $2,912,080.00. Following the completion of the sale, the chief financial officer directly owned 1,368 shares in the company, valued at approximately $109,440. This represents a 96.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 711,256 shares of company stock valued at $57,231,923. Insiders own 11.01% of the company’s stock.

Institutional Investors Weigh In On Affirm

Several large investors have recently modified their holdings of the stock. CIBC Bancorp USA Inc. bought a new stake in shares of Affirm in the third quarter valued at approximately $702,000. Wilmington Savings Fund Society FSB grew its stake in Affirm by 442.9% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 6,336 shares of the company’s stock valued at $463,000 after buying an additional 5,169 shares in the last quarter. Captrust Financial Advisors raised its holdings in Affirm by 4.6% during the 3rd quarter. Captrust Financial Advisors now owns 28,735 shares of the company’s stock valued at $2,100,000 after acquiring an additional 1,263 shares during the period. Danske Bank A S purchased a new stake in shares of Affirm during the third quarter worth $6,723,000. Finally, Advisory Services Network LLC bought a new position in shares of Affirm in the third quarter worth $194,000. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Wall Street Analysts Forecast Growth

AFRM has been the subject of several recent research reports. Truist Financial decreased their target price on shares of Affirm from $90.00 to $85.00 and set a “buy” rating for the company in a research report on Wednesday, November 19th. Wall Street Zen lowered Affirm from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. Royal Bank Of Canada lowered their price objective on Affirm from $97.00 to $87.00 and set a “sector perform” rating for the company in a research note on Friday, November 7th. BTIG Research reaffirmed a “neutral” rating on shares of Affirm in a research report on Wednesday, December 17th. Finally, Evercore ISI reiterated an “outperform” rating on shares of Affirm in a report on Tuesday, December 16th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, Affirm currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.16.

Affirm Company Profile

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.