Affirm (NASDAQ:AFRM) Releases Quarterly Earnings Results, Beats Estimates By $4.27 EPS

Affirm (NASDAQ:AFRM) announced its quarterly earnings results on Thursday. The company reported $4.62 earnings per share for the quarter, beating the consensus estimate of $0.35 by $4.27, FiscalAI reports. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The firm had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter in the previous year, the company posted $0.20 EPS. The company’s revenue was up 33.1% compared to the same quarter last year.

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

• Affirm reported its most profitable quarter ever, excluding the benefit from a tax allowance release, with management saying the core business is performing strongly.
• Management expects continued growth in fiscal 2027, supported by expansion across Affirm Card, Pay in X, services, additional e-commerce merchants, and the U.K. market; the company says it currently reaches only about 80 of the top 250 e-commerce sites.
• Affirm expects its revenue less transaction costs margin to be about 4.16% in fiscal 2027, helped by favorable debt-capital-markets execution and funding costs, while credit performance remains healthy.
• The company is investing in longer-term initiatives, including improved in-store functionality, Affirm Edge for bank partners, and additional consumer financial products, but several projects are still in development and may not materially contribute until fiscal 2028 or later.
• Management emphasized disciplined underwriting rather than maximizing approval rates, saying it would adjust growth before allowing credit performance to deteriorate; it also cautioned that fiscal 2027 GAAP EPS could be volatile because of the effective tax rate.

Affirm Trading Up 1.3%

Shares of NASDAQ AFRM opened at $77.49 on Friday. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39. The stock has a market capitalization of $25.95 billion, a PE ratio of 70.45, a PEG ratio of 3.10 and a beta of 3.71. Affirm has a twelve month low of $42.10 and a twelve month high of $100.00. The stock has a fifty day simple moving average of $77.37 and a 200-day simple moving average of $64.50.

Insider Transactions at Affirm

In related news, COO Michael Linford sold 100,000 shares of the stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the transaction, the chief operating officer owned 117,984 shares of the company’s stock, valued at approximately $9,443,439.36. This represents a 45.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 11.01% of the company’s stock.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently made changes to their positions in AFRM. Royal Bank of Canada increased its stake in Affirm by 2.1% in the first quarter. Royal Bank of Canada now owns 193,601 shares of the company’s stock valued at $8,748,000 after purchasing an additional 3,892 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Affirm by 90.7% in the 1st quarter. Empowered Funds LLC now owns 16,852 shares of the company’s stock valued at $762,000 after purchasing an additional 8,014 shares during the last quarter. Focus Partners Wealth purchased a new stake in shares of Affirm in the 1st quarter valued at about $243,000. EverSource Wealth Advisors LLC boosted its position in shares of Affirm by 18.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock valued at $189,000 after purchasing an additional 427 shares during the period. Finally, First Trust Advisors LP boosted its position in shares of Affirm by 44.8% in the 2nd quarter. First Trust Advisors LP now owns 191,525 shares of the company’s stock valued at $13,242,000 after purchasing an additional 59,297 shares during the period. Hedge funds and other institutional investors own 69.29% of the company’s stock.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Large EPS beat: Affirm reported quarterly earnings of $4.62 per share, far above the roughly $0.33–$0.35 consensus estimate and up from $0.20 a year earlier. Affirm Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Strong operating metrics: Fiscal fourth-quarter revenue increased 33.1% year over year to $1.07 billion, while gross merchandise volume reportedly exceeded expectations. Affirm also highlighted continued growth in smaller, everyday purchases, suggesting broader BNPL adoption beyond major-ticket items. Affirm Stock Jumps After Earnings
• Positive Sentiment: International expansion: Affirm and Shopify launched Shop Pay Installments in Australia. The rollout gives Affirm access to Shopify’s Australian merchant and shopper ecosystem and extends the companies’ exclusive installments partnership. Affirm and Shopify Launch Shop Pay Installments in Australia
• Neutral Sentiment: Forward outlook: Affirm’s first-quarter fiscal 2027 revenue guidance is approximately $1.2 billion, broadly in line with consensus. Investors will focus on the company’s full-year outlook and whether growth and profitability can justify the stock’s elevated valuation.
• Neutral Sentiment: Analyst support was modest: Morgan Stanley raised its price target from $79 to $80 while retaining an Equal Weight rating, implying limited near-term upside. RBC Capital Markets maintained a Hold view. Morgan Stanley Raises Affirm Price Target
• Negative Sentiment: Valuation and revenue caveat: Although profitability and transaction volume were strong, reported revenue of $1.07 billion was slightly below the $1.11 billion consensus cited in company coverage. Zacks also downgraded Affirm from Strong Buy to Hold, reinforcing concerns about valuation and execution risk. Affirm Q4 Key Metrics

Wall Street Analyst Weigh In

AFRM has been the topic of a number of analyst reports. Compass Point set a $100.00 target price on shares of Affirm in a research note on Friday, July 17th. Barclays reiterated an “overweight” rating on shares of Affirm in a report on Friday. Royal Bank Of Canada raised their target price on Affirm from $77.00 to $80.00 and gave the stock a “sector perform” rating in a research note on Friday, May 8th. Wells Fargo & Company raised their target price on Affirm from $89.00 to $96.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 8th. Finally, Piper Sandler initiated coverage on Affirm in a research report on Monday, June 29th. They set an “overweight” rating and a $103.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.62.

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.