Copyright Investor's Business Daily
Consumer financing firm Affirm Holdings (AFRM) reported fiscal first quarter earnings, revenue and key financial metrics that handily beat Wall Street targets. Affirm stock popped on the news. The San Francisco-based company reported September-quarter earnings after the market close on Thursday. The company reports results using generally accepted accounting principles, or GAAP. In the Affirm earnings report, the company reported a profit of 23 cents versus a 31-cent loss a year earlier. Analysts polled by FactSet had predicted 11 cent profit. Affirm said revenue climbed 34% to $933 million vs. estimates of $883 million. The company said gross merchandise volume rose 42% to $10.8 billion vs. estimates at $10.38 billion. Buy Now, Pay Later Leader Affirm is one of the biggest providers of buy now, pay later installment payment services. With BNPL options, consumers pay off purchases in monthly installments, either with low interest or none at all. Also, Affirm's new debit card has been gaining traction. On the stock market today, Affirm stock popped over 10% to 72.74 in extended trading. AFRM stock fell in Thursday's regular session amid rising layoff announcements and worries over the U.S. economy. Further, AFRM stock had advanced 7% in 2025 before the release of fiscal Q1 earnings. Affirm Stock: Guidance In-Line For fiscal Q2, the company predicted revenue of $1.045 billion at the mid-point of guidance, roughly in-line. Affirm has garnered about one-third of its revenue from interest income paid by consumers. But Affirm's product mix has been shifting to more BNPL plans with no interest. Instead, Affirm garners revenue from fees paid by merchants. Zero percent interest BNPL plans generally have lower margins than interest-bearing products. But zero interest plans attract higher credit quality consumers who usually buy bigger items at stores. Affirm competes with Klarna (KLAR), Sezzle (SEZL), Block's (XYZ) Afterpay and PayPal Holdings (PYPL). While Walmart (WMT) has shifted most of its BNPL payments to Klarna, Affirm has many other partners, including Amazon.com (AMZN) and Shopify (SHOP). Analysts say a new partnership with Apple (AAPL) could be material in 2026 as well as new deals with Wayfair (W)and sports firm Fanatics. Affirm Stock: Technical Ratings AFRM stock holds an IBD Composite Rating of 81, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Further, Affirm stock has an Accumulation/Distribution Rating of B-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling. Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing. YOU MAY ALSO LIKE: 'It's Getting Ugly,' Analyst Says As Pfizer Escalates Its Gloves-Off Fight For Metsera Want To Trade Options? Try Out These Strategies Monitor IBD's "Breaking Out Today" List For Companies Hitting New Buy Points IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
