Buy Now, Pay Later Firm Posts Surprise Profit, Stock Jumps 15%
Affirm Holdings (AFRM) delivered a standout second-quarter performance, surpassing expectations as consumer demand for its buy now, pay later (BNPL) services remained strong. The San Francisco-based fintech reported earnings per share of $0.23, defying analysts’ predictions of a 16-cent loss.
Revenue for the quarter climbed to $866 million, easily beating Wall Street’s estimate of $805.62 million. Investors responded positively, sending Affirm’s stock surging over 15% in premarket trading on Friday.
Looking ahead, Affirm projected third-quarter revenue between $755 million and $785 million, aligning with analysts’ consensus of $773.2 million. For fiscal 2025, the company raised its full-year revenue outlook to a range of $3.13 billion to $3.19 billion, exceeding expectations of $3.11 billion.
Analysts at BTIG praised the results, stating that Affirm’s strong volume growth and profitability margins set it apart from other fintech firms, many of which have struggled with weaker quarterly performances. The firm also highlighted tightening credit card underwriting conditions as a potential tailwind for Affirm, noting that the BNPL provider is well-positioned to benefit from the current operating environment.
With robust demand and favorable industry conditions, Affirm’s latest earnings report signals continued momentum for the company as it capitalizes on shifting consumer spending habits.
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