Max Levchin, co-founder of PayPal and chief executive officer of financial technology company Affirm, arrives at the Sun Valley Resort for the annual Allen & Company Sun Valley Conference, in Sun Valley, Idaho.
Drew Angerer | Getty Images
Affirm shares surged 15% in after-hours trading Thursday after the buy now, pay later (BNPL) provider delivered a fiscal fourth-quarter earnings and revenue beat, signaling resilience in the consumer lending space. Investors are clearly taking notice as Affirm navigates a competitive landscape.
Here’s a snapshot of the key figures compared against LSEG consensus estimates:
- EPS: 20 cents vs. 11 cents estimated
- Revenue: $876 million vs. $837 million estimated
The company’s revenue experienced a robust 33% jump, climbing from $659 million in the same quarter of the previous year. Crucially, gross merchandise volume (GMV) also saw a significant increase, rising by 43% to $10.4 billion from $7.2 billion year-over-year. This GMV growth is a critical indicator of Affirm’s ability to drive transactions and expand its footprint within the e-commerce ecosystem.
Affirm’s bottom line also painted a positive picture, reporting a net income of $69.2 million, or 20 cents per share, a stark contrast to the $45.1 million loss, or 14 cents per share, recorded in the prior year. This turnaround underscores the company’s improving efficiency and growing scale.
“This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago,” the company stated in its shareholder letter, highlighting its commitment to financial discipline and strategic planning. The market clearly rewarded that execution.
Looking ahead, Affirm projects first-quarter revenue to fall within the range of $855 million to $885 million, with gross merchandise volume expected to be between $10.1 billion and $10.4 billion. These projections provide valuable insight into Affirm’s near-term growth expectations and investor confidence.
Before the after-hours jump, Affirm shares had already climbed 31% year-to-date, outperforming the Nasdaq’s 12% gain, demonstrating the company’s strong performance in a dynamic market environment.
Affirm, which held its IPO in 2021, operates in a fiercely competitive e-commerce environment. While it boasts partnerships with industry giants like Amazon and Shopify, it faces increasing pressure from competitors such as Klarna, which is anticipated to launch its own IPO. The shift by Walmart to Klarna highlights the ongoing battle for market share in the BNPL sector. Last year, Affirm expanded its reach further with a deal involving Apple, further solidifying its position.
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