Affirm's Stock Skyrockets 15% Following Positive Earnings Report

Affirm Holdings saw a remarkable 15% increase in its stock's value during after-hours trading on Thursday, spurred by financial results that exceeded Wall Street's expectations for the company's fiscal fourth quarter.

The financial service company recorded a quarterly revenue increase of 33%, reaching $659 million, a substantial rise from the previous year's equivalent period. The gross merchandise volume also witnessed an impressive growth, escalating by 43% to hit $10.4 billion, up from $7.2 billion.

Affirm posted a net income of $69.2 million, translating to earnings of 20 cents per share. This is a sharp turnaround from the previous year's loss of $45.1 million, or 14 cents per share.

In a letter to its shareholders, Affirm highlighted, "Our unwavering execution enabled us to achieve profitability in our operating income for the fourth quarter of fiscal year 2025, as we had projected a year ago."

Looking ahead to the upcoming quarter, Affirm projects its revenue to fall within the range of $855 million to $885 million. Meanwhile, the gross merchandise volume is anticipated to be between $10.1 billion and $10.4 billion.

Even before the surge in after-hours trading, Affirm's stock had already climbed by 31% in 2025, outperforming the Nasdaq's gain of 12%.

Established in 2021, Affirm is contending with increasing competitive pressure in the e-commerce sector. While it has established partnerships with various companies, one notable partner has transitioned to using Klarna, a major competitor that is preparing for a public offering soon.