Affirm (NASDAQ:AFRM) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Affirm (NASDAQ:AFRM) released its quarterly earnings results on Thursday. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.09, FiscalAI reports. Affirm had a return on equity of 9.16% and a net margin of 7.60%.The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same period in the prior year, the firm posted $0.23 EPS. Affirm’s quarterly revenue was up 29.6% compared to the same quarter last year.

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

• Despite a large merchant transition, Affirm reported strong results with GMV up 36% YoY and a widening merchant base — the “other” category is now ~15% of GMV and growing at triple‑digit rates, reflecting diversification.
• The Affirm Card is scaling rapidly (GMV +160% YoY; active cardholders +121%; 0% deals on card +190%), becoming a material growth engine and driving higher engagement.
• Capital markets execution improved materially — a recent ABS priced with spread <100bps and weighted average yield <4.6% — and management expects RLTC take rates around +4% in H2, citing funding cost tailwinds.
• New product and distribution initiatives (early rollouts of Boost AI, Intuit/Fiserv partnerships, Shopify/wallet deals) are positioned to monetize merchant promotions and expand reach across long‑tail merchants.
• Affirm has applied for an industrial bank charter to gain regulatory certainty, but approval is multi‑year and uncertain; the company is closely monitoring the regulatory environment with no immediate BNPL rate caps reported.

Affirm Trading Down 4.0%

Shares of AFRM stock opened at $57.03 on Friday. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. The firm has a market cap of $18.82 billion, a P/E ratio of 70.41, a PEG ratio of 2.63 and a beta of 3.56. The company has a 50 day moving average of $71.53 and a 200-day moving average of $74.17. Affirm has a 12-month low of $30.90 and a 12-month high of $100.00.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 results beat consensus — Affirm reported an EPS beat and revenue growth with GMV up ~36% year-over-year, underscoring healthy transaction and merchant momentum. Affirm Q2 earnings beat (MarketBeat)
• Positive Sentiment: Customer and merchant metrics improving — active consumers and transactions per user rose, supporting repeat-use traction for Affirm’s BNPL offerings. Affirm BNPL volumes jump (PYMNTS)
• Positive Sentiment: New partnership expands reach — Affirm signed a deal with Virgin Media O2 to offer device financing in the U.K., which should broaden merchant distribution and product adoption. Affirm and Virgin Media O2 partnership (BusinessWire)
• Positive Sentiment: Some analyst support remains — Morgan Stanley recently upgraded the stock to Overweight, reflecting buy‑side interest despite mixed signals. Morgan Stanley upgrade (AmericanBankingNews)
• Neutral Sentiment: Guidance roughly in line — Affirm updated fiscal revenue targets that were generally in line with expectations, leaving less new directional information for investors. Q2 results and investor presentation (Affirm IR)
• Neutral Sentiment: Short-interest data shows no meaningful change — the reported short interest figures are effectively unchanged and do not appear to be driving today’s move.
• Negative Sentiment: Credit metrics deteriorated — Affirm increased loan-loss provisions and noted higher installment loan delinquency rates, which raised concerns about credit quality and pressured the stock. Earnings beat highlights growth and credit concerns (MarketBeat)
• Negative Sentiment: Analysts trimmed price targets — several firms (JPMorgan, Stephens, RBC) lowered targets this morning, signaling more cautious near‑term expectations and adding selling pressure. Analyst price-target changes (Benzinga / MarketScreener)

Insider Activity at Affirm

In other Affirm news, CEO Max R. Levchin sold 666,666 shares of the stock in a transaction on Monday, January 5th. The stock was sold at an average price of $80.62, for a total transaction of $53,746,612.92. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Robert O’hare sold 36,401 shares of the firm’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $80.00, for a total value of $2,912,080.00. Following the completion of the sale, the chief financial officer directly owned 1,368 shares of the company’s stock, valued at $109,440. This represents a 96.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 711,256 shares of company stock worth $57,231,923. 11.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Affirm

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its holdings in Affirm by 294.2% during the third quarter. Invesco Ltd. now owns 4,333,691 shares of the company’s stock valued at $316,706,000 after purchasing an additional 3,234,260 shares during the last quarter. Atreides Management LP raised its position in shares of Affirm by 543.3% in the second quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock valued at $136,751,000 after purchasing an additional 1,670,429 shares during the period. State Street Corp raised its position in shares of Affirm by 26.7% in the third quarter. State Street Corp now owns 5,641,965 shares of the company’s stock valued at $412,315,000 after purchasing an additional 1,187,665 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Affirm by 333.5% during the 3rd quarter. Alliancebernstein L.P. now owns 1,166,370 shares of the company’s stock valued at $85,238,000 after buying an additional 897,340 shares in the last quarter. Finally, Qube Research & Technologies Ltd boosted its holdings in Affirm by 68.9% in the 3rd quarter. Qube Research & Technologies Ltd now owns 2,146,092 shares of the company’s stock worth $156,836,000 after buying an additional 875,813 shares during the period. 69.29% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. UBS Group set a $78.00 target price on shares of Affirm in a report on Friday. Citigroup raised shares of Affirm to a “strong-buy” rating in a research report on Thursday, October 23rd. Wolfe Research assumed coverage on shares of Affirm in a research note on Tuesday, December 9th. They issued a “peer perform” rating for the company. Bank of America boosted their target price on Affirm from $94.00 to $98.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. Finally, Oppenheimer decreased their price target on Affirm from $95.00 to $83.00 and set an “outperform” rating for the company in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $87.21.

About Affirm

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.