Affirm (NASDAQ:AFRM) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Affirm (NASDAQ:AFRM) posted its quarterly earnings results on Thursday. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.17 by $0.13, FiscalAI reports. Affirm had a net margin of 7.60% and a return on equity of 8.83%. The business had revenue of $943.95 million during the quarter, compared to analyst estimates of $995.26 million. During the same period in the previous year, the business posted $0.01 EPS. The company’s quarterly revenue was up 32.7% on a year-over-year basis.

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

• Funding market remains very constructive with deep demand, oversubscribed ABS/forward-flow deals and tightening spreads, helping funding costs fall about 125 bps year‑over‑year.
• Affirm reports stable credit metrics for the consumers it underwrites—delinquencies are not deteriorating and elevated prepayments (seasonal) raised the allowance rate but are viewed as a positive credit signal.
• GMV growth accelerated alongside a 44% increase in active merchants, rising app engagement and 4.4 million cardholders, which together are lifting transactions per active and repeat usage.
• Pay‑in‑X / 0% volume is the fastest‑growing segment (including a large program moving to evergreen 0%), which boosts conversion but has lower RLTC margin per loan even as credit costs tend to be lower.
• Investment in agentic AI has meaningfully increased development velocity with only low single‑digit‑million quarterly costs reported, and the company said it is not planning AI‑related layoffs.

Affirm Price Performance

Shares of AFRM stock traded up $1.78 during midday trading on Thursday, reaching $67.36. 7,349,648 shares of the company were exchanged, compared to its average volume of 5,027,264. Affirm has a 12 month low of $42.10 and a 12 month high of $100.00. The company has a market cap of $22.44 billion, a P/E ratio of 83.16, a PEG ratio of 4.58 and a beta of 3.72. The company’s 50 day moving average price is $52.66 and its two-hundred day moving average price is $63.16. The company has a debt-to-equity ratio of 2.58, a quick ratio of 11.41 and a current ratio of 11.41.

Insider Activity at Affirm

In other Affirm news, Director Noel Bertram Watson sold 2,000 shares of the business’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $55.00, for a total transaction of $110,000.00. Following the sale, the director directly owned 38,076 shares in the company, valued at approximately $2,094,180. The trade was a 4.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 11.01% of the company’s stock.

Institutional Trading of Affirm

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Durable Capital Partners LP raised its position in shares of Affirm by 12.3% during the 2nd quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock worth $510,899,000 after buying an additional 808,455 shares in the last quarter. State Street Corp raised its position in shares of Affirm by 26.7% during the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock worth $412,315,000 after buying an additional 1,187,665 shares in the last quarter. Invesco Ltd. raised its position in shares of Affirm by 294.2% during the 3rd quarter. Invesco Ltd. now owns 4,333,691 shares of the company’s stock worth $316,706,000 after buying an additional 3,234,260 shares in the last quarter. Qube Research & Technologies Ltd raised its position in shares of Affirm by 68.9% during 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 in the last quarter. Finally, Atreides Management LP raised its position in shares of Affirm by 543.3% during the 2nd quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock worth $136,751,000 after buying an additional 1,670,429 shares in the last quarter. 69.29% of the stock is currently owned by institutional investors.

More Affirm News

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q3 EPS materially beat expectations — Affirm reported $0.30 EPS vs. the consensus $0.17, marking a clear improvement year‑over‑year and driving investor optimism. Read More.
• Positive Sentiment: Management raised revenue guidance for fiscal 2026 — Affirm updated FY revenue to ~$4.2B (vs. prior consensus ~4.1B) and issued Q4 revenue guidance ~ $1.1B, which supports a more constructive top‑line outlook. Read More.
• Positive Sentiment: Profitability metrics improved — the quarter showed a positive net margin (~7.6%) and ROE (~8.8%), signaling improving unit economics as volume scales. Read More.
• Neutral Sentiment: Company filed the shareholder letter and hosted investor materials/webcast — provides detail for analysts to model but contains mixed signals (beat EPS / revenue miss). Read More.
• Neutral Sentiment: Analyst commentary is mixed — some notes highlight Affirm’s execution and improving metrics, while others urge caution on valuation and credit exposure; analyst views may drive near‑term trading volatility. Read More.
• Negative Sentiment: Top‑line missed expectations — revenue was $943.95M vs. consensus ~$995M, a notable shortfall that tempers the positive EPS print and raises questions about demand/discounting. Read More.
• Negative Sentiment: EPS guidance clarity is limited — the company’s update emphasized revenue targets but did not provide a clear quantitative EPS outlook in the market summaries, leaving earnings visibility incomplete for modelers. Read More.

Analyst Upgrades and Downgrades

AFRM has been the subject of several research reports. Bank of America initiated coverage on shares of Affirm in a report on Thursday, March 5th. They issued a “buy” rating and a $82.00 price target for the company. Susquehanna reissued a “positive” rating and set a $100.00 target price on shares of Affirm in a research note on Friday, February 6th. Truist Financial boosted their target price on shares of Affirm from $71.00 to $75.00 and gave the company a “buy” rating in a research note on Friday, April 24th. TD Cowen reissued a “buy” rating on shares of Affirm in a research note on Friday, February 6th. Finally, Cantor Fitzgerald boosted their target price on shares of Affirm from $61.00 to $80.00 and gave the company an “overweight” rating in a research note on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $83.76.

Affirm Company Profile

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.