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Credit: Affirm

Buy now/pay later lender Affirm is leaning into 0% promotional financing offers and its debit card program to drive growth as the company marches toward its year-end profitability target.

Affirm beat Wall Street’s estimates on nearly every metric for its fiscal second quarter 2025 ended Dec. 31, according to S&P Global CapitalIQ. Revenue tallied $866 million, an increase of 47% year over year and ahead of analysts’ estimates of $807.6 million. GAAP net income landed at $80.4 million, or 23 cents per share, eclipsing analysts estimates of a $52.7 million loss, or a 17-cent loss per share.

Adjusted earnings per share also landed at 23 cents per share. Analysts expected Affirm to post a 23-cent loss per share.

Shares of Affirm surged as much as 15% in after-hours trading on Thursday evening following the earnings report. Those gains extended almost 23% to $75.78 as of 10:30 a.m. in New York on Friday.

Analysts cheered the results.

“Affirm is firing on all cylinders, delivering premium growth, improving profitability and consistent credit performance,” Reginald Smith, executive director of equity research at JPMorgan, said in a research note.

Andrew Jeffrey, research analyst at William Blair, said Affirm was “on our short list of transformative fintechs that can become big companies over time.”

David Scharf, an analyst at Citizens JMP, said the company “is a long-term secular winner at the expense primarily of the credit card industry. The company is well-positioned to capitalize on the continued adoption of BNPL solutions for everyday purchases and benefits from a more robust loan platform relative to competitors.”

Gross merchandising volume (GMV) increased 35% to $10.1 billion, according to Affirm’s letter to shareholders. Active customers grew 23% to 21 million, marking the fourth consecutive quarter of year-over-year growth. Transactions per active customers increased to 5.3, compared with 4.4 in the same reporting period a year ago. Active merchants jumped 21% to 337,000.


“We think Affirm’s five largest merchants powered upside with 40% expansion,” Jeffrey said. “It is our view that Affirm enjoys relatively low penetration with these large merchants and has ample share headroom.” Affirms counts Apple, Amazon, Shopify, Walmart and Expedia as its largest merchants.

Increased consumer uptake on 0% financing offers was a key driver to the positive results during the quarter, Affirm CEO Max Levchin said on the earnings call with analysts Thursday night. Merchants, manufacturers or both frequently buy down rates to help increase purchase conversions, a practice that is commonly seen in the automotive industry.



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