Here’s Why Affirm Stock Is Up 30% Today

Affirm Holdings (AFRM) shares are surging after the buy now, pay later (BNPL) fintech company posted better-than-expected fiscal fourth-quarter results and strong guidance after the bell Wednesday.

Revenue jumped 48% year-over-year to $659 million in the period, while the company’s loss narrowed to $45 million, or 14 cents per share, from $206 million, or 69 cents per share, a year earlier. Both the top and bottom line figures beat the analyst consensus from Visible Alpha. Gross merchandise volume (GMV), the total value of transactions on the Affirm platform, rose 32% to $7.2 billion. 

Shares of Affirm rocketed nearly 30% higher Thursday. Analysts at Bank of America were bullish, raising their price target to $42 from $36 following the results.

Profitability Expected Next Fiscal Year

For the current quarter, Affirm guided for revenue between $640 and $670 million. Even the low end of the range is above analysts’ expectations. 

CEO Max Levchin said Affirm expects to be profitable on a GAAP basis in its fiscal fourth quarter of 2025. 

“The path to reaching any profitability goal is simply more transactions,” Levchin said. “Fortunately, we see no shortage of demand for the honest financial products Affirm builds and the transactions these products enable.”

BNPL financing companies allow consumers to make purchases and pay for them over time, an especially attractive proposition in a consumer spending environment hurt by high inflation.