$AFRM
Affirm GAAP EPS of $0.20 beats by $0.09, revenue of $876.42M beats by $39.37M
Aug. 28, 2025
Q4 GAAP EPS of $0.20 beats by $0.09.
Revenue of $876.42M (+33.0% Y/Y) beats by $39.37M.
Affirm Holdings issues strong FY2026 guidance after delivering Q4 earnings, revenue beat
Aug. 28, 2025
stock climbed 9.6% in Thursday after-hours trading after the company's gross merchandise volume logged strong gains in fiscal Q4, helping to deliver an earnings and revenue beat. With that momentum, it issued solid guidance for FY2026 and Q1.
The buy now, pay later lending platform expects FY2026 gross merchandise volume of more than $46B (Visible Alpha consensus $45.7B). Its outlook for full-year revenue is 8.4% of GMV, or $3.86B ($3.89B consensus). Adjusted operating margin is seen at more than 26.1% vs. 24.1% in FY 2025.
Affirm (NASDAQ:AFRM) expects Q1 revenue of $855M-$885M vs. $858.4M consensus; and GMV of $10.1B-$10.4B vs. Visible Alpha estimate of $9.83B. Adjusted operating margin is expected to be 23%-25% vs. 27.0% in Q4 2025.
Q4 GAAP EPS of $0.20, topping the average analyst estimate of $0.11, climbed from $0.01 in Q3 and -$0.14 in last year’s Q4.
Total net revenue of $876.4M for the quarter ended June 30, 2025, beating the $837.1M consensus, increased from $783.1M in the prior quarter and $659.2M in the year-ago period.
GMV volume climbed to $10.4B from $8.6B in Q3 and $7.2B in last year’s Q4, exceeding the $9.64B Visible Alpha consensus. The Y/Y growth was driven by the strength with its largest merchant partners, 0% APR monthly installment loans, and the direct-to-consumer business, including Affirm Card.
Q4 Affirm (NASDAQ:AFRM) Card attach rate reached 10%. Card GMV more than doubled to $1.2B, and active cardholders jumped surged 97% to 2.3M, the company said.
The number of active consumers, excluding the discontinued Returnly business, rose 24% Y/Y to 23.0M at June 30, 2025.
Adjusted operating margin was 27.0% vs. 22.2% in the prior quarter and 22.7% a year ago.
Funding capacity grew to $26.1B at June, 30, 025, from $23.3B at March 31.
"In FY’25, we executed relentlessly on the three core ingredients of our strategy: grow reach by building out a first-class merchant network (377K active, +24% in FY’25), increase transaction frequency (+20% during the same period) through direct-to-consumer products, and maintain strong unit economics by prioritizing excellent credit performance (4.0% RLTC for FY’25)," said Affirm (NASDAQ:AFRM) Founder and CEO Max Levchin. "This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago."