Affirm (AFRM) Q4 2025 earnings report

Affirm, a provider of buy now, pay later loans, saw its shares surge by 15% in after-hours trading on Thursday following the release of its fiscal fourth-quarter earnings report. The company exceeded expectations with earnings per share of 20 cents, compared to the estimated 11 cents, and revenue of $876 million, surpassing the expected $837 million.

In the fourth quarter, Affirm experienced a 33% increase in revenue, reaching $659 million compared to the same period the previous year. Additionally, gross merchandise volume rose by 43% to $10.4 billion from $7.2 billion a year ago. The company reported a net income of $69.2 million, or 20 cents per share, a significant improvement from the $45.1 million loss, or 14 cents per share, in the previous year.

Affirm stated in its shareholder letter that its consistent execution led to achieving operating income profitability in FQ4’25, meeting the commitment made a year ago. For the upcoming first quarter, the company forecasts revenue between $855 million and $885 million, with gross merchandise volume ranging from $10.1 billion to $10.4 billion.

Before the after-hours surge, Affirm’s shares had already increased by 31% this year, outperforming the Nasdaq’s 12% gain. Despite its success, the company faces stiff competition in the e-commerce sector. While it has partnerships with Amazon and Shopify, Walmart recently switched to competitor Klarna, which is expected to go public soon. Affirm also secured a deal with Apple last year.

The positive financial results and growth prospects have positioned Affirm as a strong player in the buy now, pay later market. Investors and analysts are closely watching the company’s performance as it navigates the competitive landscape and continues to expand its partnerships and offerings.