Affirm (NASDAQ:AFRM) Posts Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• Q3 EPS beat but revenue missed: Affirm reported $0.30 EPS versus a $0.17 consensus (beat by $0.13) while revenue came in at $943.95M vs. ~$995M, and management raised FY2026 revenue guidance to about $4.2B.
• Funding and credit conditions improved: Funding markets tightened (oversubscribed ABS/forward‑flow deals) lowering funding costs roughly 125 bps year‑over‑year, and consumer credit metrics remain stable with no deterioration in delinquencies.
• Scale driving better unit economics: GMV growth accelerated alongside a 44% increase in active merchants and 4.4M cardholders, and the company posted improved profitability (net margin ~7.6%, ROE ~8.8%) despite faster growth in lower‑margin 0% Pay‑in‑X volume.

Affirm (NASDAQ:AFRM - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.13, FiscalAI reports. The company had revenue of $943.95 million for the quarter, compared to the consensus estimate of $995.26 million. Affirm had a net margin of 7.60% and a return on equity of 8.83%. The firm's revenue was up 32.7% compared to the same quarter last year. During the same period last year, the company earned $0.01 earnings per share.

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

AFRM traded up $1.78 during trading on Thursday, hitting $67.36. 7,349,648 shares of the stock traded hands, compared to its average volume of 5,027,264. The company has a debt-to-equity ratio of 2.58, a current ratio of 11.41 and a quick ratio of 11.41. The company has a market cap of $22.44 billion, a price-to-earnings ratio of 83.16, a PEG ratio of 4.58 and a beta of 3.72. Affirm has a twelve month low of $42.10 and a twelve month high of $100.00. The business has a 50 day moving average price of $52.66 and a 200 day moving average price of $63.16.

Insider Buying and Selling

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 stock was sold at an average price of $55.00, for a total transaction of $110,000.00. Following the completion of the transaction, the director owned 38,076 shares of the company's stock, valued at approximately $2,094,180. The trade was a 4.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 11.01% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Greenline Wealth Management LLC acquired a new position in Affirm during the fourth quarter worth about $26,000. Triumph Capital Management acquired a new position in shares of Affirm in the third quarter valued at approximately $31,000. Strive Financial Group LLC acquired a new position in shares of Affirm in the fourth quarter valued at approximately $33,000. Larson Financial Group LLC increased its position in Affirm by 74.5% in the 3rd quarter. Larson Financial Group LLC now owns 499 shares of the company's stock valued at $36,000 after acquiring an additional 213 shares during the period. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its position in Affirm by 200.0% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 600 shares of the company's stock valued at $45,000 after acquiring an additional 400 shares during the period. Institutional investors and hedge funds own 69.29% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Cantor Fitzgerald lifted their price objective on shares of Affirm from $61.00 to $80.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 21st. Morgan Stanley reaffirmed an "overweight" rating on shares of Affirm in a research report on Wednesday, March 4th. TD Cowen reaffirmed a "buy" rating on shares of Affirm in a research report on Friday, February 6th. Zacks Research cut shares of Affirm from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Affirm from $94.00 to $79.00 and set an "overweight" rating for the company in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $83.76.

Trending Headlines about Affirm

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.

About Affirm

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.

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