Affirm Shares Soar Following Record-Breaking Fourth Quarter Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy AFRM?
Source: Benzinga
Affirm Holdings' Record-Breaking Quarter
Earnings and Revenue: Affirm Holdings reported earnings of 20 cents per share, nearly double analysts' expectations. The company achieved a quarterly revenue of $876 million, marking a 33% year-over-year increase and also exceeding forecasts.
CEO's Remarks: CEO Max Levchin highlighted the company's exceptional performance during the earnings call, noting that they set new records across most metrics, which is atypical for Q4. He emphasized that their growth is accelerating and that they are operating at full capacity.
Customer Engagement and Credit Management
Repeat Customers: A significant factor in Affirm's success is the high rate of repeat customers, which constituted 95% of transactions in the fourth quarter. This strong customer loyalty allows Affirm to focus on effective consumer underwriting.
Credit Monitoring: Levchin stressed the importance of credit management, stating that the executive team receives regular updates on credit performance. He expressed confidence in U.S. consumers' resilience and spending power, indicating a strong ability to repay loans on time.
Future Expansion Plans
- Market Expansion: Affirm is actively expanding into new markets using a reusable technology platform and global partnerships. The company is piloting its Shopify model in the U.K. and anticipates further growth in Europe.
Stock Performance
- Stock Surge: Following the earnings report, Affirm's stock price rose by 13.01%, reaching $90.40 at the time of publication. This reflects strong investor confidence in the company's performance and future prospects.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 95.50 USD with a low forecast of 83.00 USD and a high forecast of 114.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 59.420
Low
83.00
Averages
95.50
High
114.00
Current: 59.420
Low
83.00
Averages
95.50
High
114.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Guidance Upgrade: Affirm raised its fiscal year 2026 revenue guidance to between $4.08 billion and $4.14 billion, reflecting confidence in future performance, which may enhance market sentiment towards its stock.
See More
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- Revenue Growth: The company achieved quarterly revenue of $1.12 billion, exceeding Wall Street's expectation of $1.06 billion, reflecting strong market demand that supports future business expansion.
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- No Hidden Fees: Affirm's financing options cover mobile phones, headphones, and gaming consoles, ensuring customers are not charged late or hidden fees when repaying their loans, which enhances payment transparency and builds trust with consumers.
- Market Expansion Potential: This partnership allows Virgin Media O2 to expand its offerings in the SIM-free market, adding to its existing portfolio of Pay Monthly Handset Bundles and SIM Only options, thereby increasing its competitive edge in the market.
- Future Development Plans: Flexible payment plans are expected to be available to Virgin Media O2 customers later this summer, pending regulatory approval, which will help improve payment convenience for customers and enhance the company's market influence.
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