Affirm's stock soars 15% on earnings, revenue beat

Affirm's shares experienced a remarkable 15% increase in after-hours trading on Thursday, driven by impressive earnings and revenue results that surpassed expectations for the fiscal fourth quarter. The company reported a 33% rise in revenue, climbing to $659 million compared to the same period last year. Additionally, gross merchandise volume saw a significant 43% increase, reaching $10.4 billion, up from $7.2 billion. Affirm's net income for the quarter stood at $69.2 million, translating to 20 cents per share. This is a notable turnaround from the previous year's loss of $45.1 million or 14 cents per share. In a letter to shareholders, the company highlighted, "This consistent execution led Affirm to achieve operating income profitability in FQ4'25 – right on the schedule we committed to a year ago." Looking ahead, Affirm anticipates first-quarter revenue to fall between $855 million and $885 million, with projected gross merchandise volume between $10.1 billion and $10.4 billion. Before this latest surge, Affirm's shares had already climbed 31% this year, surpassing the Nasdaq's 12% gain. Since its public debut in 2021, Affirm has faced increasing competition in the e-commerce sector. While it maintains partnerships with major players like Amazon and Shopify, it is contending with challenges, particularly after Walmart's recent switch to competitor Klarna, which is expected to go public soon. Last year, Affirm also forged a significant partnership with Apple.