Affirm (NASDAQ:AFRM) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Affirm (NASDAQ:AFRM) issued its earnings results on Thursday. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.09, FiscalAI reports. The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.06 billion. Affirm had a return on equity of 7.75% and a net margin of 6.74%.The business’s quarterly revenue was up 29.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.23 earnings per share.

Here are the key takeaways from Affirm’s conference call:

• Despite a large merchant transition, Affirm reported strong results with GMV up 36% YoY and a widening merchant base — the “other” category is now ~15% of GMV and growing at triple‑digit rates, reflecting diversification.
• The Affirm Card is scaling rapidly (GMV +160% YoY; active cardholders +121%; 0% deals on card +190%), becoming a material growth engine and driving higher engagement.
• Capital markets execution improved materially — a recent ABS priced with spread <100bps and weighted average yield <4.6% — and management expects RLTC take rates around +4% in H2, citing funding cost tailwinds.
• New product and distribution initiatives (early rollouts of Boost AI, Intuit/Fiserv partnerships, Shopify/wallet deals) are positioned to monetize merchant promotions and expand reach across long‑tail merchants.
• Affirm has applied for an industrial bank charter to gain regulatory certainty, but approval is multi‑year and uncertain; the company is closely monitoring the regulatory environment with no immediate BNPL rate caps reported.

Affirm Trading Down 4.4%

Shares of NASDAQ:AFRM opened at $59.42 on Friday. Affirm has a 12-month low of $30.90 and a 12-month high of $100.00. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. The stock has a market cap of $19.61 billion, a PE ratio of 88.69, a P/E/G ratio of 2.76 and a beta of 3.56. The business has a 50 day moving average of $71.81 and a 200-day moving average of $74.24.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AFRM. Morgan Stanley upgraded shares of Affirm from an “equal weight” rating to an “overweight” rating and dropped their price target for the stock from $83.00 to $76.00 in a research note on Tuesday. The Goldman Sachs Group dropped their price target on Affirm from $105.00 to $94.00 and set a “buy” rating on the stock in a research report on Monday, October 13th. Wells Fargo & Company initiated coverage on shares of Affirm in a research note on Tuesday, October 21st. They set an “overweight” rating and a $89.00 price target on the stock. Truist Financial lowered their target price on shares of Affirm from $90.00 to $85.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. Finally, Needham & Company LLC upgraded shares of Affirm from a “hold” rating to a “buy” rating and set a $100.00 price objective for the company in a research report on Tuesday, January 27th. Three analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Affirm presently has a consensus rating of “Moderate Buy” and a consensus target price of $89.16.

Insider Buying and Selling

In related news, CFO Robert O’hare sold 36,401 shares of the company’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $80.00, for a total transaction of $2,912,080.00. Following the completion of the sale, the chief financial officer directly owned 1,368 shares in the company, valued at $109,440. This represents a 96.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Max R. Levchin sold 666,666 shares of the company’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. The SEC filing for this sale provides additional information. Insiders sold 711,256 shares of company stock worth $57,231,923 over the last three months. 11.01% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AFRM. Durable Capital Partners LP grew its stake in Affirm by 12.3% during the second quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock valued at $510,899,000 after acquiring an additional 808,455 shares in the last quarter. State Street Corp grew its holdings in Affirm by 26.7% during the 3rd quarter. State Street Corp now owns 5,641,965 shares of the company’s stock valued at $412,315,000 after purchasing an additional 1,187,665 shares during the last quarter. Invesco Ltd. boosted its holdings in Affirm by 294.2% during the 3rd quarter. Invesco Ltd. now owns 4,333,691 shares of the company’s stock valued at $316,706,000 after acquiring an additional 3,234,260 shares during the period. Qube Research & Technologies Ltd lifted its holdings in Affirm by 68.9% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,146,092 shares of the company’s stock valued at $156,836,000 after buying an additional 875,813 shares in the last quarter. Finally, Atreides Management LP increased its holdings in Affirm by 543.3% during the 2nd quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock worth $136,751,000 after purchasing an additional 1,670,429 shares during the period. 69.29% of the stock is currently owned by hedge funds and other institutional investors.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 beat and strong volume: Affirm posted $0.37 EPS vs. $0.28 est. and revenue of $1.12B (up ~30% YoY); gross merchandise volume rose ~36% to $13.8B, showing accelerating merchant adoption and revenue leverage. Affirm reports second fiscal quarter 2026 results
• Positive Sentiment: Partnerships broaden customer reach: Affirm announced a deal with Virgin Media O2 to offer hardware financing to UK customers, supporting international growth of its payments footprint. Affirm and Virgin Media O2 partner to bring flexible financing to O2 customers
• Positive Sentiment: Analyst upgrade: Morgan Stanley raised Affirm to Overweight, reflecting improving fundamentals and investor confidence from some sell‑side shops. Affirm (NASDAQ:AFRM) Raised to Overweight at Morgan Stanley
• Neutral Sentiment: Guidance largely in-line: Management updated FY and Q3 revenue ranges around ~$4.1B (FY) and ~$970M–$1.0B (Q3), roughly consistent with consensus — supportive but not dramatically bullish. Affirm Holdings Q2 earnings beat, full-year guidance lifted, Q3 outlook in line
• Negative Sentiment: Widening credit losses: Despite the beat, credit losses/provisions expanded this quarter — a key margin and capital-risk signal that triggered investor caution. Affirm shares fall as credit losses widen despite earnings beat
• Negative Sentiment: Valuation and technicals weigh on sentiment: Analysts note mixed signals on valuation and momentum; the stock is trading below its 50‑ and 200‑day moving averages with a high beta and elevated P/E, increasing sensitivity to any negative headlines. Affirm Partnerships Broaden Reach While Valuation And Momentum Send Mixed Signals

Affirm Company Profile

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.