Affirm Holdings (NASDAQ: AFRM) posted stronger-than-expected third-quarter results, but shares fell nearly 7% in pre-market trading as forward guidance missed analyst expectations.
The buy-now-pay-later firm posted adjusted earnings per share (EPS) of $0.01, beating the analysts’ expectation of a $0.01 loss. Revenue rose 21% year-over-year to $783.14 million, slightly ahead of the $781.74 million consensus estimate.
While the results showed continued growth momentum, investor sentiment turned cautious following the company’s outlook. Affirm guided for fourth-quarter revenue between $815 million and $845 million, with the midpoint falling short of the $841.6 million estimate. Full-year revenue was projected between $3.163 billion and $3.193 billion, compared to analysts’ expectations of $3.177 billion.
During the quarter, Affirm continued expanding its 0% APR monthly installment offering, which grew 44% compared to last year and made up 13% of total gross merchandise volume (GMV)—its highest share in two years. The company added 1.8 million new consumers, maintaining a 94% repeat usage rate.
The Affirm Card, a growing consumer payments product, delivered $807 million in GMV for the quarter, up 115% year-over-year from approximately 2 million active cardholders.
Despite strong user metrics and product adoption, the lower-than-expected revenue guidance overshadowed the earnings beat, prompting investor concerns about growth sustainability heading into fiscal year-end.
Following the earnings release, JMP Securities analyst David Scharf lowered his price target for Affirm stock from $85.00 to $75.00, maintaining a Market Outperform rating.
As of the latest update, Affirm Holdings (NASDAQ: AFRM) shares are down 6.75%, trading at $50.60.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
