Affirm shares pop more than 10% on revenue beat

Affirm shares pop more than 10% on revenue beat


Affirm shares spike on revenue beat

Affirm shares jumped more than 10% in extended trading on Thursday after the provider of buy now, pay later loans, reported better-than-expected fiscal second-quarter results.

Here is how the company did, compared to analysts’ consensus estimates from LSEG.

  • Earnings per share: 23 cents adjusted. That’s not comparable to an expected loss of 15 cents.
  • Revenue: $866 million vs. $807 million expected

Affirm reported gross merchandise volume, or GMV, of $10.1 billion, topping the average estimate of $9.64 billion, according to StreetAccount and surpassing $10 billion for the first time. GMV, a key metric that helps gauge the total value of transactions, increased 35% from a year earlier.

Revenue in the quarter rose 47% from $591 million a year ago. When revenue grows at a faster rate than GMV, it typically signals strong unit economics.

Revenue less transaction costs, or RLTC, jumped 73% to $419 million. The RLTC margin of 4.1% came in ahead of the long-term range of 3% to 4%.

The company expects revenue this quarter of between $755 million and $785 million, or $770 million in the middle of the range, versus the average estimate of $772 million, according to LSEG.

Affirm said it remains committed to achieving profitability on a GAAP basis exiting its fiscal fourth quarter of 2025.

The company has 21 million active consumers, up 23% year-over-year, and its Affirm Card, which is the company’s big bet for driving greater usage overall, has 1.7 million active users, up more than 136% from the year-ago quarter. Card volume has more than doubled.

The company’s new relationship with Apple plus other partnerships with Amazon and Shopify are boosting results. In June, Affirm and Apple announced plans for U.S. Apple Pay users on iPhones and iPads to be able to apply for loans directly through Affirm.

Affirm’s quarterly earnings call starts at 5:00 p.m. ET.

CNBC’s Robert Hum contributed to this report.

Don’t miss these insights from CNBC PRO

Affirm CEO on consumer behavior: 'shopping is back on and people are buying'



Source

Robinhood gives out tokens of OpenAI and SpaceX in Europe. Stock hits record
Technology

Robinhood gives out tokens of OpenAI and SpaceX in Europe. Stock hits record

CANNES — Robinhood stock climbed 10% to an all-time high Monday after the company rolled out tokenized shares of OpenAI and SpaceX to users in Europe as part of a larger crypto rollout. It is the company’s first move to make private equity accessible via blockchain. The announcement, which came Monday during the company’s product showcase […]

Read More
Robinhood expands its global push, minutes from crypto chief’s old cramped apartment in Cannes
Technology

Robinhood expands its global push, minutes from crypto chief’s old cramped apartment in Cannes

CANNES — Fifteen years after flipping burgers at a McDonald‘s and teaching himself to code at night in a cramped apartment near the French Riviera, Robinhood crypto chief Johann Kerbrat is back. The last time he lived around Cannes, he was 21 — with no connections, no funding, and no formal business training. But he […]

Read More
Oracle stock jumps after  billion annual cloud deal revealed in filing
Technology

Oracle stock jumps after $30 billion annual cloud deal revealed in filing

Oracle CEO Safra Catz speaks at the FII PRIORITY Summit in Miami Beach, Florida, on Feb. 20, 2025. Joe Raedle | Getty Images Oracle shares jumped more than 5% to an all-time high after a recent filing showed a cloud deal that would add more than $30 billion annually. CEO Safra Catz is expected to […]

Read More