For the quarter ended December 2024, Affirm Holdings (AFRM) reported revenue of $866.38 million, up 46.6% over the same period last year. EPS came in at $0.23, compared to $0.04 in the year-ago quarter.The reported revenue represents a surprise of +7.74% over the Zacks Consensus Estimate of $804.18 million. With the consensus EPS estimate being -$0.20, the EPS surprise was +215.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Affirm Holdings (AFRM) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of a loss of $0.20 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 215%. A quarter ago, it was expected that this operator of digital commerce platform would post a loss of $0.36 per share when it actually produced a loss of $0.31, delivering a surprise of 13.89%.Over th ...

Financial Performance - Total revenue for the three months ended December 31, 2024, was $866.4 million, a 47% increase from $591.1 million in the same period of 2023[221]. - Operating loss decreased to $4.3 million for the three months ended December 31, 2024, compared to a loss of $172.2 million in the same period of 2023, representing a 97% improvement[221]. - Net income for the three months ended December 31, 2024, was $80.4 million, a significant turnaround from a net loss of $166.9 million in the same period of 2023[221]. - Merchant network revenue for the three months ended December 31, 2024, was $244.9 million, a 30% increase from $188.4 million in the same period of 2023[253]. - Interest income for the three months ended December 31, 2024, was $409.4 million, a 42% increase from $288.3 million in the same period of 2023[253]. - The company reported a net income of $80.4 million for the three months ended December 31, 2024, compared to a net loss of $166.9 million in the same period of 2023[253]. - Merchant network revenue increased by $56.5 million, or 30%, and $94.9 million, or 28%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. - GMV increased by $2.7 billion, or 35%, and $4.6 billion, or 35%, for the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023[256]. Consumer Metrics - As of December 31, 2024, the company had approximately 21.0 million active consumers, a 19% increase from approximately 17.6 million active consumers as of December 31, 2023[249]. - The average number of transactions per active consumer increased by 22% to approximately 5.3 transactions as of December 31, 2024, compared to 4.4 transactions as of December 31, 2023[251]. - Active merchant base grew to approximately 337 thousand and active consumers reached 21.0 million as of December 31, 2024, up from approximately 279 thousand and 17.6 million, respectively, as of December 31, 2023[256]. Loan and Credit Metrics - For the three months ended December 31, 2024, interest-bearing loans represented 72% of total GMV facilitated through the platform, compared to 73% in the same period of 2023[223]. - The company directly originated approximately $1.7 billion in loans for the three months ended December 31, 2024, maintaining a consistent 17% of total loans originated compared to the same period in 2023[227]. - The volume of loan modifications during the fiscal quarter ended December 31, 2024, represented 0.15% of the outstanding principal balance of loans held on the balance sheet[239]. - Credit risk exposure related to loans held on the balance sheet was $6.8 billion as of December 31, 2024, compared to $5.7 billion as of June 30, 2024[324]. - The company sold $6.8 billion of unpaid principal balance of loans subject to risk sharing arrangements as of December 31, 2024, with a maximum exposure to losses of $85.1 million[324]. Economic and Market Conditions - The macroeconomic environment, including inflation and interest rate changes, continues to impact consumer spending and business operations[236]. - Seasonal fluctuations in GMV are expected, with the strongest performance typically during the fiscal second quarter due to holiday retail commerce[235]. - Continued volatility in interest rates may adversely impact consumer spending levels and willingness to pay outstanding amounts owed[319]. Technology and Competitive Advantage - The company’s proprietary technology platform and data analytics are key competitive advantages, enhancing risk pricing and consumer value[219]. - The company’s innovative approach and focus on technology position it to define the future of commerce and payments[218]. Financial Position and Cash Flow - As of December 31, 2024, the company had $1.9 billion in cash and cash equivalents and available for sale securities, $3.6 billion in available funding debt capacity, and $330.0 million in borrowing capacity under the revolving credit facility[286]. - Net cash provided by operating activities was $508.9 million for the six months ended December 31, 2024, compared to $173.2 million for the same period in 2023[300][304]. - Net cash used in investing activities was $664.1 million for the six months ended December 31, 2024, with outflows related to $15.1 billion of purchases and origination of loans held for investment[305]. - Net cash provided by financing activities was $609.7 million for the six months ended December 31, 2024, primarily from net cash inflows of $750.0 million from new issuance and repayment of notes[307]. Risk Management and Internal Controls - The company maintains an interest rate risk management program to mitigate potential volatility of earnings from changes in interest rates[321]. - The company utilizes proprietary underwriting models to manage credit risk associated with consumer loans[322]. - The company intends to continue monitoring and upgrading internal controls as necessary, acknowledging inherent limitations in their effectiveness[329]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended December 31, 2024[328]. - The company’s management evaluated the effectiveness of disclosure controls and concluded they were effective as of the end of the reporting period[327].

Core Viewpoint - Affirm's shares rose over 10% after reporting better-than-expected fiscal second-quarter results, highlighting strong growth in key metrics such as gross merchandise volume (GMV) and revenue [1] Group 1: Financial Performance - Affirm reported a gross merchandise volume (GMV) of $10.1 billion, exceeding the average estimate of $9.64 billion and marking the first time GMV surpassed $10 billion, representing a 35% increase year-over-year [2] - Revenue for the quarter increased by 47% to $866 million, compared to $591 million a year ago, indicating strong unit economics as revenue growth outpaced GMV growth [2][6] - Revenue less transaction costs (RLTC) surged 73% to $419 million, with an RLTC margin of 4.1%, surpassing the long-term target range of 3% to 4% [3] Group 2: Future Outlook - The company anticipates revenue for the current quarter to be between $755 million and $785 million, with a midpoint estimate of $770 million, slightly below the average estimate of $772 million [3] - Affirm aims to achieve profitability on a GAAP basis by the end of its fiscal fourth quarter of 2025 [3] Group 3: User Growth and Partnerships - Affirm has 21 million active consumers, reflecting a 23% year-over-year increase, and the Affirm Card has 1.7 million active users, up over 136% from the previous year [4] - Partnerships with major companies like Apple, Amazon, and Shopify are contributing positively to Affirm's results, with a notable collaboration allowing U.S. Apple Pay users to apply for loans directly through Affirm [5]

affirm) Second Fiscal Quarter 2025 Shareholder Letter a · 1234 (0) Pay over time Pay in full a Purchasing power ( $1,200 Plan a purchase Exciting 0% APR deals for the golfer in your life > Fellow Affirm Shareholders, We exceeded the outlook established in our previous letter on all financial metrics in FQ2'25: Gross Merchandise Volume Revenue Less Transaction Revenue ("GMV") Costs ("RLTC")1 Adjusted Operating Income® Operating Income Net Income As a percentage of Revenue As a percentage of Revenue +12 pp $2 ...

Leading buy now, pay later (BNPL) solution provider Affirm Holdings, Inc. (AFRM) is set to report its second-quarter fiscal 2025 results on Feb. 6, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is currently pegged at a loss of 21 cents per shareon revenues of $803.48 million.See the Zacks Earnings Calendar to stay ahead of market-making news.The fiscal second-quarter earnings estimate has deteriorated over the past month. The bottom-line projection i ...

The market expects Affirm Holdings (AFRM) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rel ...

Payment network Affirm Holdings said in a Friday (Jan. 24) press release that its newly expanded capital partnership with Liberty Mutual Investments (LMI) will increase consumers’ access to Affirm’s flexible payment options.The companies began their long-term capital partnership in 2019, added a forward flow loan purchase program in 2023 and upsized that program so that through June 2027, LMI will purchase Affirm’s installment loans on a forward flow basis, in amounts up to $750 million outstanding, they sa ...

Company Overview - Affirm Holdings (AFRM) closed at $56.76, reflecting a +0.57% change from the previous day, outperforming the S&P 500's gain of 0.53% [1] - The stock has experienced a decline of 14.36% over the past month, underperforming the Business Services sector's gain of 1.06% and the S&P 500's gain of 2.69% [1] Upcoming Financial Results - Affirm Holdings is set to announce its earnings on February 6, 2025, with an expected EPS of -$0.21, representing a 625% decrease from the same quarter last year [2] - The consensus estimate for revenue is $803.48 million, indicating a 35.93% increase compared to the previous year [2] Annual Forecast - For the entire year, Zacks Consensus Estimates project an EPS of -$0.62 and revenue of $3.11 billion, reflecting changes of +62.87% and +33.73% respectively from the previous year [3] - Recent changes to analyst estimates for Affirm Holdings are noted, with positive revisions indicating analyst optimism about the company's business and profitability [3] Analyst Ratings and Market Trends - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Over the past month, the Zacks Consensus EPS estimate for Affirm Holdings has decreased by 15.81%, and the company currently holds a Zacks Rank of 3 (Hold) [5] Industry Context - Affirm Holdings operates within the Financial Transaction Services industry, which is part of the Business Services sector and currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The Zacks Industry Rank measures the strength of individual industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Affirm Holdings, Inc. (AFRM) , a leading Buy Now, Pay Later (BNPL) provider, has proven its ability to grow rapidly in North America. Building on this success, it entered the U.K. market last November, aiming to use the region as a launchpad for further European expansion. Despite its smaller population, the U.K.’s strong demand for BNPL services makes it an attractive opportunity.However, Affirm faces significant challenges. The U.K. BNPL market is highly competitive, with established players like Klarna, ...