What's Happening With AFRM Stock?

Core Insights - Affirm Holdings reported Q2 fiscal 2025 revenue of $866 million, exceeding market expectations of $807 million, and earnings per share of $0.23, compared to a projected loss of $0.15 [1][3] - The stock surged 22% following the earnings report, with a year-to-date return of 53%, outperforming the S&P 500's 26% increase [1][2] Financial Performance - Revenue growth of 47% year-over-year, driven by a 138% increase in gain on sale of loans, 33% rise in network revenue, 42% surge in interest income, and 28% increase in servicing income [2] - Gross merchandise volume (GMV) grew 35% year-over-year to $10.1 billion, indicating improved monetization [2] - Active consumers increased by 19% to 21 million, with a 22% rise in transactions per active user [2] Future Outlook - The company anticipates Q3 revenues around $770 million, aligning with consensus estimates [3] - Current stock trading at 8.5x trailing revenues, slightly below the 8.6x average P/S ratio over the past two years, suggesting potential for upward revision in valuation [6] - A projected price target of $84 implies a 12% upside from current levels based on a P/S ratio of 9.5x [6]