Core Insights - Affirm's revenue forecast for the current quarter is below analysts' estimates, leading to a 10% drop in stock price during extended trading [1] - The company reported a gross merchandise volume (GMV) of $8.6 billion, exceeding the average estimate of $8.2 billion, with a year-over-year increase of 36% [1] - Revenue for the quarter rose 36% to $783 million compared to $576 million a year ago, with net income of $2.8 million, a significant improvement from a loss of $133.9 million a year earlier [2][5] Financial Performance - The revenue less transaction costs (RLTC) margin was reported at 4.1%, slightly above the long-term target range of 3% to 4% [2] - Adjusted operating margin was 22%, surpassing the estimate of 21.6% [2] - Earnings per share were reported at 1 cent, compared to an expected loss of 3 cents [5] Future Guidance - For the current quarter, Affirm is guiding for revenue between $815 million and $845 million, with a midpoint of $830 million, which is below the average estimate of $841 million [3] Market Context - Affirm's business is closely linked to consumer spending, particularly in sectors like electronics, apparel, and travel [4] - The U.S. economy experienced contraction in early 2025, influenced by an import surge as companies and consumers anticipated tariffs [4]
Affirm drops 10% on weaker-than-expected guidance for current quarter