Affirm Stock Pops After Fintech Posts Earnings. What’s Behind the Gains.

Affirm Holdings posted earnings of 23 cents a share in the fiscal first quarter, up from a loss of 31 cents in the prior year. (Gabby Jones/Bloomberg)

Key Points

• Affirm Holdings reports fiscal first-quarter earnings of 23 cents a share, exceeding analysts’ forecasts.
• First-quarter revenue for Affirm Holdings reaches $933.3 million, surpassing expectations of $883.2 million.
• The company increases its fiscal 2026 outlook, projecting gross merchandise volume over $47.5 billion and an adjusted operating margin exceeding 27.1%.

Affirm Holdings logged a strong fiscal first quarter, sending shares up sharply on Friday.

The fintech posted earnings of 23 cents a share, above the 11 cents analysts had forecast, according to FactSet. Affirm reported a year-earlier loss of 31 cents. Revenue climbed to $933.3 million in the first quarter, handily beating the $883.2 million Wall Street was anticipating.

The company raised its fiscal 2026 outlook for gross merchandise volume and operating margin, saying it expects GMV of more than $47.5 billion, up from more than $46 billion. Affirm also guided for an adjusted operating margin of more than 27.1% versus more than 26.1% previously.

Citi Research analysts touted the “all-around beat” in a note Friday, highlighting the company’s “strong profitability” and GMV growth, up 42% from last year.

Driving Affirm’s outperformance in the quarter were its 0% APR product, Affirm-branded debit card, and expanding partnerships with payment service providers, Citi said.

Shares of the buy now, pay later lender climbed 5.1% following the report. Fintech peers Block and PayPal Holdings were down 9.8% and 1.6%, respectively, while fellow BNPL provider Klarna Group was up 1.5%. Block reported third-quarter earnings on Thursday, missing forecasts.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com