Affirm Holdings stock jumps after Q4 earnings beat; sees GAAP profit in Q4 2025

Affirm Holdings (NASDAQ:AFRM) stock surged 14% in Wednesday after-hours trading after its fiscal Q4 earnings and revenue topped Wall Street expectations and said it expects to become operating income profitable by the end of its next fiscal year.

The company, known for its “Buy Now, Pay Later” financing expects fiscal Q1 gross merchandise volume to reach $7.1B-$7.4B, vs. the Visible Alpha estimate of C$7.00B; Q4 revenue of $640M-$670M vs the $625.0M consensus; and adjusted operating margin of 14%-16% vs. 22.7% reporting in fiscal Q4.

It also said it expects to achieve operating income profitability on a GAAP basis in Q4 of fiscal 2025.

For FY 2025, Affirm (AFRM) guided to GMV exceeding $33.5B, more than the $32.3B Visible Alpha estimate; adjusted operating margin of more than 18.4%; and revenue as a percentage of GMV of at least 10 basis points higher than FY2024.

Fiscal Q4 GAAP EPS of -$0.14, exceeding the consensus estimate of -$0.47, improved from -$0.43 in the previous quarter and -$0.69 in the year-ago period.

Total revenue of $659.2M for the quarter ended June 30, 2024, beat the average analyst estimate of $605.4M and increased from $576.2M in Q3 and $445.8M in last year’s Q4.

GMV of $7.2B, topping the Visible Alpha estimate of $6.9B, climbed from $6.3B in the prior quarter.

Affirm’s (AFRM) number of active consumers rose to 18.6M at June 30, 2024, from 18.1M at March 31 and 15.6M at June 30, 2023.

Operating expenses increased to $732.6M from $576.2M in the prior quarter and $687.7M a year ago.

Adjusted operating margin of 22.7% increased from 3.3% in the year-ago quarter.

Funding capacity climbed to $16.1B at the end of Q4, up from $15.6B at the end of Q3, the sixth straight quarter that funding capacity increased.

Conference call at 5:00 PM ET.