Affirm Holdings Surges 16% on Strong Q4 Earnings and Revenue Growth

Affirm Holdings, Inc. (AFRM) shares rallied sharply after delivering a robust fourth-quarter performance, with earnings and revenue surpassing analyst expectations. The buy-now-pay-later fintech reported earnings of $0.20 per share, nearly double consensus estimates, while revenue jumped 33% year-over-year to $876 million.

Gross merchandise volume surged 43% to $10.4 billion, reflecting strong consumer adoption of its payment solutions. Notably, the company swung to a net income of $69.2 million from a $45.1 million loss in the prior-year period, marking a significant milestone in its path to sustainable profitability.

Strategic partnerships with Amazon, Shopify, and Apple helped offset the loss of Walmart as a client, demonstrating the resilience of Affirm's business model. The results suggest the company is successfully navigating both competitive pressures and regulatory challenges in the BNPL sector.