Affirm stock jumps 13% after Q4 earnings beat expectations, fueled by strong demand for buy now, pay later

Affirm stock today: Affirm’s stock rose more than 13% on Friday after the buy now, pay later company reported strong fiscal fourth-quarter results that beat Wall Street’s expectations and offered higher guidance for fiscal 2026, as per a report. The fintech firm’s stock had already climbed 31% this year, well ahead of the Nasdaq’s 12% gain, as per a CNBC report.

Affirm Beats Earnings and Revenue Estimates

The company earned 20 cents per share, which is nearly double of what analysts had forecasted, and posted revenue of $876 million, up 33% from the same period last year and above estimates, as per the report. Affirm also swung to a net income of $69.2 million for the quarter, a big improvement from a loss of $45.1 million last year, reported CNBC.

CEO Max Levchin Highlights Strong Consumer Demand

CEO Max Levchin spoke on an investor call on Thursday, highlighting the strength of consumer demand and momentum in the US market, according to the report. Levchin said, “We feel quite excellent about our ability to get paid back on time,” as quoted in the CNBC report.


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Partnerships with Shopify and Amazon Offset Walmart's Loss

There had been concerns that losing Walmart as a partner to rival Klarna might weigh on results, instead, Affirm’s key volume metric surged 44% from last year, beating expectations by nearly a billion dollars, helped by partnerships with Shopify and Amazon, according to the report.

Affirm Faces Competition but Deepens Retail Partnerships

Since going public in 2021, Affirm has faced growing competition from Klarna, which is gaining market share and preparing for its own IPO, as per the CNBC report. Meanwhile, Affirm continues to deepen ties with major retailers, like it signed a deal with Apple last year, according to the report.

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Affirm Benefits from Strong Consumer Spending and Economic Growth

The company’s business is closely tied to consumer spending, and its online loans are the most popular among sellers of electronics, apparel and travel, reported CNBC.

After a first-quarter dip tied to import surges ahead of tariffs, the US economy grew 3.3% in the second quarter, stronger than initially estimated, as consumers and businesses kept up their spending despite tariff uncertainties, as reported by CNBC.

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Affirm Card Fuels Significant Growth at Checkout

One of Affirm’s biggest growth drivers is the Affirm Card, its major push to increase usage at the point of sale, according to the report. Card gross merchandise volume increased 132% to $1.2 billion, active cardholders almost doubled to 2.3 million, and in-store spending rose 187%, as per the CNBC report. Even the zero-percent APR loans also more than tripled, now making up about 14% of card volume, according to the report.

Artificial Intelligence Boosts Merchant Volume

Levchin also pointed to artificial intelligence as a potential for further growth, saying that early use of Affirm’s AdaptAI system has already boosted merchant volume by an average of 5%, highlighting the company’s long-standing use of machine learning to power credit scoring and checkout optimisation, as per CNBC.

FAQs

What is Affirm?
Affirm is a buy now, pay later company that helps consumers finance their purchases.

How did Affirm perform in its latest quarter?
It beat expectations with strong earnings and revenue growth.