Affirm Stock: Affirm Earnings, Revenue, Key Metrics Top Wall Street Targets

Consumer Finance Company Confirm Holding (AFRM) reported fiscal first-quarter earnings, revenue and key financial metrics that easily beat Wall Street targets amid strong new debit card growth. Confirm stocks popped up on the news.

The San Francisco-based company reported September quarter earnings after the market closed on Thursday. The company reports results using generally accepted accounting principles, or GAAP. In its confirmation earnings report, the company reported earnings of 23 cents per share versus a loss of 31 cents a year earlier, as adjusted operating margin expanded to 28.3%, up from 19%.

Analysts polled by FactSet had expected a profit of 11 cents.

Buy now, pay later

Affirm said revenue rose 34% to $933 million versus estimates of $883 million. The company said total merchandise volume rose 42% to $10.8 billion, with the new debit card contributing $1.4 billion of volume, versus estimates of $10.38 billion. Debit card revenue was $69.33 million, which was only in line with estimates.

“The strong first-quarter results were driven in part by increased adoption of the Affirm card, which now has 2.8 million users, about 11.6% of Affirm’s active consumers,” James Friedman, an analyst at Susquehanna, said in a report.

Meanwhile, total active customers on the company’s platform rose to 24.1 million from 23 million in the last quarter and 19.5 million in the same period last year.

Affirm is one of the largest companies that offer buy now, pay later installments. With BNPL options, consumers pay off their purchases in monthly installments, with either low interest or no interest at all.

On the stock market today, Affirm stock rose more than 10% to 72.60 in early trading. AFRM stock fell in the regular session on Thursday amid increasing layoff announcements and concerns about the US economy. Furthermore, AFRM stock is up 7% in 2025 ahead of its fiscal first-quarter earnings release. Concerns about deteriorating consumer credit have put pressure on fintech stocks.

Stock confirmation: in-line routing

For the fiscal second quarter, the company forecast revenue of $1.045 billion at the midpoint of guidance, roughly in line.

Affirm gets about a third of its revenue from interest income paid by consumers. But Affirm’s product mix has shifted to more BNPL plans without interest.

Instead, Affirm earns revenue from fees paid by merchants. Zero interest BNPL plans generally have lower margins than interest bearing products. But zero interest plans attract consumers with higher credit quality who typically purchase larger items in stores.

Apple partnership

Confirmation competes with Klarna (clar), Sizzle (sizzle), roadblock(XYZ) Postpaid and PayPal Holdings (Pebble).

while Walmart (WMT) has switched most of its BNPL payments to Klarna, and Affirm has several other partners, including Amazon.com (Amzn) and Shopify (place).

Analysts say new partnership with apple (AAPL) could be materialized in 2026 as well as new deals Wayfair (W) Sports Fanatics Company. In September, Affirm said its BNPL plans were available for in-store purchases at Apple Stores for iPhone users.

“We see plenty of room for Affirm to grow with its largest partners,” William Blair analyst Andrew Jeffrey said in a report. “We estimate it has a low share of wallet in Amazon and about 10% of Shop Pay attached. We are encouraged that the company has extended its relationship with Amazon by five years, highlighting what we view as strong co-economics.”

Inventory confirmation: technical evaluations

AFRM stock carries an IBD Composite Rating of 81, according to IBD Stock Screener.

The IBD Composite Classification combines five separate special classifications into one easy-to-use classification. The best growth stocks have a Composite Rating of 90 or better.

Furthermore, the proven stock has an Accumulation/Distribution Rating of B-minus. This classification analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates that more funds are buying than selling.

Follow Reinhart Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.

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