Affirm Holdings surged over 13% in premarket trading on Friday after the buy now, pay later provider posted stronger-than-expected quarterly results and raised its full-year revenue outlook.
The company reported fiscal second-quarter revenue of $866 million, a 47% increase from a year earlier, exceeding Wall Street’s estimate of $807 million.
Gross merchandise volume (GMV), a key industry metric, rose 35% to $10.1 billion, beating the expected $9.57 billion.
Affirm also swung to a net profit, posting $80.4 million, or $0.23 per share, compared with a net loss of $166.9 million, or $0.54 per share, a year ago. Analysts had forecast a loss of $0.15 per share.
"Affirm is in the strongest shape it's ever been," CEO Max Levchin said in a statement. "Challenges met, competitors bested: excellent growth in a rapidly-expanding segment, on-target unit economics, robust operating leverage."
The company now expects fiscal 2025 revenue between $3.13 billion and $3.19 billion, above analysts’ consensus of $3.09 billion. For the current quarter, Affirm projects GMV between $8 billion and $8.3 billion, with revenue in the range of $755 million to $785 million.
Affirm also said it expects to achieve GAAP operating income profitability by the fourth quarter of fiscal 2025.