By Emily Dattilo

Shares of Affirm were rising sharply after the "buy now, pay later" company easily beat quarterly estimates.

Affirm stock gained 11% to $68.47 in after-hours trading Thursday. Over the last 12 months, shares have increased 25%.

For its second fiscal quarter, the company reported earnings of 23 cents a share, beating Wall Street's call for a loss of 16 cents, according to FactSet. Revenue of $866 million was above the consensus estimate for $807 million. In the quarter a year ago, Affirm reported a loss of 54 cents per share and revenue of $591 million.

Gross merchandise volume -- which measures transactions on Affirm's platform -- was $10.1 billion, higher than analysts' forecast of $9.64 billion. A year ago, gross merchandise volume was $7.5 billion.

"We are five months away from our chosen target date to turn Affirm Operating Income positive, but it should be apparent to a casual observer that we are nearly there today -- mark it zero," CEO Max Levchin said in a letter to shareholders.

The company reported an operating loss of $4.3 million compared with a $172 million loss in the year-ago quarter.

Affirm offered guidance for its fiscal third and fourth quarters, as well as its fiscal year. For fiscal 2025, it now anticipates gross merchandise volume between $34.74 billion and $35.34 billion, while analysts had penciled in $34.95 billion.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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February 06, 2025 16:57 ET (21:57 GMT)

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