Affirm Holdings (NASDAQ:AFRM) just made a big splash with a 23% jump as of 1.01pm in its stock after reporting a surprise profit and smashing revenue expectations for the fiscal second quarter. The company posted earnings of $0.23 per share, completely flipping the analyst prediction of a $0.10 loss. Revenues surged 47% year-over-year, hitting $866.4 million, while its active customer base rose by 19%, reaching 21 million. But the real headline here is the gross merchandise volume (GMV) a huge 35% spike to $10.1 billion, surpassing even the most optimistic forecasts.
Max Levchin, Affirm's CEO, made it clear that the company's holiday season performance was a game-changer. The strong growth across categories like consumer electronics and general merchandise laid the groundwork for Affirm's continued climb. The company is also on track to hit positive operating income by the end of the fiscal fourth quarter, a critical milestone in its path to profitability. This marks a significant shift from a year ago when the company was operating at a much larger loss.
Investors are taking notice, with Affirm's stock reaching its highest point in three years. The company is on fire right now, and with over 70% stock increase over the last year, it's clear that Affirm is gaining momentum in the buy-now, pay-later space. As the company keeps ramping up user engagement and expanding its market share, it's looking like Affirm could be a stock to watch for the next big move.
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