Affirm Holdings, Inc. (AFRM) shares surged nearly 18% in premarket trading on Friday, following the company's impressive fiscal second-quarter 2025 results and robust guidance for the full year.

The "buy now, pay later" lender reported a surprise profit of $0.23 per share for the quarter ended December 31, 2024, defying analyst expectations of a $0.16 loss. Revenue surged 46.6% year-over-year to $866.38 million, outpacing the consensus forecast of $807.16 million.

Affirm's performance was underpinned by a significant increase in its 0% Annual Percentage Rate (APR) loan offerings, which have proven effective in boosting consumer engagement and driving merchant sales. CEO Max Levchin highlighted the company's "Affirm Network Syndication" strategy, seamlessly delivering these compelling financing offers across the Affirm app, card, and wallet integrations. Although 0% APR loans are slightly margin-dilutive, CFO Rob O'Hare noted their importance in driving customer adoption and long-term growth.

Furthermore, Affirm's international expansion gained traction in the second quarter, particularly in the UK market. The company announced Shopify as a significant enterprise partner to support its UK rollout, citing strong demand for longer-term financing options like 24-month installment loans. COO Michael Linford also emphasized Affirm's capital markets execution, including a substantial partnership with Sixth Street expected to ramp up in the second half of fiscal 2025.

Looking ahead, Affirm provided an upbeat outlook for fiscal 2025. The company projected revenue between $3.13 billion and $3.19 billion, above the $3.11 billion estimate. It also raised its fiscal 2025 GMV forecast to a range of $34.7 billion to $35.3 billion, up from its previous target of over $34 billion.