Shares of Affirm Holdings (AFRM) soared 13.39% in the past 24 hours following the company's impressive fiscal second-quarter 2025 earnings report. The "buy now, pay later" lender handily beat Wall Street's expectations and provided an upbeat outlook, fueling investor optimism about its path to profitability.
For the quarter ended December 31, 2024, Affirm reported earnings of $0.23 per share, defying analyst estimates of a $0.16 loss. Revenue surged 46.6% year-over-year to $866.4 million, outpacing the consensus forecast of $807.2 million. The robust performance was driven by strong growth in key metrics like gross merchandise volume (GMV) and active consumers.
Affirm's GMV, which measures the total transactions on its platform, jumped 35% year-over-year to $10.1 billion, exceeding expectations of $9.64 billion. The company also reported having 21 million active consumers, a 23% increase from the prior year, with an average of 5.3 transactions per active user.
Looking ahead, Affirm provided upbeat guidance for fiscal 2025, projecting revenue between $3.13 billion and $3.19 billion, ahead of the $3.11 billion estimate. The company 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.
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