Affirm Holdings Stock Soars on Surprise Profit as Customer Base Jumps

Published February 07, 2025

10:05 AM EST

Shares of Affirm Holdings (AFRM) soared 18% Friday, a day after the provider of buy now, pay later (BNPL) loans posted a surprise profit as the number of its customers soared.

The financial firm reported fiscal 2025 second-quarter earnings per share (EPS) of $0.23, while analysts surveyed by Visible Alpha were looking for a per-share loss of $0.10. Revenue jumped nearly 47% to $866.4 million, also better than forecasts.

Affirm’s active customer base increased 19% to 21.0 million, more than anticipated, and transactions per active customer were up more than 20% to 5.3. Gross merchandise volume, also known as gross merchandise value (GMV), grew 35% to $10.1 billion, beating forecasts. 

CEO Says Affirm ‘Delivered for Our Merchants’

Founder and CEO Max Levchin wrote to shareholders that Affirm had “another record-setting holiday shopping season as we once again delivered for our merchants, with several standout categories.” Levchin added that even though the company is five months away from its target date to have positive operating income, “we are nearly there today—mark it zero.” Actual operating loss in the period was $4.3 million, down from $172.2 million a year earlier.

Affirm Holdings shares traded at their highest level in three years. They have added about 60% of their value in the last year. 

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