Affirm Holdings Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.56%.
Did AFRM Beat Earnings? Q3 2025 Results
Affirm posted a mixed fiscal third quarter that told two very different stories depending on which line you looked at: revenue of $783.13 million edged past the $782.96 million consensus by just 0.02% and climbed 35.9% year-over-year, but earnings per share of $0.01 fell dramatically short of the $0.32 consensus estimate — a 96.83% miss — as the company's aggressive push into 0% APR installment products, which grew 44% and reached 13% of total GMV, temporarily compressed near-term profitability. Still, the headline that mattered most to bulls was the company's swing to GAAP net income of $2.80 million from a $133.90 million loss a year ago, alongside gross merchandise volume growth of 36% to $8.60 billion. <a href="https://247wallst.com/investing/2025/11/07/todays-market-moving-stocks-affirm-holdings-expedia-and-globus-medical/">Affirm shares were moving</a> on the results as management guided fiscal Q4 revenue to $815–$845 million with adjusted operating margin of 23–25%, and full-year GMV of $35.70–$36.00 billion, signaling continued confidence in the platform's growth trajectory despite macroeconomic uncertainty.
- GMV growth of 36% to $8.6 billion, accelerating to 40% in March
- 0% APR monthly installment GMV grew 44%, reaching 13% of total GMV
- Affirm Card GMV grew 115% to $807 million with ~2M active cardholders
- Direct-to-consumer GMV grew 50% to $2.4 billion
- Average funding costs declined approximately 50 basis points year-over-year to 7.1%
- Provision for credit losses improvement as percent of GMV drove approximately half of RLTC margin improvement
- Loans sold as a percent of GMV increased from 33% to 43% year-over-year
- Dollar-based net expansion rate above 115% with merchant renewal rates above 97%
- 1.8 million new-to-Affirm consumers added in the quarter
“Demand for Affirm remains excellent: year-over-year GMV growth accelerated for the third consecutive quarter, including a strong March, which continued into April. Credit outcomes are in-line with our predictions, and as always, we are watching attentively for any indicators of macroeconomic stress, and fine-tuning the settings of our models continuously.”
Affirm CEO, on the earnings call
Forward Guidance & Outlook
For FQ4 2025, Affirm guides GMV of $9.40-9.70 billion, revenue of $815-845 million, transaction costs of $430-445 million, RLTC of $385-400 million, operating margin of 1-3%, and adjusted operating margin of 23-25%. For full fiscal year 2025, the company expects GMV of $35.70-36.00 billion, revenue of $3,163-3,193 million, RLTC of $1,442-1,457 million, operating margin of (4.3)-(3.8)%, and adjusted operating margin of 23-23.6%. The outlook assumes 0% APR product mix will increase year-over-year, that FQ4 growth will moderate from April levels, and that new initiatives including Affirm Money Account, B2B product, and UK expansion will not materially contribute in FQ4. A recently-launched wallet partnership is also not expected to be material in FQ4.
AFRM YoY Financials
AFRM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.