Consumer financing firm Affirm Holdings (AFRM) on Thursday reported a smaller-than-expected loss in its fiscal first quarter while key financial metrics topped Wall Street targets. Affirm stock fell as guidance came in slightly above views ahead of the holiday shopping season.
The San Francisco-based company reported September-quarter earnings after the market close. The company reports results using generally accepted accounting principles, or GAAP.
In the Affirm earnings report, the company reported a loss of 31 cents per share. That compared with a 57-cent per-share loss in the year-earlier period. Analysts polled by FactSet had projected a loss of 32 cents per share.
↑
X
How To Buy Stocks: IBD’s Four Pillars Of Investing
Affirm said revenue climbed 41% to $698 million vs. estimates of $664 million. The company said gross merchandise volume rose 35% to $7.6 billion vs. estimates at $7.3 billion.
On the stock market today, Affirm stock traded flat, last down a fraction in extended trading.
Buy Now, Pay Later Leader
Affirm is one of the biggest providers of buy now, pay later installment payment services. With BNPL options, consumers pay off purchases in monthly installments, either with low interest or none at all. Also, Affirm is expanding into other financial services.
For the second quarter of fiscal 2025, which starts with the current December-ending quarter, Affirm said it expects revenue of $790 million at the midpoint of its outlook, slightly above views. Analysts had predicted fiscal Q2 revenue of $785 million.
The company forecast fiscal Q2 gross merchandise volume of $9.55 billion versus estimates of $9.48 billion amid the holiday shopping season.
Affirm Stock: Technical Ratings
AFRM stock was roughly even in 2024 before the release of fiscal Q4 earnings.
Affirm gets most of its revenue from transaction fees paid by online retailers. In addition, Affirm gets about one-third of its revenue from interest income paid by consumers.
Heading into the Affirm earnings report, the stock had a Relative Strength Rating of 96 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Learn The Best Trading Rules At Investor’s Corner
Want To Trade Options? Try Out These Strategies
Monitor IBD’s “Breaking Out Today” List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
