Affirm stock bounces as Q1 earnings smash expectations

Investing.com -- Affirm Holdings Inc (NASDAQ: AFRM) saw its shares surge nearly 9% in after-hours trading on Thursday after the buy-now-pay-later provider reported first quarter fiscal 2026 results that significantly exceeded analyst expectations, driven by strong growth across its payment network.

The company reported adjusted earnings per share of $0.23, beating the analyst consensus of $0.11 by 109%. Revenue rose 34% YoY to $933 million, comfortably surpassing the $881.84 million analysts had expected. Gross merchandise volume (GMV) increased 42% to $10.8 billion, with the company’s direct-to-consumer business showing particularly strong momentum.

"Setting another highest-ever GMV record in a quarter with relatively few shopping holidays showcases the consistency of Team Affirm," said Max Levchin, CEO of Affirm, in the shareholder letter.

Affirm’s Card business continued to show impressive growth, with Card GMV up 135% YoY and active cardholders increasing by 500,000 from the previous quarter to reach 2.8 million. The company also reported that its active consumer base grew 24% to 24.1 million, marking the seventh consecutive quarter of accelerating year-over-year growth in active users.

For the second quarter of fiscal 2026, Affirm provided revenue guidance of $1.03-1.06 billion, with the midpoint slightly below the consensus estimate of $1.06 billion. Despite the guidance coming in slightly below expectations, investors appeared to focus on the strong current quarter results.

The company also announced an extension of its U.S. agreement with Amazon for an additional five years through January 2031, a significant vote of confidence from one of its largest merchant partners.

Active merchant count increased 30% to 419,000, with the growth rate accelerating by 6 percentage points from the prior quarter, driven by wallet partnerships and the launch of several independent software vendor partnerships.

You May Also Be Interested In

• CrowdStrike shares jump on earnings beat, raised outlook
• Palo Alto Networks CEO held acquisition talks with both Okta and Datadog
• TWG Global denies fraud allegations; Says Dodgers are not for sale