Affirm (NASDAQ:AFRM) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Affirm (NASDAQ:AFRM) issued its quarterly earnings data on Thursday. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.38 by $0.09, FiscalAI reports. The business had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.21 billion. Affirm had a return on equity of 47.91% and a net margin of 45.29%. The business’s revenue for the quarter was up 35.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.23 EPS.

Here are the key takeaways from Affirm’s conference call:

• Affirm reported 34% GMV growth in Q1 and set a full-year FY2027 growth floor of at least 30%. Management said growth was running in the high 30s early in Q2 and pointed to no specific reason for a slowdown.
• Management said a new transformer-based underwriting model could raise approval rates by roughly 2–3 percentage points without adding losses, based on its initial comparisons. The company described further models using the same approach as a potential way to support growth.
• Provision expense increased partly because Affirm kept some experimental loans on its balance sheet; executives said those loans were appropriately reserved and the experiment supported new-user growth. Funding costs rose 27 basis points sequentially, though the CFO cited seasonality, a 6% funding-cost ratio as a share of on-balance-sheet loans, and more than 70% fixed-rate funding.
• Services was one of Affirm’s fastest-growing reported segments, with management citing early traction in partnerships that open access to areas such as home improvement and offline services. Direct-to-consumer and wallet channels also contributed around half of volume; the company said these channels support repeat usage, though card transactions typically generate lower interchange revenue than integrated merchant transactions.
• Affirm sees potential for agentic shopping and brand-sponsored promotions to help merchants drive sales by offering targeted financing deals, including 0% plans. Executives stressed that agentic commerce is still at an early stage, so they cautioned against assuming it will deliver rapid growth.

Affirm Price Performance

Shares of AFRM traded down $1.61 during trading hours on Friday, reaching $68.05. The stock had a trading volume of 5,440,619 shares, compared to its average volume of 5,099,679. The company’s 50-day moving average is $72.73 and its two-hundred day moving average is $66.57. The stock has a market capitalization of $22.96 billion, a PE ratio of 12.33, a PEG ratio of 3.07 and a beta of 3.74. Affirm has a 12 month low of $42.10 and a 12 month high of $90.44. The company has a debt-to-equity ratio of 1.82, a quick ratio of 11.80 and a current ratio of 11.80.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Bank of America reiterated a “buy” rating and issued a $109.00 price target on shares of Affirm in a research report on Friday. Monness Crespi & Hardt assumed coverage on Affirm in a report on Monday, October 26th. They set a “buy” rating and a $90.00 price objective for the company. The Goldman Sachs Group reduced their target price on shares of Affirm from $115.00 to $103.00 and set a “buy” rating on the stock in a research note on Tuesday, October 13th. Piper Sandler dropped their target price on shares of Affirm from $115.00 to $105.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Loop Capital started coverage on shares of Affirm in a report on Wednesday, September 9th. They set a “buy” rating and a $105.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $96.63.

Insider Buying and Selling

In other Affirm news, insider Katherine Adkins sold 41,664 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $75.53, for a total value of $3,146,881.92. Following the transaction, the insider owned 152,439 shares in the company, valued at approximately $11,513,717.67. This represents a 21.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert O’Hare sold 65,591 shares of Affirm stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $80.02, for a total value of $5,248,591.82. Following the transaction, the chief financial officer directly owned 2,734 shares in the company, valued at approximately $218,774.68. The trade was a 96.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 280,118 shares of company stock valued at $22,223,307 in the last ninety days. Insiders own 11.01% of the company’s stock.

Affirm News Roundup

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Affirm forecast fiscal Q2 2027 revenue of $1.4 billion to $1.5 billion, with the midpoint above the $1.4 billion consensus estimate. Affirm fiscal Q1 results
• Positive Sentiment: Fiscal Q1 adjusted earnings came in at $0.47 per share, beating the $0.38 consensus. Revenue coverage was inconsistent: one report put it at $1.26 billion, above estimates, while another cited $1.15 billion, below estimates. Earnings flash
• Neutral Sentiment: Citizens JMP reiterated its “market outperform” rating and $85 target. Piper Sandler lowered its target from $115 to $105 but kept an “overweight” rating, signaling continued optimism alongside a more cautious valuation. Piper Sandler rating
• Negative Sentiment: Recent weakness across retail-facing fintech shares—linked in coverage to Bitcoin’s decline and political uncertainty—may be weighing on AFRM despite its company-specific guidance. Fintech stocks sell off

About Affirm

Affirm Holdings, Inc (NASDAQ: AFRM) operates a financial technology platform that provides consumers with flexible payment options at the point of sale. Its services allow shoppers to split eligible purchases into scheduled installments, with terms and costs disclosed before a transaction is completed.

Affirm’s platform is available through online and mobile checkout experiences, as well as through the Affirm app. Its product offerings include buy now, pay later financing, the Affirm Card, and savings products.