Affirm's Stock Falls 8% Despite Beating Earnings Expectations

Published 3 hours agoAFRM

Affirm's Stock Falls 8% Despite Beating Earnings Expectations

Affirm Holdings Inc. recently reported an unexpected net profit for its fiscal second-quarter 2025, defying analysts' predictions of a loss. The company posted a profit of 23 cents per share, a result that pleasantly surprised market watchers. Despite this strong performance, the company's stock fell by 8% following the earnings announcement.

The company's financial health appeared robust with revenue increasing by 46.6% from the previous year, reaching $866 million. Furthermore, Affirm's Gross Merchandise Volume (GMV) climbed 32% to $7.2 billion, as consumers continue to embrace the buy-now-pay-later model. As detailed by Kiplinger, these figures underscore the company's ability to grow its revenue significantly and handle a large volume of transactions on its platform.

Affirm's guidance for the upcoming fiscal quarter projects revenue in the range of $640 million to $670 million, outperforming analyst expectations. This information was highlighted by Investopedia, which reported that, despite the company's positive financial results and forecasts, the stock market's reaction might reflect apprehensions about future growth prospects and broader economic conditions.

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