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Affirm shares surged 15% in extended trading Thursday after the company reported earnings and revenue well above Wall Street forecasts for its fiscal fourth quarter. The strong results mark a milestone for the buy-now-pay-later (BNPL) provider, which turned a profit for the first time since going public in 2021.

Earnings Beat Expectations

The company posted earnings per share (EPS) of 20 cents, nearly double analyst expectations of 11 cents, according to LSEG consensus estimates. Revenue came in at $876 million, topping forecasts of $837 million.

Net income reached $69.2 million, or 20 cents per share, a sharp turnaround from a loss of $45.1 million, or 14 cents per share, in the same period a year earlier. Affirm credited “consistent execution” for achieving operating income profitability on schedule, as outlined in its shareholder letter.

Explosive Growth in Key Metrics

Revenue jumped 33% year over year, rising from $659 million in the same quarter of 2024. Gross merchandise volume (GMV)—the total value of transactions processed on its platform—soared 43% to $10.4 billion, compared with $7.2 billion a year ago.

The company also projected first-quarter revenue between $855 million and $885 million, with GMV expected to range from $10.1 billion to $10.4 billion, underscoring continued momentum heading into fiscal 2026.

Stock Performance Outpaces Nasdaq

Even before the earnings rally, Affirm’s stock had gained 31% year-to-date, far outpacing the Nasdaq’s 12% rise. The after-hours jump further solidifies Affirm as one of the standout performers in the BNPL and fintech space.

Competition Heats Up in BNPL Market

Despite its strong financial performance, Affirm faces intensifying competition. The company maintains major partnerships with Amazon and Shopify, which have helped drive its transaction volumes. However, Walmart recently switched to rival Klarna, which is preparing for an initial public offering, raising concerns about Affirm’s ability to retain major retail partners.

Affirm has also sought to expand its ecosystem through new collaborations, including a 2023 deal with Apple, positioning itself to remain a dominant force in the rapidly evolving BNPL market.

Outlook

As Affirm continues to scale, the focus will be on whether it can maintain profitability while fending off rivals in a crowded digital lending space. With consumer demand for flexible payment options showing no signs of slowing, Affirm’s growth trajectory remains strong—but competition and shifting retailer loyalties will test its staying power.

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