Affirm (NASDAQ:AFRM) Announces Quarterly Earnings Results

Affirm (NASDAQ:AFRM) issued its quarterly earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.12, Zacks reports. Affirm had a net margin of 1.62% and a return on equity of 1.80%. The company had revenue of $933.34 million for the quarter, compared to analyst estimates of $881.83 million. During the same period in the prior year, the firm earned ($0.31) earnings per share. The business’s revenue for the quarter was up 33.6% compared to the same quarter last year. Affirm updated its Q2 2026 guidance to EPS and its FY 2026 guidance to EPS.

Affirm Stock Performance

Shares of AFRM traded up $7.66 during midday trading on Friday, reaching $73.62. 16,341,703 shares of the stock were exchanged, compared to its average volume of 7,283,908. Affirm has a twelve month low of $30.90 and a twelve month high of $100.00. The company has a debt-to-equity ratio of 2.55, a current ratio of 11.54 and a quick ratio of 11.54. The company has a market capitalization of $23.97 billion, a price-to-earnings ratio of 566.35, a PEG ratio of 4.56 and a beta of 3.57. The business’s 50-day moving average price is $78.61 and its 200 day moving average price is $68.03.

Insider Activity

In other Affirm news, CFO Robert O’hare sold 77,800 shares of Affirm stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $80.09, for a total transaction of $6,231,002.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Siphelele Jiyane sold 25,533 shares of the stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $90.71, for a total transaction of $2,316,098.43. Following the sale, the chief accounting officer owned 226,467 shares of the company’s stock, valued at approximately $20,542,821.57. This represents a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,761,596 shares of company stock worth $148,662,354 over the last ninety days. 11.01% of the stock is owned by corporate insiders.

Institutional Trading of Affirm

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Atreides Management LP grew its position in Affirm by 543.3% during the second quarter. Atreides Management LP now owns 1,977,882 shares of the company’s stock worth $136,751,000 after buying an additional 1,670,429 shares during the period. Durable Capital Partners LP grew its holdings in shares of Affirm by 12.3% in the 2nd quarter. Durable Capital Partners LP now owns 7,389,337 shares of the company’s stock worth $510,899,000 after acquiring an additional 808,455 shares during the period. AQR Capital Management LLC increased its stake in Affirm by 543.9% in the 2nd quarter. AQR Capital Management LLC now owns 330,561 shares of the company’s stock valued at $22,855,000 after purchasing an additional 279,225 shares in the last quarter. Man Group plc increased its stake in Affirm by 257.7% in the 2nd quarter. Man Group plc now owns 352,142 shares of the company’s stock valued at $24,347,000 after purchasing an additional 253,699 shares in the last quarter. Finally, Worldquant Millennium Advisors LLC purchased a new stake in Affirm during the second quarter worth $12,343,000. 69.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have issued reports on AFRM. The Goldman Sachs Group reduced their target price on shares of Affirm from $105.00 to $94.00 and set a “buy” rating on the stock in a report on Monday, October 13th. Wells Fargo & Company started coverage on Affirm in a research report on Tuesday, October 21st. They set an “overweight” rating and a $89.00 price objective on the stock. Zacks Research cut shares of Affirm from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 13th. Rothschild Redb upgraded shares of Affirm from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Finally, Royal Bank Of Canada dropped their price objective on shares of Affirm from $97.00 to $87.00 and set a “sector perform” rating on the stock in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $86.78.

Affirm Company Profile

Affirm Holdings, Inc operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time with terms ranging up to 60 months.