Affirm (NASDAQ:AFRM) Issues Quarterly Earnings Results

Affirm (NASDAQ:AFRM) posted its earnings results on Thursday. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.28 by $0.09, FiscalAI reports. The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.06 billion. Affirm had a net margin of 6.74% and a return on equity of 7.75%.

Affirm Stock Down 4.4%

Shares of NASDAQ AFRM traded down $2.74 during trading on Thursday, reaching $59.42. The company had a trading volume of 12,923,846 shares, compared to its average volume of 6,063,928. Affirm has a 12-month low of $30.90 and a 12-month high of $100.00. The company has a quick ratio of 12.80, a current ratio of 12.80 and a debt-to-equity ratio of 2.40. The business’s 50-day moving average is $72.00 and its 200 day moving average is $74.34. The stock has a market cap of $19.61 billion, a PE ratio of 88.69, a P/E/G ratio of 2.73 and a beta of 3.56.

Wall Street Analyst Weigh In

AFRM has been the subject of several research analyst reports. TD Cowen restated a “buy” rating on shares of Affirm in a report on Thursday, January 8th. Bank of America increased their target price on Affirm from $94.00 to $98.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Wolfe Research initiated coverage on Affirm in a research note on Tuesday, December 9th. They issued a “peer perform” rating for the company. Royal Bank Of Canada dropped their price target on Affirm from $97.00 to $87.00 and set a “sector perform” rating on the stock in a research report on Friday, November 7th. Finally, Cantor Fitzgerald upgraded Affirm to a “strong-buy” rating in a report on Tuesday, January 27th. Three research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Affirm has a consensus rating of “Moderate Buy” and a consensus price target of $89.16.

Insider Transactions at Affirm

In related news, CFO Robert O’hare sold 36,401 shares of the company’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $80.00, for a total value of $2,912,080.00. Following the transaction, the chief financial officer directly owned 1,368 shares of the company’s stock, valued at approximately $109,440. This represents a 96.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Max R. Levchin sold 666,666 shares of the stock in a transaction on Monday, January 5th. The shares were sold at an average price of $80.62, for a total value of $53,746,612.92. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 711,256 shares of company stock worth $57,231,923. 11.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AFRM. Triumph Capital Management purchased a new stake in shares of Affirm during the third quarter valued at $31,000. Larson Financial Group LLC lifted its stake in Affirm by 74.5% during the 3rd quarter. Larson Financial Group LLC now owns 499 shares of the company’s stock valued at $36,000 after acquiring an additional 213 shares during the period. Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in shares of Affirm during the 3rd quarter valued at about $131,000. Harvest Fund Management Co. Ltd bought a new stake in shares of Affirm in the third quarter worth approximately $146,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Affirm by 18.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,738 shares of the company’s stock valued at $189,000 after purchasing an additional 427 shares during the last quarter. 69.29% of the stock is owned by institutional investors.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Q2 results beat expectations — EPS $0.37 vs. $0.28 est. and revenue $1.12B vs. $1.06B est., showing stronger-than-expected top- and bottom-line performance. Press Release
• Positive Sentiment: Revenue growth was driven by higher gross merchandise volume (GMV), a healthy demand signal for Affirm’s core BNPL and merchant services business. Affirm Sales Jump
• Positive Sentiment: Analyst support picked up: Morgan Stanley upgraded Affirm to Overweight, which could support sentiment over a longer horizon. Upgrade Note
• Neutral Sentiment: The company updated guidance: Q3 revenue $970M–$1.0B (vs. $973.6M consensus) and FY revenue ~ $4.1B (in line with consensus). Q4 revenue guidance was ~$1.1B (above prior consensus), so guidance is mixed across periods. (Company guidance releases)
• Neutral Sentiment: Affirm filed the shareholder letter and Form 8‑K with details on results and will host a conference call — useful to parse management commentary for margin and loan performance color. Company Release
• Negative Sentiment: Market reaction appears negative because Affirm did not provide explicit forward EPS guidance (EPS guidance fields were blank in updates), leaving investors uncertain about near-term profitability despite the beat.
• Negative Sentiment: Valuation and technicals may be headwinds: the stock trades below its 50- and 200-day moving averages and carries a high NTM P/E, so even good quarterly prints can be met with profit-taking.

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.