Affirm (AFRM) earnings report Q1 2025

Affirm, the supplier of purchase now, pay later loans, reported better-than-expected fiscal first-quarter outcomes.

Right here is how the corporate did, in comparison with analysts’ consensus estimates from LSEG.

• Loss per share: 31 cents adjusted vs. a lack of 35 cents anticipated
• Income: $698 million vs. $664 million anticipated

Affirm reported gross merchandise quantity, or GMV, of $7.6 billion, topping the typical estimate of $7.28 billion, in accordance with StreetAccount. GMV, a key metric that helps gauge the entire worth of transactions, elevated 35% from a yr earlier.

Income within the fiscal first quarter rose 41% from $496.5 million a yr earlier.

Income much less transaction prices, or RLTC, got here in at $285 million, forward of earlier steerage of $265 million to $280 million.

Affirm mentioned it expects to realize profitability on a GAAP foundation in its fiscal fourth quarter of 2025. Final quarter, CEO Max Levchin mentioned in a word to shareholders that the corporate had set a brand new purpose of hitting working profitability on a GAAP foundation by the tip of its fiscal yr.

The corporate sees second-quarter income of between $770 million and $810 million, or $790 million in the midst of the vary, versus the typical estimate of $785 million, in accordance with LSEG. Affirm is guiding to GMV within the vary of $9.35 billion to $9.75 billion. Analysts polled by StreetAccount known as for GMV of $9.48 billion.

Affirm shares had been about flat for the yr as of Thursday’s shut, however have been trending increased these days, up greater than 70% for the reason that finish of August.

The corporate’s new relationship with Apple plus different partnerships with Amazon and Shopify are serving to outcomes. In June, Affirm and Apple introduced plans for U.S. Apple Pay customers on iPhones and iPads to have the ability to apply for loans immediately by means of Affirm.

“Affirm’s development story has continued, notably as they add new strategic distribution companions,” Kevin Kennedy, an analyst at international analysis agency Third Bridge, mentioned in an electronic mail.

Kennedy added that the standard of Affirm’s underwriting, particularly for higher-priced orders and interest-bearing BNPL purchases, units the corporate other than the rising listing of rivals.

“The funds area is consistently going through commoditization danger, and BNPL, whereas nascent, is going through the identical problem,” he wrote. “Nonetheless, giant ticket curiosity bearing purchases, which have gotten extra accessible by means of Affirm, are higher protected” in contrast with choices from friends, he added.

Sq. father or mother Block, which additionally reported earnings after the bell, acquired BNPL agency Afterpay for $29 billion in 2021.

Affirm’s quarterly earnings name begins at 5:00 p.m. ET.

— CNBC’s Robert Hum contributed to this report.