Affirm Holdings Inc. (NASDAQ:AFRM) shares jumped more than 20% on Friday after the buy-now-pay-later provider delivered stronger-than-expected fourth-quarter results and achieved operating profitability.
The company reported adjusted EPS of $0.20, beating consensus of $0.12. Revenue rose 33% year-over-year to $876.4 million, topping the $834.4 million estimate, supported by growth in loan sales, interest income, and network fees.
Gross merchandise volume expanded 43% to $10.4 billion, driven by a 93% increase in 0% APR installment loans and 132% growth in Affirm Card usage. Revenue less transaction costs rose 37% to $425 million, equal to 4.1% of GMV.
Active consumers increased 24% to 23 million, while transaction frequency per user climbed 20%. Affirm Card adoption accelerated, with in-store spend up 187% and the card attach rate reaching 10%.
For Q1 FY26, Affirm projected revenue of $855–$885 million versus consensus of $858.4 million, and GMV of $10.1–$10.4 billion.
