Affirm Reports Impressive Fourth Quarter Growth

Affirm recently announced a remarkable increase in its gross product volume, which surged by 43% in the fourth quarter. This rise has drawn attention and even led to better-than-expected quarterly profits.

• Total product volume, often referred to as Gross Merchandise Value (GMV), hit $10.4 billion in the fourth quarter.

• This strong performance was reflected in early trading on Friday, where shares jumped by 17%, pushing annual profits above 50%.

Beyond just numbers, Affirm experienced substantial earnings, surpassing analyst predictions. They reported an increase in revenue to $876.4 million, a significant improvement from a $0.20 loss per share last year. This time, they recorded a loss of $0.14 per share. Analysts had predicted earnings per share (EPS) of $0.11 on revenue of $837.4 million. Moreover, the operating profit for this quarter reached $58.1 million, a notable contrast to last year’s operating loss of $73.5 million.

In his communication to shareholders, CEO Max Levchin highlighted the company’s expansion in its merchant network and emphasized enhancing trading frequency with consumer products. He expressed confidence about reaching profitability in their fiscal fourth quarter of 2025, as they had committed a year prior.

Levchin noted that the impressive GMV growth was largely fueled by strong performance with major merchant partners, an uptick in monthly installment loans, and the introduction of Affirm cards. This figure exceeded expectations, which were estimated at around $9.644 billion.

Looking ahead, predictions for the first-quarter revenue range from $855 million to $885 million, with expectations that their full-year GMV could surpass $46 billion by 2026.

It’s clear that Affirm’s strategic initiatives and market positioning are paying off, but the journey ahead remains crucially important.