Affirm Holdings, Inc. ( (AFRM) ) has released its Q3 earnings. Here is a breakdown of the information Affirm Holdings, Inc. presented to its investors.
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Affirm Holdings, Inc. is a financial technology company that provides consumers with a transparent and flexible payment network, allowing them to make purchases through installment loans without hidden fees, primarily operating in the digital payment solutions sector.
In its third fiscal quarter of 2025, Affirm reported significant growth in key financial metrics, showcasing a robust performance with a 36% increase in total revenue to $783 million and a 36% rise in Gross Merchandise Volume (GMV) to $8.6 billion. The company also achieved a net income of $137 million, highlighting its successful strategic initiatives and market expansion efforts.
Key highlights from the earnings report include a 53% increase in Revenue Less Transaction Costs (RLTC) to $353 million and a notable improvement in operating income, reducing the operating loss to $8 million from $161 million in the previous year. Affirm’s strategic focus on 0% APR products contributed to a 44% growth in this segment, enhancing its consumer base with higher credit quality borrowers and increasing point-of-sale conversions for merchants. Additionally, the Affirm Card saw a remarkable 115% year-over-year growth in GMV, driven by enhanced features and expanded availability.
Affirm’s management remains optimistic about the company’s future, emphasizing its ability to navigate various macroeconomic conditions effectively. The company plans to leverage its strong network of merchant and consumer relationships, along with strategic partnerships, to sustain its growth trajectory and continue delivering value to its stakeholders.
Looking ahead, Affirm aims to expand its market presence, including a new partnership with Costco and an extended agreement with Shopify. The company is also exploring international opportunities, with plans to enter the UK market, while continuing to innovate and enhance its product offerings to meet evolving consumer demands.