Affirm Holdings, Inc. ( (AFRM) ) has released its Q4 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 transparent and honest financial products, primarily focusing on buy-now-pay-later solutions in the consumer lending industry. The company aims to empower consumers to spend responsibly and offers businesses tools to drive growth without hidden fees.
Affirm Holdings recently reported a strong fiscal fourth quarter for 2025, showcasing significant growth in key financial metrics. The company achieved a notable increase in gross merchandise volume (GMV), revenue, and net income, marking a successful year despite previous doubts about its profitability amidst rising interest rates.
Key highlights from the earnings report include a 43% increase in GMV to $10.4 billion and a 33% rise in total revenue to $876 million. The company’s net income reached $69 million, a significant turnaround from a loss in the previous year. Affirm’s strategic focus on expanding its merchant network and enhancing consumer engagement through direct-to-consumer products like the Affirm Card has been pivotal. The card’s GMV grew by 132%, and active cardholders nearly doubled, reflecting strong consumer adoption.
Affirm’s strategic initiatives also involved leveraging artificial intelligence to improve productivity and underwriting models, contributing to a 5% increase in GMV among merchants using its AI-powered solutions. The company’s commitment to offering 0% APR products has attracted a higher mix of new consumers, further expanding its network and enhancing its value proposition to merchants.
Looking ahead, Affirm aims to maintain its growth trajectory by focusing on profitability and expanding its product offerings. The company plans to continue investing in AI and exploring opportunities beyond the US retail market, positioning itself for sustained growth in the evolving financial landscape.