The earnings call reflects a largely positive outlook for Affirm with strong growth in GMV, successful promotional strategies, and significant partnerships with Costco and Shopify. However, challenges remain with the immediate profitability of 0% APR loans and a slight increase in loan loss reserves. Overall, the positive aspects outweigh the negatives.

Company Guidance

During Affirm Holdings' Third Quarter Fiscal 2025 earnings call, the company provided several forward-looking statements and financial metrics. Affirm improved its guidance for the current quarter and fiscal year, focusing on growth opportunities while maintaining excellent credit quality and lifetime value (LTV) characteristics. The call highlighted the company's efforts to balance growth and profitability as it moves towards GAAP profitability. Affirm's zero APR product was emphasized, with discussions on its economic balance versus interest-bearing loans and its impact on revenue less transaction costs (RLTC). The call also noted strong growth in Gross Merchandise Volume (GMV), with a 40% year-on-year growth reported in March, and broad-based strength across various categories, including direct-to-consumer services and the Affirm Card. Additionally, Affirm's recent partnerships with companies like Costco and Shopify were mentioned, aiming to bolster growth and market presence. The company also addressed its use of AI and machine learning to enhance customer experience and operational efficiency. Overall, the guidance reflects Affirm's strategic focus on leveraging growth opportunities while managing financial discipline.

Strong GMV Growth

The quarter saw strong growth in Gross Merchandise Volume (GMV) across most categories, with March being the strongest month at 40% year-on-year growth. Direct-to-consumer services led by card usage grew faster than the rest of the business.

Successful 0% APR Promotions

Affirm achieved excellent traction with its 0% APR product, which is attracting prime and super prime customers and boosting lifetime value. The promotional strategy led to significant benefits in merchant conversion and brand value.

Costco Partnership Announcement

Affirm announced a new partnership with Costco, enhancing its brand recognition and consumer reach, although specific financial impact details were not disclosed.

Shopify Partnership Renewal

The partnership with Shopify was renewed through 2028 without economic concessions, which is expected to provide stable future growth opportunities.

Improved Credit and Prepayments

Healthy repayment rates were observed, with a slight uptick in prepayments, indicating positive consumer credit behavior and reduced risk.

Affirm Holdings (AFRM) Earnings, Revenues Date & History

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AFRM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2026 (Q1)	- / -	-0.31	―	―	―
Aug 28, 2025	2025 (Q4)	0.12 / 0.20	-0.14	242.86% (+0.34)	―	―
May 08, 2025	2025 (Q3)	>-0.01 / 0.01	-0.43	102.33% (+0.44)
Feb 06, 2025	2025 (Q2)	-0.13 / 0.25	-0.54	146.85% (+0.79)
Nov 07, 2024	2025 (Q1)	-0.28 / -0.31	-0.57	45.61% (+0.26)
Aug 28, 2024	2024 (Q4)	-0.48 / -0.14	-0.69	79.71% (+0.55)
May 08, 2024	2024 (Q3)	-0.70 / -0.43	-0.69	37.68% (+0.26)
Feb 08, 2024	2024 (Q2)	-0.72 / -0.54	-1.1	50.91% (+0.56)
Nov 08, 2023	2024 (Q1)	-0.70 / -0.57	-0.86	33.72% (+0.29)
Aug 24, 2023	2023 (Q4)	-0.86 / -0.69	-0.65	-6.15% (-0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

AFRM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 08, 2025	$54.26	$46.41	-14.47%
Feb 06, 2025	$61.75	$75.22	+21.81%
Nov 07, 2024	$48.79	$46.48	-4.73%
Aug 28, 2024	$31.58	$41.66	+31.92%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.