Affirm Holdings' stock surged 13% after reporting strong fiscal fourth-quarter results, including a 33% revenue increase to $876 million, a profit turnaround, and record GMV of $10.4 billion. The company expects continued growth and profitability, with positive analyst ratings and a bullish outlook despite recent challenges like Walmart separation. Shares have gained 31% this year, driven by solid earnings and optimistic guidance.
Affirm Holdings reported better-than-expected Q4 earnings and revenue, driven by a new debit card product and strong growth in gross merchandise volume, with optimistic guidance for 2026 despite Walmart's shift away from Affirm's BNPL services. The stock rose over 10% in extended trading, supported by positive technical ratings and expanding partnerships, including potential collaborations with Apple.
The article discusses the new partnership between Affirm and Xsolla that allows players to finance in-game purchases through interest-free installment plans, raising concerns about the potential for increased consumer debt and targeting vulnerable populations, amidst broader issues of economic instability and rising household debt.
Private investment group Sixth Street is investing $4 billion in a vehicle to purchase loans from US fintech Affirm, enabling Affirm to issue up to $20 billion in new consumer loans over the next three years. This partnership reflects a growing trend where private credit funds collaborate with consumer credit providers to offload debt and free up lending capacity. The deal is part of a broader industry movement, with firms like SoFi and Klarna also engaging in similar agreements to manage risk and expand lending capabilities amid economic challenges.
Affirm Holdings has secured a $4 billion loan deal with private credit firm Sixth Street, marking its largest-ever capital commitment. This partnership will allow Affirm to underwrite short-term installment loans, with the potential to extend over $20 billion in loans over three years. The deal highlights the growing trend of fintech companies partnering with private credit firms for scalable financing solutions. Affirm's funding capacity has grown significantly, and the company continues to expand its buy now, pay later offerings amid increasing demand.
Affirm Holdings reported a smaller-than-expected loss of 31 cents per share for its fiscal first quarter, beating Wall Street expectations. Revenue rose 41% to $698 million, surpassing estimates, while gross merchandise volume increased 35% to $7.6 billion. Despite the positive earnings, Affirm's stock dipped slightly as its guidance for the upcoming holiday season was only slightly above expectations. The company anticipates fiscal Q2 revenue of $790 million and gross merchandise volume of $9.55 billion. Affirm is expanding its financial services and expects profitability by fiscal Q4 2025.
Affirm, a leading 'buy now, pay later' (BNPL) company, is launching in the UK, marking its first expansion outside North America. This move comes as UK lawmakers consider new regulations to align BNPL services with traditional credit services, expected by 2026. Affirm aims to differentiate itself by not charging late fees and offering fixed interest rates. The company has seen a resurgence in its market value and is expanding its workforce in the UK, with plans to potentially extend partnerships with major brands like Amazon and Apple.
Affirm's Chief Financial Officer, Michael Linford, revealed that the fintech firm uses the time of day a consumer attempts a transaction as a key data point to determine loan approvals, with transactions between midnight and 4 a.m. signaling higher credit risk. The buy now, pay later industry, including companies like Affirm, Klarna, and Sezzle, offers real-time approvals for installment loans embedded in online checkout pages, but critics argue that they enable overspending. Affirm manages repayment risk by denying transactions or offering shorter-term loans with down payments, and reported steady delinquencies despite surging purchase volumes.
Affirm CEO Max Levchin discusses the company's strong Q2 results, highlighting their success and positive consumer trends, and shares insights on future plans and growth during an interview on "Closing Bell Overtime."
Affirm's stock fell 13% in after-hours trading despite beating expectations in its earnings report, with analysts attributing the drop to a perceived conservative outlook. The company raised its full-year forecast for gross merchandise volume to over $25.25 billion, but analysts believe the new guidance is conservative. Affirm posted fiscal second-quarter revenue of $591 million, up from $400 million a year before, and saw its gross merchandise volume increase by 32% to $7.5 billion. The company also reported a halved net loss for the December quarter and anticipates $5.8 billion to $6.0 billion in gross merchandise volume for the March quarter.
The S&P 500 is nearing 5,000 as investors analyze strong quarterly reports from companies like Walt Disney and Arm Holdings, with Pinterest and Affirm set to report after the market close. Trending tickers on Yahoo Finance include PayPal Holdings, bitcoin, and Marathon Digital, while top guests on Yahoo Finance Live today include representatives from John Hancock Investment Management, Thomson Reuters, Huntington Private Bank, Solarwinds, and Redfin.
US stocks closed higher, with the Dow Jones Industrial Average notching its fifth straight record close. Investors remained optimistic about the prospect of interest rate cuts despite warnings that these hopes may be overdone. Homebuilder stocks soared as investor optimism for interest rate cuts in 2024 boosted the sector. The burden of student loan debt is unevenly distributed, with 75% of borrowers owing $40,000 or less. Buy now, pay later services are thriving as consumers seek flexible payment options. The stock market rally has broadened beyond the Magnificent Seven tech stocks, with 78% of S&P 500 stocks above their 200-day moving average. US housing starts jumped in November, reaching a six-month high. Affirm's stock surged after its buy now, pay later features were integrated into Walmart's self-checkout lines. US stocks opened higher, led by the Nasdaq. The Dow Jones and S&P 500 closed at record highs, while the S&P 500 is within 60 points of its all-time high.
Affirm's stock surged over 15% after announcing an expanded partnership with Walmart, allowing customers to use its buy-now-pay-later service at self-checkout kiosks in over 4,500 U.S. stores. Affirm's shares have risen more than 400% this year, recovering from a significant drop in 2022. The partnership comes as Affirm's research shows that a majority of Americans are seeking buy-now-pay-later options, and 76% of consumers would either delay or forgo purchases without Affirm. Affirm also has partnerships with Walmart competitors like Amazon and Shopify.
Jim Cramer highlights 10 things to watch in the stock market on Thursday. Disney reported better-than-expected earnings, including strong growth in Disney+. Affirm's price target was raised after solid quarterly results. Arm Holdings, despite weak guidance, has potential in its partnership with Nvidia. Microsoft is renting Oracle's cloud due to a shortage of high-end Nvidia chips. Twilio's price target was raised by multiple firms. Other companies to watch include Instacart, Take-Two, HubSpot, MGM Resorts, and Kellanova.
