Affirm is set to report fiscal Q4 2025 results with Wall Street consensus calling for roughly $837 million in revenue and $0.43 normalized EPS, implying 27% year-over-year revenue growth and a swing to profitability. The company has pushed 0% APR financing campaigns that boost gross merchandise volume and accelerate Affirm Card adoption, while compressing margins and weighing on near-term profitability. March GMV showed about 40% year-over-year growth. Delinquencies remain low and prepayments have ticked higher, and management cites flexibility in underwriting and a shifting funding mix. Major merchant partnerships include Costco, Walmart, and Shopify, and shares have shown high post-earnings volatility.
Affirm Holdings ( Nasdaq: AFRM) will report fiscal Q4 2025 earnings after the close. The buy-now, pay-later (BNPL) leader has been leaning into 0% APR financing campaigns, which CEO Max Levchin calls a "brand halo" that deepens merchant partnerships and expands card adoption. But the strategy has weighed on profitability - AFRM missed Q3 EPS by a wide margin despite record revenue.
0% APR Promotions & Merchant Adoption- Merchants leaned heavily into 0% financing in Q3, boosting Affirm's GMV. Levchin emphasized it as Affirm's strongest card-acquisition channel despite thinner margins. Affirm Card Scaling- Card adoption continues to climb; 0% promotions bring in prime-quality users, strengthening Affirm's long-term LTV economics. Credit Quality & Funding Mix- Delinquencies remain low, with prepayments ticking higher - a positive credit signal. CFO Rob O'Hare highlighted Affirm's ability to quickly adjust underwriting in stress scenarios.
Collection
[
|
...
]