Affirm Holdings Reports Strong Q1 Earnings and Growth

Affirm Holdings, Inc. ( (AFRM) ) has released its Q1 earnings. Here is a breakdown of the information Affirm Holdings, Inc. presented to its investors.

Affirm Holdings, Inc. is a financial technology company specializing in providing buy-now-pay-later (BNPL) solutions, primarily within the e-commerce sector, characterized by its commitment to transparent and fee-free transactions.

In its latest earnings report for the first fiscal quarter of 2025, Affirm Holdings, Inc. demonstrated strong financial performance, exceeding expectations on several metrics. The company reported significant growth in Gross Merchandise Volume (GMV), revenue, and active consumer base, underscoring its expanding footprint in the competitive BNPL market.

Key highlights from the report include a 35% year-over-year increase in GMV, reaching $7.6 billion, and a 41% rise in revenue to $698 million. The company’s adjusted operating income also improved, climbing to $130 million, reflecting effective cost management and strategic initiatives. Active consumer growth continued, with nearly 20 million users and an increase in transactions per active consumer to 5.1. Affirm’s partnerships and product offerings, such as the Affirm Card and Shop Pay Installments, contributed significantly to these results.

Despite reporting a net loss of $100 million, Affirm’s financial position strengthened with improved operating margins and a stable credit performance. The company remains focused on expanding its merchant network and enhancing its product offerings, as evidenced by the launch of Apple Pay integration and its expansion into the UK market.

Looking ahead, Affirm anticipates achieving GAAP operating income profitability by the fourth fiscal quarter of 2025. The company plans to maintain its growth trajectory by leveraging strategic partnerships and expanding its global presence, while adhering to disciplined financial management to sustain profitability.