Affirm swings to profit as people flocked to its 0% APR loans and other offers

By Claudia Assis

Buy-now, pay-later company swings to profit

Affirm saw "strong uptake" for its 0% APR loans and other products.

Affirm Holdings Inc. late Thursday zoomed past Wall Street's quarterly expectations, as people flocked to its buy-now, pay-later offers and 0% interest loans.

Affirm's (AFRM) revenue jumped more than 30% to $876 million in the fiscal fourth quarter, easily surpassing the FactSet consensus of $837 million. Shares rallied nearly 17% after hours.

The company guided for 2026 fiscal first-quarter revenue of $855 million to $885 million, ahead of expectations of $858 million.

It also swung to a profit of 20 cents a share in the quarter, versus a loss of 14 cents in the year-ago quarter and topping consensus for earnings of 20 cents a share.

There was "strong uptake of 0% APR offers during the quarter," with gross merchandise volume from 0% APR monthly installment products nearly doubling, Affirm said.

Such offers also tend to attract a higher mix of new-to-Affirm customers, the company said.

Thursday's result, including the guidance, "defies worries" about lost revenue to Klarna Group (KLAR), which teamed up with Walmart Inc. (WMT) earlier this year, Mizuho analysts Dan Dolev said in a note Thursday.

Overall, the quarter was "very strong," Dolev said.

Affirm also grew its merchant network by 24% and its transaction frequency by 20%. It had 23 million active consumers as of June 20, an increase of 24%.

-Claudia Assis

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08-28-25 2035ET