Affirm Swings Wildly Post Q3 Earnings: Is the Fintech Losing Steam? – May 14, 2025

From Zacks Investment Research: 2025-05-14 11:14:00

Affirm Holdings, Inc. (AFRM) experienced sharp stock fluctuations following its fiscal Q3 2025 earnings report. Shares dropped 14.5% on Friday due to a negative fourth-quarter outlook but rebounded 15.8% on Monday after announcing a BNPL partnership with World Market. The stock remained stable on Tuesday. Despite rapid shifts, the company reported strong Q3 results, with revenue up 36% to $783.1 million and GMV reaching $8.6 billion. Affirm’s long-term growth drivers include repeat customer growth, international expansion, and innovative financial products. Earnings estimates for fiscal 2025 and 2026 are favorable, with strong revenue projections. Affirm’s stock has surged 67% in the past year, outperforming the industry and S&P 500. However, the company faces challenges such as high debt levels, rising expenses, and intense competition in the BNPL space. Affirm currently holds a Zacks Rank #3 (Hold), and investors should monitor profitability and margin improvement before making investment decisions.



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