Affirm (NASDAQ:AFRM) Issues Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Affirm (NASDAQ:AFRM) issued its quarterly earnings data on Thursday. The company reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.09, FiscalAI reports. Affirm had a return on equity of 47.91% and a net margin of 45.29%. The company had revenue of $1.15 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the firm posted $0.23 earnings per share. The firm’s quarterly revenue was up 35.2% on a year-over-year basis.

Here are the key takeaways from Affirm’s conference call:

• Affirm reported 34% GMV growth in Q1 and set a full-year FY2027 growth floor of at least 30%. Management said growth was running in the high 30s early in Q2 and pointed to no specific reason for a slowdown.
• Management said a new transformer-based underwriting model could raise approval rates by roughly 2–3 percentage points without adding losses, based on its initial comparisons. The company described further models using the same approach as a potential way to support growth.
• Provision expense increased partly because Affirm kept some experimental loans on its balance sheet; executives said those loans were appropriately reserved and the experiment supported new-user growth. Funding costs rose 27 basis points sequentially, though the CFO cited seasonality, a 6% funding-cost ratio as a share of on-balance-sheet loans, and more than 70% fixed-rate funding.
• Services was one of Affirm’s fastest-growing reported segments, with management citing early traction in partnerships that open access to areas such as home improvement and offline services. Direct-to-consumer and wallet channels also contributed around half of volume; the company said these channels support repeat usage, though card transactions typically generate lower interchange revenue than integrated merchant transactions.
• Affirm sees potential for agentic shopping and brand-sponsored promotions to help merchants drive sales by offering targeted financing deals, including 0% plans. Executives stressed that agentic commerce is still at an early stage, so they cautioned against assuming it will deliver rapid growth.

Affirm Price Performance

Shares of AFRM opened at $68.11 on Friday. The stock has a market cap of $22.98 billion, a PE ratio of 11.82, a price-to-earnings-growth ratio of 2.99 and a beta of 3.74. The company has a debt-to-equity ratio of 1.82, a current ratio of 11.80 and a quick ratio of 11.80. The firm has a fifty day moving average price of $72.54 and a 200 day moving average price of $66.56. Affirm has a 1-year low of $42.10 and a 1-year high of $90.44.

Analyst Ratings Changes

A number of brokerages have recently issued reports on AFRM. Barclays reiterated a “sector outperform” rating on shares of Affirm in a research report on Friday. UBS Group boosted their target price on Affirm from $82.00 to $90.00 and gave the stock a “neutral” rating in a research note on Friday, August 28th. Royal Bank Of Canada reduced their price objective on shares of Affirm from $96.00 to $83.00 and set a “sector perform” rating for the company in a research report on Friday. Citizens Jmp restated a “market outperform” rating and set a $85.00 price target on shares of Affirm in a research report on Friday. Finally, Truist Financial boosted their target price on Affirm from $85.00 to $88.00 and gave the stock a “buy” rating in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Affirm currently has a consensus rating of “Moderate Buy” and a consensus target price of $96.81.

Affirm News Summary

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Affirm reported fiscal Q1 2027 adjusted earnings of $0.47 per share, ahead of estimates, while revenue reached $1.26 billion and gross merchandise volume grew 34%. Cardholders more than doubled, signaling continued platform expansion. Affirm Q1 Earnings Beat Estimates on Strong GMV and Card Growth
• Positive Sentiment: Management is targeting fiscal 2027 growth above 30%, citing AI-driven underwriting, card expansion and new financing opportunities. Its Q2 revenue guidance of $1.4 billion–$1.5 billion is broadly in line with consensus. Affirm Q1 Earnings Call Highlights 30% Growth Goal and Credit Risks
• Neutral Sentiment: Some analysts argue credit worries may be overblown and see further upside, though their optimism comes alongside close scrutiny of loan performance. Late Payments Overshadow Affirm’s Earnings Beat. Wall Street Sees More Run to Run.
• Negative Sentiment: Higher credit-loss provisions and late-payment concerns are the main headwinds, raising questions about whether rapid growth could come at the cost of worsening credit quality. Affirm Q1 Earnings Beat Estimates on Strong GMV and Card Growth
• Negative Sentiment: Several firms lowered price targets after results, including Stephens, Barclays and Piper Sandler. Barclays and Piper Sandler kept overweight ratings, while Stephens retained an equal-weight rating, suggesting target cuts but not a broad shift to bearish recommendations.

Insider Activity at Affirm

In other Affirm news, COO Michael Linford sold 79,219 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $90.01, for a total value of $7,130,502.19. Following the completion of the transaction, the chief operating officer directly owned 120,713 shares of the company’s stock, valued at $10,865,377.13. This represents a 39.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Robert O’Hare sold 65,591 shares of Affirm stock in a transaction on Friday, October 9th. The shares were sold at an average price of $80.02, for a total transaction of $5,248,591.82. Following the sale, the chief financial officer directly owned 2,734 shares of the company’s stock, valued at $218,774.68. This trade represents a 96.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 280,118 shares of company stock valued at $22,223,307. Insiders own 11.01% of the company’s stock.

Affirm Company Profile

Affirm Holdings, Inc (NASDAQ: AFRM) operates a financial technology platform that provides consumers with flexible payment options at the point of sale. Its services allow shoppers to split eligible purchases into scheduled installments, with terms and costs disclosed before a transaction is completed.

Affirm’s platform is available through online and mobile checkout experiences, as well as through the Affirm app. Its product offerings include buy now, pay later financing, the Affirm Card, and savings products.