NASDAQ$AFRM
Affirm · Q2 2025 earnings
Q2 2025 earnings · · After market close · Investor relations
Briefing
Affirm reported strong financial performance for FQ2'25, surpassing expectations across all key metrics. The company achieved $866 million in revenue (up 47% YoY), $80.4 million in net income, and nearly break-even operating income. Gross Merchandise Volume (GMV) grew 35% to $10.1 billion, driven by increased merchant adoption and 0% APR offers. Adjusted Operating Income reached $237.8 million with a 27.4% margin. Affirm also expanded into new markets, including the UK, and strengthened partnerships in travel, healthcare, and electronics.
Headline financials
Revenue & EPS history
Affirm · Revenue · Quarterly
$866M
Forward guidance
Affirm expects continued GMV growth, targeting $8.00-$8.30 billion in FQ3'25 and $9.00-$9.30 billion in FQ4'25. Revenue is forecasted between $755-$785 million in FQ3 and $810-$840 million in FQ4. The company aims to achieve GAAP operating profitability by FQ4'25, with adjusted operating margins projected at 20-25%.
Tailwinds
- Affirm expects GMV growth to remain strong, reaching $35B for FY25.
- Revenue is projected to surpass $3.1 billion in FY25, up from $2.6 billion in FY24.
- Adjusted operating margins are expected to improve further, reaching 23-25% in Q4 FY25.
- The company has expanded funding capacity to $22.6 billion, ensuring liquidity for future growth.
- Expansion in the UK and new merchant partnerships are expected to drive further adoption.
Headwinds
- Operating income remains slightly negative, though breakeven is expected in FQ4'25.
- Higher transaction costs, particularly related to funding costs and credit losses, could impact profitability.
- Competition in the BNPL space remains intense, with rivals also expanding market share.
- Macroeconomic conditions, including potential interest rate changes, could impact loan economics.
- Delinquencies have slightly increased YoY due to expanded credit offerings.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2025
+0.6%
Avg return
Earnings day
+2.3%
Avg return
5 days after
+1.4%
Avg return
30 days after
35%
9 / 26 earnings
Positive
+62.1%
Q3 2022
Best reaction
-37.7%
Q2 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | -1.2% | -6.2% | -5.6% | |
| Q2 2026 | -4.0% | -4.8% | -13.0% | |
| Q1 2026 | +11.7% | +19.7% | +3.1% | |
| Q3 2025 | -14.7% | +4.2% | +8.6% | |
| Q2 2025 | +21.8% | +22.5% | -15.8% | |
| Q1 2025 | -7.0% | +15.2% | +43.8% | |
| Q4 2024 | +28.1% | +35.4% | +26.6% | |
| Q3 2024 | -0.3% | -8.3% | -13.9% | |
| Q2 2024 | -1.7% | -10.9% | -13.1% | |
| Q1 2024 | +12.5% | +3.6% | +90.4% | |
| Q4 2023 | +22.6% | +32.0% | +39.1% | |
| Q3 2023 | +2.6% | +1.1% | +57.9% | |
| Q2 2023 | -22.8% | -26.2% | -39.7% | |
| Q1 2023 | -22.6% | +8.8% | -25.7% | |
| Q4 2022 | -18.7% | -22.1% | -36.2% | |
| Q3 2022 | +62.1% | +72.5% | +39.7% | |
| Q2 2022 | -37.7% | -40.0% | -58.7% | |
| Q1 2022 | -3.8% | -6.2% | -27.3% | |
| Q4 2019 | -8.4% | -3.0% | +24.8% | |
| Q4 2021 | +41.3% | +23.4% | +61.3% | |
| Q3 2020 | -4.4% | -1.2% | +24.8% | |
| Q3 2021 | +2.7% | +0.0% | +11.6% | |
| Q1 2021 | -11.4% | -12.0% | -35.1% | |
| Q4 2020 | -11.4% | -12.0% | -35.1% | |
| Q2 2020 | -11.4% | -12.0% | -35.1% | |
| Q2 2021 | -7.6% | -12.5% | -41.6% | |
| Q1 2020 | — | — | — |
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