Affirm Holdings, Inc. (NASDAQ:AFRM) released its financial results for the second quarter on Thursday after markets closed, reporting figures that notably exceeded consensus estimates on several fronts. Despite this positive financial reporting, the company's stock price showed little movement on Friday and has remained pressured over recent trading sessions.
The company declared earnings per share (EPS) of $0.37, outstripping analysts' expectations that had forecast $0.30 per share. Revenue also came in higher than predicted, totaling $1.12 billion compared to the consensus estimate of $1.05 billion.
In terms of operational performance, Affirm exhibited considerable year-over-year growth. Gross merchandise value (GMV), a key indicator of transaction volume, rose by 36%, reaching $13.8 billion. Additionally, Affirm's active customer base expanded by 23% to reach 25.8 million individuals, while the number of active merchants onboard surged by 42% to a total of 478,000 merchants.
Looking ahead, the company issued forward revenue guidance for the third quarter, projecting revenues between $970 million and $1 billion. This outlook is slightly below the consensus estimate of approximately $979.57 million. For the fourth quarter, Affirm expects revenue in a range between $1.06 billion and $1.09 billion, closely aligned with the consensus of $1.08 billion.
Affirm also updated its fiscal-year 2026 revenue guidance, raising the midpoint from a previous figure of $3.99 billion to a new expected range of $4.08 billion to $4.14 billion. This reflects management's increased confidence in longer-term growth prospects.
Despite these encouraging financials and growth metrics, Affirm's share price is trading under considerable pressure, with notable bearish signals evident in its technical profile. The stock currently sits approximately 15.9% below its 20-day simple moving average (SMA) and 20% below its 100-day SMA, both indicators suggesting a prevailing downward trend.
Over the past 12 months, Affirm's shares have declined by around 3.77%. They are presently positioned closer to their 52-week lows than highs, underscoring sustained weakness in market sentiment toward the stock. Technical momentum indicators provide a further mixed to negative picture: the Relative Strength Index (RSI) rests near 30.68, a figure considered neutral but nearing oversold territory, while the Moving Average Convergence Divergence (MACD) indicator remains below its signal line, signaling bearish momentum.
Key resistance for the stock is identified at the $65.50 level. No immediate support level is specified, indicating potential vulnerability if the downward momentum continues. Investors and traders will be monitoring for any reversal signals that could indicate the stock may regain strength and break through resistance points, or alternatively, further declines that might test lower price levels.
As a result of these factors, Affirm's shares saw a slight decline on Friday, trading roughly 0.12% lower at $59.35 around the time of reporting.
Overall, while Affirm's quarterly results and guidance demonstrate ongoing fundamental growth and an improved longer-term revenue outlook, prevailing technical conditions suggest the stock faces near-term challenges. Market participants appear cautious, balancing optimism from the earnings beat against signs of technical weakness and the uncertain macroeconomic environment.