Affirm Holdings, Inc. (NASDAQ: AFRM) disclosed its financial results for the second quarter, outlining figures that exceeded market numbers yet failed to catalyze a rise in its stock price during after-hours trading on Thursday.
The company announced earnings per share of 37 cents, outpacing analyst estimates which predicted a figure of 30 cents. This earnings beat was accompanied by revenue reaching $1.12 billion, surpassing the consensus expectation of $1.06 billion.
Key performance indicators released alongside the earnings report revealed substantial growth in core areas of Affirm's business model. Gross merchandise value (GMV), representing the total dollar value of transactions processed through Affirm's platform, increased by 36% year-over-year to reach $13.8 billion. This metric serves as a critical barometer of the company's transaction volume and overall market engagement.
Customer engagement metrics also reflected momentum; the active customer base grew by 23% compared to the prior year, reaching a total of 25.8 million users. Additionally, Affirm expanded its ecosystem by increasing the count of active merchants by 42%, totalling 478,000 businesses leveraging its services in the quarter under review.
Looking ahead, the company projected its revenue for the third quarter within the range of $970 million to $1 billion. This forecast is consistent with market expectations, which stand at approximately $979.57 million. Furthermore, Affirm lifted its guidance for fiscal year 2026 revenue, now anticipating a range from $4.09 billion to $4.15 billion, suggesting management's confidence in continued growth and market penetration.
Despite the encouraging financial indicators and forward-looking statements, Affirm's share price experienced a decline in the session following the earnings announcement. Data sourced from Benzinga Pro indicated the stock decreased by 4.4%, closing the after-hours trading period at $56.80.
This price movement underscores the complexity of investor sentiment, particularly in a competitive and fast-evolving financial technology landscape where quarterly results, while impactful, are weighed alongside broader market factors and growth projections.
In summary, Affirm demonstrated solid operational advancements in the second quarter, reflected in earnings, revenue, and key customer and merchant growth parameters. The upward revision in revenue guidance for 2026 further signals strategic optimism. However, market reactions to earnings releases can be nuanced, manifesting in share price fluctuations irrespective of reported gains.