Affirm

AFRM Q3 2025 Earnings

Reported May 8, 2025 at 4:07 PM ET · SEC Source

Q3 25 EPS

$0.01

MISS 96.83%

Est. $0.32

Q3 25 Revenue

$783.1M

BEAT +0.02%

Est. $783.0M

vs S&P Since Q3 25

+8.3%

BEATING MARKET

AFRM +36.0% vs S&P +27.7%

Market Reaction

Did AFRM Beat Earnings? Q3 2025 Results

Affirm posted a mixed fiscal third quarter that told two very different stories depending on which line you looked at: revenue of $783.13 million edged past the $782.96 million consensus by just 0.02% and climbed 35.9% year-over-year, but earnings pe… Read more Affirm posted a mixed fiscal third quarter that told two very different stories depending on which line you looked at: revenue of $783.13 million edged past the $782.96 million consensus by just 0.02% and climbed 35.9% year-over-year, but earnings per share of $0.01 fell dramatically short of the $0.32 consensus estimate, a 96.83% miss, as the company's aggressive push into 0% APR installment products, which grew 44% and reached 13% of total GMV, temporarily compressed near-term profitability. Still, the headline that mattered most to bulls was the company's swing to GAAP net income of $2.80 million from a $133.90 million loss a year ago, alongside gross merchandise volume growth of 36% to $8.60 billion. Affirm shares were moving on the results as management guided fiscal Q4 revenue to $815–$845 million with adjusted operating margin of 23–25%, and full-year GMV of $35.70–$36.00 billion, signaling continued confidence in the platform's growth trajectory despite macroeconomic uncertainty.

Key Takeaways

  • GMV growth of 36% to $8.6 billion, accelerating to 40% in March
  • 0% APR monthly installment GMV grew 44%, reaching 13% of total GMV
  • Affirm Card GMV grew 115% to $807 million with ~2M active cardholders
  • Direct-to-consumer GMV grew 50% to $2.4 billion
  • Average funding costs declined approximately 50 basis points year-over-year to 7.1%
  • Provision for credit losses improvement as percent of GMV drove approximately half of RLTC margin improvement
  • Loans sold as a percent of GMV increased from 33% to 43% year-over-year
  • Dollar-based net expansion rate above 115% with merchant renewal rates above 97%
  • 1.8 million new-to-Affirm consumers added in the quarter
24/7 Wall St

AFRM YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

AFRM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 23 Q2 26

“Demand for Affirm remains excellent: year-over-year GMV growth accelerated for the third consecutive quarter, including a strong March, which continued into April. Credit outcomes are in-line with our predictions, and as always, we are watching attentively for any indicators of macroeconomic stress, and fine-tuning the settings of our models continuously.”

— Max Levchin, Q3 2025 Earnings Press Release