Affirm Holdings Inc. is scheduled to report its latest results after the market closes on Thursday. The buy-now-pay-later specialist posted revenue of $783.1 million in the previous quarter, up 35.9% year over year, but it still faced a meaningful miss on earnings per share. For the coming quarter, analysts expect about 27% year-over-year revenue growth to roughly $837.4 million, a slowdown from the 47.9% growth posted a year ago. Adjusted earnings are forecast to come in around $0.43 per share.
Most analysts covering Affirm have maintained their estimates over the past month, though the company has missed Wall Street revenue expectations on two occasions in the last two years. In the broader personal-loan segment, LendingClub reported year-over-year revenue growth of 32.7% and beat estimates by 9.2%, while Dave posted 64.5% growth and topped projections by 16%. LendingClub shares rose about 20.9% after their results, while Dave’s stock declined roughly 19.9%.
Affirm’s shares have edged higher in recent weeks, up about 15.7% over the last month, even as the stock trades around $78.10. The average analyst price target sits at $76.68, suggesting limited upside from current levels on the back of the upcoming earnings print.
The article also notes promotional material tied to the coverage, including a free stock analysis report and a hiring note for StockStory, the publisher behind the piece.
What to watch for
– Key revenue and gross margin trends as Affirm scales its BNPL offerings and expands merchant partnerships.
– Any commentary on customer growth, average order value, and credit performance, which have historically driven both revenue and profitability.
– The competitive landscape in BNPL, with peers reporting solid growth in the recent quarter and the potential impact of macro headwinds on consumer spending.
Summary: Affirm is entering earnings with expectations for continued revenue growth but a slower pace than a year ago, while investors weigh the implications of a potential earnings miss and a modest price target relative to the current share price. The sector’s recent momentum and close peer results provide context for what could influence Affirm’s stock reaction after the print.
Optional note for editors
– If including a reader takeaway or forward-looking angle, you could highlight how Affirm’s ability to monetize merchant relationships and reduce costs will be critical to maintaining margin expansion amid growing competition.