Affirm Holdings, Inc., a prominent player in the buy now, pay later (BNPL) sector, is scheduled to release its third-quarter fiscal 2025 results on May 8, 2025, following the market close. Analysts have projected a loss of 8 cents per share against revenues of $783.1 million for the quarter. Notably, this loss estimate has improved by 2 cents over the last month, reflecting an encouraging year-over-year improvement of 81.4%. The revenue forecast represents a significant year-over-year growth of 35.9%.
For the entire fiscal year, Affirm’s projected revenues are estimated at $3.2 billion, marking a notable 37.1% increase compared to the previous year. The earnings per share (EPS) estimate for 2025 stands at a loss of 6 cents, which would demonstrate an impressive improvement of 96.4% year over year.
Historically, Affirm has consistently outperformed earnings expectations, having beaten consensus estimates for earnings in each of the last four quarters, with an average surprise of 84.1%. Early indications suggest that affirm could continue this trend, as its Earnings ESP is at a substantial +63.27%, paired with a Zacks Rank of #1 (Strong Buy). This positions the company well for potential earnings surprises.
Factors contributing to Affirm’s optimistic outlook for the upcoming quarter include substantial growth in its merchant network and Gross Merchandise Volume (GMV). The revenue from the merchant network is expected to reach $199.5 million, a 25.2% increase year-over-year. Additionally, the consensus estimate for GMV projects a growth of 29.2%, expecting to fall between $8 to $8.3 billion. The rising number of transactions on Affirm’s platform is anticipated to be driven by an increase in active merchants and consumers, with estimates suggesting a 17.4% rise in active consumers and a 16.5% growth in transactions per active consumer compared to the previous year.
With these positive indicators, Affirm seems poised to deliver promising results in the fiscal third quarter. This positions the company not only for financial growth but also for increased market confidence as it continues to expand its merchant relationships and consumer base in the evolving BNPL landscape.