AFRM Q4 Earnings Beat Estimates — So Why Did The Stock Fall After-Hours?

Affirm Holdings saw its provision for credit losses jump to $214.2 million in the second quarter compared to nearly $153 million from the same quarter a year ago.

• Its revenue in the quarter jumped 30% year-over-year to $1.12 billion, and surpassed the consensus estimate of $1.06 billion.
• Affirm expects revenue in third quarter to be in the range of $970 million to $1 billion, analysts on average expect revenue of $975.7 million, as per data from Fiscal.ai
• The company said its interest income grew 21%, driven primarily by a 22% increase in average net loans held for investment. 

Affirm Holdings (AFRM) shares were down in extended hours of trading on Thursday after it reported wider provision for credit losses in its second quarter earnings. 

At the time of writing, AFRM stock was down 4%. The company saw its provision for credit losses jump to $214.2 million in the second quarter, compared to nearly $153 million from the same quarter a year ago. 

Q4 Earnings

Affirm posted adjusted earnings per share of $0.37 per share in the second quarter, beating analysts’ estimates of $0.27 per share, as per data from Fiscal.ai.

Its revenue in the quarter jumped 30% year-over-year to $1.12 billion, and surpassed the consensus estimate of $1.06 billion.

The buy-now-pay-later firm’s gross merchandise volume (GMV) grew 36% to $13.8 billion, while its operating income came in at $118 million, marking a significant $122 million improvement compared to the same quarter a year ago. 

Interest income grew 21%, driven primarily by a 22% increase in average net loans held for investment, the company said. 

"We delivered another round of excellent results in Affirm’s second quarter of FY’26," said Max Levchin, CEO of Affirm. "What we learned this holiday season is that consumers are smart and, when it comes to finding alternatives to credit cards or other offerings with junk fees, they are getting smarter."

Outlook

Affirm expects revenue in the third quarter to be in the range of $970 million to $1 billion, while analysts on average expect revenue of $975.7 million, as per data from Fiscal.ai. 

It expects FY26 revenue in the range of $4.08 billion to $4.15 billion. Analysts on average expect FY26 revenue of $4.06 billion. 

How Did Stocktwits Users React?

Retail sentiment around AFRM shares trended in “bullish” territory amid “extremely high” message volume. 

Shares in the company have fallen 1% over the past year. 

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