Key Stats for Affirm Stock
- Price Change for Affirm stock: 8%
- $AFRM Share Price as of Nov. 6: $66
- 52-Week High: $100
- $AFRM Stock Price Target: $96
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What Happened?
Affirm (AFRM) stock is up over 8% in early-market after the buy now, pay later company crushed Wall Street’s expectations for its fiscal first quarter.
The company reported a profit of $0.23 per share, exceeding the $0.11 per share that analysts had expected. Revenue climbed 34% to $933 million, easily topping estimates of $886 million.
The standout performance came from Affirm’s debit card, which added 500,000 new users during the quarter, bringing the total number of cardholders to 2.8 million.
The card generated $1.4 billion in transaction volume, demonstrating strong traction among consumers seeking flexible payment options that avoid traditional credit card debt.
Total platform volume surged 42% to $10.8 billion, beating estimates, while the active customer base grew to 24.1 million, up from 19.5 million the previous year.
Operating margins expanded dramatically to 28.3%, up from 19% in the year-ago period, demonstrating improved efficiency as the business scales.
CEO Max Levchin also announced major news: Affirm extended its partnership with Amazon for another five years through January 2031.
This is a huge win for the company, as Amazon represents a significant distribution channel for reaching new customers.
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What the Market Is Telling Us About Affirm Stock
The strong reaction to Affirm stock suggests investors are encouraged by the company’s ability to grow rapidly while improving profitability.
The debit card is becoming a significant part of the business, accounting for nearly 12% of active users since its recent launch.
During the earnings call, management emphasized their strategy of offering true 0% financing with no hidden fees.
This approach is attracting higher-credit-quality customers who are making larger purchases. The company ran a promotional event called “0% Days” that management said demonstrated Affirm’s ability to drive sales for merchant partners through targeted promotions.
The Amazon partnership extension removes a significant uncertainty that has been hanging over Affirm stock. Analysts estimate Affirm has a low single-digit share of Amazon’s checkout, suggesting plenty of room to grow within that relationship alone.
New partnerships with Apple, Wayfair, and Fanatics are expected to provide additional growth drivers in 2026.
Management expressed confidence in the consumer environment, noting they can detect spending patterns among government employees and other cohorts without seeing stress in repayment rates. Credit quality remains strong despite broader economic concerns.
Looking ahead, Affirm stock appears positioned to benefit from several tailwinds. The shift toward 0% installment plans is attracting higher-quality customers and strengthening merchant relationships.
The debit card is capturing a larger share of consumer spending while platform partnerships, such as Shopify and Worldpay, are accelerating merchant integrations.
For the current quarter, Affirm guided to revenue of $1.045 billion at the midpoint, roughly in line with expectations.
The company maintained its full-year target of keeping revenue less transaction costs at around 4% of volume, showing confidence in balancing growth with profitability.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
