Affirm (AFRM) Surges 19% After Surprise Profit—CEO Levchin Says ‘We Delivered’

Key Highlights:

✅ Stock Surges: Affirm Holdings Inc. (AFRM) jumps +18.73%, reaching $73.32 amid a surprise profit.
✅Earnings Beat: The company reported a $0.23 EPS, smashing analysts’ expectations of a $-0.10 loss.
✅Revenue Boom: Revenue soars 47% to $866.4 million, beating forecasts.
✅Customer Growth: Active users climb 19% to 21 million, driving transactions up 20%.
✅Bullish Market Sentiment: AFRM hits a three-year high, gaining nearly 60% over the past year.

Affirm Stock Rockets Higher—Here’s Why

The buy now, pay later (BNPL) giant Affirm Holdings Inc. (NASDAQ: AFRM) is on an absolute tear. The stock surged nearly 19% on Friday, climbing to $73.32 after the company shocked Wall Street with a quarterly profit—its first ever on a reported basis.

Fueled by a record-breaking holiday shopping season, more budget-conscious shoppers turned to Affirm’s flexible financing options, taking advantage of retailers' deep discounts on electronics, apparel, and home goods.

The company’s Gross Merchandise Volume (GMV)—a key metric tracking total transactions on the platform—skyrocketed 35% to $10.1 billion, smashing estimates of $9.57 billion.

Affirm is now on track to add over $4 billion to its market capitalization, cementing its position as a dominant force in the BNPL space.

“Affirm is firing on all cylinders, delivering premium growth, improving profitability, and consistent credit performance,” noted J.P. Morgan analyst Reginald Smith.

CEO Max Levchin celebrated the results, emphasizing Affirm’s ability to “deliver for merchants” during a record-breaking holiday shopping season.

"We are nearly there today—mark it zero," Levchin boldly stated, hinting at achieving full profitability sooner than expected.

Stock Performance: A Breakout in the Making?

Affirm’s meteoric rise has caught the attention of investors. The stock surged 18.73% on February 7, 2025, to $73.32, marking an astounding 60% gain in the past year.

Key Stock Data:

• Day's Range: $68.30 - $76.88
• 52-Week High: $76.88 (New High)
• 52-Week Low: $22.25
• Market Cap: $22.73 billion
• Average Volume: 7.99 million shares
• Current Volume: 12.01 million shares

Stock Price Surge - Affirm (AFRM) vs. Market (S&P 500, Nasdaq)

Let's visualize Affirm's rally compared to major indices:

Stock Performance: Affirm’s Breakout vs. The Market

Affirm’s rally is outpacing everything—but how does it compare to the broader market?

📊 Stock Data at a Glance:

• Day's Range: $68.30 - $76.88
• 52-Week High: $76.88 (New High)
• Market Cap: $22.73 billion
• Average Volume: 7.99 million shares
• Current Volume: 12.01 million shares

CEO Max Levchin’s Key Statements: What Investors Need to Know

During the Q2 2025 earnings call, CEO Max Levchin and CFO Rob O’Hare provided critical insights into what’s driving Affirm’s success and what’s next for the company.

Record Holiday Season Drove Unprecedented Growth

Levchin emphasized that Affirm capitalized on a historic holiday shopping boom, highlighting key performance areas:

🔹 GMV from Affirm’s Top 5 Merchants: Up 40%
🔹 Consumer Electronics & Merchandise Categories: Biggest revenue contributors
🔹 Zero-Percent Financing: Key driver of merchant adoption

Levchin: “When our merchants turn towards growth, they look for ways to do promotions. Channeling their discounts into zero-percent APR loans drives conversions while maintaining pricing integrity. That’s why we saw record GMV growth.”

Affirm is ‘Nearly’ Fully Profitable—A Huge Inflection Point

For years, Affirm burned cash to fuel growth. Now, the company is flipping the script:

📊 Financial Highlights:
💰Net Income: $80.4M (vs. a loss last year)
📈Operating Loss: Shrunk from $172.2M to just $4.3M
🚀EPS: $0.23 per share (Analysts expected a -$0.10 loss!)

Levchin didn’t hold back:
“We are nearly at operating profitability—mark it zero.”

The Secret Sauce? Universal Financing & Affirm Network Expansion

One of the biggest catalysts for Affirm’s growth has been zero-percent financing partnerships.

Levchin revealed that BNPL demand is skyrocketing because:

✅More merchants prefer BNPL over traditional credit cards
✅Zero-percent financing increases customer conversion rates
✅Affirm’s network is expanding across e-commerce, travel, and retail

Levchin:
“The Affirm Network is valuable because it knows the SKUs, understands transactions, and delivers unique reasons for consumers to buy across all our platforms.”

The Bull & Bear Case for AFRM:

📈 The Bullish Argument

✅ BNPL market booming—Consumers favor alternative financing
✅Affirm’s path to profitability accelerating
✅Merchant adoption growing (especially for zero-percent financing)
✅Stock momentum is strong—up 60% in the past year

📉 The Bearish Argument

❌ Affirm is highly volatile (Beta 3.48)
❌Macroeconomic risks (interest rates, inflation, consumer spending)
❌Regulatory concerns surrounding BNPL

Investor Takeaway: Affirm isn’t just another fintech—it’s a leader in a rapidly growing market.

Short-Term: Watch for resistance at $76-$80.
Long-Term: Affirm could become a dominant player in global fintech.

Final Verdict: Is AFRM Stock a Buy?

With record earnings, surging consumer adoption, and a clear path to profitability, Affirm has gone from a speculative fintech play to a serious contender in the BNPL space.

Analysts are bullish, and the stock’s breakout momentum suggests Affirm could still have room to run.

J.P. Morgan’s Reginald Smith: “Affirm is firing on all cylinders, delivering premium growth, improving profitability, and consistent credit performance.”

Investor Outlook: If Affirm maintains its strong BNPL momentum, it could easily become a top fintech stock to own in 2025.