Affirm Holdings (AFRM) Reports Turnaround From Net Loss To US$52M Profit

Affirm Holdings (AFRM) recently reported notable earnings as the company transitioned from a net loss to a net income for the fiscal year ending June 2025, with substantial increases in sales and revenue. This financial turnaround was complemented by key partnerships with Stripe and Google Pay, alongside index inclusions in major Russell growth benchmarks. These factors likely contributed to the company's impressive 54% share price increase over the last quarter. These developments occurred amid a slightly declining tech sector, with major indexes like the Nasdaq experiencing a 1% drop, highlighting the resilience and appeal of Affirm's growth trajectory.

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The recent developments for Affirm Holdings (AFRM), including its transition to net income and strategic partnerships with Stripe and Google Pay, alongside its inclusion in major Russell growth benchmarks, significantly contribute to the company's growth narrative. The impressive 54% increase in share price over the past quarter amidst a declining tech sector highlights Affirm's resilience. Over a longer-term period of three years, Affirm's total return was a substantial 245.38%, which suggests a robust performance against broader market movements, as it exceeded the US market's 17.2% return and the US Diversified Financial industry return of 12.1% over the past year.

The recent financial and strategic milestones are likely to influence future revenue and earnings forecasts. Affirm's revenue of US$3.01 billion, against the backdrop of international expansion and AI-driven credit risk measures, sets a strong foundation for continued growth. Analysts forecast revenue to grow annually by 23.2% with expected earnings of US$386.2 million by 2028. The current share price of US$79.99, slightly above the consensus analyst price target of US$77.18, indicates a minimal 1.7% difference, implying that analysts consider the stock fairly valued at present. Investors should assess whether future earnings growth aligns with the expectations embedded in the current price target, ensuring that individual assumptions about the business's prospects are factored into their evaluation.

Click to explore a detailed breakdown of our findings in Affirm Holdings' financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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