Loss-making Affirm Holdings (NASDAQ:AFRM) has seen earnings and shareholder returns follow the same downward trajectory over past -15%

Affirm Holdings, Inc. (NASDAQ:AFRM) shareholders will doubtless be very grateful to see the share price up 68% in the last quarter. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 15% in the last year, well below the market return.

On a more encouraging note the company has added US$500m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Check out our latest analysis for Affirm Holdings

Because Affirm Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Affirm Holdings grew its revenue by 21% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 15%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

Given that the market gained 10% in the last year, Affirm Holdings shareholders might be miffed that they lost 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 68% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Affirm Holdings you should know about.

But note: Affirm Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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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.