What Happened?
Shares of buy now, pay later company Affirm (NASDAQ: AFRM) jumped 3% in the morning session after the stock's positive momentum continued as the company reported strong first-quarter fiscal 2026 financial results that surpassed expectations. The buy now, pay later firm announced earnings of 23 cents per share, which easily beat analyst estimates. This result was a significant improvement from the loss of 31 cents per share reported in the same quarter of the previous year. Total revenues grew by 33.6% year over year to $933.3 million, also coming in ahead of the company's own forecast. The strong performance was fueled by a 42% jump in Gross Merchandise Value to $10.8 billion. Affirm also saw its active merchant count climb 30% to 419,000, as transaction volumes increased. For the upcoming quarter, the company guided for revenues between $1.03 billion and $1.06 billion.
After the initial pop the shares cooled down to $77.95, up 3.7% from previous close.
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What Is The Market Telling Us
Affirm’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 10.7% on the news that the company reported strong third-quarter 2025 results that beat Wall Street's expectations for both revenue and profit. For the quarter, Affirm posted revenue of $933.3 million, a 33.6% increase from the previous year, which surpassed analyst forecasts. The company’s profitability was a key highlight, with earnings per share of $0.23, more than double the consensus estimate of $0.11. This strong bottom-line performance was driven by improved operational efficiency, as its pre-tax profit margin expanded by 23 percentage points compared to the same quarter last year. The positive results, showcasing both strong growth and increasing profitability, fueled investor confidence.
Affirm is up 24.7% since the beginning of the year, but at $77.95 per share, it is still trading 15.4% below its 52-week high of $92.18 from September 2025. Investors who bought $1,000 worth of Affirm’s shares at the IPO in January 2021 would now be looking at an investment worth $801.64.
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