Buy now, pay later company Affirm (NASDAQ: AFRM) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 33% year on year to $876.4 million. Guidance for next quarter’s revenue was better than expected at $870 million at the midpoint, 1.2% above analysts’ estimates. Its GAAP profit of $0.20 per share was 75.9% above analysts’ consensus estimates.
Is now the time to buy Affirm? Find out by accessing our full research report, it’s free.
Affirm (AFRM) Q2 CY2025 Highlights:
- Revenue: $876.4 million vs analyst estimates of $837.4 million (33% year-on-year growth, 4.7% beat)
- Pre-tax Profit: $71.58 million (8.2% margin, 262% year-on-year growth)
- EPS (GAAP): $0.20 vs analyst estimates of $0.11 (75.9% beat)
- Revenue Guidance for Q3 CY2025 is $870 million at the midpoint, above analyst estimates of $859.3 million
- Market Capitalization: $25.03 billion
Company Overview
Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ: AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Affirm grew its revenue at an incredible 44.6% compounded annual growth rate. Its growth beat the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Affirm’s annualized revenue growth of 42.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Affirm reported wonderful year-on-year revenue growth of 33%, and its $876.4 million of revenue exceeded Wall Street’s estimates by 4.7%. Company management is currently guiding for a 24.6% year-on-year increase in sales next quarter.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Key Takeaways from Affirm’s Q2 Results
It was good to see Affirm beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 8.8% to $87 immediately after reporting.
Affirm put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
