Affirm Holdings Reports 36% Revenue Growth to $783.1 Million in Latest Quarter

Affirm Holdings, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $783.1 million for the three months ended March 31, 2025, a 36% increase from $576.2 million in the same period last year. For the nine months ending March 31, 2025, revenue rose to $2.35 billion, up 41% from $1.66 billion year-over-year. The company achieved a net income of $2.8 million for the quarter, a notable recovery from a net loss of $133.9 million in the prior year, while the nine-month period saw a net loss of $17.1 million compared to a loss of $472.6 million in the same timeframe last year.

The increase in revenue was driven by a 36% rise in gross merchandise volume (GMV), which reached $8.6 billion for the quarter, attributed to growth in both the number of active consumers and transactions per consumer. Active consumers increased by 21% to approximately 21.9 million, while transactions per active consumer rose to 5.6, a 20% increase. The company also reported a 64% increase in card network revenue, totaling $58.6 million, and a 28% rise in interest income, which reached $402.7 million.

Affirm's operational metrics reflect strategic developments, including an expansion of its merchant network and product offerings. The company reported a 38% increase in loans purchased from its originating bank partners, totaling $7.1 billion for the quarter. Additionally, the number of active merchants grew to approximately 358,000, up from 292,000 a year earlier. The company continues to focus on enhancing its technology and data analytics capabilities, which are central to its risk assessment and loan origination processes.

Looking ahead, Affirm's management expressed optimism about future growth, citing the ongoing expansion of its consumer and merchant base, as well as the potential for increased adoption of its Affirm Card. However, the company remains cautious about macroeconomic conditions, including inflation and interest rate fluctuations, which could impact consumer spending and loan performance. Affirm's diverse funding sources and capital-efficient model are expected to support its growth objectives in the coming year, as it aims to solidify its position in the evolving payments landscape.