Affirm Holdings Reports $52.2 Million Net Income and 39% Revenue Growth for Fiscal Year 2025

Affirm Holdings, Inc. reported a net income of $52.2 million for the fiscal year ended June 30, 2025, a significant turnaround from the net loss of $517.8 million in the previous fiscal year. Total revenue for the year reached $3.22 billion, marking a 39% increase from the $2.32 billion reported in fiscal year 2024. This growth was primarily driven by a $10 billion increase in gross merchandise volume (GMV), which rose to $36.7 billion, and an expansion of the active consumer base to 23 million, up from 18.7 million in the prior year. The company's operating loss also improved substantially, decreasing from $615.8 million in fiscal year 2024 to $87.3 million in fiscal year 2025.

The company's revenue streams saw notable changes. Merchant network revenue increased by 31% to $882.7 million, while card network revenue surged by 53% to $231.3 million. Interest income also grew by 34% to $1.61 billion, and gain on sales of loans nearly doubled, increasing by 94% to $381.6 million. These increases were partially offset by a 25% decrease in sales and marketing expenses, reflecting a strategic shift in spending. The number of transactions per active consumer increased by 20% to 5.8, indicating higher engagement and repeat usage of the platform.

Key operational developments included a 34% increase in the provision for credit losses, reflecting the growth in loans held for investment. Funding costs also rose by 24% due to an increase in funding debt and notes issued by securitization trusts. The company continued to focus on expanding its merchant and consumer reach, with active merchants increasing to approximately 377,000. Affirm also emphasized its technology and data infrastructure, with technology and data analytics expenses increasing by 18%, driven by amortization of internally-developed software and data infrastructure costs.

Looking ahead, Affirm aims to continue expanding its solutions for merchants and consumers, increasing consumer transaction frequency and in-store usage, and expanding its reach in both existing and new markets. The company's growth strategy is designed to build upon its momentum and unlock opportunities to create greater value for consumers and merchants. However, Affirm acknowledges potential risks, including competition, reliance on key partners, and the impact of macroeconomic conditions on consumer spending and creditworthiness. The company also faces regulatory scrutiny and must navigate evolving laws and regulations related to consumer finance and data privacy.