What Happened?
Shares of buy now, pay later company Affirm (NASDAQ: AFRM) jumped 10.7% in the afternoon session after 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.
The shares closed the day at $73.66, up 11.6% 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. But moves this big are rare even for Affirm and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 5.8% on the news that the company announced an expanded partnership with global payment services provider Worldpay. The new agreement integrated Affirm's buy now, pay later (BNPL) services into Worldpay's embedded payments offering for software platforms. This move allowed the more than 1,000 software companies using Worldpay's platform to offer Affirm as a payment method to their merchants. By doing so, Affirm significantly broadened its reach to a large network of businesses and their end customers, providing them with more flexible payment options. To put the scale of this partnership into perspective, Worldpay's platform processed over $400 billion in payment volume across 4.6 billion transactions in the previous 12 months. This collaboration enhanced Affirm's presence and usability within the payments industry.
Affirm is up 17.9% since the beginning of the year, but at $73.71 per share, it is still trading 20% 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 $758.02.
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