Buy now, pay later company Affirm (NASDAQ: AFRM) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 33.6% year on year to $933.3 million. Its GAAP profit of $0.23 per share was significantly above analysts’ consensus estimates.

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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

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Affirm’s revenue grew at an incredible 42.2% compounded annual growth rate over the last five years. 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 41.7% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. 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 33.6%, and its $933.3 million of revenue exceeded Wall Street’s estimates by 5.5%.

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Key Takeaways from Affirm’s Q3 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 12.8% to $74.43 immediately following the results.

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. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.