Why Affirm Shares Are Tanking In Wednesday's After-Hours Session

Affirm Holdings Inc AFRM shares are trading lower by 17.17% to $13.27 during Wednesday's after-hours session. The company reported worse-than-expected second-quarter financial results.

What Happened?

Affirm reported a quarterly loss of $1.10 per share, which missed the analyst consensus estimate of a loss of 98 cents. The company also reported quarterly sales of $399.56 million, which missed the analyst consensus estimate of $416.30 million by 4%. This sales figure is a 10.7% increase over sales of $361.01 million in the same period last year.

The company also announced a 19% reduction in total team members. Affirm says the company expects to otherwise keep the headcount flat for the foreseeable future.

Additionally, Affirm management says that in Q2, the company successfully redirected the substantial majority of R&D efforts towards margin-improving projects, repeat customer engagement, and Debit+ and plans to continue executing this roadmap for several quarters moving forward.

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According to data from Benzinga Pro, AFRM has a 52-week high of $83.57 and a 52-week low of $8.62.