Affirm Q2 Earnings: Revenue Beat, EPS Beat, Operating 'With Excellence' And More

Affirm Holdings Inc AFRM reported fiscal second-quarter financial results after the bell on Thursday. Here's a rundown of the report.

Q2 Earnings: Affirm said fiscal second-quarter revenue increased 48% year-over-year to $591.1 million, which beat the consensus estimate of $520.62 million, according to Benzinga Pro. The company reported a loss of 54 cents per share, which beat analyst estimates for a loss of 72 cents per share.

Gross merchandise volume grew 32% year-over-year as growth accelerated for the third straight quarter. Revenue minus transaction costs was up 68% year-over-year at $242 million.

Affirm noted that it had more than 700,000 active Affirm card consumers at the end of the quarter. Affirm card gross merchandise volume came in at about $400 million.

"This time last year, we reiterated our commitment to building operating leverage without sacrificing credit performance, volume growth, or innovation. The market wasn't exactly convinced then, but 12 months later, we have done exactly what we said we would," founder and CEO Max Levchin said in a letter to shareholders.

Outlook: Affirm expects fiscal third-quarter revenue to be in the range of $530 million to $550 million, significantly higher than the estimates of $487.75 million. Gross merchandise volume is expected to be between $5.8 billion and $6 billion.

"If there is one takeaway I'd like to offer our shareholders, it's this: over the last year we've demonstrated we know how to operate our business with excellence. We intend to continue to do just that," Levchin said.

Management will hold a conference call to discuss these results at 5 p.m. ET.

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AFRM Price Action: Affirm shares were down 8.37% after hours at $45.10 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Affirm.