Published: November 6, 2025
Affirm Holdings NASDAQ:AFRM surged in after-hours trading on Thursday after posting stronger‑than‑expected fiscal Q1 2026 results, raising the near‑term outlook and disclosing a multi‑year extension of its U.S. agreement with Amazon. Shares traded around the low‑$70s in the evening session—roughly 9%–11% above the regular‑session close—as investors reacted to the beat‑and‑raise narrative.
Key Takeaways
- Earnings beat: Revenue of $933.3 million and GAAP EPS of $0.23 topped consensus. Net income was $80.7 million.
- Usage up:Gross merchandise volume (GMV) hit $10.8 billion, up ~42% year over year.
- Guidance set: For fiscal Q2 2026, Affirm guided revenue to $1.03–$1.06 billion.
- Strategic update: Affirm extended its U.S. agreement with Amazon for five years (effective Feb. 1, 2026; runs through January 2031) and amended Amazon’s warrant in connection with the deal.
What Happened Today
After the bell, Affirm reported fiscal Q1 2026 results that beat Wall Street expectations on both the top and bottom lines. The company posted $933.3 million in revenue and GAAP EPS of $0.23, versus consensus that was looking for roughly $883 million and $0.11, respectively. The company also swung to a $80.7 million GAAP profit for the quarter.
Management also laid out Q2 FY26 revenue guidance of $1.03–$1.06 billion, which brackets the consensus midpoint. Markets initially focused on the stronger‑than‑expected current‑quarter print and healthy usage metrics.
By the Numbers (Fiscal Q1 2026)
- Revenue:$933.3M (vs. est. ~$883M).
- GAAP Net Income / EPS:$80.7M / $0.23, a swing from a loss a year ago and ahead of ~$0.11 consensus.
- GMV:$10.8B, up about 42% YoY, underscoring strong demand across the network and card usage.
These headline figures collectively point to healthy consumer engagement and continued traction across Affirm’s merchant partners and card program.
Guidance & Outlook
For the December quarter (Q2 FY26), Affirm expects revenue of $1.03–$1.06B. While the midpoint sits near street expectations, the magnitude of the Q1 beat—and the GMV momentum into the holiday period—was enough to lift sentiment after hours.
Amazon Agreement Extended
Affirm disclosed that it entered into a Second Amended and Restated Installment Financing Services Agreement with Amazon, effective February 1, 2026, extending the relationship for five years—through January 2031. The company also amended Amazon’s warrant to purchase up to 15 million Affirm shares in connection with the restated agreement, according to an 8‑K filing. The extension cements Amazon as a durable distribution channel for Affirm’s pay‑over‑time options across Amazon.com and Amazon Pay.
How the Stock Moved
- Regular session: AFRM finished the day at $65.96.
- After hours: Shares jumped to roughly $72–$73, up ~9%–11% following the report. Multiple real‑time feeds showed prints around $72.62–$73.42 during the early evening.
Why It Matters for Investors
- Proof of operating leverage: The swing to GAAP profitability alongside double‑digit GMV growth suggests Affirm is scaling while maintaining discipline on credit and funding costs.
- Holiday setup: With Q2 covering peak shopping weeks, Affirm’s guidance implies continued demand for installment options—a tailwind if GMV growth holds.
- Channel durability: The Amazon extension reduces partnership‑related overhangs and supports long‑term volume visibility.
What to Watch Next
- Earnings call: Management hosts its Q1 FY26 call at 5:00 p.m. ET today (Nov 6). Listen for color on credit performance, funding costs, the Affirm Card, and incremental details on the Amazon agreement.
Bottom Line
On November 6, 2025, AFRM delivered a clean beat, healthy usage metrics, and a renewed Amazon pact—three catalysts that lifted the stock after hours. With holiday‑season visibility framed by Q2 revenue guidance of $1.03–$1.06B, Affirm enters year‑end with momentum and a sturdier partnership foundation.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Always do your own research and consider your risk tolerance before buying or selling securities.
