Affirm Holdings, Inc. (NASDAQ: AFRM) experienced a significant rise in its share price following the release of its earnings report. After the U.S. stock market closed on Wednesday, AFRM shares soared 15.42%, reaching $36.45 in after-hours trading. The surge is attributed to positive financial results and continued growth across key metrics.
Impressive Growth in Gross Merchandise Volume
Outpacing the growth of the e-commerce industry generally, Affirm’s Gross Merchandise Volume (GMV) increased by 31% year over year to $7.2 billion. Continuous improvements in the cart share were reflected in the GMV from its top five merchants and platform partners, which increased by 38% year over year.
In addition, there are now 18.6 million active customers, up 19% from the previous year when Returnly was not included in the count. Additionally, its active merchant count increased by 19% to 303,000, signaling the third consecutive quarter of faster merchant growth and a growing level of company adoption of company’s offerings.
Strategic Partnerships and Expansion
Affirm has secured partnerships with three leading brands and commerce platforms in the U.S. by market share. It is anticipated that AFRM will be incorporated into the four largest digital wallets in North America by year’s end. The company has recently formed a partnership with Hotels.com, allowing approved guests to book accommodations and pay over time, enhancing payment flexibility for travelers.
This move builds on its existing collaboration with Expedia Group, where Affirm serves as the exclusive “buy now, pay later” provider on platforms such as Expedia and Vrbo. By choosing Affirm at checkout, customers can split their total purchase cost into manageable payments with transparent pricing, as the company does not impose late or hidden fees.
Expanding Presence Across Retail and Travel Sectors
The integration of Affirm with Hotels.com marks a significant milestone in its efforts to expand payment flexibility for travelers, adding to its 292,000 retail partners, including major names like Amazon, Casper, Newegg, and American Airlines. This partnership is expected to drive overall sales, increase average order value, and attract new customers, further solidifying Affirm’s position as a leader in the “buy now, pay later” space.
