Affirm Holdings Inc. ( AFRM ) shares are trading higher on Friday after the company reported better-than-expected results for the fourth quarter.

AFRM stock is at important technical levels. Get the complete picture here.

What To Know: The company posted earnings of 20 cents per share, ahead of analyst expectations of 10 cents. Revenue was $876.4 million, topping estimates of $837 million and reflecting continued growth compared to last year.

Affirm noted that its merchant network expanded to 377,000 active partners during fiscal 2025, a 24% increase. The company also reported a 20% rise in transaction frequency, showing that customers are using its services more often. Credit performance was stable, with a reported 4% return on loans to consumers, a key measure of the company's ability to manage lending risk.

Guidance added to the positive reaction. For the first quarter, Affirm expects revenue between $855 million and $885 million, in line with or slightly above consensus estimates. More notably, the company projected fiscal 2026 revenue of $3.86 billion, well above the analyst estimate of $3.18 billion. This forward outlook gave investors further confidence that Affirm expects momentum to continue into the next fiscal year.

Affirm stock is moving higher as investors responded to the earnings beat, stronger-than-expected sales and guidance that suggests growth could remain well above market forecasts. The results reinforced confidence in the company's scale and ability to balance expansion with stable credit performance.

AFRM Price Action: Affirm shares were up 9.25% at $87.39 at publication on Friday, according to Benzinga Pro.

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