Affirm Holdings, Inc. ( AFRM ) shares are trading higher on Friday after the company reported better-than-expected 2025 fiscal-year second-quarter earnings and strong guidance for the 2025 fiscal-year.

What To Know: Affirm reported earnings per share of 23 cents, beating analysts’ estimate of a loss of 16 cents per share. In addition, the company reported sales of $866.38 million, beating analysts’ estimate of $807.16 million and representing a 47% year-over-year increase.

Affirm attributed its revenue growth to several factors, including a 42% increase in interest income driven by a rise in loans held for investment. Additionally, the company reported a 33% increase in network revenue and a 138% growth in gain on loan sales.

Furthermore, the company reported gross merchandise volume of $10.1 billion, a 35% year-over-increase. Affirm reported direct-to-consumer gross merchandise volume of $2.8 billion.

In its letter to shareholders, the company stated, "Affirm is in the strongest shape it’s ever been. Challenges met, competitors bested: excellent growth in a rapidly expanding segment, on-target unit economics, robust operating leverage.”

The company also issued guidance for the 2025 fiscal-year. It sees revenue from $3.13 billion to $3.19 billion, versus analysts’ estimate of $3.09 billion.

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

Needham analyst Kyle Peterson reiterated a Hold rating on Affirm.

Wells Fargo analyst Andrew Bauch maintained an Overweight rating on Affirm Holdings ( AFRM ) and raised the price target from $70 to $85.

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AFRM Price Action: At the time of writing, Affirm shares are trading 19.0% higher at $73.48, according to data from Benzinga Pro.

Image: Courtesy of Affirm