Affirm Holdings stock plunged by 13% on Friday after the company released a less-than-expected revenue forecast for the upcoming fiscal quarter. The provider of buy-now, pay-later (BNPL) services anticipates revenue between $815 million and $845 million for Q4, with the midpoint falling below analyst estimates of $843.9 million.
Despite these challenges, Affirm’s third-quarter revenue of $783.1 million still exceeded expectations. Additionally, the company posted a surprise profit of 1 cent per share when analysts were predicting a loss of 2 cents per share. Affirm also saw a remarkable 36% year-over-year surge in gross merchandise volume, totaling $8.6 billion, surpassing projections.
Why Affirm Holdings Stock is Struggling in 2025
The struggles faced by Affirm Holdings stock are in stark contrast to the company’s performance metrics, which have shown growth. CEO Max Levchin addressed the inconsistencies in consumer behavior in a CNBC interview, mentioning that while consumers are feeling economic stress, they continue to shop and pay their bills—at least, on time to Affirm.
Looking ahead, the company’s future remains uncertain, as investors weigh the implications of its weakened guidance. Affirm Holdings stock has dropped nearly 25% so far this year, reflecting the market’s caution surrounding BNPL companies in the current economic climate.
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Source: www.investopedia.com
