Affirm returns to profit as card and AI tools drive growth

Affirm Holdings reported a return to profitability and broad revenue growth for the fourth quarter of fiscal 2025, driven by rising transaction volumes, stronger capital access and expanding adoption of its card and artificial intelligence tools. The San Francisco buy now, pay later company said on Thursday that it earned 20 cents a diluted share for the quarter ended June 30, reversing a 14 cent loss a year earlier, while revenue climbed to about $876 million and gross merchandise volume rose to roughly $10.4 billion.

Management attributed the performance to higher engagement across its network, new product traction and disciplined underwriting. Active consumers reached about 23.0 million, up roughly 23 percent year over year, and transactions per active consumer increased to about 5.8. Revenue less transaction costs, a company non GAAP metric, rose to $425 million, while adjusted operating margin improved to 27.0 percent. Funding capacity increased by about 55 percent year over year, the company said, helping support growth without diluting credit standards.

Affirm highlighted rapid scaling of the Affirm Card and AI driven checkout tools as notable drivers. The card doubled...