Affirm (AFRM) Q3 2025 earnings summary

Executive summary

• GMV reached $8.6B in Q3 FY25, up 36% year-over-year, with revenue of $783M, and net income of $2.8M compared to a net loss in Q3 FY24.

• Active consumers grew to 21.9M, up 23% year-over-year, with transactions per active consumer up to 5.6.

• Affirm Card GMV grew 115% year-over-year to $807M, with 1.9M active card consumers (+107%).

• 94% of transactions in Q3 FY25 were from repeat customers, and total transactions grew 46% year-over-year.

• Improved outlook for the fiscal year, focusing on balancing growth and profitability while maintaining excellent credit quality.

Financial highlights

• Revenue for Q3 FY25 was $783M, a 36% increase from Q3 FY24, with total revenue for the nine months ended March 31, 2025 at $2.35B, up 41% year-over-year.

• Adjusted operating income for Q3 FY25 was $174M, with an adjusted operating margin of 22%.

• Net income for the quarter was $2.8M, with a GAAP operating income of $130M.

• Allowance for losses stood at $375M, representing 5.7% of loans held for investment.

• Sales and marketing expenses declined due to the end of a large partner's warrant amortization period.

Outlook and guidance

• FY25 GMV expected between $35.7B and $36.0B; Q4 FY25 GMV guidance is $9.4B to $9.7B.

• FY25 revenue guidance is $3.16B to $3.19B; Q4 FY25 revenue expected at $815M to $845M.

• Adjusted operating margin for FY25 projected at 23% to 23.6%.

• April GMV growth rates remained elevated, but growth is expected to moderate in coming quarters.

• Management expects continued growth in GMV and active users, with a focus on expanding merchant partnerships and Affirm Card adoption.