By Christopher Kuo

Affirm recorded a surge in profit in its fiscal third quarter amid double-digit growth in revenue.

The buy now, pay later company on Thursday posted net income of $102.9 million in the quarter, or 30 cents a share, compared with $2.8 million, or 1 cent a share, a year earlier. Analysts polled by FactSet expected earnings of 17 cents a share.

Revenue jumped 33% to $1.04 billion, driven by gain on sale of loans and increases in network revenue and interest income. Analysts expected revenue of $995.3 million.

Gross merchandise volume was $11.6 billion compared with $8.6 billion a year earlier. About 40% of the growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to-consumer business and wallet partnerships, the company said.

Affirm said it expects gross merchandise volume in the full fiscal year to be $49.27 billion to $49.57 billion. The company also raised its guidance for full-year revenue. It now anticipates annual revenue will be $4.18 billion to $4.21 billion.

Analysts were expecting $4.14 billion in yearly sales.

In the fourth quarter, Affirm expects revenue will be $1.08 billion to $1.11 billion. Wall Street projects $1.09 billion.

In the third quarter, the company retooled its software engineering to be powered by artificial intelligence, with code written by AI bots, said Chief Executive Max Levchin.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

May 07, 2026 16:50 ET (20:50 GMT)

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