Affirm Holdings, Inc. (AFRM) saw its stock soar 15.79% in the pre-market trading session on Friday, driven by its impressive fiscal second-quarter 2025 results and robust guidance for the full year.

The "buy now, pay later" lender reported a surprise profit of $0.23 per share for the quarter ended December 31, 2024, defying analyst expectations of a $0.16 loss. Revenue surged 46.6% year-over-year to $866.38 million, outpacing the consensus forecast of $807.16 million.

Affirm's performance was underpinned by strong growth across key metrics. The company's gross merchandise volume (GMV), a measure of total transactions on its platform, jumped 35% year-over-year to $10.1 billion, exceeding expectations. Additionally, the number of active consumers grew by 23% year-over-year to 21 million, with each consumer making an average of 5.3 transactions during the quarter.

Looking ahead, Affirm provided an upbeat outlook for fiscal 2025. The company projected revenue between $3.13 billion and $3.19 billion, above the $3.11 billion estimate. It also raised its fiscal 2025 GMV forecast to a range of $34.7 billion to $35.3 billion, up from its previous target of over $34 billion.

Affirm's strategic initiatives, including its expansion into the UK market and its partnership with Sixth Street, further contributed to the positive sentiment surrounding the stock. The company announced that its integration with Shopify will soon go live in the UK, marking a significant step in its international growth.

Analysts remain optimistic about Affirm's path to profitability, citing the company's growth and margin expansion opportunities, as well as its new product and partnership initiatives. The strong earnings performance and robust guidance have fueled investor confidence, driving the pre-market surge in the stock price.