Affirm Holdings, Inc. (AFRM) experienced a significant 24-hour plunge of 5.84% in extended trading on Thursday, erasing gains from the regular session.
The buy now, pay later provider reported impressive fiscal second-quarter 2026 results, with earnings of $0.37 per diluted share beating the FactSet consensus estimate of $0.27. Revenue for the quarter reached $1.12 billion, also exceeding analyst expectations of $1.06 billion.
However, the stock's decline appears driven by investor concerns over the company's forward-looking guidance. Affirm projected fiscal third-quarter revenue in the range of $970 million to $1.0 billion, which aligns with or slightly trails the consensus estimate. This guidance, despite the strong Q2 performance, prompted the after-hours selloff as markets reacted to the company's near-term outlook.