Affirm Holdings Inc. (AFRM) saw its stock surge 13.38% in the post-market trading session on Thursday after the company reported impressive fiscal Q2 2025 results, defying expectations and underscoring its position as a leading player in the 'buy now, pay later' space.

The strong performance can be attributed to Affirm's robust top-line growth, with revenue soaring 46.6% year-over-year to $866.38 million, surpassing analysts' estimates of $807.16 million. Moreover, the company swung to a profit of $0.23 per share, significantly outperforming the anticipated loss of $0.16 per share. This remarkable feat was driven by a 35% year-over-year increase in gross merchandise volume to $10.1 billion, reflecting the continued popularity of its installment payment services.

Additionally, Affirm's active consumer base grew by 23% year-over-year to 21 million, with each active consumer making an average of 5.3 transactions during the quarter. The company's guidance for fiscal 2025 revenue, ranging from $3.13 billion to $3.19 billion, also exceeded analysts' expectations, further fueling optimism among investors.