Affirm Holdings, Inc. (AFRM.US), the buy-now-pay-later service provider, reported fourth-quarter revenue and profit that exceeded expectations on Thursday, sending shares up 18% in after-hours trading.

The company's Q4 revenue grew 33% year-over-year to $876 million, surpassing market expectations of $837 million. Net profit reached $69.2 million compared to a loss of $45.1 million in the same period last year. Earnings per share came in at 20 cents, also beating market expectations of 11 cents.

Fourth-quarter Gross Merchandise Volume (GMV) increased 43% year-over-year to $10.4 billion. In a letter to shareholders, the company stated: "This continued execution enabled Affirm to achieve operating profitability in Q4 of fiscal 2025, right in line with the timeline we committed to a year ago."

For the first quarter of fiscal 2026, Affirm Holdings, Inc. expects revenue to be between $855 million and $885 million, while GMV is projected to range from $10.1 billion to $10.4 billion.

As of Thursday's market close, Affirm Holdings, Inc. shares have gained 31% year-to-date, outperforming the Nasdaq's 12% increase. The company went public in 2021 and currently faces intensifying competition in the e-commerce sector.

Affirm Holdings, Inc. has established partnerships with Amazon and Shopify, but another partner, Walmart, recently switched to competitor Klarna, which is expected to go public soon. Last year, the company also announced an agreement with Apple.