Affirm Holdings, Inc. (NASDAQ:AFRM) saw its shares plummet 8.55% in after-hours trading on Thursday, despite reporting better-than-expected third-quarter results. The buy-now, pay-later platform's stock decline comes as investors digest the company's financial performance and future outlook.

Affirm reported a narrower loss of 1 cent per share, beating analysts' expectations of a 3-cent loss. Revenue for the quarter came in at $783.13 million, slightly above the consensus estimate of $783.03 million and representing a 36% increase from the previous year. The company's Gross Merchandise Volume (GMV) grew 36% to $8.6 billion, with Direct-to-Consumer GMV increasing by 50% to $2.4 billion.

Despite the positive results, investors seem concerned about the company's future prospects. CEO Max Levchin addressed potential economic challenges, stating that Affirm is prepared to manage a recession scenario by adjusting credit approvals. The company also announced a new online partnership with Costco, which could help offset the recent loss of Walmart as a partner. However, the market's reaction suggests that these developments may not be enough to assuage investor worries about the buy-now, pay-later sector's performance in a potentially weakening economic environment.