Shares of Affirm Holdings, Inc. (NASDAQ: AFRM) plummeted 8.61% in pre-market trading on Friday, following the company's fiscal third-quarter earnings report that raised concerns about future growth despite beating expectations for the quarter.
The buy-now, pay-later platform reported a narrower loss of 1 cent per share for Q3, surpassing analyst estimates of a 3-cent loss. Revenue came in at $783.14 million, slightly above the consensus of $783.03 million and marking a 36% year-over-year increase. However, investors focused on the company's disappointing guidance for the fourth quarter and fiscal year 2025.
Affirm forecasts Q4 revenue between $815 million and $845 million, with the midpoint falling below the analyst consensus of $841.4 million. This outlook suggests a potential moderation in the growth rate of gross merchandise volume, raising concerns among investors about the company's future performance. Additionally, the market appears worried about the buy-now, pay-later sector's resilience in a potentially weakening economic environment, despite CEO Max Levchin's assurances that Affirm is prepared to manage effectively in any macroeconomic scenario.