Affirm Holdings Inc (NASDAQ:AFRM) reported better-than-expected third-quarter earnings but saw its shares fall 9% in after-hours trading as the company’s guidance fell short of analyst expectations.

The buy-now-pay-later firm posted adjusted earnings per share of $0.01 for the quarter ended March 31, beating the analyst estimate of a $0.01 loss. Revenue came in at $783.14 million, slightly above the consensus estimate of $781.74 million and up 21% YoY.

Despite the earnings beat, Affirm’s outlook for the fourth quarter and full fiscal year 2025 failed to impress investors. The company forecasts Q4 revenue between $815 million and $845 million, with the midpoint falling below the analyst consensus of $841.6 million. For the full year, Affirm expects revenue of $3.163-3.193 billion, compared to the $3.177 billion analysts were anticipating.

"We continued to lean into 0% APR monthly installments which grew 44% year over year, and constituted 13% of total GMV, the highest level in the past two years," said Max Levchin, Affirm’s CEO, in the earnings release.

The company added 1.8 million new consumers in the quarter while maintaining a 94% overall repeat rate. Affirm Card, the company’s power tool for consumers, generated $807 million in Gross Merchandise Volume (GMV), representing 115% YoY growth from approximately 2 million active cardholders.

Affirm also announced a new online partnership with Costco (NASDAQ:COST) and extended its agreement with Shopify (NASDAQ:SHOP) through June 2028. Despite these positive developments, the lackluster guidance appears to have overshadowed the company’s quarterly performance, leading to the stock’s decline in after-hours trading.