According to Techmeme, Affirm just reported Q1 revenue of $933 million, beating the $883 million estimate and representing 34% year-over-year growth. Gross merchandise volume jumped 42% to $10.8 billion, also surpassing the $10.38 billion expectation. The buy now, pay later company delivered profits above analyst forecasts across key metrics. Immediately following the earnings release, AFRM stock surged more than 11% in after-hours trading. This marks another quarter of strong performance for the fintech firm despite broader economic uncertainty.
The BNPL Machine Keeps Rolling
Here’s the thing about Affirm – they’ve managed to position themselves perfectly in this weird economic moment. People are still spending, but they’re more cautious about big purchases. Enter buy now, pay later. Basically, Affirm gives consumers the flexibility to spread payments while giving merchants higher conversion rates. It’s a win-win that’s clearly working.
And the timing couldn’t be better. With credit card debt at record highs and interest rates still elevated, traditional revolving credit is becoming less attractive. Affirm’s transparent pricing (no late fees, no compounding interest) is hitting a nerve. They’re basically becoming the anti-credit card for a generation that’s wary of traditional debt traps.
What’s Really Driving This Growth?
Look, 42% GMV growth isn’t just about more people using BNPL for online shopping. Affirm has been aggressively expanding their merchant partnerships and moving into larger ticket categories. We’re talking everything from healthcare procedures to travel to home improvement. When you can finance a $5,000 Peloton or a $15,000 home renovation, that GMV number starts looking very different.
But here’s the real question – can they keep this up? The economy’s sending mixed signals, and consumer spending patterns are shifting. Still, today’s numbers suggest Affirm’s model has staying power beyond just pandemic-era e-commerce spikes. They’re building something that might actually survive the next economic downturn.
