Buy now, pay later company Affirm (NASDAQ:AFRM) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 29.6% year on year to $1.12 billion. Its GAAP profit of $0.37 per share was 39.5% above analysts’ consensus estimates.

Is now the time to buy Affirm? Find out in our full research report.

Revenue: $1.12 billion vs analyst estimates of $1.06 billion (29.6% year-on-year growth, 6.3% beat)

Pre-tax Profit: $133.2 million (11.9% margin)

EPS (GAAP): $0.37 vs analyst estimates of $0.27 (39.5% beat)

Market Capitalization: $20.52 billion

Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ:AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Affirm’s revenue grew at an incredible 40.9% compounded annual growth rate over the last five years. Its growth beat the average financials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Affirm’s annualized revenue growth of 39.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Affirm reported robust year-on-year revenue growth of 29.6%, and its $1.12 billion of revenue topped Wall Street estimates by 6.3%.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

It was good to see Affirm beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The market seemed to be hoping for more, and the stock traded down 3.9% to $57.29 immediately after reporting.

Big picture, is Affirm a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.