Affirm Holdings, Inc. (NASDAQ:AFRM) Earnings Preview: Strong Growth Expected for BNPL Leader

• Affirm Holdings, Inc. is projected to report strong financial performance with an estimated EPS of $0.35 and revenue of $1.11 billion, marking a 26.2% year-over-year increase.
• Key growth drivers include a projected 29.3% increase in Gross Merchandise Volume (GMV) and a 20.2% rise in active consumers, indicating robust platform engagement.
• AFRM stock has shown significant recovery, trading at $76.45, and technical analysis suggests potential for a price breakout following the upcoming earnings report.

Affirm Holdings, Inc. (NASDAQ:AFRM) is a "buy now, pay later" (BNPL) provider that allows consumers to make purchases and pay for them over time. The company is set to release its quarterly earnings on August 27, 2026. Investors are watching closely, especially after competitor Klarna Group Plc reported issues with its loan performance.

For the upcoming quarter, Wall Street analysts expect Affirm to report earnings per share (EPS) of approximately $0.35. EPS represents the company's profit divided by its number of outstanding shares. The revenue forecast is around $1.11 billion. This would mark a significant 26.2% increase in revenue compared to the same period last year.

This expected growth is driven by several factors. As highlighted by Zacks Investment Research, Affirm's Gross Merchandise Volume (GMV) is projected to grow by 29.3%. GMV is a key metric for BNPL companies, as it measures the total dollar value of all transactions processed on the platform before deducting fees and expenses.

The company also anticipates a 20.2% increase in its number of active consumers. Furthermore, transactions per active consumer are expected to rise by 13.3%. This growth in user activity and spending directly contributes to higher interest income and fees from Affirm's network of merchants, supporting the overall revenue projection.

Leading up to the announcement, Affirm's stock has been trading at $76.45, a notable recovery from its year-to-date low of $42.00, as highlighted by Invezz. The stock's price has remained above its 50-day average. Technical analysis suggests the stock has formed patterns that could indicate a potential price breakout following the earnings report.