On both the top and bottom lines, affirm beats.

• The provider of buy now, pay later loans reported better-than-expected fiscal first-quarter results.
• The total value of transactions over the reporting window increased by 35% from the previous year, as indicated by the growth in GMV.
• The company's emphasis on strong unit economics led to a 41% increase in revenue growth, which outpaced volume growth.

The provider of buy now, pay later loans reported better-than-expected fiscal first-quarter results.

Analysts' consensus estimates from LSEG were exceeded by the company's performance.

• Loss per share: 31 cents adjusted vs. a loss of 35 cents expected
• Revenue: $698 million vs. $664 million expected

According to StreetAccount, the reported gross merchandise volume (GMV) of $7.6 billion exceeded the average estimate of $7.28 billion, with a 35% increase from the previous year.

In the initial three months of the financial year, revenue increased by 41% compared to the previous year's $496.5 million.

The revenue less transaction costs (RLTC) exceeded earlier guidance of $265 million to $280 million, reaching $285 million.

In its fiscal fourth quarter of 2025, Affirm aims to achieve profitability on a GAAP basis, as announced by CEO Max Levchin in a note to shareholders last quarter.

The company expects second-quarter revenue to be between $770 million and $810 million, or $790 million in the middle of the range, which is lower than the average estimate of $785 million, according to LSEG. Affirm is forecasting GMV in the range of $9.35 billion to $9.75 billion, which is lower than the analysts' average estimate of $9.48 billion.

Since the end of August, Affirm shares have been trending higher and have surpassed a 70% increase, but as of Thursday's close, their performance for the year remained relatively flat.

Affirm's new partnership with Apple and other partnerships are contributing to positive results. In June, Apple and Affirm announced that U.S. Apple Pay users on iPhones and iPads would be able to apply for loans directly through Affirm.

Third Bridge analyst Kevin Kennedy stated in an email that Affirm's growth story has persisted, especially with the addition of new strategic distribution partners.

Kennedy emphasized that Affirm's exceptional underwriting, particularly for high-value orders and interest-bearing BNPL purchases, distinguishes the company from its expanding competitor base.

While BNPL is facing commoditization risk, large ticket interest-bearing purchases are better protected through Affirm compared to offerings from peers.

In 2021, Afterpay, a BNPL firm, was acquired by Square for $29 billion.

Affirm's quarterly earnings call starts at 5:00 P.M. eastern.

— CNBC's Robert Hum contributed to this report.

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