Affirm shares jumped 15% in after-hours trading on August 28, 2025 after the buy now, pay later provider posted stronger-than-expected Q4 results.

The company reported earnings of 20 cents per share, beating the LSEG consensus estimate of 11 cents, and revenue of US$876 million, ahead of the expected US$837 million.

Revenue rose 33% from US$659 million a year earlier, while gross merchandise volume increased 43% to US$10.4 billion.

Affirm reported net income of US$69.2 million, reversing a loss of US$45.1 million from the same period last year.

For Q1, Affirm projected revenue between US$855 million and US$885 million, and gross merchandise volume of US$10.1 billion to US$10.4 billion.

Affirm, listed since 2021, competes with firms like Klarna and maintains partnerships with Amazon, Shopify, and Apple.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Partner diversification shields BNPL companies from single relationship losses

Affirm’s strong quarterly performance demonstrates how diversified merchant partnerships can cushion the blow from losing major retail relationships.

Despite losing Walmart’s BNPL business to Klarna earlier this year, Affirm still delivered 33% revenue growth and 43% gross merchandise volume growth in Q41.

The company maintains significant partnerships with Amazon, Shopify, and Apple, which helped offset the Walmart loss that initially caused Affirm’s stock to drop 10% when announced2.

This shows how BNPL companies can maintain growth momentum through a portfolio approach to merchant relationships rather than depending heavily on any single retailer.

The competitive nature of BNPL partnerships means providers must constantly prove their value to merchants, but those with diversified relationships can weather individual partnership changes more effectively.

2️⃣ Explosive BNPL market growth attracts regulatory attention amid consumer protection concerns

The broader BNPL industry has experienced extraordinary expansion, which explains why companies like Affirm can maintain strong growth despite competitive pressures.