Affirm Holdings Inc. (NASDAQ: AFRM) Earnings Preview: Key Insights

• Projected Earnings: Wall Street analysts anticipate an EPS of $0.11 and revenue of approximately $837 million.
• Stock Volatility: Historically, Affirm's stock has shown a negative one-day return in 65% of cases post-earnings, with significant volatility.
• Growth Drivers: The company's growth is attributed to an increase in GMV, active merchants and consumers, and virtual card usage.

Affirm Holdings Inc. (NASDAQ:AFRM) is a fintech company that specializes in buy now, pay later services and point-of-sale payment solutions. As the company prepares to release its quarterly earnings on August 28, 2025, Wall Street analysts have projected an earnings per share (EPS) of $0.11 and revenue of approximately $837 million. This announcement is highly anticipated, as it could influence the stock's performance.

Affirm's stock has a history of volatility following earnings releases. Over the past five years, the stock has shown a negative one-day return in 65% of cases, with a median decline of 10.9%. The most significant single-day drop reached 22.6%. This pattern may attract traders who focus on event-driven strategies, as highlighted by Investors Business Daily.

The company's growth in the fourth quarter is driven by an expansion in Gross Merchandise Volume (GMV), an increase in active merchants and consumers, and a rise in virtual card usage. Affirm's stock has risen by 30.5% year-to-date, outperforming its peers and the S&P 500. However, the stock is currently trading at a high valuation, which may pose challenges.

Affirm continues to benefit from strong consumer growth and strategic partnerships. The company's price-to-sales ratio stands at 8.36, indicating that investors are willing to pay $8.36 for every dollar of sales generated. The enterprise value to sales ratio is 10.36, reflecting the company's valuation in relation to its revenue.

Affirm's financial metrics reveal a mixed picture. The enterprise value to operating cash flow ratio is 39.54, providing insight into the company's cash flow generation relative to its valuation. The debt-to-equity ratio is 2.56, indicating that the company has more than twice as much debt as equity. However, the current ratio is an impressive 63.09, suggesting that Affirm has a strong ability to cover its short-term liabilities with its short-term assets.