Shares of Affirm Holdings (AFRM) faced a downturn following the release of its third-quarter fiscal year 2025 financial results. Despite showing a mixed performance for Q3, the leading buy now, pay later (BNPL) company’s fourth-quarter guidance failed to meet market expectations. Concerns over broader economic challenges further dampened investor sentiment, leading to a more than 8% drop in AFRM stock during morning trading on Friday, May 9.
Affirm did see some encouraging signs, particularly with gross merchandise volume (GMV) accelerating toward the end of March and into April. This uptick was led by macroeconomic factors impacting consumer spending patterns. However, management struck a cautious tone, indicating that they expect growth to moderate through the remainder of the quarter, suggesting that the April strength might not be sustainable.
