Affirm reported a 30% rise in revenue, reaching $1.12 billion in Q2, driven by a surge in gross merchandise volume. The buy‑now, pay‑later platform’s earnings beat estimates, signaling stronger consumer demand for flexible payment options in the U.S. market and global.

The jump reflects a broader trend of rising gross merchandise volume as shoppers shift to BNPL services amid inflationary pressures. Analysts note that higher transaction volumes translate into more fee revenue, boosting the company’s profitability margins for investors seeking growth.

Investors welcomed the results, pushing Affirm’s stock up 8% on the day. The company’s valuation now sits near $10 billion, up from $7.5 billion a year ago, as market participants weigh its competitive edge against rivals like Klarna and Afterpay in 2024.

Looking ahead, analysts will monitor Affirm’s next quarterly report for signs of sustained growth and regulatory developments. With the U.S. Treasury tightening oversight on BNPL, the company’s ability to navigate compliance while expanding merchant partnerships will be key for investors.