Affirm Holdings Inc. (NASDAQ: AFRM) shares climbed more than 9% in intra-day trading on Friday after the buy-now-pay-later company reported first-quarter fiscal 2026 results that topped analyst estimates and raised its full-year guidance.

The company posted adjusted earnings per share of $0.23, beating the consensus forecast of $0.11 by 109%. Revenue rose 34% year over year to $933 million, exceeding expectations of $881.84 million. Gross merchandise volume (GMV) surged 42% to $10.8 billion, driven by strong momentum in the direct-to-consumer business.

Affirm's Card segment continued to post exceptional results, with card GMV up 135% year over year. Active cardholders grew by 500,000 from the prior quarter to 2.8 million, while total active consumers rose 24% to 24.1 million, marking the seventh straight quarter of accelerating user growth.

For the fiscal second quarter, Affirm forecast revenue between $1.03 billion and $1.06 billion, with the midpoint slightly below the $1.06 billion consensus estimate. Despite the softer guidance, investors appeared focused on the strong quarterly performance.

The company raised its full-year GMV forecast to more than $47.5 billion, up from previous guidance of above $46 billion. Affirm maintained its revenue-to-GMV ratio at roughly 8.4%, implying revenue above $3.99 billion. It reiterated Revenue Less Transaction Costs (RLTC) guidance of $1.9 billion, about 4% of revenue, and increased its adjusted operating margin target to above 27.1% from more than 26.1%.