Shares of buy-now-pay-later lender Affirm Holdings (NASDAQ:AFRM) jumped 21.7% to $38.44 in premarket trading on Thursday after the company reported a significant narrowing of its Q4 loss and strong revenue growth late Wednesday.
Affirm's fourth-quarter loss narrowed to $45.1 million, a sharp improvement from the $206 million loss recorded in the same period last year.
The company also reported a robust 48% increase in net revenue, reaching $659.2 million.
Affirm's gross merchandise volume (GMV) grew by 31% year-over-year to $7.2 billion, with the company stating that its growth "significantly outpaced overall e-commerce growth."
The strong performance prompted positive revisions from analysts, with RBC raising its price target on the stock to $46 from $43, and BofA Global Research increasing its target to $42 from $36.
Despite these gains, Affirm's share price remains down approximately 36% year-to-date.
According to data from LSEG, out of 18 brokerages covering the stock, six rate it a "buy" or higher, nine rate it "hold," and three rate it "sell" or lower, with a median price target of $38.03.