The stock posted a 32% rise for its best day in three years on the earnings call

Emphasize the stock soared nearly 32% there, notching the best day in almost three years, after the provider buy now, pay the loan later beat the above and below the line in its earnings report.

This was the third biggest gain for the stock since the company’s IPO in January 2021. The stock closed at $41.66.

Affirm said late Wednesday that revenue in the fourth fiscal quarter increased 48% from the previous year to $659 million, and net loss narrowed to $45.1 million from $206 million in the same period last year. The company beat estimates for revenue and reported a narrower-than-expected loss.

For the current quarter, Affirm sees revenue in the range of $640 million to $670 million. Analysts polled by LSEG were calling for revenue of $625 million.

Affirm CEO Max Levchin said in a note to shareholders that the company has set a new target of achieving operating profit on a GAAP basis by the fourth quarter of fiscal 2025.

Analysts for Mizuho called “killer quarter” to affirm in the notes on Friday, and said “the prospect of changing GAAP operating income-positive” will be “a major milestone.”

Even after Thursday’s rally, Affirm shares are still down about 15% for the year, while the Nasdaq is up 19%. But the stock has been trending higher lately, up 47% in August. Federal Reserve Chairman Jerome Powell signaled on Friday that lower interest rates could come in September.

Bank of America analysts said in a note last month that rate cuts would be beneficial to Affirm’s funding costs and gain in loan sales. The company moved dealers to a 36% APR cap on loans, up from 30% previously, and analysts said this “should remain a tailwind for yield and GMV growth.”

Mizuho is a new project Apple The paid partnership could add $12 billion to Affirm’s total addressable market if it launches later this year.

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