Upstart and Affirm Rally, BILL Plummets on Earnings as FinTech IPO Index Adds 2.4%

The past five days of stock market trading have been whipsawed by the latest inflation report, speculation over whether or not the Fed will stand pat on interest rates, and of course, the continuing inflow of earnings reports, though the pace of those quarterly disclosures is slowing a bit.

But for the FinTech IPO Index, earnings were top of mind, and in a few notable instances, pushed stocks higher, or pulled them down, by double digits. The overall Index was 2.4% higher through the week.

BILL Slides

BILL shares plummeted by 36.9%.

In the firm’s earnings report last week, BILL’s fiscal 2025 second quarter revenue reached $362.6 million, a 14% year-over-year (YoY) increase, while core revenue — comprising subscription and transaction fees — grew by 16% YoY to $319.6 million. But guidance proved to be a key determinant in how the stock fared. For the fiscal third quarter ending March 31, BILL projected total revenue between $352.5 million and $357.5 million, representing a YoY growth of 9% to 11%. This forecast was below analyst consensus estimates as growth is projected to slow.

During the most recent quarter, BILL continued to scale its impact within the SMB sector, processing $84 billion in total payment volume (TPV) during the quarter — a 13% YoY increase. The platform facilitated 30 million transactions, up 17% YoY, reflecting strong demand for back office modernization, including automated accounts payable (AP) and accounts receivable (AR) solutions.

Upstart shares surged by more than 29%.

As PYMNTS reported, the latest quarter detailed double-digit gains in loan originations, powered by artificial intelligence (AI) and automation, where management also said that the credit quality of its lending portfolio was strong amid new capital commitments from its lending partners.

In the latest quarter, the company generated more than 243,000 personal loans, which was 89% higher than a year ago and up 30% sequentially. The transaction dollars in the quarter came to $2 billion, up 65% from the year ago levels. Consolidated revenues were $219 million, which was 24% higher than last year. According to management commentary on the call, data-rich, automated and personalized lending processes are also improving recovery of delinquencies.

CFO Sanjay Datta said that the average loan size of approximately $8,580 was up from $8,400 in the prior quarter, “reflecting continued model improvements that allowed us to approve higher loan amounts.”

BNPL’s Popularity Sends Affirm Higher

Affirm’s earnings helped propel the stock 28.4% higher.

The company pointed toward a strong holiday shopping season, coupled with the continued momentum of buy now, pay later (BNPL) options and zero interest rates, helped push Affirm Holding’s gross merchandise volumes (GMV) higher. GMV grew 35% to $10.1 billion, which accelerated from the first quarter; the company said it had made “gains in merchant share of cart,” and 0% APR monthly installment GMV grew by 70%. Active consumers were 23% higher to 21 million. Transactions per active consumer also were on the rise, up 22% YoY to 5.3.

CEO Max Levchin penned in the company’s investor letter: “We are five months away from our chosen target date to turn Affirm operating income positive, but it should be apparent to a casual observer that we are nearly there today — mark it zero.” By product category, GMV was up 40% in general merchandise, and 36% in electronics.

Beyond earnings-related headlines, Paysafe agreed to sell its direct marketing payment processing business line, Paysafe Direct, to omnichannel payments provider Kort Payments, which is led by Paysafe’s founder and former CEO, Joel Leonoff. The transaction includes reseller and merchant contracts, dedicated technology and employees related to the business, Paysafe said this week.

OneConnect posted a sizable rally, as the firm said this week that it launched its proprietary AI Agent Platform, integrating open-source large language models including DeepSeek and Qwen for AI solutions tailored specifically for the banking industry. The company said that OneConnect’s modular toolchain and low-code development support empower banks to integrate AI into existing systems across digital operations, management, and business-specific scenarios.

OneConnect shares surged 28.4%.

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