Competitive PressureCompetition in the BNPL space remains fierce as traditional consumer finance companies offer their own point-of-sale and post-sale installment lending products as well as Apple Pay and Walmart's One enabling competitors in the BNPL space.
Regulatory RiskThe CFPB’s intention to subject BNPL firms to the same supervisory examination as banks and credit unions poses a potential threat, increasing regulatory scrutiny and potentially hindering Affirm’s growth.
Valuation ConcernsTrading at 81x our FY26 GAAP EPS estimate (untaxed) and 32x our FY27 GAAP EPS estimate (untaxed), AFRM is considered substantially overvalued.