Affirm Holdings (AFRM) AI Stock Analysis

• Market Cap: $24.76B
• Dividend Yield: N/A
• Average Volume (3M): 9.15M
• Price to Earnings (P/E): 593.5
• Beta (1Y): 2.70
• Revenue Growth: 38.80%
• EPS Growth: N/A
• Country: US
• Employees: 2,006
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.20
• Shares Outstanding: 284,917,720
• 10 Day Avg. Volume: 7,167,830
• 30 Day Avg. Volume: 9,151,210
• PEG Ratio: -3.90
• Price to Book (P/B): 7.27
• Price to Sales (P/S): 6.92
• P/FCF Ratio: 37.10
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 8.97
• Enterprise Value/Gross Profit: 13.28
• Enterprise Value/Ebitda: 49.22
• 1Y Price Target: $93.50
• Price Target Upside: 22.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 70 Outperform
• Price Target: $90.00 ▲(18.37% Upside)

Affirm Holdings' overall stock score is driven by strong technical analysis and positive earnings call sentiment. Financial performance shows improvement, but high leverage and valuation concerns weigh on the score. The absence of corporate events and a high P/E ratio are notable risks.

Positive Factors

Strategic Partnerships

These partnerships enhance market positioning and expand reach. The exclusivity with Shopify and new collaboration with Costco can drive merchant adoption and consumer usage, strengthening Affirm's competitive edge.

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective business strategies. Sustained revenue growth supports long-term business viability and competitive positioning in the BNPL market.

Gross Merchandise Volume (GMV) Growth

Significant GMV growth reflects increasing consumer and merchant engagement with Affirm's platform, enhancing revenue potential and market share in the digital payments sector.

Negative Factors

Profitability Challenges

Ongoing profitability issues due to high expenses impact financial stability. Achieving sustainable profitability is crucial for long-term success and investor confidence.

Regulatory Environment

Regulatory scrutiny poses risks to operational flexibility and compliance costs. Navigating these challenges is essential to maintain business continuity and growth.

Competitive Market Environment

Intense competition can pressure margins and require continuous innovation to retain merchant partners, impacting long-term profitability and market position.

Affirm Holdings Business Overview & Revenue Model

Company Description

Affirm Holdings, Inc. is a financial technology company that provides point-of-sale financing and buy now, pay later (BNPL) solutions to consumers and merchants. Founded in 2012 and headquartered in San Francisco, Affirm aims to improve access to credit and provide flexible payment options for consumers shopping online or in-store. The company partners with a variety of retailers across sectors including e-commerce, travel, and home furnishings, offering its customers a seamless checkout experience that allows them to finance their purchases through installment payments.

How the Company Makes Money

Affirm generates revenue primarily through merchant fees and interest income. Merchants partner with Affirm to offer financing options at checkout, and in return, Affirm charges these retailers a percentage of the sales made through its platform, typically ranging from 2% to 6%. Additionally, Affirm earns interest from consumers who choose to finance their purchases over time, with interest rates that can range from 0% to 30% depending on the consumer's credit profile and the terms of the loan. The company also has strategic partnerships with various e-commerce platforms and retailers, which enhance its market presence and drive transaction volume. Furthermore, Affirm has diversified its revenue streams by introducing new financial products and services, such as savings accounts and debit cards, contributing to its overall earnings.

Affirm Holdings Financial Statement Overview

Summary

Affirm Holdings has shown significant improvements in profitability and revenue growth, with a strong gross profit margin. However, high leverage and negative EBIT margins pose challenges. Cash flow management is robust, but declining free cash flow growth is a concern.

Income Statement

Affirm Holdings has shown a strong revenue growth rate of 7.22% in the latest year, with a consistent increase in gross profit margin to 67.51%. The company has turned profitable with a net profit margin of 1.62%, a significant improvement from previous losses. However, the EBIT margin remains negative, indicating ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.56, indicating higher leverage, which could pose financial risks. However, the equity ratio remains stable, and the company has improved its return on equity, turning positive in the latest year, reflecting better profitability.

Cash Flow

Affirm Holdings has seen a decline in free cash flow growth, but the operating cash flow to net income ratio is strong at 4.41, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also healthy, suggesting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.22B	3.22B	2.32B	1.59B	1.35B	870.46M
Gross Profit	2.18B	2.18B	1.48B	714.82M	772.84M	540.62M
EBITDA	587.54M	711.99M	0.00	-671.60M	-602.41M	-370.69M
Net Income	52.19M	52.19M	-517.76M	-985.35M	-707.42M	-430.92M
Balance Sheet
Total Assets	11.15B	11.15B	9.52B	8.16B	6.97B	4.87B
Cash, Cash Equivalents and Short-Term Investments	2.23B	2.23B	2.14B	2.07B	2.85B	1.48B
Total Debt	7.85B	7.85B	6.61B	5.45B	4.14B	1.98B
Total Liabilities	8.09B	8.09B	6.79B	5.62B	4.36B	2.29B
Stockholders Equity	3.07B	3.07B	2.73B	2.53B	2.62B	2.58B
Cash Flow
Free Cash Flow	601.72M	601.72M	290.84M	-108.59M	-273.90M	-213.38M
Operating Cash Flow	793.91M	793.91M	450.14M	12.18M	-162.19M	-193.13M
Investing Cash Flow	-1.08B	-1.08B	-1.33B	-1.65B	-2.01B	-1.02B
Financing Cash Flow	751.42M	751.42M	913.15M	1.35B	2.04B	2.58B

Affirm Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 76.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFRM, the sentiment is Neutral. The current price of 76.03 is below the 20-day moving average (MA) of 85.84, below the 50-day MA of 78.16, and above the 200-day MA of 62.78, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AFRM.

Affirm Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	$2.28B	24.04	12.95%	―	13.02%	-2.57%
FOUR	73 Outperform	$7.00B	29.32	13.85%	―	23.86%	79.35%
DLO	73 Outperform	$4.35B	28.66	32.57%	―	22.02%	12.42%
TOST	73 Outperform	$21.69B	108.52	12.32%	―	26.11%	―
AFRM	70 Outperform	$24.76B	593.52	1.80%	―	38.80%	―
MQ	54 Neutral	$2.40B	-41.78	-7.67%	―	17.47%	-544.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Affirm Holdings Corporate Events

Affirm Holdings Reincorporates from Delaware to Nevada

On June 25, 2025, Affirm Holdings, Inc. held a special meeting where stockholders approved the company’s reincorporation from Delaware to Nevada. This decision, effective July 1, 2025, will not alter the company’s business operations, management, or contractual obligations, but will change its legal governance to Nevada laws.

Affirm Holdings Appoints Richard Galanti to Board

On June 9, 2025, Keith Rabois resigned from the Board of Directors of Affirm Holdings, Inc., effective June 30, 2025, without any disagreements with the company. Subsequently, on June 11, 2025, Richard Galanti, the retired Executive Vice President and Chief Financial Officer of Costco Wholesale Corporation, was appointed to the Board as a Class II director, effective July 1, 2025. Mr. Galanti’s extensive experience in retail, finance, and global operations is expected to benefit Affirm Holdings, as he also joins the Compensation Committee.