Affirm Holdings (AFRM) AI Stock Analysis

• Market Cap: $23.97B
• Dividend Yield: N/A
• Average Volume (3M): 6.20M
• Price to Earnings (P/E): 109.1
• Beta (1Y): 2.50
• Revenue Growth: 37.00%
• EPS Growth: N/A
• Country: US
• Employees: 2,006
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 284,917,720
• 10 Day Avg. Volume: 6,469,504
• 30 Day Avg. Volume: 6,199,274
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $97.44
• Price Target Upside: 32.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 0.88
• Revenue Forecast (FY): $3.99B

• Rating: 63 Neutral
• Price Target: $78.00 ▲(5.95% Upside)

Affirm Holdings' strong earnings call and financial performance improvements are offset by technical weaknesses and high valuation concerns. The strategic partnership with Amazon and success in the ABS market are significant positives, but high leverage and overvaluation pose risks.

Positive Factors

Strategic Partnership

The long-term extension with Amazon solidifies Affirm's market position and enhances its revenue potential through increased transaction volume.

Revenue Growth

Exceeding revenue expectations indicates strong demand for Affirm's services, supporting sustained growth and market expansion.

Capital Partnership

The expanded partnership with New York Life provides significant funding, enhancing Affirm's ability to offer more loans and grow its consumer base.

Negative Factors

High Leverage

Increased leverage poses financial risks, potentially limiting Affirm's flexibility and increasing vulnerability to economic downturns.

Negative EBIT Margin

A negative EBIT margin suggests operational inefficiencies, which could hinder profitability and long-term financial health.

Declining Free Cash Flow Growth

Declining free cash flow growth may affect Affirm's ability to invest in growth opportunities and manage debt, impacting future expansion.

Affirm Holdings Business Overview & Revenue Model

Company Description

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company's platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Its payments network and partnership with an originating bank, enables consumers to pay for a purchase over time with terms ranging from one to forty-eight months. As of June 30, 2021, the company had approximately 29,000 merchants integrated on its platform covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies. Its merchants represent a range of industries, including sporting goods and outdoors, furniture and homewares, travel, apparel, accessories, consumer electronics, and jewelry. The company was founded in 2012 and is headquartered in San Francisco, California.

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, challenges remain with high leverage and negative EBIT margins. 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	2.78B	3.22B	2.32B	1.59B	1.35B	870.46M
Gross Profit	1.71B	2.18B	1.48B	714.82M	772.84M	547.55M
EBITDA	723.11M	711.99M	-2.23M	-671.60M	-602.41M	-370.69M
Net Income	233.10M	52.19M	-517.76M	-985.35M	-707.42M	-441.03M
Balance Sheet
Total Assets	11.48B	11.15B	9.52B	8.16B	6.97B	4.87B
Cash, Cash Equivalents and Short-Term Investments	2.24B	2.23B	2.14B	2.07B	2.85B	1.48B
Total Debt	1.13B	7.85B	6.61B	5.45B	4.14B	1.98B
Total Liabilities	8.18B	8.09B	6.79B	5.62B	4.36B	2.29B
Stockholders Equity	3.30B	3.07B	2.73B	2.53B	2.62B	2.58B
Cash Flow
Free Cash Flow	769.21M	601.72M	290.84M	-108.59M	-273.90M	-213.38M
Operating Cash Flow	971.61M	793.91M	450.14M	12.18M	-162.19M	-193.13M
Investing Cash Flow	-647.68M	-1.08B	-1.33B	-1.65B	-2.01B	-1.02B
Financing Cash Flow	395.89M	751.42M	913.15M	1.35B	2.04B	2.58B

Affirm Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFRM, the sentiment is Positive. The current price of 73.62 is above the 20-day moving average (MA) of 72.30, below the 50-day MA of 78.31, and above the 200-day MA of 64.33, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFRM.

Affirm Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLO	77 Outperform	$4.06B	26.77	32.78%	―	22.02%	12.42%
TOST	74 Outperform	$21.57B	84.86	15.96%	―	25.76%	―
PAYO	73 Outperform	$1.91B	28.31	9.79%	―	10.58%	-45.52%
FOUR	69 Neutral	$5.84B	31.11	15.52%	―	23.16%	27.38%
MQ	64 Neutral	$2.04B	―	-4.10%	―	20.11%	-391.61%
AFRM	63 Neutral	$23.97B	109.10	1.80%	―	37.00%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Affirm Holdings Corporate Events

Affirm Holdings’ Earnings Call Highlights Strategic Growth

Affirm Holdings, Inc. recently held its earnings call, showcasing a positive sentiment driven by strategic achievements and market positioning. The company celebrated a long-term extension with Amazon, successful execution in the ABS market, and notable growth in both 0% monthly installment loans and Affirm Card membership. Despite a slight deviation in RLTC from their target, Affirm’s performance underscores its robust market stance.

Affirm Holdings Reports Strong Start to Fiscal 2026

Affirm Holdings, Inc. is a financial technology company that operates a payment network, offering consumers and merchants innovative payment solutions, primarily focusing on buy-now-pay-later (BNPL) services. The company leverages data-driven insights to enhance credit approvals and consumer engagement.

Affirm Holdings Extends Partnership with Amazon

On November 6, 2025, Affirm, Inc., a subsidiary of Affirm Holdings, entered into a Second Amended and Restated Installment Financing Services Agreement with Amazon.com Services LLC and Amazon Payments, Inc. This agreement, effective February 1, 2026, extends their partnership for five years, allowing Affirm to continue offering installment loan products on Amazon.com and through Amazon Pay on third-party channels. Additionally, Affirm and Amazon Services amended a warrant agreement, maintaining the exercise price for shares based on new user acquisition before February 1, 2026, and setting a new price for acquisitions after that date. The agreement and amendment are expected to strengthen Affirm’s market position and expand its consumer base, reflecting its strategic focus on growth and profitability.

The most recent analyst rating on (AFRM) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Affirm Holdings stock, see the AFRM Stock Forecast page.

Affirm Holdings Approves Executive Equity Awards

On September 18, 2025, Affirm Holdings‘ Compensation Committee approved annual equity awards for certain executive officers, consisting of restricted stock units (RSUs) and performance stock units (PSUs) under the company’s Amended and Restated 2012 Stock Plan. These awards, which vest into shares of Class A Common Stock, are contingent upon time-based, service-based, and company financial performance-based conditions. The performance stock units are tied to annual growth rates of revenue less transaction costs and adjusted operating income over a three-year period starting July 1, 2025. The RSUs will vest quarterly over three years, starting December 1, 2025, contingent on continued service by the executive officers. This move is aimed at aligning executive incentives with company performance and long-term growth objectives.

The most recent analyst rating on (AFRM) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Affirm Holdings stock, see the AFRM Stock Forecast page.

Affirm Holdings Shines in Record-Breaking Earnings Call

Affirm Holdings, Inc. recently held its earnings call, revealing a generally positive sentiment with record-breaking financial performance and successful product expansions. However, concerns were raised about the potential impact of losing a major enterprise merchant and broader economic challenges that could affect consumer behavior.

Affirm Holdings Faces AI-Driven Risks: Operational, Legal, and Financial Challenges Ahead

Affirm Holdings, Inc.’s reliance on generative AI technologies poses significant risks, including potential operational and reputational damage, legal challenges, and increased costs. The use of AI in customer service and other business areas could lead to inaccurate or biased outputs, which may not align with societal or regulatory expectations. Despite implementing controls and policies to mitigate these risks, the company faces challenges in ensuring compliance with evolving AI regulations and maintaining intellectual property rights. Failure to address these issues could result in penalties, erode customer trust, and negatively impact Affirm’s competitive position and financial performance.

Affirm Holdings Reports Strong Q4 2025 Earnings

Affirm Holdings, Inc. is a financial technology company that provides consumers with transparent and honest financial products, primarily focusing on buy-now-pay-later solutions in the consumer lending industry. The company aims to empower consumers to spend responsibly and offers businesses tools to drive growth without hidden fees.