Affirm Holdings (AFRM) AI Stock Analysis

• Market Cap: $23.42B
• Dividend Yield: N/A
• Average Volume (3M): 5.52M
• Price to Earnings (P/E): 105.1
• Beta (1Y): 2.52
• 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: 289,362,760
• 10 Day Avg. Volume: 4,435,559
• 30 Day Avg. Volume: 5,519,444
• 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: 1.29
• Enterprise Value/Revenue: 8.76
• Enterprise Value/Gross Profit: 14.02
• Enterprise Value/Ebitda: 37.16
• 1Y Price Target: $96.47
• Price Target Upside: 35.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): $4.05B

• Rating: 65 Neutral
• Price Target: $71.00 ▲(0.07% Upside)

Affirm Holdings' strong financial performance and positive earnings call sentiment are offset by technical indicators showing bearish momentum and a high P/E ratio suggesting overvaluation. The company's strategic partnerships and robust cash flow support its growth outlook, but caution is warranted due to valuation concerns.

Positive Factors

Long-term Partnership with Amazon

The extension of the partnership with Amazon solidifies Affirm's market position and ensures a stable revenue stream from a major e-commerce player.

Cash Flow Generation

Strong cash flow generation supports financial health and provides flexibility for future investments and growth initiatives.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, enhancing long-term business sustainability.

Negative Factors

High Debt Levels

High debt levels can strain cash flow and limit financial flexibility, impacting long-term stability and growth potential.

RLTC Above Target

Higher RLTC may indicate inefficiencies or pricing pressures, which could affect profitability if not managed effectively.

Potential Deceleration in RLTC

A potential deceleration in RLTC could signal challenges in maintaining growth momentum and profitability.

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 demonstrates strong revenue growth and improved profitability, with a healthy gross profit margin. The balance sheet shows manageable leverage, though historical high debt levels pose potential risks. Cash flow generation is robust, supporting financial health and future growth potential.

Income Statement

Affirm Holdings shows a strong revenue growth trajectory with a 7.28% increase in TTM revenue. The company has improved its profitability, evidenced by a positive net profit margin of 8.39% in TTM, compared to previous losses. Gross profit margin remains healthy at 61.50%. However, the EBIT margin is relatively low at 17.32%, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.34 in TTM, indicating manageable leverage. Return on equity has improved to 7.75%, showing better profitability. However, the equity ratio is not explicitly provided, and historical high leverage in previous years poses potential risk.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth of 27.84% in TTM, with strong operating cash flow coverage of net income at 16.75 times. The free cash flow to net income ratio is healthy at 0.79, indicating efficient cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.46B	3.22B	2.32B	1.59B	1.35B	870.46M
Gross Profit	2.16B	2.18B	1.48B	714.82M	772.84M	547.55M
EBITDA	815.85M	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	1.48B	2.23B	2.14B	2.07B	2.85B	1.48B
Total Debt	7.96B	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: 70.95
• 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 70.95 is above the 20-day moving average (MA) of 70.10, below the 50-day MA of 73.49, and above the 200-day MA of 64.70, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.77 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
FOUR	74 Outperform	$6.54B	34.64	15.52%	―	23.16%	27.38%
PYPL	73 Outperform	$58.66B	12.58	24.36%	―	4.50%	19.71%
SOFI	71 Outperform	$35.84B	53.89	8.59%	―	22.40%	215.81%
AFRM	65 Neutral	$23.42B	105.14	7.60%	―	37.00%	―
MQ	64 Neutral	$2.11B	―	-4.10%	―	20.11%	-391.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UPST	55 Neutral	$4.37B	197.37	4.81%	―	73.29%	―

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.