Affirm Holdings (AFRM) AI Stock Analysis

• Market Cap: $25.16B
• Dividend Yield: N/A
• Average Volume (3M): 5.39M
• Price to Earnings (P/E): 116.4
• Beta (1Y): 2.49
• 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: 6,078,896
• 30 Day Avg. Volume: 5,392,905
• 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: 1.22
• Enterprise Value/Revenue: 8.86
• Enterprise Value/Gross Profit: 13.11
• Enterprise Value/Ebitda: 33.41
• 1Y Price Target: $97.47
• Price Target Upside: 27.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $84.00 ▲(10.21% Upside)

Affirm Holdings' strong financial performance and strategic partnerships, particularly with Amazon, are significant strengths. However, high valuation metrics and technical indicators suggest caution. The company's robust earnings call and positive corporate events further support its growth outlook, but potential risks from high valuation and technical overbought signals temper the overall score.

Positive Factors

Strategic Partnership with Amazon

The long-term extension with Amazon solidifies Affirm's market position and enhances its growth potential by maintaining access to a vast consumer base.

Strong Revenue Growth

Consistent revenue growth indicates robust demand for Affirm's services, supporting its expansion and market competitiveness.

Robust Cash Flow Generation

Strong cash flow generation enhances Affirm's financial flexibility, enabling reinvestment in growth initiatives and debt management.

Negative Factors

High Historical Debt Levels

Past high debt levels could pose risks if not managed carefully, potentially impacting Affirm's financial stability and growth capacity.

Low EBIT Margin

A low EBIT margin suggests potential inefficiencies, which could hinder profitability and competitive positioning if not addressed.

Potential RLTC Deceleration

Deceleration in RLTC could signal challenges in maintaining cost efficiency, impacting profitability and financial performance.

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 consumer interest income. When consumers use Affirm's payment solutions at partner merchants, Affirm charges these merchants a percentage of the transaction amount, typically ranging from 2% to 6%. Additionally, Affirm earns interest on loans provided to consumers when they choose to finance their purchases over time. The company offers different repayment plans, and the interest rates can vary based on creditworthiness and the terms of the loan. Significant partnerships with major retailers and e-commerce platforms enhance Affirm's market reach and drive transaction volume, further contributing to its revenue streams.

Affirm Holdings Financial Statement Overview

Summary

Affirm Holdings demonstrates a positive financial trajectory with strong revenue growth and improved profitability. The balance sheet shows manageable leverage, but historical high debt levels warrant caution. Cash flow generation is strong, supporting the company's 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	2.34B	2.18B	1.48B	714.82M	772.84M	547.55M
EBITDA	917.82M	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: 76.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 76.22 is above the 20-day moving average (MA) of 70.19, above the 50-day MA of 70.99, and above the 200-day MA of 65.02, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 88.60 is Negative, 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
XYZ	72 Outperform	$39.70B	13.11	14.78%	―	0.47%	178.05%
AFRM	71 Outperform	$25.16B	116.43	7.60%	―	37.00%	―
FOUR	69 Neutral	$5.68B	30.51	15.52%	―	23.16%	27.38%
PAYO	69 Neutral	$2.07B	30.47	9.79%	―	10.58%	-45.52%
MQ	67 Neutral	$2.23B	-63.58	-4.10%	―	20.11%	-391.61%
KLAR	65 Neutral	$21.71B	-52.17	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Affirm Holdings Corporate Events

Affirm stockholders back board, auditors and executive pay

At its annual meeting of stockholders held on December 15, 2025, Affirm Holdings, Inc. reported a quorum representing 93.4% of combined voting power across its dual-class share structure, with Class A shares carrying one vote and Class B shares carrying fifteen votes but voting together as a single class on all matters. Stockholders elected Richard Galanti, Christa S. Quarles and Manolo Sánchez as Class II directors to serve until the 2028 annual meeting, ratified the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending June 30, 2026, and approved on a non-binding advisory basis the compensation of the company’s named executive officers, signaling broad shareholder support for the company’s current board composition, governance approach and executive pay practices.

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.

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.