Akcie společnosti Affirm Holdings za poslední měsíc posílily o 8 %; analytici v aktuálním čtvrtletí očekávají zisk 0,35 USD na akcii, což představuje meziroční nárůst o 52,2 %.
Affirm Holdings (AFRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this operator of digital commerce platform have returned +8%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Affirm Holdings falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Affirm Holdings is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +52.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
The consensus earnings estimate of $1.91 for the current fiscal year indicates a year-over-year change of -65.5%. This estimate has changed +1.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +50.4% from what Affirm Holdings is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Affirm Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Affirm Holdings, the consensus sales estimate for the current quarter of $1.21 billion indicates a year-over-year change of +30%. For the current and next fiscal years, $5.51 billion and $6.9 billion estimates indicate +29.4% and +25% changes, respectively.
Last Reported Results and Surprise HistoryAffirm Holdings reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +33%. EPS of $4.62 for the same period compares with $0.2 a year ago.
Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +1300%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Affirm Holdings is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Affirm Holdings. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Affirm Holdings má před zveřejněním hospodářských výsledků 5. listopadu 2026 hodnotu Earnings ESP +11,03 % a v posledních dvou čtvrtletích v průměru překonala odhady zisku o 688,24 %.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Affirm Holdings (AFRM - Free Report) , which belongs to the Zacks Internet - Software industry.
When looking at the last two reports, this operator of digital commerce platform has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 688.24%, on average, in the last two quarters.
For the last reported quarter, Affirm Holdings came out with earnings of $4.62 per share versus the Zacks Consensus Estimate of $0.33 per share, representing a surprise of 1,300.00%. For the previous quarter, the company was expected to post earnings of $0.17 per share and it actually produced earnings of $0.3 per share, delivering a surprise of 76.47%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Affirm Holdings lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Affirm Holdings has an Earnings ESP of +11.03% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 5, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Akcie společnosti Affirm Holdings za poslední měsíc vzrostly o 10,51 %. Společnost má 5. listopadu 2026 zveřejnit hospodářské výsledky; analytici očekávají zisk na akcii (EPS) ve výši 0,34 USD a tržby 1,21 mld. USD.
Affirm Holdings (AFRM - Free Report) closed at $76.28 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
The operator of digital commerce platform's stock has climbed by 10.51% in the past month, exceeding the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Affirm Holdings in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 47.83% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.21 billion, indicating a 29.95% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.51 billion. These totals would mark changes of -66.18% and +29.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Affirm Holdings. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Affirm Holdings holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Affirm Holdings is currently exchanging hands at a Forward P/E ratio of 40.19. This expresses a premium compared to the average Forward P/E of 20.39 of its industry.
It is also worth noting that AFRM currently has a PEG ratio of 3.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.19 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Affirm Card ve čtvrtletí více než zdvojnásobila GMV na 2,84 miliardy USD a počet aktivních uživatelů vzrostl o 125 % na 5,2 milionu. Podíl karet na transakcích stoupl na 15 % z 10 % před rokem.
Key Takeaways Affirm Card GMV more than doubled to $2.84 billion, while active Card consumers rose 125% to 5.2 million.Affirm Card represented 15% of total transactions, up from 10% a year earlier, signaling deeper engagement.Affirm could deepen Card adoption through better in-store experiences and card-specific features. Affirm Holdings, Inc.’s (AFRM - Free Report) direct-to-consumer business is becoming a more important growth avenue as Affirm Card extends the company’s reach beyond merchant checkout. The product allows consumers to use Affirm across a broader range of online and in-store purchases. Affirm Card GMV more than doubled year over year in the fiscal fourth quarter to $2.84 billion, while active Card consumers increased 125% to 5.2 million. The card attach rate reached 19%.
The bigger opportunity lies in engagement. Card adoption is also deepening engagement by enabling consumers to use Affirm more frequently, particularly for in-store purchases and at merchants without direct Affirm checkout integration. At the end of the second quarter, Affirm Card represented about 15% of total transactions, up from 10% a year earlier, indicating its growing role in driving repeat activity across the platform.
Affirm Card is also changing the composition of Affirm’s direct-to-consumer growth. Direct-to-consumer products, including Affirm Card, generally generate lower merchant revenues and are predominantly interest-bearing. Card network revenues increased 27% to $294 million in fiscal 2026, supported by higher activity across Affirm Card, virtual debit cards and other card-based merchant integrations.
With penetration still at 19% of active consumers, Affirm has room to deepen adoption. Improving the in-store experience and adding Card-specific features could further lift usage and expand transactions beyond integrated merchant checkout. A larger card base could also increase the contribution of direct-to-consumer products to Affirm’s overall growth.
How Are Competitors Faring?Key competitors in the BNPL and digital payments market include Sezzle Inc. (SEZL - Free Report) and Klarna Group plc (KLAR - Free Report) . Sezzle continues to expand through growing consumer adoption and flexible payment options. At the end of the second quarter, SEZL had $4.6 billion in trailing 12-month GMV and 3.2 million active consumers.
Klarna is also strengthening engagement beyond traditional BNPL. In the second quarter of 2026, GMV rose 18% year over year to $36.6 billion, revenues increased 27% to $1.04 billion and active consumers reached 120 million. Klarna Card also reached 6.5 million active users. These trends underscore the growing importance of consumer engagement, repeat usage and broader payment integration.
AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 49.5% over the past six months compared with the industry’s 24.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.01 compared with the industry average of 4.76. AFRM currently carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.
Image Source: Zacks Investment Research
AFRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Affirm is adding Crate & Barrel, Crate & Barrel Kids and CB2 to its merchant network.The partnership brings installment financing to more than 100 stores and websites across North America.Stronger customer usage could gradually lift Affirm's GMV and revenues, though volumes remain undisclosed. Affirm Holdings, Inc. (AFRM - Free Report) is expanding its pay-over-time reach through a new partnership with Crate & Barrel Holdings, bringing its financing option to Crate & Barrel, Crate & Barrel Kids and CB2 customers in the United States and Canada. Shoppers can use Affirm online and in stores, with biweekly or monthly payment options starting at 0% APR and no late fees or hidden charges.
The deal broadens AFRM’s merchant reach through an established North American retailer. Crate & Barrel Holdings operates more than 100 stores and websites across the United States and Canada, while more than 200 million customers visit its stores and websites each year. The partnership adds Crate & Barrel Holdings to Affirm’s network of more than 570,000 active merchant partners, further expanding its reach across the home-furnishing category.
Furniture and home-related purchases can include higher-value items, creating an opportunity for Affirm to facilitate more financed transactions. By offering Affirm across Crate & Barrel’s brands through online and physical channels, the company could drive higher transaction volumes as more customers use installment financing for purchases.
The near-term financial impact is difficult to quantify because the companies did not disclose any transaction volumes or revenue contribution. The partnership’s contribution will ultimately depend on customer engagement and the volume of purchases financed through Affirm. Stronger usage across Crate & Barrel’s brands could gradually increase the partnership’s contribution to Gross Merchandise Volume (GMV) and revenues.
How Are Competitors Faring?Some of AFRM’s competitors are Block, Inc. (XYZ - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) . Both companies continue to expand their pay-over-time offerings, increasing competition for consumer usage and merchant checkout volume.
Block is deepening Afterpay’s integration with Cash App by adding pay-over-time capabilities for eligible peer-to-peer transfers and card purchases. This gives XYZ additional opportunities to broaden installment-payment usage beyond traditional merchant checkout.
PayPal offers Pay in 4 and Pay Monthly. Pay in 4 supports four interest-free biweekly payments, while Pay Monthly provides financing over three to 24 months for eligible purchases up to $10,000. This gives PYPL exposure to both smaller and higher-value transactions.
AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 51.3% over the past six months compared with the industry’s 30.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.27 compared with the industry average of 4.01. AFRM currently carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.
Image Source: Zacks Investment Research
AFRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Affirm's FY26 GMV jumped 37% to $50.2 billion, supporting operating leverage and margin improvement.Funding costs rose to $454 million, though Q4 annualized costs fell 103 basis points to 5.8%.Credit losses increased, but recent loans are performing broadly in line with expectations. Affirm Holdings, Inc. (AFRM - Free Report) has entered fiscal 2027 with strong operating momentum, supported by robust Gross Merchandise Volume (“GMV”) growth and improving margins. Fiscal 2026 GMV increased 37% year over year to $50.2 billion, while fourth-quarter GMV rose 36% to $14.1 billion. Higher volume is supporting operating leverage, while improving margins indicate that the business model is gaining scalability.
Funding costs increased to $454 million in fiscal 2026 from $425.5 million a year earlier. However, the trend improved in the fourth quarter, with average annualized funding costs declining 103 basis points year over year to 5.8%, aided by favorable repricing across funding channels. With benchmark rates expected to be higher in fiscal 2027, maintaining funding efficiency will be key to further margin expansion.
Credit costs also warrant monitoring. Provision for credit losses rose to $796.7 million in fiscal 2026 from $616.7 million, while 30-plus-day delinquencies, excluding Peloton and Pay-in-X loans, increased 19 basis points to 2.5%. Still, recent loans are performing broadly in line with expectations, suggesting that credit remains manageable rather than becoming a broader constraint on earnings.
Overall, Affirm is increasingly shifting from a growth-at-scale story toward a profitability story. Sustained GMV growth remains important, but funding efficiency and credit performance will increasingly determine how much of that growth reaches the bottom line. If both remain disciplined, continued operating leverage could support further margin expansion in fiscal 2027.
How Are Competitors Faring?Some of AFRM’s competitors in the digital lending and payments space are Sezzle Inc. (SEZL - Free Report) and Klarna Group plc (KLAR - Free Report) .
Sezzle continues to benefit from strong BNPL demand, with second-quarter 2026 GMV rising 38% year over year. Faster revenue growth points to improving monetization, while operating leverage is supporting profitability. The key consideration remains whether credit costs stay contained as SEZL scales.
Klarna provides a broader BNPL and payments comparison, with second-quarter 2026 GMV increasing 18% and transaction margin dollars rising 42%. The disparity between volume and margin growth highlights the importance of monetization and cost discipline. For KLAR, sustaining profitability as growth moderates remains important.
AFRM’s Price Performance, Valuation & EstimatesShares of AFRM have risen 51.1% over the past six months compared with the industry’s 30.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 3.96 compared with the industry average of 4.42. AFRM currently carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.
Image Source: Zacks Investment Research
AFRMcurrently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Klarna klesá o 3 % na 12,52 USD po snížení výhledu na celý rok, což dál tlačí na akcie týdny po posledních výsledcích. Affirm naopak přidává 2 % na 69,40 USD díky zájmu o AI v underwritingu.
Klarna keeps sliding weeks after a guidance cut rattled investors, while Affirm moves in the opposite direction as traders rally around its AI underwriting push. The widening gap between two of fintech's biggest names raises a pointed question about which…
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Klarna is facing continued selling pressure weeks after its latest earnings report raised concerns about the company’s outlook. Klarna (NYSE:KLAR | KLAR Price Prediction) stock is down 3% to $12.52, while Affirm Holdings (NASDAQ:AFRM) stock is advancing 2% to $69.40.
The contrasting moves come as the broader market also trades lower, with Financial Select Sector SPDR ETF (NYSE ARCA:XLF) down 0.44% to $54.30 and SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) down 0.52% to $763.82. Klarna’s reduced outlook remains a central issue for investors, while Affirm is benefiting from renewed attention around artificial intelligence, underwriting and recent operating momentum.
Klarna’s Guidance Cut Still Weighs Klarna’s latest results included a reduced outlook, leaving investors to weigh improving growth and profitability against a more cautious near-term forecast. Concerns around softer conditions in Germany and continued investment spending have added to the debate over whether Klarna can maintain its progress while managing the costs of expansion.
The selling pressure has persisted despite arguments that the pullback could create an opportunity for investors who view Klarna’s recent weakness as excessive. Klarna bulls also point to the CEO’s disclosed share purchase as a potential sign of confidence, although insider buying doesn’t eliminate the concerns created by weaker guidance and a declining stock price.
Apple Partnership Adds A Potential Catalyst Klarna’s financing partnership with Apple provides another part of the longer-term growth story. The relationship could give Klarna additional exposure to consumers using Apple’s ecosystem, potentially creating opportunities for transaction growth as the company continues expanding its payments and financing business.
For investors, the Apple relationship also highlights the difference between Klarna’s longer-term opportunities and its current trading environment. Klarna can have attractive partnerships and improving profitability while still facing pressure when investors become more cautious about growth expectations and spending.
Affirm Shows A Different Setup Affirm is advancing as investors focus on the company’s use of artificial intelligence to improve its lending decisions. Affirm has been rolling out a transformer-based underwriting model designed to approve more shoppers in real time while maintaining attention to credit quality, giving the company another potential avenue for improving its lending platform.
Recent attention has also focused on Affirm’s fiscal fourth-quarter results, higher analyst targets and the debate surrounding its valuation. Affirm stock’s 2% gain suggests investors are currently responding more favorably to that combination of operating momentum and technology-driven growth, although consumer-credit risk remains an important consideration.
Fintech Stocks Face Mixed Signals The divergent moves in Klarna stock and Affirm stock show how differently investors can view companies operating in the same broad consumer-finance market. Klarna is contending with a reduced outlook and questions about spending and regional conditions, while Affirm is drawing attention for its artificial intelligence investments and recent financial performance.
The broader market’s modest decline also provides a reminder that company-specific factors are driving much of the difference between Klarna and Affirm today. Investors should watch for signs that Klarna’s guidance concerns are easing, as well as evidence that Affirm’s underwriting investments can support growth without creating greater credit pressure. Investors should consider keeping their position sizes modest while Klarna stock remains under pressure and Affirm stock continues to face questions around valuation and consumer-credit conditions.
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Affirm spustil v USA nový model upisování, který lépe rozlišuje mezi zákazníky s podobnou historií, ale odlišným budoucím rizikem. U lidí bez FICO skóre zlepšil odhad rizika první nesplátky zhruba 2,1×.
Picture someone who had a bad year. A few bills went unpaid, and their credit score took the hit. Then things turned around. Every payment since has been on time. The score hasn’t caught up.
Now picture someone whose trouble is just starting. A missed payment here, another there, spread across a few accounts.
On paper, those two people can look the same. Same number of missed payments. Same answer at checkout, and it’s usually no.
Last week, Affirm announced that a new underwriting model built to tell those two apart is live at U.S. checkouts. In a conversation with PYMNTS CEO Karen Webster, Affirm President Libor Michalek went past the announcement and into the parts that don’t fit in one: what the old models were missing, who stands to gain the most and what it sets up for Affirm next.
What they were missing, he said, was time.
“The time dimension of multiple purchases, multiple credit events in a customer’s life wasn’t being represented with particularly high fidelity,” Michalek told Webster.
Put simply, the older models were good at counting what happened. They had a harder time with when it happened and what came after. The new one draws on Affirm’s 14 years of lending history and uses transformer technology, the same kind behind large language models, to follow the story in order.
Five of the 10 Deserved a Yes Michalek gave Webster an easy way to think about it. Take 10 applicants an older model would turn down. It declines all of them because it can’t tell which ones will get in over their heads. A better model might spot five who can repay. The other five still get a no.
The bar didn’t move. Affirm can now see who clears it.
For those five people, that’s credit they would have been denied, which is a familiar story for a lot of subprime and near-prime consumers. For Affirm, it’s five customers it was sending away.
Thin Files Have the Most to Gain Webster asked the natural follow-up. What happens when there’s barely any story to read?
Michalek said even a short history has an order to it. Credit bureau records, Affirm’s own data and cash flow information that users choose to share all add to the picture.
“Where before two very different users could look the same because of that sparseness of data, we’re really able to tease them apart,” he said.
This is where Affirm saw its biggest jump. Among consumers with something on their credit report but not enough for a FICO score, the new model improved Affirm’s ability to rank who’s likely to miss a first payment by about 2.1 times as much as the next version of its older model did. One caution on that number. It measures how well the model sorts risk, so it shouldn’t be read as twice as many approvals.
Michalek also said Affirm will keep reporting repayment behavior to the credit bureaus. Affirm can make some decisions without a FICO score, but the rest of a customer’s financial life still leans on one. It does raise a question worth watching. As more lenders learn to read the behavior behind the score, how much will the score itself matter?
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A Good Prediction Still Had to Wait a Year Michalek told Webster that Affirm had transformer models in testing more than a year ago. The predictions were good. That wasn’t enough to put them in front of customers.
Someone who gets declined needs to know why. The same application has to get the same answer every time. And all of it has to happen in under a second, while a shopper waits at checkout. Affirm kept working until the model could do all three.
What launched is a pairing. The transformer reads the payment history, and its read feeds into a more traditional machine-learning model alongside established credit, merchant and user information. Affirm said the pair beat the transformer on its own. Its first job was a second look at applicants the old system had declined. Next, it takes on full underwriting for new users, approvals and declines alike.
A Spending Limit Changes the Conversation All of this matters more because of how people now use Affirm. Its latest earnings showed more purchases at smaller amounts, which is what an everyday way to pay looks like.
Pay later has become working capital for the household. Consumers use it to match what they owe to when they get paid, across groceries, clothes and car repairs.
Everyday use brings its own challenge. One small purchase is easy to handle. Several of them, with payments landing around the same time, can be a different story. The model has to see how a new payment fits alongside what a customer already owes.
The Affirm Card shows how that reaches the customer. Anyone with a credit card knows their credit limit, and it answers one question: How much room do I have? The Affirm Card presents a spending limit, lays out payment plans and lets users weigh options such as the fastest payoff or the lowest interest. The questions change. What am I buying? What will it cost to pay over time? Which option works for me?
The customer chooses within guardrails. The underwriting decides where the guardrails sit.
And every purchase and repayment teaches Affirm a little more about that customer. Spending power can grow when the behavior supports it and hold steady when it doesn’t. That’s how a pay-later option works its way to the top of the wallet.
Asked how he’ll know a year from now whether it worked, Michalek pointed to approvals, delinquencies, customer growth and usage. The evidence, he said, will show up in quarterly results.
The first test may come sooner than that. The holiday season is weeks away, which means more purchases in a shorter window and more payments coming due together in the new year. A model built to know where a borrower is headed will gets its chance to show it can earn the customer’s next purchase, and the one after that.
New model builds on 14 years of transaction-level underwriting experience and data to approve more eligible consumers at comparable levels of risk
SAN FRANCISCO--(BUSINESS WIRE)--For 14 years, Affirm (NASDAQ: AFRM) has underwritten every purchase individually, in real time, using machine learning models built in-house. That approach is central to what Affirm promises the people who use it: every purchase gets its own decision, based on what a person can responsibly repay that day, with no late or hidden fees.
Today, Affirm announced the latest advancement of that system: a transformer-based model that learns from the order and timing of events in a consumer’s credit history. The model is now live at checkout in the U.S.
In its initial deployment, Affirm used the model to approve additional eligible applications that its existing system would have declined, including those with limited credit histories and no FICO scores. Measured against a control group, that produced 3.4% more completed purchases, and those additional loans performed better than a comparable expansion under Affirm's previous machine learning models.
"We’ve steadily accelerated the amount of data we use to train each generation of our underwriting models," said Libor Michalek, Affirm President. "What’s exciting about the transformer model architecture is that we can now find new information within the data we already have. Seeing a credit history more clearly means we can responsibly say yes to more people.”
Finding more signal in credit history
Affirm’s underwriting models have improved with each generation, learning from more transactions and repayment outcomes. They’ve long used credit-bureau measures such as balances, credit utilization, account counts, and payment history. Those measures remain important, but they summarize a credit history that is always changing.
The transformer can identify patterns within and across credit accounts, including how they change over time. It does that without a separate measure being designed for each pattern in advance, helping Affirm find more signal in existing data.
Built for decisions at checkout
Building a better model was only part of the challenge.
Affirm built a proprietary algorithm that produces the same level of explainability as traditional machine learning models, while keeping the model fast enough for real-time use.
Validation and ongoing monitoring help ensure the model’s explanations are accurate and reliable.
"Underwriting is the heart of what we do," Michalek added. "The goal isn’t to approve every transaction, it’s to make the right decision for each one. We don’t benefit from extending credit that can’t be repaid, which means saying yes to more people only works when we get even better at saying no."
About Affirm
Affirm's mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency, and putting people first – we empower millions of consumers to spend and save responsibly and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
Key Takeaways Affirm's Q4 fiscal 2026 GMV rose 36%, revenues climbed 33% and active users increased 21%.Affirm's 30 day delinquency rate was 2.5%, down 26 bps sequentially but up 19 bps year over year.Moderate consumer pressure can boost Affirm demand without significantly hurting credit quality. In recent interviews with CNBC and Bloomberg, Affirm Holdings, Inc. (AFRM - Free Report) CEO Max Levchin pointed to growing pressure on U.S. consumers from higher gas prices and inflation. Rising everyday costs are squeezing household budgets, but they are also making installment payments more useful, prompting more shoppers to turn to Affirm to preserve cash or spread out larger purchases.
That does not automatically make a tougher economy bullish for Affirm. The key is how much stress consumers can absorb. Moderate pressure can lift demand without materially weakening credit quality. Severe pressure is different. If borrowers move from wanting more flexibility to simply being unable to afford purchases, delinquencies and charge-offs can rise, forcing Affirm to tighten approvals and absorb higher credit costs.
So far, the operating picture looks more supportive than alarming. Affirm has continued to post strong growth in gross merchandise volume (up 36% in the fourth quarter of fiscal 2026), revenues (up 33%) and active users (up 21%), while credit trends remain manageable. Its underwriting model also gives it room to decline higher-risk applications, adjust credit limits and require down payments as risk conditions change. Affirm's 30+ day delinquency rate on monthly installment loans was 2.5%, down 26 basis points sequentially, although it was 19 basis points higher year over year.
Funding conditions remain worth watching, but the broader picture is constructive. As long as repayment trends remain stable and underwriting stays disciplined, rising demand for flexible payments could continue supporting Affirm’s growth while keeping credit performance on a healthy footing.
AFRM’s YTD Price PerformanceOver the year-to-date period, shares of Affirm have declined 2.9% against the 0.8% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key PicksAffirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader payments space are Remitly Global, Inc. (RELY - Free Report) , Usio, Inc. (USIO - Free Report) and Repay Holdings Corporation (RPAY - Free Report) . While Remitly Global currently sports a Zacks Rank #1 (Strong Buy), Usio and Repay Holdings are carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Remitly Global’s current-year earnings indicates a 390.6% year-over-year surge to $1.57 per share. It has witnessed one upward estimate revision and no downward movement over the past 30 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.98 billion, implying 21.4% year-over-year growth.
The Zacks Consensus Estimate for USIO’s current-year earnings indicates an 88.9% year-over-year improvement. USIO has witnessed one upward estimate revision over the past month against no cuts. The consensus estimate for current-year revenues indicates 13.9% year-over-year growth.
The Zacks Consensus Estimate for Repay Holdings’ current-year earnings indicates 26.8% year-over-year growth. RPAY witnessed one upward estimate revision over the past month and no downward movement. The consensus estimate for current-year revenues implies a 60.1% year-over-year jump.
Bernstein zvýšila cílovou cenu Affirm na 110 USD z 100 USD a ponechala doporučení Outperform, ale akcie během obchodování klesly o 6,12 %. Firma upozornila na růst počtu obchodníků o 51 % na 571 000 a na 5,2 milionu uživatelů Affirm Card.
Merchant count rose 51% to 571,000 as the Affirm Card reached 5.2 million users Summary
Bernstein lifted its target to $110 citing merchant and card growth, while the stock traded in the opposite direction.
Bernstein SocGen raised its price target on Affirm Holdings AFRM to $110 from $100, keeping an Outperform rating and pointing to network effects across merchants, the Affirm Card and newer verticals. The firm initiated coverage in July at $100. Affirm shares were down 6.12% intraday.
The raise follows fiscal fourth quarter results reported August 27. Revenue less transaction costs, Affirm's non-GAAP measure, came in 7% ahead of consensus, and adjusted operating income beat by 12%. Gross merchandise volume ran 5% above consensus on growth in both Pay in X products and interest-bearing loans. Fiscal 2027 guidance for revenue less transaction costs landed 4% above consensus, with adjusted operating income guidance in the teens above.
Merchant count rose 51% to 571,000, an acceleration of eight percentage points, and Affirm now works with 80 of the top 250 US merchants. The Affirm Card has 5.2 million users, with gross merchandise volume up 125% year over year. Bernstein said newer verticals are growing at two to three times the rate of the overall business, helped by independent software vendor partnerships.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Affirm vykázal ve 4. čtvrtletí lepší než očekávané výsledky a zvýšil výhled tržeb na 1,19 až 1,22 miliardy USD, nad odhadem 1,16 miliardy USD. Akcie v premarketu vzrostly o 11,2 %.
Affirm Holdings Inc (NASDAQ:AFRM) on Thursday reported better-than-expected fourth-quarter financial results and issued first-quarter sales guidance above estimates.
Affirm reported quarterly earnings of $4.62 per share, according to Benzinga Pro data. Quarterly revenue came in at $1.17 billion, which beat the analyst consensus estimate of $1.11 billion and was up from $876.42 million in the same period last year.
"We delivered another outstanding set of results this quarter, especially in the broader context of global economic uncertainty," said CEO Max Levchin.
Affirm expects first-quarter revenue in a range of $1.19 billion to $1.22 billion, versus the $1.16 billion analyst estimate.
Affirm shares rose 11.2% to $86.20 in pre-market trading
These analysts made changes to their price targets on Affirm following earnings announcement.
Needham analyst Kyle Peterson maintained the stock with a Buy and raised the price target from $90 to $100. B of A Securities analyst Matthew O’Neill maintained the stock with a Buy and raised the price target from $93 to $104. Morgan Stanley analyst James Faucette maintained the stock with an Equal-Weight rating and raised the price target from $80 to $82. BMO Capital analyst Rufus Hone maintained the stock with an Outperform rating and raised the price target from $86 to $101. Trending
Considering buying AFRM stock? Here’s what analysts think:
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Affirm se vrací do Austrálie spuštěním Shop Pay Installments přes Shopify, což má zvýšit GMV i výnosy. Ve 4. čtvrtletí fiskálního roku 2026 GMV vzrostl o 36 % na 14,1 miliardy USD a výnosy o 33 % na 1,17 miliardy USD.
Key Takeaways Affirm returned to Australia by launching Shop Pay Installments with Shopify.The rollout gives Affirm access to Shopify's Australian merchants and is expected to add GMV and revenue.Affirm ended fiscal 2026 with GMV up 36%, revenue up 33% and active merchants up 51%. Affirm Holdings, Inc. (AFRM - Free Report) recently expanded its partnership with Shopify by launching Shop Pay Installments in Australia. The service is powered exclusively by Affirm and sits inside Shopify’s Shop Pay checkout. Affirm makes a real-time underwriting decision on every transaction and does not charge late fees, account fees or compounding interest. The launch marks the company’s return to Australia after it wound down operations there in 2023 as part of a broader effort to focus on growth and profitability.
The re-entry gives Affirm access to Shopify’s Australian merchant base while advancing a broader global partnership already spanning the United States, Canada and the U.K., with further expansion planned across Western Europe. AFRM can help merchants boost conversions and basket sizes by making larger purchases easier for customers to manage.
Shop Pay has more than 250 million buyers globally, while over 90% of Affirm purchases in North America come from repeat customers. That creates a large channel and strengthens Affirm’s international expansion opportunity over time.
The Australian rollout is expected to add GMV and transaction-driven revenue as adoption builds, while also widening Affirm’s merchant network. In fourth quarter fiscal 2026, GMV jumped 36% to $14.1 billion, revenues rose 33% to $1.17 billion and revenue less transaction costs increased 39% to $589 million.
Active consumers climbed 21% to 27.8 million, while transaction per active consumer grew 20%, giving Affirm a larger base for international growth and recurring transaction volume across new markets over time. Also, active merchant count surged 51% to 571,000 as of June 30, 2026.
How Are Peers Placed?Affirm is going back to a competitive Australian BNPL market, where several companies already have established positions. PayPal Holdings Inc. (PYPL - Free Report) has considerable reach through Pay in 4. PayPal says the product is available across more than 9 million active Australian PayPal accounts, while its 2025 survey showed usage among 51% of Australian BNPL users, up from 45% a year earlier.
Meanwhile, Block, Inc. (XYZ - Free Report) is one of the strongest competitors through Afterpay, which originated in Australia. Afterpay currently cites about 4.4 million active consumers in Australia and New Zealand. PayPal’s 2025 Australian survey found that 78% of Australian BNPL users had used Afterpay in the prior six months.
Affirm’s Price Performance, Valuation and EstimatesShares of Affirm have gained 4.1% year to date, outperforming the broader industry but trailing the S&P 500 Index.
Affirm’s YTD Price Performance Image Source: Zacks Investment Research
From a valuation standpoint, Affirm trades at a forward price-to-earnings ratio of 41.42X, up from the industry average of 27.93X. AFRM carries a Value Score of D.
It beat earnings estimates in each of the past four quarters, with an average surprise of 379.4%.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AFRM oznámila nejziskovější čtvrtletí v historii bez započtení daňového uvolnění a ve fiskálním 4. čtvrtletí 2026 překonala odhady ziskem na akcii i tržbami. Firma zároveň urychluje expanzi karet, nákupů v obchodech a obchodníků.
Key Takeaways AFRM posted its most profitable quarter ever, excluding a tax allowance release, as Q4 beat estimates.AFRM targets card, in-store and merchant expansion, with card users generating about twice typical usage.AFRM will keep credit discipline tight while building U.K., Edge and longer-term products beyond fiscal 2027. Affirm Holdings, Inc. (AFRM - Free Report) used its fiscal fourth-quarter 2026 earnings call to emphasize growth, tighter execution and a wider product roadmap after what CEO Max Levchin called the company’s most profitable quarter ever, excluding a tax allowance release. The quarter ended on June 30, 2026.
The company reported fiscal fourth-quarter earnings per share (EPS) of $4.62, which beat the Zacks Consensus Estimate of $0.33. Revenues of $1.17 billion surpassed the consensus mark of $1.10 billion.
AFRM Sets the Fiscal 2027 Profitability ToneChief Financial Officer Rob O’Hare said that fiscal 2027 revenue less transaction costs should reflect take rates broadly consistent with fiscal 2026, supported by current funding costs and a similar funding mix.
Management’s outlook implies a 4.16% revenue-less-transaction-costs rate for fiscal 2027, above the 3.25%-4% midterm range referenced during the Q&A. O’Hare also expects only a slight shift toward interest-bearing loans.
On a GAAP EPS basis, O’Hare stopped short of a precise forecast. He reiterated a mid-to-high-20% run-rate tax rate while cautioning that accounting and stock-compensation effects can create volatility.
Affirm Pushes Card and In-Store ExpansionLevchin, founder, CEO and chairman, said that in-store commerce remains a major product opportunity, but the experience requires more work around connectivity, point-of-sale systems and transaction adjustments than online checkout.
He said that the company is developing in-store features intended to deliver more value despite added approval steps, with new ideas expected in coming quarters. E-commerce expansion remains a parallel priority.
Affirm Card is another focus. Levchin said that card users generate about twice the usage of typical customers, while card attachment stands at 19% of active users. Management plans card-specific features to lift both adoption and engagement.
AFRM Sees More Merchant GreenfieldA Redburn analyst pressed management on why Affirm remains available at only a portion of major e-commerce merchants despite broader payment-platform integrations. Levchin framed the gap as an opportunity rather than a sales constraint.
He said that large merchants often face long implementation cycles because legacy systems require significant modifications. That limits how quickly new checkout options can be added even when merchants are receptive.
Levchin also emphasized network effects. He said that adding consumers and merchants should make the platform more valuable to both sides, reinforcing Affirm’s long-term focus on network scale rather than short-term product shifts.
Affirm Keeps Credit Discipline CentralA Wells Fargo analyst asked whether resilient consumer performance creates room to loosen underwriting. Levchin rejected the idea of treating credit policy as a single broad lever.
He said Affirm makes roughly 100 million transaction-level credit decisions per quarter and continually adjusts policy across consumers, merchants and transaction classes. Credit targets remain an input to growth rather than an output.
Levchin added that management would slow growth before accepting a meaningful credit disturbance. O’Hare separately said that current consumer-credit performance does not give management pause in its fiscal 2027 assumptions.
AFRM Builds U.K. and Edge OpportunitiesLevchin described early U.K. performance as solid, citing positive merchant feedback and consumer receptivity. He also said that management had not observed a notable competitive response from incumbents so far.
Affirm Edge is moving more deliberately. Levchin said that bank partners face regulatory and implementation requirements, while Affirm is still completing parts of the technology needed for partner-controlled financing programs.
He expects the first launches to require close support and said that the company will prioritize execution quality over speed. Affirm Money Account is also being developed as a first-party model for the Edge experience.
Affirm Keeps Its Long-Term Product FocusLevchin said that his expanded product focus will increasingly target initiatives that may not contribute until fiscal 2028, fiscal 2029 and beyond. The current outlook instead reflects products already operating and generating profits.
Management’s call tone combined confidence in the existing network with restraint around newer initiatives. The company is pushing merchant coverage, card usage, international growth and bank partnerships without building near-term guidance around unproven products.
What AFRM’s Zacks Signals IndicatePresently, AFRM carries a Zacks Rank #3 (Hold), alongside a Value Score of D, a Growth Score of A, a Momentum Score of A and a VGM Score of B. The Style Score framework treats A and B readings as stronger, while D is less favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth, Momentum and VGM scores therefore provide stronger style signals than Value, but the Zacks Rank remains the primary indicator in the framework. The Zacks Rank can change as analyst earnings estimates are revised after the newly reported results.
SAN FRANCISCO--(BUSINESS WIRE)--Affirm Holdings, Inc. (NASDAQ: AFRM) today announced it will publish its fourth quarter fiscal year 2026 shareholder letter, including its financial results, on its investor relations website at https://investors.affirm.com/ on Thursday, August 27, 2026, after market close. The Company will host a conference call and webcast at 2:00pm PT that same day. Hosting the call will be Max Levchin (Founder and Chief Executive Officer), Michael Linford (Chief Operating Officer), and Rob O'Hare (Chief Financial Officer).
A replay will be available on the investor relations website following the call.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
Affirm rozšířil službu BNPL na Bed Bath & Beyond, Overstock a buybuy BABY pro oprávněné zákazníky. Tím posiluje svou přítomnost v segmentu domácností a širší síť obchodníků.
Key Takeaways Affirm will offer BNPL across Bed Bath & Beyond, Overstock and buybuy BABY for eligible shoppers.AFRM had about 515,000 active merchants as of March 31, 2026, up 43.8% year over year.AFRM's Q3 FY26 GMV rose 35% and total transactions increased 45% year over year. Affirm Holdings, Inc. (AFRM - Free Report) has entered a new partnership with Bed Bath & Beyond, making its buy now, pay later (BNPL) solution available to eligible shoppers across the retailer's brands, including Bed Bath & Beyond, Overstock and buybuy BABY. Customers can choose to pay for purchases in biweekly or monthly installments with no late or hidden fees, offering greater payment flexibility while shopping for home-related products.
The agreement expands Affirm's presence in the home retail market, where purchases often involve a higher ticket size than everyday discretionary spending. By giving consumers more payment choices at checkout, the company could attract new users and encourage higher transaction activity. The partnership also allows Affirm to reach shoppers during key life events, such as moving into a new home or preparing for a growing family.
The addition further strengthens AFRM's merchant portfolio. As of March 31, 2026, the company’s active merchants were around 515,000, up 43.8% year over year. Expanding relationships with well-known brands enhances the company's reach, increases consumer touchpoints and supports growth in gross merchandise volume (GMV). In the third quarter of fiscal 2026, GMV grew 35% year over year, while total transactions increased 45%, highlighting strong platform engagement.
As demand for flexible payment solutions continues to grow, adding established retailers can support broader platform adoption and higher payment volumes. The Bed Bath & Beyond partnership aligns with Affirm's strategy of expanding its merchant network and should strengthen its long-term growth opportunities in the evolving digital payments landscape.
How Are Competitors Faring?Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. (PYPL - Free Report) and Visa Inc. (V - Free Report) .
PayPal reported 439 million active accounts in the first quarter of 2026, which rose 1% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 11% year over year in the first quarter of 2026.
Visa’s processed transactions increased 9% year over year in the second quarter of fiscal 2026. Visa’s payment volume rose 9% year over year in the second quarter of fiscal 2026, along with 17% growth in net revenues.
Affirm’s Price Performance, Valuation & EstimatesOver the past year, AFRM’s shares gained 21.2% against the industry’s fall of 19.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6.66, above the industry average of 3.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 726.7% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 30.6% year-over-year growth.
Image Source: Zacks Investment Research
Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Affirm uzavřel partnerství s Backcountry a rozšiřuje tak svou síť obchodníků v outdoorovém segmentu. Zákazníci mohou u nákupu rozdělit platbu do splátek bez pozdních poplatků či skrytých nákladů.
Key Takeaways Affirm adds Backcountry, expanding its footprint in the outdoor recreation market.More merchant partnerships can boost GMV, transactions and user engagement.Flexible payment options may increase conversion rates and average order values. Affirm Holdings, Inc. (AFRM - Free Report) recently announced a partnership with outdoor gear retailer Backcountry, giving shoppers a new way to pay for purchases over time at checkout. Customers buying outdoor equipment, apparel, footwear and adventure gear can select Affirm and split purchases into multiple installments, depending on eligibility.
The offering includes transparent payment schedules, with no late fees or hidden charges. The move expands Affirm’s presence in the outdoor recreation category and adds another merchant to its growing network. AFRM’s active merchant count jumped 44% year over year in the third quarter of fiscal 2026 to 515,000. For Backcountry, the partnership provides customers with added payment flexibility, especially for higher-ticket purchases that can make outdoor activities more accessible.
Outdoor gear purchases can be expensive, particularly for premium equipment and seasonal adventures. By adding Affirm, Backcountry lowers the upfront cost barrier for customers while maintaining pricing transparency. The partnership can improve conversion rates, encourage larger purchases and attract shoppers who want flexibility without relying on traditional credit cards.
The partnership could support higher gross merchandise volume (GMV) for Affirm by generating additional transaction activity. The company’s GMV rose 35% year over year to $11.6 billion in the third quarter of fiscal 2026. It expects to generate GMV of $49.265-$49.565 billion for fiscal 2026.
More merchant integrations also strengthen Affirm’s network effect, helping the company acquire users and increase engagement across categories. For Backcountry, offering AFRM’s BNPL options may lift average order values.
AFRM’s YTD Price PerformanceOver the year-to-date period, shares of Affirm have gained 5.2% against the 16.7% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key PicksAffirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader payments space are Klarna Group plc (KLAR - Free Report) , Paymentus Holdings, Inc. (PAY - Free Report) and Remitly Global, Inc. (RELY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.
The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.
The consensus estimate for Remitly Global’s current-year earnings indicates a 331.3% year-over-year surge to $1.38 per share. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.97 billion, implying 20.4% year-over-year growth.
Affirm za poslední měsíc vzrostl o 13,3 % díky růstu aktivních uživatelů, počtu karet a transakcí. Rizikem zůstává vyšší zadlužení a rostoucí tvorba opravných položek na očekávané úvěrové ztráty.
Key Takeaways Affirm's expanding ecosystem and card growth are driving stronger user engagement.Earnings estimates and GMV outlook point to continued momentum for AFRM.Rising leverage and higher credit-loss provisions remain risks to watch. Shares of Affirm Holdings, Inc. (AFRM - Free Report) have climbed 13.3% over the past month, handily beating the broader industry, which slipped 2.6%, while the S&P 500 was little changed. The rally reflects growing confidence in the company’s growth prospects, improving profitability and an expanding ecosystem. Among major buy now, pay later (BNPL) peers, PayPal Holdings, Inc. (PYPL - Free Report) has fallen 3.9% during the same period, while Klarna Group plc (KLAR - Free Report) has gained 13.7%.
Price Performance – AFRM, PYPL, KLAR, Industry & S&P 500 Image Source: Zacks Investment Research
Let’s look at its growth drivers.
AFRM’s New Initiatives Are Opening More DoorsAffirm’s newer offerings are beginning to play a bigger role in its growth story. The Affirm Card, digital wallet integrations, agentic commerce initiatives and the recently launched Affirm Edge are creating additional ways for customers to use the platform. Active cardholders reached 4.4 million in the fiscal third quarter, while card GMV alone soared 146% year over year, helped by the company’s cash-flow underwriting model.
Affirm also strengthened its relationship with Google by integrating its BNPL services to Google Search, AI Mode and the Gemini app through Google Pay. The move expands its reach and could drive higher transaction volumes over time.
Funding capacity also continues to improve. Earlier this month, Affirm expanded its partnership with Canada Pension Plan Investment Board. The agreement is expected to support roughly $8 billion in consumer loan volume over the next two years, underscoring institutional confidence in the company’s underwriting and credit performance.
AFRM Building Scale Across Consumers and MerchantsDespite uncertainty in the broader economy, Affirm continues to deepen its presence through partnerships, product innovation and a growing customer base. These efforts are expanding its addressable market and reducing reliance on any single growth driver.
Active consumers rose 22% year over year to 26.8 million in the fiscal third quarter. Usage is spreading beyond large purchases into categories such as groceries, fuel, travel and subscriptions, making the platform more relevant to everyday spending.
Transactions increased 45% to 45.3 million in the latest quarter. Repeat users accounted for about 96% of total transactions, showing that customers continue to come back. Gross merchandise volume rose 35% to $11.6 billion. For fiscal 2026, management expects GMV between $49.265 billion and $49.565 billion. It has also outlined a medium-term goal of reaching $100 billion in annual GMV, supported by at least 25% yearly growth.
Merchant adoption is also gaining momentum. Active merchants climbed 44% from a year ago to 515,000 as of March 31, 2026, reflecting steady demand for flexible payment options.
Earnings Outlook for AFRM Remains BrightThe Zacks Consensus Estimate for fiscal 2026 earnings of $1.25 per share indicates a 733.3% year-over-year surge, while the estimate for fiscal 2027 earnings implies further growth of 35.6%. Moreover, the consensus mark for fiscal 2026 and 2027 revenues suggests 30.6% and 26.5% year-over-year growth, respectively.
It has delivered solid financial results lately, beating earnings estimates in each of the trailing four quarters, the average surprise being 74.9%.
Risks Still Deserve AttentionThe outlook is not without challenges. Inflation concerns and uneven economic conditions continue to raise questions about consumer spending and borrowers’ ability to manage debt. Provision for credit losses increased 24.6% in the first nine months of fiscal 2026, reflecting a more cautious view of the environment.
Competition is intensifying as Klarna and other fintech firms aggressively pursue market share. Walmart’s decision last year to replace Affirm with Klarna as its exclusive BNPL provider highlighted how quickly key partnerships can change.
Leverage is another concern. Funding debt stood at $2.4 billion at the end of the fiscal third quarter, up from $1.6 billion at fiscal 2025-end. The company’s debt-to-capital ratio of 67.7% remains well above the industry average of 21.4%. PayPal, by comparison, stands at 32%.
The stock trades at 4.67X forward 12-month sales, slightly above its three-year median of 4.40X and the industry average of 3.66X, leaving little room for disappointment. PayPal and Klarna trade far lower, at 1.07X and 1.46X forward sales, respectively.
ConclusionAffirm is executing well, supported by strong user engagement, expanding products and improving earnings prospects. Its growing merchant network and rising transaction volumes provide a solid foundation for long-term growth. However, elevated leverage, rising credit-loss provisions, intense competition and a premium valuation remain key concerns.
While the company’s growth story remains compelling, these risks warrant caution in the short run. Reflecting the balance between favorable fundamentals and the challenges, Affirm currently carries a Zacks Rank #3 (Hold), suggesting investors may want to wait for a more attractive entry point or additional catalysts. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
