Core Insights - Affirm Holdings, Inc. has expanded its partnership with Williams-Sonoma, Inc. to Canada, allowing Canadian customers to access Affirm's services across various home furnishing brands [1][3] - The partnership aligns with Affirm's strategy to grow in high-priced, lifestyle-focused markets, leveraging Williams-Sonoma's premium product offerings [3] - Affirm's existing partnerships with major companies like Amazon, Apple, and Samsung provide a strong foundation for its international expansion strategy [4] Financial Performance - In the fiscal third quarter of 2025, Affirm's merchant network revenues increased by 34.3% year-over-year to $214 million, driven by a growing gross merchandise value (GMV) [5] - The projected GMV for fiscal 2025 is estimated to be between $35.7 billion and $36 billion [5] - Affirm's stock price has surged by 77.8% over the past year, outperforming the industry's growth of 34.1% [8]

Williams-Sonoma, Inc. (WSM) has expanded its partnership with Affirm, a payment platform that supports consumers and aids merchant growth, to Canada. This move follows the companies' existing multi-year collaboration in the United States.The expansion allows customers from Canada to use Affirm’s payment services across WSM’s brands. These include Williams Sonoma, West Elm, Pottery Barn, Pottery Barn Teen, Pottery Barn Kids, and Mark & Graham.WSM Enhances Customer Payment Experience in CanadaWilliams-Sonoma ...

Company Overview - Affirm Holdings, Inc. (AFRM) has partnered with Cali Pass to offer flexible payment options in the winter sports market, starting with the 2025-2026 ski season [1][3] - The partnership allows Cali Pass customers to choose between interest-free biweekly payments or extended monthly terms for purchasing passes or lift tickets [1][2] Market Expansion - The integration of Affirm's payment model is expected to make skiing more affordable and attract budget-conscious skiers and first-time participants, thereby expanding Cali Pass's market [3] - Affirm's network now includes 358,000 retail partners, which is likely to strengthen its position in the leisure and travel market and diversify revenue sources [3] Consumer Trends - There is a growing trend among Gen Z and Millennials favoring flexible payment options, which Affirm is capitalizing on [4] - This partnership may also help ski resorts balance revenues during off-seasons by encouraging early-pass purchases [4] Industry Insights - The U.S. winter sporting goods market is projected to generate $145 billion in revenues by 2028, indicating significant growth potential [4] Stock Performance - Over the past year, AFRM shares have increased by 54.1%, outperforming the industry's growth of 30.7% [5]

Core Viewpoint - Mastercard and Affirm represent two distinct approaches within the digital payments landscape, with Mastercard being a traditional player and Affirm emerging as a disruptor in the Buy Now, Pay Later (BNPL) sector [1][2]. Group 1: Mastercard Overview - Mastercard operates in over 210 countries, processing trillions of dollars annually, and has a history of steady revenue growth supported by strong relationships with banks, merchants, and consumers [3]. - In its latest quarter, Mastercard reported earnings of $3.73 per share, exceeding the Zacks Consensus Estimate by 4.5%, driven by increased gross dollar volume and strong consumer spending [4]. - The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 3.7% [4]. - Mastercard is investing in cybersecurity and AI to maintain its competitive edge, but faces challenges such as reliance on transaction fees and potential softening of credit card usage due to high interest rates and growing consumer debt [5][6]. Group 2: Affirm Overview - Affirm is positioned at the intersection of e-commerce and credit, offering flexible financing solutions that appeal to younger consumers who prefer transparent terms over traditional credit cards [7]. - The company reported a 36% year-over-year growth in Gross Merchandise Volume (GMV) in its most recent quarter, indicating improving margins and a path toward profitability [8]. - Affirm's earnings of a penny per share beat the Zacks Consensus Estimate of a loss of 9 cents, supported by growth in GMV and rising transaction volumes [9]. - The company has established partnerships with major retailers like Amazon and Shopify, enhancing its access to consumers and positioning itself for future growth in a mobile-first payment landscape [10]. Group 3: Stock Performance and Valuation - Over the past 12 months, Mastercard stock has returned 26.9%, outperforming the S&P 500's 12% gain, while Affirm has seen a dramatic 59.1% increase [13]. - Mastercard trades at a forward P/E of 34.35X, higher than its three-year median and the S&P 500's 21.88X, while Affirm's price-to-sales ratio of 4.41X is lower than the S&P 500's 5.13X [16]. - The Zacks Consensus Estimate for Mastercard's 2025 sales and EPS implies year-over-year growth of 13.1% and 9.3%, while Affirm's current year sales and EPS estimates signal 37% and 95.8% year-over-year improvements [18]. Group 4: Conclusion - Mastercard is characterized by consistency and profitability, offering a lower-risk profile, but lacks the disruptive innovation seen in Affirm [20]. - Affirm, while more volatile and still working towards profitability, presents a compelling growth narrative with strong partnerships and innovative technology [20][21].

Core Insights - Affirm Holdings, Inc. has expanded its presence in the buy now, pay later (BNPL) market through partnerships with Costco and Mattress Firm, aimed at facilitating consumer financing for larger purchases during sales events [1][4]. Group 1: Partnerships and Offerings - Customers at Costco.com can utilize Affirm for online transactions of $500 or more, with real-time eligibility checks and transparent monthly payment options [2]. - The partnership with Mattress Firm allows customers to access flexible bi-weekly and monthly payment plans in over 2,200 stores, featuring potentially 0% APR during the Memorial Day Sale [3]. Group 2: Market Impact and Growth - These partnerships are expected to significantly increase Affirm's transaction volume and customer base, enhancing trust through association with reputable brands [5]. - Affirm's merchant network now includes over 358,000 partners, positioning the company as a competitive alternative to traditional credit [5]. Group 3: Stock Performance - Over the past year, Affirm's stock has increased by 75.1%, outperforming the industry growth rate of 32% [6].

Core Insights - The buy now, pay later (BNPL) business model is experiencing rapid growth, with PayPal reporting a 20% increase in payment volume through its BNPL product in Q1 [1] - PayPal's BNPL customers are notably active, spending 33% more and conducting 17% more transactions compared to other users [2] - Despite the growth in BNPL, PayPal's overall revenue increased by only 2% on a constant currency basis, indicating it is not currently a high-growth stock [2] PayPal - PayPal is focusing on the BNPL segment due to the higher spending and transaction frequency of BNPL customers [2] - The company is facing challenges in maintaining growth, as evidenced by its modest revenue increase [2] Sezzle - Sezzle reported exceptional revenue growth of over 123% in Q1, alongside a significant increase in adjusted operating margin by over 1,600 basis points compared to Q4 2024 [3] - The company achieved an adjusted net income margin of over 34%, significantly outperforming competitor Affirm's margin of less than 1% [4] - Sezzle raised its revenue growth guidance for 2025 from 25% to over 62% and increased its adjusted earnings per share guidance by 47% to $3.25 [5] - Following its strong Q1 results, Sezzle's shares surged over 42% [5] - Analysts at B. Riley raised their price target on Sezzle by 60% to $101 per share, indicating a potential upside of around 12% [6] Affirm - Affirm experienced a revenue increase of 36% in the last quarter and raised its guidance for the next quarter, although the increase was less than expected, leading to a 14% drop in shares [8] - Affirm's partnership with Costco, which has an estimated e-commerce revenue exceeding $11 billion in 2024, is a significant development that could enhance its gross merchandise volume (GMV) [11][12] - Costco's e-commerce sales growth rate of 22% on a constant currency basis positions Affirm favorably compared to smaller competitors like Sezzle [12] Market Positioning - Sezzle and Affirm represent two distinct investment opportunities within the growing BNPL industry, with Sezzle being a smaller, rapidly growing player and Affirm being a more established company with significant partnerships [13]

Core Viewpoint - Affirm Holdings, Inc. has experienced significant stock volatility following its fiscal Q3 2025 earnings report, with a sharp decline in stock price due to disappointing fourth-quarter guidance, followed by a rebound after announcing a new partnership with World Market [1][2]. Financial Performance - Affirm reported fiscal Q3 2025 earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.09 and improving from a loss of $0.43 in the prior year [3]. - Revenue increased by 36% year-over-year to $783.1 million, aligning with the company's guidance range of $755–$785 million [3]. - Gross Merchandise Value (GMV) reached $8.6 billion, up 36% from the previous year, exceeding the Zacks Consensus Estimate of $8.1 billion [4]. - Transactions totaled 31.3 million, reflecting a 45.6% year-over-year increase, primarily driven by repeat customers [4]. Growth Prospects - The company anticipates Q4 revenue between $815-$845 million and GMV between $9.4-$9.7 billion, although this guidance fell short of Wall Street expectations [5]. - Repeat customer transactions accounted for 94% of total transactions in Q3, indicating strong brand loyalty and potential for more predictable revenue [6]. - Affirm is expanding internationally, with plans to enter Western Europe, starting with France, Germany, and the Netherlands, in partnership with Shopify [7]. Business Model and Innovations - Affirm's model benefits both merchants and consumers by reducing cart abandonment and offering flexible payment options, including 0% APR monthly installments, which rose 44% year-over-year and accounted for 13% of GMV [8]. - The company is investing in complementary financial products, such as debit solutions and business-to-business tools, to enhance customer relationships and usage frequency [9]. Earnings Estimates and Valuation - The Zacks Consensus Estimate suggests a 95.8% year-over-year improvement in fiscal 2025 earnings, with fiscal 2026 earnings expected to surge nearly 960% [10]. - Revenue projections for fiscal 2025 and 2026 are expected to grow by 36.9% and 23.3%, respectively [10]. - Affirm's stock has increased by 67% over the past year, outperforming the broader industry and the S&P 500 Index [11]. Competitive Landscape - Affirm is trading at a premium valuation of 4.47X forward 12-month sales, higher than its three-year median of 3.49X, while competitors PayPal and Block are trading at 2.09X and 1.39X, respectively [14]. - The BNPL market remains competitive, with traditional financial institutions and credit card companies entering the space, exemplified by Walmart's switch from Affirm to Klarna [18]. Conclusion - Affirm's fiscal Q3 performance showcased strong revenue growth and rising transaction volumes, particularly from loyal customers, alongside an expanding merchant network and international market push [19]. - However, challenges such as elevated debt levels, rising expenses, and intense competition may impact margin stability and market share expansion [19].

Group 1 - The article discusses the uncertainty surrounding the current bull market and its implications for Affirm (NASDAQ: AFRM), which has been a significant performer recently [1] - Affirm is highlighted as a company that may benefit from a continuation of the bull market, suggesting potential for further growth [1] - The analysis emphasizes the importance of identifying undervalued companies with strong growth potential, which is a key focus for the financial analyst mentioned [1] Group 2 - The financial analyst, Julian Lin, is noted for his strategy of combining growth-oriented principles with strict valuation criteria to enhance investment safety [1] - The analyst's approach includes looking for companies with robust balance sheets and effective management teams in sectors with long-term growth prospects [1]

Core Insights - Affirm Holdings reported strong growth in Gross Merchandise Volume (GMV) and revenue, marking the third consecutive quarter of acceleration in GMV growth [4] - The company achieved a GMV growth rate of 36% year-on-year, with revenue growth aligning with this performance [4] - Unit economics improved significantly, with a year-on-year growth of 53%, surpassing the previously discussed range of 3% to 4% [4] Financial Performance - The operating margin was consistent with the company's expectations, indicating effective cost management and operational efficiency [5] - Affirm reiterated its commitment to achieving profitability on a GAAP operating basis, signaling a focus on long-term financial health [5]

Affirm (AFRM) FY Conference Summary Company Overview - **Company**: Affirm (AFRM) - **Industry**: Fintech, specifically focused on Buy Now Pay Later (BNPL) services Key Highlights - **Strong GMV Growth**: Affirm reported a 36% year-on-year growth in Gross Merchandise Volume (GMV) for the quarter, marking the third consecutive quarter of acceleration in GMV growth [2][3] - **Revenue Growth**: Revenue growth was in line with GMV growth, indicating a healthy business model [2] - **Unit Economics**: Affirm's unit economics showed a 53% year-on-year growth, significantly above the expected range of 3% to 4% [3] - **Operating Margin**: The adjusted operating margin was consistent with expectations, with a commitment to achieving GAAP profitability by Q4 [3] User Engagement and Market Dynamics - **User Growth**: There was a 20% increase in users and transaction frequency, indicating robust network dynamics [4] - **Consumer Sentiment**: Despite low consumer sentiment reported in the market, Affirm observed strong demand and credit quality, suggesting a disconnect between sentiment and actual spending behavior [9][10] - **Monitoring Consumer Behavior**: Affirm actively monitors credit and volume data to assess consumer stress, ensuring readiness to react to market changes [10][11] Product Engagement - **User Journey**: The typical user journey begins at the point of sale, with a seamless application process leading to loan approval and servicing primarily through the Affirm app [15][16] - **Affirm Card Usage**: The Affirm card has become a significant part of the business, with most transactions being repeat users, leading to profitable outcomes [20][21] Competitive Landscape - **Market Position**: Affirm views the competitive landscape as consistently challenging but not uniquely heightened at this time. The company emphasizes its leadership in profitability and sustainable growth [52][56] - **Partnerships**: Affirm has secured partnerships with major retailers like Costco, enhancing brand visibility and consumer trust [40][42] Financial Strategy - **0% Financing Offers**: Affirm is successfully offering 0% financing options, which have proven to be effective in driving consumer engagement and conversion rates [23][24] - **Capital Market Conditions**: The company has maintained strong relationships with capital partners, resulting in oversubscribed ABS deals and favorable financing conditions [62][66] Future Opportunities - **Expansion Potential**: Affirm is exploring opportunities in new markets, including partnerships with airlines, indicating a strategy for diversification and growth [70] Conclusion - Affirm's recent performance reflects strong growth in GMV and user engagement, supported by effective product offerings and strategic partnerships. The company remains vigilant in monitoring market conditions and consumer behavior, positioning itself for continued success in the competitive fintech landscape.