Dublin, June 16, 2025 (GLOBE NEWSWIRE) -- The "Competitor Profile: Affirm 2025" company profile has been added to ResearchAndMarkets.com's offering. With 21 million users and 337,000 merchant partners, the company offers both online and in-store payments and has become a strong alternative to credit cards, as well as a key payment solution for people with limited access to traditional credit. The report offers detailed information and insights into Affirm, including an in-depth look at its business operati ...

Key Takeaways AFRM grew active merchants 23% YoY in fiscal 3Q 2025, reaching around 358,000 partners. GMV surged 36% YoY to $8.6B in fiscal 3Q 2025, with FY25 GMV forecasted at $35.7-$36B. Merchant network revenues rose 34.3% YoY, backed by key partnerships and product enhancements.Affirm Holdings, Inc. (AFRM) is primarily focusing on growth and merchant expansion. It is strengthening its position in the competitive market of Buy Now Pay Later (BNPL) through merchant adoptions on its platform. The company ...

Affirm (AFRM) Conference Call Summary Company Overview - Affirm is a point of sale finance company specializing in buy now, pay later (BNPL) transactions and transaction processing, primarily in the U.S. market [4][5] - Key partners include Amazon and Shopify, with recent expansion into the U.K. market [5] - The company has demonstrated strong growth, with top-line growth in the mid-twenty percent range and customer growth exceeding 20% [5][6] Financial Performance - Affirm reported a strong third fiscal quarter, with active consumer base growth exceeding 20% and active merchants also growing by more than 20% [9][10] - Gross Merchandise Volume (GMV) grew by 36%, surpassing the previous year's performance [11] - Revenue growth aligned with GMV, with transaction profit growing over 50% and adjusted operating income margin at approximately 22%, reflecting a nine-point year-over-year margin expansion [12][13] - Affirm card, a direct-to-consumer offering, reached 1.9 million active cardholders, contributing to 9% of GMV with over 100% growth in the quarter [14][15] Market Dynamics - The BNPL category is growing at approximately 25%, with Affirm outpacing this growth [12] - Strong growth was observed across various categories, particularly in general merchandise and consumer electronics [16] - Monthly 0% installment loans saw a 44% growth, distinguishing Affirm's product offering from competitors [18][19] Customer Acquisition and Engagement - Most customer acquisition is driven by merchant partnerships, with a focus on e-commerce visibility [24] - New customer cohorts are transacting more frequently, with an average of over 5.5 transactions per user per year [26] - Affirm is gaining market share from credit cards, with a significant addressable market of $1.2 trillion in revolving credit card debt in the U.S. [29][30] Competitive Landscape - The market remains competitive, particularly in the pay-in-four product segment, where competitors dominate [33] - Affirm's adaptive checkout product allows for a mix of loan options tailored to merchant needs, enhancing competitiveness [34][35] - Klarna is noted as a key competitor, with Affirm actively engaging in the market despite their presence [36][37] Consumer Trends - Consumer spending has shown resilience, with GMV growth reaching 40% in March, attributed to effective product offerings [39][40] - Delinquencies remain in line with historical expectations, indicating strong credit performance despite increased demand [41][42] - Growth has been broad-based across categories, with the exception of sporting goods [43] Funding and Regulatory Environment - Affirm's average loan term is about 12 months, with a weighted average life of 5 months, making it less sensitive to interest rate changes [44][46] - The company has a robust funding capacity of $23 billion, with only 59% utilized, indicating strong growth potential [48][49] - Regulatory changes under the new U.S. administration are monitored, but Affirm's business model remains aligned with consumer-friendly practices [52][53] Future Growth Opportunities - Affirm is exploring in-store commerce opportunities through wallet partnerships and the Affirm card [66] - Expansion plans include entering the U.K. and other European markets, as well as Australia [68] Conclusion - Affirm continues to demonstrate strong growth and market leadership in the BNPL space, with a focus on consumer-friendly products and strategic partnerships. The company is well-positioned for future expansion and profitability.

Core Insights - Affirm Holdings, Inc. (AFRM) is expanding internationally, entering the Canadian and U.K. markets through partnerships with Williams-Sonoma and KAYAK, marking a significant growth phase beyond North America [1][8] Financial Performance - In Q3 2025, Affirm reported total revenues of $783 million, a 36% increase year-over-year, following growth rates of 17.3% and 46.3% in 2023 and 2024 respectively [2][8] - Active consumers grew by 21% year-over-year to 21.9 million, driven by strong consumer retention and increased partnerships [2][8] - The company anticipates total revenues for fiscal 2025 to be between $3.163 billion and $3.193 billion [2][8] Market Position and Strategy - Affirm focuses on providing transparent and flexible financial services while expanding its international reach through strategic partnerships [3] - The company is scaling its services in retail and travel industries, appealing particularly to Gen Z and Millennials [4] Competitive Landscape - Competitors include PayPal and Sezzle, with PayPal reporting 436 million active accounts and $7.8 billion in net revenues for Q1 2025, while Sezzle reported 2.7 million active consumers and $104.9 million in revenues for the same period [5][6] Valuation and Estimates - Affirm's shares have increased by 85.4% over the past year, outperforming the industry average of 37% [7] - The company trades at a forward price-to-sales ratio of 4.62, below the industry average of 5.61 [9] - The Zacks Consensus Estimate for Affirm's 2025 earnings implies a growth of 100.6% from the previous year, with five upward estimate revisions in the past 30 days [10]

Affirm TodayAFRMAffirm$58.23 +2.52 (+4.52%) 52-Week Range$22.25▼$82.53Price Target$64.15Add to WatchlistThe "Buy Now, Pay Later" (BNPL) wave continues to reshape how consumers approach purchases, and Affirm Holdings NASDAQ: AFRM is a significant force within this transformation. Offering flexible payment solutions, Affirm recently reported a noteworthy financial milestone, marking a return to profitability with a quarterly GAAP net income. This achievement, alongside ongoing strong growth, positions Affirm ...

Affirm Holdings, Inc. (NASDAQ:AFRM) Annual William Blair Growth Stock Conference June 5, 2025 ET Company Participants Michael A. Linford - Chief Operating Officer Conference Call Participants Andrew William Jeffrey - William Blair & Company L.L.C., Research Division Andrew William Jeffrey Okay. Thank you all for joining us. I know it's been a long but productive 3 days. And I think we're ending it on a high note with Affirm. Let me just read the disclosures here quickly. So my name is Andrew Jeffrey. I'm th ...

Summary of Affirm (AFRM) FY Conference Call - June 05, 2025 Company Overview - Affirm operates in the fintech industry, focusing on providing innovative financial solutions to consumers dissatisfied with traditional banking products [2][7] - The company aims to reinvent consumer credit, positioning itself as a modern alternative to credit cards [9][10] Core Points and Arguments Mission and Product Differentiation - Affirm's mission is to deliver honest financial products that improve lives, avoiding practices that are detrimental to users [7][8] - The company emphasizes a product model that avoids revolving debt, late fees, and hidden charges, contrasting sharply with traditional credit card systems [15][19] - Affirm's products are designed to be transparent, with no compound interest and quick amortization, which benefits both the company and consumers [16][17] Market Position and Consumer Trends - Affirm has over 20 million users, with a significant portion of consumers preferring Buy Now, Pay Later (BNPL) options over credit cards [20][21] - The company claims to capture about one-third of the Gross Merchandise Volume (GMV) in North America and half of the revenue in the BNPL sector [26] - Affirm's growth rate in purchase volume has compounded at 48% since going public, with recent monthly growth rates exceeding 40% [24][25] Financial Performance - Affirm reported total revenue of approximately $3 billion on a trailing twelve-month basis, with a compounded growth rate of about 36% [42] - The company aims for a net revenue margin of 3-4% on GMV, currently running above 4% [45] - Affirm has shown meaningful growth in both adjusted and GAAP operating income, with a commitment to achieving GAAP operating profit [46] Consumer Demographics and Credit Outcomes - The typical Affirm consumer has an average FICO score of 652 and an average income of $74,000, aligning closely with the national average [51] - Affirm's delinquency rates are lower than those of major credit card issuers, even with a portfolio that includes 42% non-prime receivables [53] - The company attributes its favorable credit outcomes to advanced data science and machine learning capabilities, allowing for effective risk assessment [54][55] Competitive Landscape - Affirm does not compete on price but rather on the value provided to merchants and consumers, maintaining consistent merchant fees despite competitive pressures [57] - The company distinguishes itself from other BNPL players by not charging late fees or other hidden costs, and it actively reports to credit bureaus [58] Other Important Insights - Affirm's product offerings include flexible payment terms, interest-bearing loans, and 0% APR options, catering to a wide range of consumer needs [29][30] - The company has successfully integrated its services with major merchants, including a recent partnership with Costco, expanding its market reach [41] - Affirm's growth strategy includes expanding into international markets, with plans to launch in the UK and Continental Europe [49][48]

Growing success with the Affirm Card, an improving profit outlook, and a growing total addressable market for the buy now, pay later industry underpinned my ‘ Buy ’ stock classification for Affirm Holdings, Inc. (NASDAQ: AFRM ) .A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and st ...

Key Takeaways AFRM has surged past its 200-day SMA, signaling a potential uptrend amid rising investor momentum. A 94% repeat user rate, 0% APR growth and new verticals are driving Affirm's BNPL expansion. Global rollout via Shopify and a valuation discount position AFRM for potential upside despite debt concerns.Shares of Affirm Holdings, Inc. (AFRM) are gaining momentum, buoyed by product innovation, a growing customer base, and strategic moves in the buy now, pay later (BNPL) space. Recently, AFRM has ...

Core Viewpoint - Despite recent growth in the Buy Now, Pay Later (BNPL) industry, concerns about future performance are rising among investors, particularly due to increasing default rates and a weakening economy [2][10][14]. Company Performance - Affirm Holdings' stock has decreased by 17% in 2025 following a prediction of lower-than-expected growth for the current quarter [2]. - In the last three years, Affirm's stock has increased by 126%, reaching $52 per share, while the industry has expanded at an annual rate exceeding 50% [3]. - The company's fiscal third quarter results showed revenue of $783 million, a 36% increase year-over-year, and earnings per share of $0.01, surpassing expectations [5]. - The fourth quarter revenue guidance is set at $830 million, which is $11 million below consensus estimates, while the gross merchandise value (GMV) guidance is $9.55 billion, exceeding expectations by $350 million [5]. Industry Trends - The BNPL market has grown significantly, with an average annual growth rate of 55% since 2021, expanding from $97 billion to an estimated $560 billion in 2025 [10]. - The rise in BNPL loans has led to increased investment in the industry, but also to rising default rates among major players [10][12]. - Nearly two-thirds of BNPL loans are issued to borrowers with risky credit scores, indicating potential credit quality issues [12]. Consumer Behavior - Affirm's business is closely linked to consumer spending in sectors like electronics, apparel, and travel, with a 10% growth in active customers reaching 22 million in the third quarter [6]. - The company has introduced 0% interest loans, which have increased by 44%, as a strategy to drive sales and enhance customer lifetime value [8][9]. Market Sentiment - Wall Street analysts view Affirm's stock as undervalued, trading 29% below the average price target of $67.18 set by 21 analysts [4]. - Despite concerns, some analysts remain bullish on Affirm, citing its leadership in the BNPL space and recent partnerships, such as with Costco [17].