A leading player in the buy now pay later (BNPL) space, Affirm Holdings, Inc. (AFRM) recently extended its partnership with Williams-Sonoma, Inc. to Canada. This strategic expansion allows Canadian customers to access Affirm’s services across Williams-Sonoma’s top-notch home furnishing brands, including West Elm, Pottery Barn, Mark & Graham and Williams Sonoma.Customers can take advantage of this by choosing Affirm at checkout. They need to go through a real-time eligibility check, and approved customers ca ...

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 ...

A growing player in the buy now pay later (BNPL) space, Affirm Holdings, Inc. (AFRM) , recently teamed up with Cali Pass. This partnership aims to introduce flexible and customer-friendly payment options to the winter sports market, a high-spending, experience-driven consumer segment. Starting with the 2025-2026 ski season, Cali Pass customers can choose between interest-free biweekly payments or extended monthly terms while purchasing their passes or lift tickets.Cali Pass clients can avail this plan onlin ...

A leading player in the buy now, pay later (BNPL) space, Affirm Holdings, Inc. (AFRM) recently expanded its footprint through two major partnerships with Costco Wholesale Corporation and Mattress Firm. These strategic partnerships are designed to help consumers finance big purchases with confidence, especially during summer and Memorial Day sales.Costco.com customers can use Affirm to fund online transactions for $500 or more. They need to go through a real-time eligibility check, and approved customers can ...

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.

Core Viewpoint - Affirm Holdings, Inc. has formed a new partnership with World Market, leading to a significant increase in its stock price by 15.8% following the announcement, reflecting positive market sentiment towards the company's growth prospects in the flexible payment solutions sector [1][3]. Group 1: Partnership Impact - The partnership allows customers to use Affirm's buy now, pay later (BNPL) options for purchases at 246 U.S. locations and online, enabling payment splits into biweekly or monthly installments with terms up to 36 months and no hidden fees [2]. - This collaboration expands Affirm's merchant network, which already includes over 358,000 merchants, and enhances its presence in the home goods and specialty retail sectors [2][5]. - The deal is expected to support Affirm's revenue growth by increasing transaction volume and merchant fees collected through World Market sales, with total transactions rising 45.6% year over year to 31.3 million in the fiscal third quarter [4]. Group 2: Financial Performance - Affirm reported a 36% year-over-year revenue growth in the third quarter of fiscal 2025, indicating strong performance and alignment with its strategy for sustainable long-term expansion [5]. - Despite a year-to-date decline of 11.8% in share price, the recent partnership announcement has helped the company recover some losses incurred after a less-than-expected fourth-quarter revenue guidance [6]. Group 3: Market Positioning - The partnership reflects a growing retailer demand for transparent and flexible financing options, reinforcing Affirm's brand and competitive edge in the market [3]. - Zacks has set a price target of $55 for Affirm's stock following the partnership announcement, indicating positive expectations for the company's future performance [3].

Core Viewpoint - Affirm's shares declined following a weak revenue forecast, raising concerns about CEO Max Levchin's strategy to expand through 0% loans [1][2]. Revenue Forecast - Affirm projected revenue for the current quarter to be between $815 million and $845 million, with the midpoint falling short of the $841 million average analyst estimate [2]. Business Strategy - CEO Max Levchin is focusing on 0% loans to attract consumers and foster long-term customer loyalty, even at the cost of current profit margins [2]. - The strategy aims to educate consumers on the benefits of avoiding excessive revolving interest, positioning Affirm as a competitor to credit cards [3]. Market Position - Currently, 0% loans account for 13% of Affirm's total Gross Merchandise Volume (GMV), with 80% of these loans being issued to prime and super-prime customers [3]. - Affirm's primary business involves providing point-of-sale installment loans for consumer purchases in categories such as apparel, electronics, and sporting goods [3].