Affirm Secures $4 Billion Partnership With Sixth Street to Drive Growth

Core Viewpoint - Affirm Holdings, Inc. has entered a long-term capital partnership with Sixth Street, which will invest up to $4 billion in purchasing Affirm loans over the next three years, marking the largest capital commitment in the company's history [1][2]. Group 1: Partnership and Funding - The partnership with Sixth Street allows Affirm to extend more than $20 billion in loans over the next three years, enhancing its payment network while maintaining a capital-efficient approach [2]. - Affirm's total funding capacity has increased by 50% over the past two years, reaching $16.8 billion as of September 30, 2024 [2]. Group 2: Business Growth and Projections - Affirm aims to achieve a fiscal 2025 GMV objective of over $34 billion, with revenues projected to expand at least 20 basis points from the fiscal 2024 figure [3]. - The company is focused on enhancing its relationships with long-term capital partners and regularly adding capacity across various channels to solidify its leadership in the Buy Now, Pay Later (BNPL) space [3]. Group 3: Stock Performance - Over the past year, Affirm's shares have surged by 61.8%, significantly outperforming the industry growth of 24.8% [5]. - Affirm currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment towards the stock [6].