Core Insights - Affirm Holdings, Inc. (AFRM) is focused on reinventing payments through a diverse merchant network, which has grown to approximately 358,000 active merchants as of March 31, 2025, up from around 292,000 the previous year [1][10] Merchant Network and Partnerships - The merchant partners of Affirm span various industries, including fashion, electronics, travel, and home and lifestyle, utilizing Affirm's buy now, pay later (BNPL) solutions to enhance average order values and customer conversion rates [2] - Recent partnerships include collaborations with Shopmonkey and Xsolla, extending payment solutions to auto repairs and game developers, while partnerships with Williams-Sonoma and KAYAK facilitated entry into the Canadian market [3] Financial Performance - In the first nine months of fiscal 2025, Affirm's gross merchandise volume (GMV) reached $26.3 billion, reflecting a 36% year-over-year increase, with expectations for fiscal 2025 GMV to be between $35.7 billion and $36 billion, indicating a 34.8% rise at the midpoint [5][10] - Merchant network revenues improved by 30% year-over-year during the same period [10] Competitive Landscape - Key competitors in the BNPL space include PayPal Holdings, Inc. (PYPL) and Sezzle Inc. (SEZL), with PayPal reporting over 36 million merchants globally and a 1% year-over-year revenue increase to $7.8 billion [6][7] - Sezzle's merchant base exceeds 40,000 businesses, with total revenues more than doubling year-over-year to $104.9 million, supported by a 64.1% rise in GMV [8] Stock Performance and Valuation - Affirm's stock has surged 132.1% over the past year, outperforming the industry growth of 41.2% [9] - The company trades at a forward price-to-sales ratio of 5.61, which is below the industry average of 5.88 [12] Earnings Estimates - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 101.8% improvement from the previous year, with revenue growth projected at 37% year-over-year [14]

Company Overview and Mission - Sezzle's mission is to financially empower the next generation by enabling merchants to offer customer-friendly credit alternatives [11, 12, 13] - The company aims to provide flexible, reliable, transparent, and secure services to both merchants and consumers [14] - Sezzle highlights its commitment to trust, financial freedom, technology, and the future [16, 17, 18, 19] - Sezzle is transitioning to a Public Benefit Corporation, focusing on purpose-driven actions and benefits for all stakeholders [20] Growth and Market Opportunity - Sezzle experienced triple-digit year-over-year growth in revenue, consumers, and merchants in 2018, 2019, and Q1 2020 [24] - The company operates in large retail markets: US (over $5.4 trillion), Canada ($461.1 billion), and Australia ($215 billion) [25] - Sezzle has over 1.3 million active consumers and over 14.9K active merchants [28] 2019 Performance Highlights - Sezzle completed its Initial Public Offering (IPO) at A$1.22 per CDI on July 29, 2019 [30] - The company secured a $100 million credit facility in November 2019, maturing in May 2022 [30] - There was significant growth in 2019, including a 775% increase in merchant fees, a 685% increase in merchant sales, and a 489% increase in active consumers [30] COVID-19 Impact and Response - Sezzle implemented a mandatory work-from-home policy and suspended business travel for employees [76] - The company expanded fee forgiveness and payment flexibility programs for consumers [77] - Sezzle highlights the potential positive impact of the US government's stimulus measures on its stakeholders [81] 2020 Momentum - In May, Underlying Merchant Sales (UMS) surged 321% year-over-year [93] - Active Customers rose 326% year-over-year in May [93]

Key Takeaways AFRM is expanding from large purchases to everyday items via new deals with Costco and World Market. Total Q3 FY25 transactions rose 45.6% YoY to 31.3M, driven by more repeat customer activity. Active merchants hit 358,000, up 23% YoY, as AFRM invests in ML underwriting and real-time decisions.Affirm Holdings, Inc. (AFRM) has established a distinct position in the bustling Buy Now, Pay Later (BNPL) market by focusing on transparency, catering to high-ticket purchases and offering flexible fi ...

Key Takeaways MA is expanding fintech partnerships in Africa, Asia Pacific and Latin America for digital payment growth. Cross-border volume rose 15% YoY, while GDV witnessed a continued rise in Q1 2025. MA is rolling out Buy Now Pay Later in emerging markets to meet growing demand for flexible credit.As the competition in the global fintech landscape heats up, Mastercard Incorporated (MA) is strengthening its partnership with fintech companies in Africa, Pacific Asia and Latin America, aiming to tap into ...

Key Takeaways AFRM shares jump 145.7% in a year, outpacing peers and major indexes on strong product and execution gains. 94% of Q3 transactions came from repeat users, showing success of short-term plans and wallet integrations. AFRM is expanding into Europe via Shopify, targeting gaming and essentials to diversify transaction growth.Shares of Affirm Holdings, Inc. (AFRM) have surged 145.7% over the past year, significantly outperforming the broader market and peers. By comparison, the industry rose 35.1 ...

Core Insights - PayPal's Buy Now, Pay Later (BNPL) business is experiencing significant growth, with over 20% year-over-year growth in total payment volumes and an 18% increase in monthly active accounts in Q1 2025, driven by consumer adoption and enhanced visibility in the checkout experience [1][2] BNPL Business Performance - BNPL users on PayPal spend 33% more and conduct 17% more transactions on average, indicating the segment's critical role in increasing user engagement and revenue [2] - PayPal is enhancing BNPL visibility at checkout and integrating it into personalized strategies using AI and smart wallet features [2] Global Expansion Strategy - PayPal plans to increase BNPL adoption in key international markets such as the UK, Germany, Australia, France, Italy, and Spain in 2025, aiming to diversify its BNPL presence beyond the U.S. [3] Strategic Integration - The BNPL initiatives are integral to PayPal's transformation into a comprehensive commerce platform, aligning with innovations in checkout, omnichannel capabilities, and AI-driven personalization [4] Competitive Landscape - Affirm Holdings is expanding its BNPL business by securing long-term funding partnerships and launching a $3 billion revolving loan facility to enhance liquidity and scalability [5] - Block, Inc. is integrating BNPL features into its Cash App through Afterpay, enhancing its merchant ecosystem and expanding its reach [6] Financial Performance and Valuation - PayPal shares have declined 13.7% year-to-date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 13.74X, significantly lower than the industry average of 22.48X, indicating a potentially undervalued position [8] Earnings Estimates - The Zacks Consensus Estimate for PayPal's earnings in 2025 is $5.08 per share, reflecting a 9.25% growth over 2024, while the estimate for 2026 is $5.64, indicating an 11% year-over-year growth [9][10]

Core Insights - PayPal (PYPL) shares have declined 13.7% year to date, primarily due to increased competition in the fintech sector from companies like Visa, Mastercard, Apple Pay, and Adyen [1][2] - Despite PayPal's struggles, Visa and Mastercard have seen share increases of 10.3% and 4.5% respectively, indicating PayPal's relative underperformance [2][7] - PayPal is transitioning from a payments provider to a comprehensive commerce partner, focusing on personalized experiences and a unified platform for consumers and merchants [3][18] Financial Performance - In Q1 2025, PayPal's transaction margin dollars increased by 7% year over year to $3.72 billion, driven by strong performance in omnichannel commerce and Venmo, with Venmo revenues rising by 20% [4][10] - The Buy Now Pay Later (BNPL) segment saw over 20% volume growth in Q1, with monthly active accounts up 18% year over year, indicating strong consumer engagement [5][7] - PayPal's forward 12-month P/E ratio is 13.74X, significantly lower than the industry average of 22.48X, suggesting the stock is undervalued compared to peers like Visa and Mastercard [11][13] Strategic Initiatives - PayPal is expanding its omnichannel strategy internationally, with plans to roll out NFC functionality in Germany and the UK [4][10] - The company is enhancing its partnerships with firms like Coinbase, Fiserv, and Shopify to bolster its growth outlook and expand the adoption of its PayPal USD stablecoin [9][18] - Investments in product modernization and geographic expansion are expected to impact margin improvement in the near term, but are essential for long-term growth [10][18] Earnings Estimates - The Zacks Consensus Estimate for PayPal's 2025 earnings is $5.08 per share, reflecting a 9.25% growth over 2024, with Q2 2025 earnings estimated at $1.30 per share, indicating a 9.2% increase year over year [14][15] - Recent estimate revisions show a positive trend for the second quarter and full years 2025 and 2026, although the outlook for Q3 is less favorable [14][19]

Key Takeaways AFRM reported $783.1M in Q3 revenues, up 36% YoY, and raised its full-year guidance. SoFi's Q1 revenues grew 33% with net income rising 200%, but face credit risk from unsecured loan exposure. AFRM's current ratio of 11.5 highlights stronger liquidity versus SOFI's below-average 0.8 ratio.Affirm Holdings, Inc. (AFRM) and SoFi Technologies, Inc. (SOFI) are two standout names in the fast-evolving fintech sector. Both cater to Gen Z and millennial consumers, as well as older consumers, through ...

How much of your business is that that new kind of idea of get it now, pay for it later. Yeah, look, and it's connected to to the younger demographic. We are finding more and more college students and younger demographic wanting to pay with debit and buy now pay later as their credit option.And so our pay later, buy now pay later uh product is growing very quickly. Uh and it's becoming we grew 20% over 20% last quarter and buy now pay later. And so uh it's becoming the way that people want to spend.They don ...

Key Takeaways AFRM is now the default financing option for Shopmonkey auto repair shops across the U.S. and Canada. The deal gives AFRM access to a high-frequency, urgent spending category with broad consumer relevance. AFRM's total transactions grew 45.6% YOY to 31.3M, driven by repeat users in the last reported quarter.Affirm Holdings, Inc. (AFRM) has partnered with a cloud-based auto shop management platform, Shopmonkey, to become a default pay-over-time option for auto repair customers in the United S ...