pay later (BNPL) service

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Affirm Stock Skyrockets 146% in a Year: Is it Too Late to Buy?
ZACKS· 2025-07-07 13:56
Core Insights - Affirm Holdings, Inc. (AFRM) shares have increased by 145.7% over the past year, outperforming the industry growth of 35.1% and the S&P 500's gain of 12.3% [2] - The company's strong performance is attributed to product innovation, strategic execution, and an expanding base of consumers and merchants [2] Financial Performance - In fiscal Q3 2025, 94% of transactions were from repeat customers, indicating the success of Affirm's short-term payment plans [7] - Total transactions rose by 45.6% year-over-year to 31.3 million in the last reported quarter [8] - The Zacks Consensus Estimate for fiscal 2025 earnings suggests a 101.8% year-over-year improvement to 3 cents per share, with fiscal 2026 earnings expected to reach 73 cents [14] Business Strategy - Affirm is focusing on driving repeat usage as a sustainable growth strategy, which is more cost-effective than customer acquisition [6] - The company is expanding its merchant mix to include essential categories like food, travel, and subscriptions, enhancing daily engagement [8] - Affirm is scaling operations internationally, with plans to enter France, Germany, and the Netherlands through a partnership with Shopify [10] Product Development - Affirm's model provides value to merchants by reducing cart abandonment and increasing average order value, while offering consumers flexible payment options [12] - The company is investing in debit solutions and B2B tools to broaden its product ecosystem and increase transaction frequency [13] Market Position - Affirm is trading at 5.68X forward 12-month sales, slightly below the industry average of 5.85X, but above its three-year median of 3.59X [15] - The competitive landscape is intensifying, with legacy players like PayPal and Block expanding aggressively in the BNPL space [20]
Will Affirm's Auto Move With Shopmonkey Fuel More Repeat Users?
ZACKS· 2025-06-26 13:56
Core Insights - Affirm Holdings, Inc. has partnered with Shopmonkey to become the default pay-over-time option for auto repair customers in the U.S. and Canada, allowing customers to split repair costs into manageable payments, sometimes at 0% APR, with no hidden fees [1][2][9] - This partnership provides Affirm access to a large network of small and mid-sized auto shops, expanding its presence in the auto repair spending category, which averages nearly $800 per year per car owner [2][9] - The collaboration is expected to boost Affirm's transaction volume and customer base, with total transactions growing 45.6% year-over-year to 31.3 million in the last reported quarter [3][9] Company Performance - Affirm handled over $33 billion in gross merchandise volume over the past year, enhancing brand trust and visibility by aligning with practical, recurring expenses [4] - Affirm's merchant network now exceeds 358,000 members, further expanding its reach in the market [4][9] - Year-to-date, Affirm's shares have gained 8.8%, underperforming the broader industry but outperforming the S&P 500 Index [7] Valuation and Estimates - Affirm trades at a forward price-to-sales ratio of 5.44X, slightly below the industry average of 5.80 [11] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings implies a 101.8% improvement year-over-year, indicating strong growth potential [13]
AFRM Partners With Costco and Mattress Firm for Smarter Payments
ZACKS· 2025-05-15 16:31
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].