Affirm Holdings (AFRM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Affirm is delivering strong revenue growth and improving profitability. AFRM guides for 29% y/y revenue growth in fiscal 2026, with adjusted operating margin potentially reaching 28%. The company's balance sheet is robust, with $2.3B in cash and $1.1B in convertible debt, supporting continued growth.
Affirm (AFRM) and Klarna (KLAR) are leading Buy Now, Pay Later (BNPL) providers, with analysts split on which offers better risk-adjusted returns. BNPL usage skews younger, with higher late payment rates, raising questions about consumer financial health and sector sustainability.
Affirm is upgraded to a "Strong Buy," driven by sustained GAAP profitability and robust incremental operating margins. AFRM's valuation is now de-risked after recent volatility, trading at 4x forward sales versus 7x previously, with a net cash balance sheet. AFRM posted 30% YoY revenue growth, 42% YoY active merchant growth, and a 10% GAAP operating margin, signaling operational leverage.
Zacks.com users have recently been watching Affirm Holdings (AFRM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Affirm Holdings Inc. NASDAQ: AFRM delivered a solid earnings report after the market closed on Feb. 5. However, the stock fell about 4% in after-hours trading.
AFRM tops Q2 estimates with strong GMV and revenue growth, as higher transactions and repeat customers lift results despite rising costs.
Affirm Holdings, Inc. (AFRM) Q2 2026 Earnings Call Transcript
Affirm's fiscal second quarter illustrated how buy now, pay later is becoming embedded in routine commerce, where paying over time was once reserved for occasional large purchases. The company said Thursday (Feb. 5) that gross merchandise volume (GMV) increased 36% year over year to $13.8 billion, while revenue climbed 30% to $1.1 billion.
The headline numbers for Affirm Holdings (AFRM) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Affirm Holdings (AFRM) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.23 per share a year ago.
The buy now, pay later company saw revenue increase 30% to $1.12 billion in its second quarter as its gross merchandise volume grew.