Summary
- Affirm is upgraded to a BUY, driven by robust top-line growth, disciplined credit quality, and expanding partnerships with major tech platforms.
- …
Summary
- Affirm is upgraded to a BUY, driven by robust top-line growth, disciplined credit quality, and expanding partnerships with major tech platforms.
- AFRM’s proprietary credit models, adaptive checkout, and merchant tools have fueled a 30% YoY increase in active merchants and strong consumer growth.
- Despite concentration risk with top partners and regulatory uncertainties, AFRM’s healthy loan portfolio and improving credit metrics underscore operational strength.
- Trading at 22.4x forward earnings with 78% projected EPS growth for FY26, AFRM’s premium valuation is justified by its superior growth trajectory.
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Introduction:
Affirm (AFRM) has continued to solidify its positioning within the global lending ecosystem through its advanced models and expanded partnerships with various titans of the tech industry.
While the company does face a
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Quick Insights
AFRM’s strong GMV and revenue growth, effective credit risk management, and expanding partnerships with Apple, Amazon, and Shopify support the BUY rating despite a premium valuation.
AFRM’s top five partners now account for 47% of GMV, up from 32% in FY22, making partnership renewals and GMV shifts critical monitoring points for investors.
Continued expansion of the Affirm Card, deeper tech integrations, and a projected 26% FY26 revenue growth underpin AFRM’s long-term growth thesis.