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AFRM

Affirm Holdings, Inc.

AFRM

Affirm Holdings, Inc. • NASDAQ
$70.94 ▲ 3.10% (+2.13)
Market Cap $23.11 B
52w High $100.00
52w Low $30.90
Dividend Yield 0%
P/E 102.8
Volume 2.15M
Outstanding Shares 325.85M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $933.337M ▲ $391.538M ▼ $80.694M ▲ 8.646% ▲ $0.24 ▲ $156.405M ▼
Q4-2025 $876.417M ▲ $535.408M ▲ $69.244M ▲ 7.901% ▲ $0.21 ▲ $241.487M ▲
Q3-2025 $783.134M ▼ $520.509M ▼ $2.804M ▼ 0.358% ▼ $0.009 ▼ $172.443M ▼
Q2-2025 $866.381M ▲ $606.53M ▲ $80.36M ▲ 9.275% ▲ $0.25 ▲ $245.515M ▲
Q1-2025 $698.479M $601.666M $-100.222M -14.349% $-0.31 $52.545M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $1.478B ▼ $11.479B ▲ $8.18B ▲ $3.299B ▲
Q4-2025 $2.226B ▲ $11.155B ▲ $8.086B ▲ $3.069B ▲
Q3-2025 $2.131B ▲ $10.436B ▼ $7.561B ▼ $2.875B ▲
Q2-2025 $1.867B ▼ $10.481B ▲ $7.696B ▲ $2.786B ▼
Q1-2025 $2.12B $10.139B $7.304B $2.836B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $80.694M ▲ $374.572M ▲ $-139.611M ▲ $110.086M ▼ $341.187M ▲ $320.207M ▲
Q4-2025 $69.244M ▲ $74.637M ▼ $-454.514M ▼ $387.259M ▲ $20.464M ▲ $23.517M ▼
Q3-2025 $2.804M ▼ $210.388M ▼ $35.517M ▲ $-245.555M ▼ $-1.198M ▼ $157.376M ▼
Q2-2025 $80.36M ▲ $312.017M ▲ $-89.068M ▲ $144.096M ▼ $352.535M ▲ $268.112M ▲
Q1-2025 $-100.222M $196.867M $-574.999M $465.625M $89.223M $152.715M

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Merchant Network
Merchant Network
 $240.00M ▲$210.00M ▼$240.00M ▲$250.00M ▲
Virtual Card Network
Virtual Card Network
 $60.00M ▲$60.00M ▲$70.00M ▲$70.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Affirm’s income statement shows a clear shift from “grow at all costs” toward a more balanced focus on growth and profitability. Revenue has climbed steadily every year, and gross profit has grown even faster, suggesting better unit economics and improved pricing and risk models. Operating losses were heavy a few years ago but have narrowed sharply, and the latest year shows the business essentially at break‑even on operations with a small net profit. This is encouraging, but still fragile. The business remains sensitive to credit performance and funding costs, so profits may be volatile if the economy weakens or defaults rise. Overall, though, the direction of travel is from sizable losses toward a more sustainable earnings profile.

Balance Sheet

Balance Sheet Affirm’s balance sheet has scaled up alongside its business. Total assets have grown significantly, mainly driven by its loan book and related receivables. Debt has also risen considerably, which is typical for a lending and payments platform but does mean the model depends heavily on continued access to capital markets and warehouse funding. Equity has increased modestly over time, indicating that losses have not overwhelmed the capital base and that the company has retained some strength. Cash levels have been relatively stable, giving a liquidity cushion but not an excessive one. The overall picture is of a capital‑intensive, leveraged financial technology company that must manage funding, credit risk, and interest rates carefully.

Cash Flow

Cash Flow Affirm’s cash flow profile has improved meaningfully. A few years ago, operating cash flow was close to flat or slightly negative, reflecting rapid growth, heavy investment, and the nature of its lending model. More recently, operating cash flow has turned solidly positive, and free cash flow has followed, even after ongoing technology and infrastructure spending. Capital expenditures are modest relative to the size of the business, which helps. The key risk is that cash generation in this kind of model can be cyclical: if credit losses spike or funding becomes more expensive, cash flow could come under pressure. Still, the trend from negative toward consistently positive free cash flow is a major financial strength if it can be sustained.

Competitive Edge

Competitive Edge Affirm holds a strong position in the “Buy Now, Pay Later” space, supported by three main elements: network, trust, and data. On the network side, it has built a large base of merchants and consumers, including major partners such as Amazon, Walmart, and Shopify. This two‑sided network makes the service more valuable as more participants join and is hard for new entrants to quickly replicate. Its brand leans heavily on transparency—no late fees and fewer hidden charges—which resonates particularly well with younger customers and those wary of traditional credit cards. That reputation for “honest finance” is a real asset. Data is another key edge. Being an early player has given Affirm a deep history of repayment data that feeds its underwriting and risk models. This can translate into better credit decisions and higher approval rates. However, competition remains intense—from other BNPL players, card networks, big tech, and banks—and potential regulation of BNPL is a meaningful overhang for the entire sector.

Innovation and R&D

Innovation and R&D Innovation is central to Affirm’s strategy and is a major part of its moat. The company’s underwriting engine uses artificial intelligence and machine learning to price risk at the transaction level instead of offering a generic credit line. This allows for more tailored loan offers and potentially better risk control. Its AdaptAI platform goes further by customizing promotions and terms at checkout, improving conversion for merchants and experience for consumers. Product breadth is another differentiator. Affirm offers more than the standard short “pay in 4” plan: it supports a range of durations and ticket sizes, including larger purchases and verticals like travel. The Affirm Card extends this flexibility to in‑store and non‑integrated merchants, pushing the product closer to everyday payment use. Looking ahead, the company is investing in international expansion, deeper merchant integrations, and new categories such as medical and legal services. The opportunity is significant, but sustaining this edge will require continued spending on technology, compliance, and partnerships, which could weigh on margins if not managed carefully.

Summary

Affirm has evolved from a fast‑growing, loss‑making disruptor into a still‑fast‑growing business that is now flirting with consistent profitability and generating positive free cash flow. Revenue and gross profit are rising strongly, operating losses have narrowed dramatically, and the latest results show a small net profit, which is a meaningful milestone. The balance sheet reflects a capital‑intensive, leveraged model: larger assets and higher debt, backed by a growing but not huge equity base and stable cash. This structure can work well when credit performance is solid and funding markets are open, but it adds sensitivity to economic cycles and interest rates. On the strategic side, Affirm’s differentiation comes from its technology, data, and trusted brand, supported by a broad network of merchants and flexible products that go beyond basic BNPL offerings. Its innovation pipeline—AI‑driven underwriting, personalized offers, card‑based usage, and international growth—provides multiple avenues for expansion. The main tension is between these growth opportunities and the need to maintain tight discipline on credit risk, funding costs, and regulation. AFRM today looks like a more mature, better‑balanced version of its earlier self: still ambitious and innovative, but with clearer progress toward a financially sustainable business model, albeit with ongoing risks tied to the credit and regulatory environment.

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