# Affirm Holdings, Inc. Class A Common Stock (AFRM) — Stock CV

Affirm Holdings, Inc. is a $27.3B financial services company. Revenue grew 32.2% over the last year, and it keeps 45¢ of every dollar of sales as profit. It trades at 14.1× earnings.

> Founded in 2012, Affirm is a market leader in the buy now, pay later space with around $36 billion in transaction volume in fiscal 2025. Affirm offers both zero-interest financing, which is merchant-subsidized, and interest-bearing loans, which function as personal loans that are approved on a per-transaction basis.

## Identity

- **Ticker**: AFRM
- **Sector**: Financial Services
- **Industry**: Personal Credit Institutions
- **Headquarters**: SAN FRANCISCO, CA
- **Employees**: 2 358
- **Website**: https://www.affirm.com
- **Market cap**: $27.3B
- **Last price**: $80.77
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $4.26B
- **Net income**: $1.93B
- **Free cash flow**: $993M
- **P/E**: 14.1
- **Revenue growth (YoY)**: 32.2%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 36 |
| Growth | 25 |
| Profitability | 62 |
| Health | 25 |
| Quality | 40 |
| Moat | 5 |

## Qualifications (beginner checklist) — 7 of 10 passed

- [x] Revenue growing — +32.2% YoY
- [x] Profitable — $1.93B TTM
- [x] Profit growing — +3597.9% YoY
- [x] Generates cash — $993M TTM
- [x] Debt under control — current ratio 4.16
- [x] Established company — $27.3B market cap
- [ ] Not printing shares — +119.1% shares over ~5y
- [ ] Proven track record — 2/6 profitable years
- [ ] Financially stable — health score 28/100
- [x] Valuation not extreme — P/E 14.1

## Experience (career milestones)

- **FY2026** — Best year on record: $1.93B net income
- **FY2025** — Turned profitable: $52.2M net income after a loss year
- **2024** — The company's installment loans became available to shoppers using Apple Pay
- **2024** — Affirm launched its installment loans in the U.K
- **2023** — Payment processor Worldpay launched a partnership with Affirm, enabling Worldpay merchants to use…
- **2022** — Reuters mentioned Affirm as the "biggest BNPL firm in the United States" while noting that the "rising…
- **FY2022** — Revenue crossed $1B: $1.35B for the year
- **2021** — Affirm acquired Returnly, a financial technology service company, for US$300 million
- **Jan 13, 2021** — Affirm listed on the Nasdaq with symbol AFRM, raising about $1.2 billion in its IPO
- **2017** — According to Racked in November 2017, Affirm had launched an app which allowed consumers to take out loans for…
- **2012** — Founded in 2012 by PayPal co-founder Max Levchin, it is the largest U.S

## Strengths

- High gross margin (92.7%)
- Strongly profitable — 45.3% net margin
- Revenue growing 32.2% year over year
- Strong cash conversion — FCF is 23.3% of revenue

## Watch-outs

- Thin interest coverage (-3.8×)
- Loss-making in 4 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $1.35B | -$707M | -$248M |
| FY2023 | $1.59B | -$985M | -$109M |
| FY2024 | $2.32B | -$518M | $291M |
| FY2025 | $3.22B | $52.2M | $602M |
| FY2026 | $4.26B | $1.93B | $993M |

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Source: https://stockcv.com/AFRM — derived from company filings; may be delayed or incomplete. Information, not investment advice.