Affirm Holdings, Inc.AFRM
NASDAQ • Technology
$63.80
P/E
55.47
PEG
0.02
FCF Yield
—
Rev Growth YoY
+32.6% YoY
Gross Margin
65.9%
Health Score
6/10
D/E Ratio
2.56
Confidence
—
Business Snapshot
Affirm Holdings operates a buy-now-pay-later (BNPL) platform that provides point-of-sale installment loans and merchant payment solutions, generating revenue primarily through merchant discount fees and consumer interest income. The company competes in the rapidly evolving digital payments and consumer credit market, where it holds a leading position in the US alongside global players like Klarna and Afterpay, distinguishing itself with transparent, no-hidden-fee loan structures and deep merchant integrations (e.g., Amazon, Shopify). With trailing twelve-month revenue of $3.97B, Affirm has achieved meaningful financial scale. Its defining characteristic is a dual-sided network effect: more merchants attract more consumers, which in turn strengthens merchant value, creating a competitive moat in the crowded BNPL space.
Financial Health
Gross margin stands at 65.9%, down from 69.4% a year earlier, indicating some pressure on unit economics, while net margin of 9.6% reflects a recently profitable operating model after years of losses. The balance sheet shows contrasting signals: debt/equity of 2.56x signals significant leverage, but the current ratio of 54.19x suggests exceptional short-term liquidity, likely from a large cash pile relative to near-term liabilities...