Affirm's BNPL Service Reaches 90 Million Users, Projected GMV of $47.5 Billion by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant User Growth: Approximately 90 million Americans used Affirm's BNPL service last year, with an average monthly spend of $244, indicating a rapid shift among younger consumers towards interest-free installment payments, thereby driving the company's market share expansion.
- Surge in Transaction Volume: Affirm's gross merchandise volume (GMV) soared from $20.2 billion in 2023 to $36.7 billion, achieving a 38% growth last year, demonstrating the effectiveness of its partnerships with major e-commerce platforms in enhancing sales conversion and increasing order sizes.
- Improved Profitability: Affirm significantly reduced its operating loss from $1.2 billion in 2023 to $87 million, and posted an operating income of $63.7 million in the first quarter, marking its first profitable quarter on a GAAP basis, showcasing the sustainability of its business model.
- Optimistic Future Outlook: The company projects a GMV of $47.5 billion for its 2026 fiscal year with an operating margin of 7.5%, reflecting not only the robust growth potential of the BNPL market but also Affirm's increasing competitiveness and strategic positioning within the industry.
Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFRM is 96.47 USD with a low forecast of 83.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 71.810
Low
83.00
Averages
96.47
High
115.00
Current: 71.810
Low
83.00
Averages
96.47
High
115.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
