Earnings Report: Affirm reported strong Q4 fiscal 2025 results with earnings per diluted share at $0.20, reversing a loss from the previous year, and revenue increased to $876 million, surpassing analyst expectations.
Growth Metrics: Gross merchandise volume reached $10.4 billion, a 43% increase year-over-year, driven by higher consumer engagement and an increase in active consumers to 23 million.
Profitability and Technology: Operating income improved significantly to $58 million, aided by technology investments and efficient operations, while the Affirm Card segment saw rapid growth with nearly double the active users.
Future Outlook: For fiscal 2026, Affirm anticipates continued growth in 0% APR loans, which may pressure revenue margins, and expects some major merchants to transition off the platform.
AFRM
$73.39+Infinity%1D
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
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.
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 65.660
Low
83.00
Averages
96.47
High
115.00
Current: 65.660
Low
83.00
Averages
96.47
High
115.00
Wolfe Research
Peer Perform
initiated
$72 -> $82
2025-12-09
Reason
Wolfe Research
Price Target
$72 -> $82
2025-12-09
initiated
Peer Perform
Reason
Wolfe Research initiated coverage of Affirm with a Peer Perform rating and $72-$82 year-end 2026 fair value range. The firm views Affirm as a "differentiated" buy now pay later provider with growth drivers, including 0% annual percentage rate loans, card adoption, and international expansion. However, Wolfe awaits a more attractive entry point before recommending the shares.
Freedom Capital
NULL
to
Buy
initiated
$90
2025-12-04
Reason
Freedom Capital
Price Target
$90
2025-12-04
initiated
NULL
to
Buy
Reason
Freedom Capital initiated coverage of Affirm with a Buy rating and $90 price target. Buy Now Pay Later has seen exponential growth over the past decade and Affirm is considered the category leader in BNPL payment options to consumers in the U.S., the analyst tells investors. "Tremendous" share gains in the U.S. have translated into a GAAP profitable business and a mid-20s grower, adds the analyst, who sees "several catalysts on the horizon to deliver upside to consensus estimates."
JPMorgan
Neutral -> Underweight
downgrade
$72
2025-12-04
Reason
JPMorgan
Price Target
$72
2025-12-04
downgrade
Neutral -> Underweight
Reason
JPMorgan downgraded Bread Financial (BFH) to Underweight from Neutral with an unchanged price target of $72. The company continues to see slow organic volume and receivables growth, the analyst tells investors in a research note. The firm believes Bread's private label business is losing market share to tech-forward, flexible financing options like buy-now-pay-later while the co-branded space remains "fiercely competitive." JPMorgan recommends a long Affirm (AFRM), short Bread Financial pair trade over the next six-months.
Mizuho
Dan Dolev
maintain
$108 -> $114
2025-11-10
Reason
Mizuho
Dan Dolev
Price Target
$108 -> $114
2025-11-10
maintain
Reason
Mizuho analyst Dan Dolev raised the firm's price target on Affirm to $114 from $108 and keeps an Outperform rating on the shares. The firm updated the company's model post the Q3 report.
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.
