AFFIRM HOLDINGS REPORTS USD 130 MILLION NET INCOME FOR Q2
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Source: moomoo
- Q2 Net Income: A firm reported a net income of USD 130 million for the second quarter.
- Financial Performance: The financial results indicate a strong performance during the quarter.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 66.270
Low
65.00
Averages
87.72
High
107.00
Current: 66.270
Low
65.00
Averages
87.72
High
107.00
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.
Affirm Expands $1.7B Funding Deal with CPP Investment Board
- Funding Agreement Expansion: Affirm has renewed and expanded its funding deal with the Canada Pension Plan Investment Board, committing $1.7 billion with the potential to increase to $2.2 billion, demonstrating strong market confidence and attractiveness.
- Loan Support Expectations: The new agreement is expected to support approximately $8 billion in consumer loan volume over the next two years, further enhancing Affirm's market share and business growth in the consumer finance sector.
- Asset Acquisition History: Since 2019, the Canada Pension Plan Investment Board has acquired nearly $14 billion in assets from Affirm, indicating deepening strategic partnerships and confidence in Affirm's long-term development.
- User Base and Transaction Volume: As of March 31, 2026, Affirm served nearly 27 million active consumers and processed $46 billion in gross merchandise volume over the past 12 months, reflecting its strong market influence and customer base.
See More
Competitive Analysis of Affirm vs. Klarna
- Market Positioning: Affirm focuses on high-ticket consumer financing in the U.S., generating approximately $3.2 billion in FY 2025 with a 38.8% year-over-year increase, while Klarna operates in 26 countries with about $3.5 billion in revenue, reflecting distinct market strategies.
- Financial Performance Comparison: Affirm achieved a net income of $52.2 million in FY 2025 with a net margin of 1.6%, whereas Klarna reported a net loss of approximately $294 million, resulting in a net margin of -8.4%, indicating Affirm's superior profitability.
- Customer Base and Risks: Affirm relies heavily on major retailers like Amazon and Shopify, with nearly 377,000 active merchants, leading to high customer concentration risk; in contrast, Klarna boasts 118 million active users and partners with around 966,000 merchants, providing a broader customer base.
- Cash Flow Status: Affirm generated approximately $601.7 million in free cash flow, showcasing strong cash generation capabilities, while Klarna's free cash flow was negative at about -$1.0 billion, indicating financial pressure due to aggressive international expansion that may affect future stability.
See More
Investment Outlook: Affirm vs. Klarna in 2026
- Affirm's Market Position: Affirm has established a reputation for transparent lending in the U.S., with FY 2025 revenue of approximately $3.2 billion, reflecting a 38.8% year-over-year growth, showcasing its strong partnerships with major retail platforms, although customer concentration poses certain risks.
- Klarna's Global Expansion: Klarna has transitioned into a global digital bank, generating about $3.5 billion in revenue for FY 2025, a 31.6% increase, but reported a net loss of roughly $294 million, indicating high costs and risks associated with its international expansion.
- Risk Comparison: Affirm relies on a small number of banking partners, facing risks in loan funding, while Klarna operates in a highly regulated global banking environment, needing to navigate legal compliance risks and competition from large tech firms.
- Valuation Comparison: Affirm's forward P/E ratio stands at 58.8x, significantly more attractive than Klarna's 89.2x, indicating higher investor expectations for Affirm's future profitability, while Klarna's lower sales multiple may appeal to value-seeking investors.
See More
Royal Caribbean Partners with Affirm for Flexible Cruise Payments
- Flexible Payment Options: Royal Caribbean's partnership with payment network Affirm allows UK and Canadian holidaymakers to spread cruise costs over time without compounding interest or late fees, enhancing customer payment flexibility and travel experience.
- Market Demand Response: With the summer holiday season approaching, this new policy provides customers with more choices, addressing their needs for family vacations and dream Caribbean getaways, which is expected to drive an increase in bookings.
- Successful Partnership Continuation: This collaboration builds on the successful partnership between Affirm and Royal Caribbean in the U.S., demonstrating a shared goal of enhancing customer experience and payment transparency, further solidifying market positions.
- Travel Spending Growth: As of March 31, 2026, travel purchases on Affirm's network grew by 29% year-over-year, indicating that transparent and flexible payment options are helping more consumers realize their travel plans, thereby enhancing brand appeal and market competitiveness.
See More
Klarna's Stock Plummets Post-IPO Amid Market Concerns
- Poor IPO Performance: Klarna's stock has plummeted 62% from its first-day closing price last September, indicating investor concerns about its future growth, although the current lower price may attract buyers.
- Strong User Growth: With over 119 million active consumers across 26 countries and processing 3.4 million transactions daily, Klarna maintains its leadership in the buy now, pay later market, despite risks associated with declining consumer spending.
- Improved Financials: In the first quarter, Klarna's revenue surged 44% year-over-year, with adjusted operating income rising from $3 million to $68 million, and net income flipping from a $99 million loss to a $1 million profit, showcasing significant progress in diversifying revenue streams.
- Market Share Gains: By forging new partnerships with JPMorgan and Worldpay, Klarna is capturing market share from competitors like Affirm and PayPal, further solidifying its position in the rapidly growing BNPL sector.
See More
Klarna Reports Strong Q1 Growth Amid Product Diversification
- Product Diversification: Klarna has successfully expanded its market reach by launching new products and partnering with JPMorgan Payments and Worldpay, with its Fair Financing product's GMV increasing by 138% year-over-year in Q1, indicating strong market demand and profit potential.
- Significant User Growth: With over 119 million active consumers across 26 countries and processing more than 3.4 million transactions daily, Klarna solidifies its leadership position in the buy now, pay later market, further enhancing its market share.
- Improved Profitability: Despite being unprofitable since its IPO, Klarna reported a net profit in Q1, reflecting the resilience of its business model, particularly as consumer spending faces pressure, showcasing the necessity and appeal of its products.
- Competitive Market Advantage: Klarna's price-to-sales ratio is lower than that of its competitors, especially compared to PayPal, enhancing its competitiveness in the buy now, pay later sector; although its stock is down 48% year-to-date, its diversification strategy lays a solid foundation for future growth.
See More
Affirm Expands $1.7B Funding Deal with CPP Investment Board
- Funding Agreement Expansion: Affirm has renewed and expanded its funding deal with the Canada Pension Plan Investment Board, committing $1.7 billion with the potential to increase to $2.2 billion, demonstrating strong market confidence and attractiveness.
- Loan Support Expectations: The new agreement is expected to support approximately $8 billion in consumer loan volume over the next two years, further enhancing Affirm's market share and business growth in the consumer finance sector.
- Asset Acquisition History: Since 2019, the Canada Pension Plan Investment Board has acquired nearly $14 billion in assets from Affirm, indicating deepening strategic partnerships and confidence in Affirm's long-term development.
- User Base and Transaction Volume: As of March 31, 2026, Affirm served nearly 27 million active consumers and processed $46 billion in gross merchandise volume over the past 12 months, reflecting its strong market influence and customer base.
See More
Competitive Analysis of Affirm vs. Klarna
- Market Positioning: Affirm focuses on high-ticket consumer financing in the U.S., generating approximately $3.2 billion in FY 2025 with a 38.8% year-over-year increase, while Klarna operates in 26 countries with about $3.5 billion in revenue, reflecting distinct market strategies.
- Financial Performance Comparison: Affirm achieved a net income of $52.2 million in FY 2025 with a net margin of 1.6%, whereas Klarna reported a net loss of approximately $294 million, resulting in a net margin of -8.4%, indicating Affirm's superior profitability.
- Customer Base and Risks: Affirm relies heavily on major retailers like Amazon and Shopify, with nearly 377,000 active merchants, leading to high customer concentration risk; in contrast, Klarna boasts 118 million active users and partners with around 966,000 merchants, providing a broader customer base.
- Cash Flow Status: Affirm generated approximately $601.7 million in free cash flow, showcasing strong cash generation capabilities, while Klarna's free cash flow was negative at about -$1.0 billion, indicating financial pressure due to aggressive international expansion that may affect future stability.
See More
Investment Outlook: Affirm vs. Klarna in 2026
- Affirm's Market Position: Affirm has established a reputation for transparent lending in the U.S., with FY 2025 revenue of approximately $3.2 billion, reflecting a 38.8% year-over-year growth, showcasing its strong partnerships with major retail platforms, although customer concentration poses certain risks.
- Klarna's Global Expansion: Klarna has transitioned into a global digital bank, generating about $3.5 billion in revenue for FY 2025, a 31.6% increase, but reported a net loss of roughly $294 million, indicating high costs and risks associated with its international expansion.
- Risk Comparison: Affirm relies on a small number of banking partners, facing risks in loan funding, while Klarna operates in a highly regulated global banking environment, needing to navigate legal compliance risks and competition from large tech firms.
- Valuation Comparison: Affirm's forward P/E ratio stands at 58.8x, significantly more attractive than Klarna's 89.2x, indicating higher investor expectations for Affirm's future profitability, while Klarna's lower sales multiple may appeal to value-seeking investors.
See More
Royal Caribbean Partners with Affirm for Flexible Cruise Payments
- Flexible Payment Options: Royal Caribbean's partnership with payment network Affirm allows UK and Canadian holidaymakers to spread cruise costs over time without compounding interest or late fees, enhancing customer payment flexibility and travel experience.
- Market Demand Response: With the summer holiday season approaching, this new policy provides customers with more choices, addressing their needs for family vacations and dream Caribbean getaways, which is expected to drive an increase in bookings.
- Successful Partnership Continuation: This collaboration builds on the successful partnership between Affirm and Royal Caribbean in the U.S., demonstrating a shared goal of enhancing customer experience and payment transparency, further solidifying market positions.
- Travel Spending Growth: As of March 31, 2026, travel purchases on Affirm's network grew by 29% year-over-year, indicating that transparent and flexible payment options are helping more consumers realize their travel plans, thereby enhancing brand appeal and market competitiveness.
See More
Klarna's Stock Plummets Post-IPO Amid Market Concerns
- Poor IPO Performance: Klarna's stock has plummeted 62% from its first-day closing price last September, indicating investor concerns about its future growth, although the current lower price may attract buyers.
- Strong User Growth: With over 119 million active consumers across 26 countries and processing 3.4 million transactions daily, Klarna maintains its leadership in the buy now, pay later market, despite risks associated with declining consumer spending.
- Improved Financials: In the first quarter, Klarna's revenue surged 44% year-over-year, with adjusted operating income rising from $3 million to $68 million, and net income flipping from a $99 million loss to a $1 million profit, showcasing significant progress in diversifying revenue streams.
- Market Share Gains: By forging new partnerships with JPMorgan and Worldpay, Klarna is capturing market share from competitors like Affirm and PayPal, further solidifying its position in the rapidly growing BNPL sector.
See More
Klarna Reports Strong Q1 Growth Amid Product Diversification
- Product Diversification: Klarna has successfully expanded its market reach by launching new products and partnering with JPMorgan Payments and Worldpay, with its Fair Financing product's GMV increasing by 138% year-over-year in Q1, indicating strong market demand and profit potential.
- Significant User Growth: With over 119 million active consumers across 26 countries and processing more than 3.4 million transactions daily, Klarna solidifies its leadership position in the buy now, pay later market, further enhancing its market share.
- Improved Profitability: Despite being unprofitable since its IPO, Klarna reported a net profit in Q1, reflecting the resilience of its business model, particularly as consumer spending faces pressure, showcasing the necessity and appeal of its products.
- Competitive Market Advantage: Klarna's price-to-sales ratio is lower than that of its competitors, especially compared to PayPal, enhancing its competitiveness in the buy now, pay later sector; although its stock is down 48% year-to-date, its diversification strategy lays a solid foundation for future growth.
See More
