Recent News
On October 6, 2025, Rothschild & Co upgraded Affirm to Buy, citing improved operating metrics and higher analyst price targets. On September 5, 2025, a major market data outlet raised Affirm’s composite rating, reflecting stronger relative momentum and earnings performance. On August 26, 2025, the company confirmed participation in upcoming investor conferences, keeping management visibility high into the fall.
Technical Analysis
Directional indicators display mixed but constructive bias: ADX at 17.72 indicates no established trend, while DI+ at 20.88 with an increasing trend signals a bullish tilt and DI- at 25.67 showing a peak-and-reversal contributes a bullish directional flip; together they suggest a nascent bull bias without strong trend confirmation.
MACD reads -1.42 with a rising profile and a signal line at -1.77; the MACD has crossed above its signal line, a bullish momentum signal despite negative absolute MACD, supporting potential near-term upside against weak trend strength.
MRO at 8.94 sits positive, which implies price currently trades above the model target and carries a mean-reversion downside risk; the positive oscillator therefore tempers momentum-driven upside.
RSI at 50.46 with a dip-and-reversal indicates renewed upward momentum from neutral levels, aligning with the MACD cross while remaining below overbought territory.
Price structure supports a modest bullish posture: last close $76.45 sits above the 12-day EMA $74.19 (recent dip & reversal), above the 26-day EMA $75.60 and well above the 200-day average $63.66, while the super trend upper band at $77.75 marks nearby resistance. Bollinger upper band near-term sits around $76.34–$79.40, placing the share price near the upper envelope and noting limited upside runway without extended volatility.
Liquidity and volatility nuance the outlook: daily volume under recent averages points to lighter participation on moves, while 42-day and 52-week betas near 2.5 indicate elevated volatility that can amplify both momentum and reversion episodes.
Fundamental Analysis
Earnings and margins: quarterly EPS reached $0.53 versus an estimate of $0.43, producing an EPS surprise of +23.26%, and net income for the period recorded $69,244,000. EBIT totaled $177,492,000 with EBITDA $241,487,000, translating to an EBIT margin of 20.25%—a strong sequential improvement, up 40.39% quarter-over-quarter and up 161.15% year-over-year—evidence of substantial margin expansion as operating leverage materialized.
Revenue and operating metrics: total revenue $876,417,000 and gross profit $593,472,000 produce a gross margin of 67.72%, essentially flat year-over-year but expanding sequentially. Reported gross merchandise volume reached record levels during the quarter, supporting higher merchant and card-related revenues and strengthening operating leverage.
Cash flows and liquidity: operating cash flow $74,637,000 with free cash flow $23,517,000 yields a free cash flow yield of 0.10%. Cash and short-term investments $2,225,880,000 offset total debt $7,853,306,000, leaving net debt $6,466,908,000 and a debt-to-equity ratio of 2.56x, indicating substantial leverage on the balance sheet despite healthy cash balances.
Capital efficiency and returns: return on equity stands at 2.26% and return on assets at 0.64%, reflecting early-stage profitability against a capital-intensive receivables book. Asset turnover at 0.081 suggests modest revenue generation per dollar of assets.
Valuation posture: price multiples register elevated levels—PE ratio ~128.72x and forward PE ~473.86x, price-to-sales ~25.82x, and price-to-book ~7.37x—while free cash flow yield sits near 0.10%. WMDST values the stock as over-valued given those multiples relative to realized free cash flow and leverage. When comparing selected margins to peers, the EBIT margin of 20.25% sits below the industry peer mean of 32.32% but aligns near the industry peer median of 20.43%, showing margin performance close to typical peer median levels while still trailing the peer mean.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-28 |
| NEXT REPORT DATE: | 2025-11-25 |
| CASH FLOW | Begin Period Cash Flow | $ 1.7 B |
| Operating Cash Flow | $ 74.6 M | |
| Capital Expenditures | $ -51.12 M | |
| Change In Working Capital | $ -153.93 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 20.5 M | |
| End Period Cash Flow | $ 1.8 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 876.4 M | |
| Forward Revenue | $ 120.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 282.9 M | |
| Depreciation | $ 64.0 M | |
| Depreciation and Amortization | $ 64.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 712.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 593.5 M | |
| EBITDA | $ 241.5 M | |
| EBIT | $ 177.5 M | |
| Operating Income | $ 164.0 M | |
| Interest Income | — | |
| Interest Expense | $ 105.9 M | |
| Net Interest Income | $ -105.91 M | |
| Income Before Tax | $ 71.6 M | |
| Tax Provision | $ 2.3 M | |
| Tax Rate | 3.265 % | |
| Net Income | $ 69.2 M | |
| Net Income From Continuing Operations | $ 69.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.43 | |
| EPS Actual | $ 0.53 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 23.256 % | |
| Forward EPS | $ 0.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.2 B | |
| Intangible Assets | $ 547.1 M | |
| Net Tangible Assets | $ 2.5 B | |
| Total Current Assets | $ 9.8 B | |
| Cash and Short-Term Investments | $ 2.2 B | |
| Cash | $ 1.4 B | |
| Net Receivables | $ 426.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 200.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 82.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 180.1 M | |
| Net Debt | $ 6.5 B | |
| Total Debt | $ 7.9 B | |
| Total Liabilities | $ 8.1 B | |
| EQUITY | ||
| Total Equity | $ 3.1 B | |
| Retained Earnings | $ -3.06 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.44 | |
| Shares Outstanding | 325.113 M | |
| Revenue Per-Share | $ 2.70 | |
| VALUATION | Market Capitalization | $ 22.6 B |
| Enterprise Value | $ 28.3 B | |
| Enterprise Multiple | 117.028 | |
| Enterprise Multiple QoQ | -6.337 % | |
| Enterprise Multiple YoY | 84.493 % | |
| Enterprise Multiple IPRWA | high: 346.433 AFRM: 117.028 mean: 103.961 median: 102.408 low: -175.864 |
|
| EV/R | 32.246 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.635 | |
| Asset To Liability | 1.38 | |
| Debt To Capital | 0.719 | |
| Debt To Assets | 0.704 | |
| Debt To Assets QoQ | -0.149 % | |
| Debt To Assets YoY | 1838.915 % | |
| Debt To Assets IPRWA | high: 1.273 AFRM: 0.704 median: 0.361 mean: 0.303 low: 0.006 |
|
| Debt To Equity | 2.559 | |
| Debt To Equity QoQ | -0.022 % | |
| Debt To Equity YoY | 1922.534 % | |
| Debt To Equity IPRWA | high: 3.069 AFRM: 2.559 median: 1.943 mean: 1.463 low: -1.636 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.375 | |
| Price To Book QoQ | 29.921 % | |
| Price To Book YoY | 119.253 % | |
| Price To Book IPRWA | high: 18.53 mean: 9.461 median: 8.649 AFRM: 7.375 low: -6.216 |
|
| Price To Earnings (P/E) | 128.724 | |
| Price To Earnings QoQ | -97.456 % | |
| Price To Earnings YoY | -161.002 % | |
| Price To Earnings IPRWA | high: 311.81 median: 129.079 AFRM: 128.724 mean: 124.409 low: -161.471 |
|
| PE/G Ratio | 0.719 | |
| Price To Sales (P/S) | 25.825 | |
| Price To Sales QoQ | 23.931 % | |
| Price To Sales YoY | 85.251 % | |
| Price To Sales IPRWA | high: 51.943 AFRM: 25.825 mean: 14.96 median: 14.015 low: 0.281 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 473.859 | |
| Forward PE/G | 2.648 | |
| Forward P/S | 187.243 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.794 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.081 | |
| Asset Turnover Ratio QoQ | 8.413 % | |
| Asset Turnover Ratio YoY | 15.28 % | |
| Asset Turnover Ratio IPRWA | high: 0.512 mean: 0.152 median: 0.149 AFRM: 0.081 low: -0.019 |
|
| Receivables Turnover | 2.711 | |
| Receivables Turnover Ratio QoQ | -26.616 % | |
| Receivables Turnover Ratio YoY | 32.946 % | |
| Receivables Turnover Ratio IPRWA | high: 11.186 AFRM: 2.711 mean: 2.157 median: 1.875 low: -3.771 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 33.654 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.091 | |
| CapEx To Revenue | -0.058 | |
| CapEx To Depreciation | -0.799 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 10.9 B | |
| Net Invested Capital | $ 10.9 B | |
| Invested Capital | $ 10.9 B | |
| Net Tangible Assets | $ 2.5 B | |
| Net Working Capital | $ 9.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 12.359 | |
| Current Ratio | 54.185 | |
| Current Ratio QoQ | -14.118 % | |
| Current Ratio YoY | -17.524 % | |
| Current Ratio IPRWA | AFRM: 54.185 high: 8.192 mean: 1.284 median: 1.163 low: 0.102 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 32.521 | |
| Cost Of Debt | 1.347 % | |
| Interest Coverage Ratio | 1.676 | |
| Interest Coverage Ratio QoQ | 59.656 % | |
| Interest Coverage Ratio YoY | 212.29 % | |
| Interest Coverage Ratio IPRWA | high: 93.455 mean: 29.325 median: 24.959 AFRM: 1.676 low: -85.699 |
|
| Operating Cash Flow Ratio | -0.172 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 20.854 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.887 % | |
| Revenue Growth | 11.911 % | |
| Revenue Growth QoQ | -223.957 % | |
| Revenue Growth YoY | -17.348 % | |
| Revenue Growth IPRWA | high: 48.984 % AFRM: 11.911 % median: 11.502 % mean: 10.427 % low: -36.33 % |
|
| Earnings Growth | 178.947 % | |
| Earnings Growth QoQ | -287.081 % | |
| Earnings Growth YoY | -365.335 % | |
| Earnings Growth IPRWA | high: 200.0 % AFRM: 178.947 % mean: 17.542 % median: 11.26 % low: -261.224 % |
|
| MARGINS | ||
| Gross Margin | 67.716 % | |
| Gross Margin QoQ | 3.552 % | |
| Gross Margin YoY | 0.132 % | |
| Gross Margin IPRWA | high: 91.59 % median: 75.664 % AFRM: 67.716 % mean: 63.865 % low: -33.394 % |
|
| EBIT Margin | 20.252 % | |
| EBIT Margin QoQ | 40.385 % | |
| EBIT Margin YoY | 161.148 % | |
| EBIT Margin IPRWA | high: 78.825 % mean: 32.317 % median: 20.433 % AFRM: 20.252 % low: -140.483 % |
|
| Return On Sales (ROS) | 18.71 % | |
| Return On Sales QoQ | 29.696 % | |
| Return On Sales YoY | 141.264 % | |
| Return On Sales IPRWA | high: 72.429 % mean: 30.937 % AFRM: 18.71 % median: 18.178 % low: -141.554 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 23.5 M | |
| Free Cash Flow Yield | 0.104 % | |
| Free Cash Flow Yield QoQ | -89.212 % | |
| Free Cash Flow Yield YoY | -68.675 % | |
| Free Cash Flow Yield IPRWA | high: 15.392 % median: 0.849 % mean: 0.653 % AFRM: 0.104 % low: -24.314 % |
|
| Free Cash Growth | -85.057 % | |
| Free Cash Growth QoQ | 105.939 % | |
| Free Cash Growth YoY | 4.839 % | |
| Free Cash Growth IPRWA | high: 457.143 % mean: 11.69 % median: -6.308 % AFRM: -85.057 % low: -552.123 % |
|
| Free Cash To Net Income | 0.34 | |
| Cash Flow Margin | -3.525 % | |
| Cash Flow To Earnings | -0.446 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.641 % | |
| Return On Assets QoQ | 2274.074 % | |
| Return On Assets YoY | -232.988 % | |
| Return On Assets IPRWA | high: 14.526 % mean: 4.025 % median: 2.321 % AFRM: 0.641 % low: -14.505 % |
|
| Return On Capital Employed (ROCE) | 1.617 % | |
| Return On Equity (ROE) | 0.023 | |
| Return On Equity QoQ | 2202.041 % | |
| Return On Equity YoY | -236.562 % | |
| Return On Equity IPRWA | high: 0.169 median: 0.052 mean: 0.039 AFRM: 0.023 low: -0.381 |
|
| DuPont ROE | 2.33 % | |
| Return On Invested Capital (ROIC) | 1.577 % | |
| Return On Invested Capital QoQ | 80.229 % | |
| Return On Invested Capital YoY | -170.245 % | |
| Return On Invested Capital IPRWA | high: 14.374 % mean: 7.33 % median: 4.251 % AFRM: 1.577 % low: -16.5 % |
|