Recent News
On January 30, 2026, Expedia Group expanded its multi-year agreement, naming Affirm the exclusive buy-now-pay-later provider for lodging and packages across key U.S. brands. On February 2, 2026, Intuit announced a multi-year deal embedding Affirm as the exclusive pay-over-time option within QuickBooks Payments for small and mid-market businesses. On February 3, 2026, Morgan Stanley upgraded Affirm to overweight, citing distribution wins and partnership-driven growth potential. Market commentary since November 26, 2025 also notes elevated institutional options activity around Affirm.
Technical Analysis
Directional strength: ADX registers 36.37, indicating a strong directional move; DI- sits at 31.88 and shows an increasing trend while DI+ peaked and reversed (12.73), which signals dominance of downside pressure against the recent advance.
Momentum (MACD): MACD reads -5.34, below its signal line (-4.66) and declining, indicating bearish momentum and no confirming bullish crossover.
MRO (momentum/regression oscillator): MRO stands at -19.04 and is decreasing, which identifies the current price below WMDST’s target with a moderate potential to move toward that target while the oscillator moves lower.
RSI and volatility: RSI at 38.27 and trending down shows ongoing selling pressure without reaching extreme oversold territory; elevated 42-day and 52-week betas (2.19 / 2.56) reinforce above-market volatility risk for near-term swings.
Price vs. moving averages and bands: Price close $47.87 sits below the 12-day EMA ($52.82), 20-day avg ($53.82), 26-day EMA ($58.50) and 50/200-day averages ($67.54 / $69.35); the close trades beneath the 1-sigma lower Bollinger band ($48.42), consistent with a bearish trend and continued downward pressure on short horizons.
Fundamental Analysis
Profitability and margins: Operating margin equals 20.422% and EBIT margin equals 21.812%, with EBIT margin improving QoQ by 5.46% but down YoY by 0.86%. The company’s EBIT margin sits below the industry peer mean (41.167%) and median (57.177%), indicating lower margin capture relative to typical peers despite recent sequential improvement.
Revenue and earnings dynamics: Reported total revenue $1,123,020,000 and revenue growth shows a QoQ swing of 212.90% and a YoY change of -15.46%. EPS came in at $0.72 versus a $0.84 estimate, producing an EPS surprise of -14.29%, which compresses near-term earnings momentum relative to expectations.
Cash, liquidity, and leverage: Cash and short-term investments total $2,251,255,000 and current ratio measures 66.90, reflecting ample near-term liquidity. Debt-to-assets runs 70.87%, above the industry peer mean (25.769%) and median (35.083%) but inside the peer high; debt-to-equity equals 258.87%, slightly above the peer median (245.573%) and below the peer high, showing elevated leverage relative to most peers.
Returns and capital efficiency: Return on equity equals 3.65% (QoQ +49.39%, YoY +26.66%) and return on assets equals 1.06% (QoQ +48.81%, YoY +36.20%), both improving sequentially but remaining modest in absolute terms versus typical software & services profitability levels.
Cash flow and valuation context: Free cash flow $118,034,000 yields 0.50% free cash flow yield and WMDST reports the current valuation as over-valued. Price-to-earnings sits at 99.31 with forward PE at 79.11; price target mean $56.57 places the market price roughly 18.2% below that aggregate target, but WMDST’s over-valued assessment reflects valuation drivers beyond simple target consensus.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 2.1 B |
| Operating Cash Flow | $ 173.7 M | |
| Capital Expenditures | $ -55.70 M | |
| Change In Working Capital | $ -111.66 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -3.04 M | |
| End Period Cash Flow | $ 2.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.1 B | |
| Forward Revenue | $ 671.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 343.5 M | |
| Depreciation | $ 75.6 M | |
| Depreciation and Amortization | $ 75.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 893.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 779.6 M | |
| EBITDA | $ 320.5 M | |
| EBIT | $ 245.0 M | |
| Operating Income | $ 229.3 M | |
| Interest Income | — | |
| Interest Expense | $ 111.7 M | |
| Net Interest Income | $ -111.72 M | |
| Income Before Tax | $ 133.2 M | |
| Tax Provision | $ 3.7 M | |
| Tax Rate | 2.741 % | |
| Net Income | $ 129.6 M | |
| Net Income From Continuing Operations | $ 129.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.84 | |
| EPS Actual | $ 0.72 | |
| EPS Difference | $ -0.12 | |
| EPS Surprise | -14.286 % | |
| Forward EPS | $ 0.93 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.0 B | |
| Intangible Assets | $ 546.1 M | |
| Net Tangible Assets | $ 3.0 B | |
| Total Current Assets | $ 11.5 B | |
| Cash and Short-Term Investments | $ 2.3 B | |
| Cash | $ 1.5 B | |
| Net Receivables | $ 268.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 226.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 57.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 171.4 M | |
| Net Debt | $ 7.6 B | |
| Total Debt | $ 9.2 B | |
| Total Liabilities | $ 9.4 B | |
| EQUITY | ||
| Total Equity | $ 3.5 B | |
| Retained Earnings | $ -2.85 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.68 | |
| Shares Outstanding | 332.207 M | |
| Revenue Per-Share | $ 3.38 | |
| VALUATION | Market Capitalization | $ 23.8 B |
| Enterprise Value | $ 30.7 B | |
| Enterprise Multiple | 95.728 | |
| Enterprise Multiple QoQ | -18.504 % | |
| Enterprise Multiple YoY | -2.262 % | |
| Enterprise Multiple IPRWA | high: 209.332 mean: 104.37 AFRM: 95.728 median: 94.5 low: -72.728 |
|
| EV/R | 27.324 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.653 | |
| Asset To Liability | 1.377 | |
| Debt To Capital | 0.721 | |
| Debt To Assets | 0.709 | |
| Debt To Assets QoQ | 2.211 % | |
| Debt To Assets YoY | -0.916 % | |
| Debt To Assets IPRWA | high: 0.86 AFRM: 0.709 median: 0.351 mean: 0.258 low: 0.007 |
|
| Debt To Equity | 2.589 | |
| Debt To Equity QoQ | 7.308 % | |
| Debt To Equity YoY | -3.803 % | |
| Debt To Equity IPRWA | high: 2.615 AFRM: 2.589 median: 2.456 mean: 1.52 low: -0.835 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.697 | |
| Price To Book QoQ | -10.306 % | |
| Price To Book YoY | 1.294 % | |
| Price To Book IPRWA | high: 12.539 median: 7.752 mean: 7.685 AFRM: 6.697 low: -10.653 |
|
| Price To Earnings (P/E) | 99.314 | |
| Price To Earnings QoQ | -69.394 % | |
| Price To Earnings YoY | -60.841 % | |
| Price To Earnings IPRWA | high: 209.621 mean: 113.861 AFRM: 99.314 median: 50.583 low: -93.537 |
|
| PE/G Ratio | 0.466 | |
| Price To Sales (P/S) | 21.153 | |
| Price To Sales QoQ | -19.853 % | |
| Price To Sales YoY | -0.496 % | |
| Price To Sales IPRWA | high: 86.47 median: 56.299 mean: 46.405 AFRM: 21.153 low: 0.917 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 79.114 | |
| Forward PE/G | 0.371 | |
| Forward P/S | 36.031 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.323 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.092 | |
| Asset Turnover Ratio QoQ | 11.459 % | |
| Asset Turnover Ratio YoY | 9.39 % | |
| Asset Turnover Ratio IPRWA | high: 0.447 mean: 0.17 median: 0.164 AFRM: 0.092 low: 0.033 |
|
| Receivables Turnover | 4.07 | |
| Receivables Turnover Ratio QoQ | 54.769 % | |
| Receivables Turnover Ratio YoY | 20.255 % | |
| Receivables Turnover Ratio IPRWA | high: 10.946 AFRM: 4.07 median: 1.989 mean: 1.981 low: 0.221 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 22.422 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 5.006 | |
| Cash Conversion Cycle Days QoQ | -58.256 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 61.28 median: 57.631 mean: 12.812 AFRM: 5.006 low: -147.2 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.099 | |
| CapEx To Revenue | -0.05 | |
| CapEx To Depreciation | -0.737 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 12.7 B | |
| Net Invested Capital | $ 12.7 B | |
| Invested Capital | $ 12.7 B | |
| Net Tangible Assets | $ 3.0 B | |
| Net Working Capital | $ 11.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 13.134 | |
| Current Ratio | 66.905 | |
| Current Ratio QoQ | 5.746 % | |
| Current Ratio YoY | 10.301 % | |
| Current Ratio IPRWA | AFRM: 66.905 high: 4.96 mean: 1.227 median: 1.035 low: 0.489 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 28.644 | |
| Cost Of Debt | 1.268 % | |
| Interest Coverage Ratio | 2.193 | |
| Interest Coverage Ratio QoQ | 24.97 % | |
| Interest Coverage Ratio YoY | 23.954 % | |
| Interest Coverage Ratio IPRWA | high: 144.777 mean: 47.455 median: 31.667 AFRM: 2.193 low: -109.965 |
|
| Operating Cash Flow Ratio | 1.283 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 17.416 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 12.879 % | |
| Revenue Growth | 20.323 % | |
| Revenue Growth QoQ | 212.902 % | |
| Revenue Growth YoY | -15.455 % | |
| Revenue Growth IPRWA | AFRM: 20.323 % high: 10.721 % mean: 2.606 % median: 2.372 % low: -5.926 % |
|
| Earnings Growth | 213.043 % | |
| Earnings Growth QoQ | -476.374 % | |
| Earnings Growth YoY | -222.302 % | |
| Earnings Growth IPRWA | AFRM: 213.043 % high: 171.429 % mean: 6.048 % median: -1.093 % low: -42.857 % |
|
| MARGINS | ||
| Gross Margin | 69.417 % | |
| Gross Margin QoQ | 2.609 % | |
| Gross Margin YoY | -0.131 % | |
| Gross Margin IPRWA | high: 88.479 % median: 79.355 % mean: 70.177 % AFRM: 69.417 % low: 9.18 % |
|
| EBIT Margin | 21.812 % | |
| EBIT Margin QoQ | 5.459 % | |
| EBIT Margin YoY | -0.864 % | |
| EBIT Margin IPRWA | high: 68.187 % median: 57.177 % mean: 41.167 % AFRM: 21.812 % low: -70.619 % |
|
| Return On Sales (ROS) | 20.422 % | |
| Return On Sales QoQ | 9.743 % | |
| Return On Sales YoY | -7.181 % | |
| Return On Sales IPRWA | high: 66.964 % median: 58.244 % mean: 39.292 % AFRM: 20.422 % low: -45.836 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 118.0 M | |
| Free Cash Flow Yield | 0.497 % | |
| Free Cash Flow Yield QoQ | -61.769 % | |
| Free Cash Flow Yield YoY | -65.865 % | |
| Free Cash Flow Yield IPRWA | high: 6.302 % mean: 1.048 % median: 0.95 % AFRM: 0.497 % low: -13.099 % |
|
| Free Cash Growth | -63.138 % | |
| Free Cash Growth QoQ | -105.005 % | |
| Free Cash Growth YoY | -183.556 % | |
| Free Cash Growth IPRWA | high: 260.17 % mean: 41.552 % median: -11.161 % AFRM: -63.138 % low: -206.256 % |
|
| Free Cash To Net Income | 0.911 | |
| Cash Flow Margin | 19.584 % | |
| Cash Flow To Earnings | 1.697 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.061 % | |
| Return On Assets QoQ | 48.808 % | |
| Return On Assets YoY | 36.2 % | |
| Return On Assets IPRWA | high: 15.108 % median: 7.557 % mean: 5.461 % AFRM: 1.061 % low: -11.635 % |
|
| Return On Capital Employed (ROCE) | 1.916 % | |
| Return On Equity (ROE) | 0.037 | |
| Return On Equity QoQ | 49.387 % | |
| Return On Equity YoY | 26.655 % | |
| Return On Equity IPRWA | high: 0.081 AFRM: 0.037 median: 0.031 mean: 0.03 low: -0.274 |
|
| DuPont ROE | 3.786 % | |
| Return On Invested Capital (ROIC) | 1.878 % | |
| Return On Invested Capital QoQ | 12.388 % | |
| Return On Invested Capital YoY | -42.814 % | |
| Return On Invested Capital IPRWA | high: 15.68 % median: 15.68 % mean: 10.669 % AFRM: 1.878 % low: -11.833 % |
|