A Business at a Glance
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Company Overview Affirm was founded in 2012 with a mission to deliver honest financial products that improve lives. We are building the next generation payment network. We believe that by using modern technology, strong engineering talent, and a mission-driven approach, we can reinvent payments and commerce. Our solutions, which are built on trust and transparency, are designed to make it easier for consumers to spend and save responsibly and with confidence, easier for merchants and commerce platforms to convert sales and grow, and easier for commerce to thrive. Our Business Legacy payment options, archaic systems, and traditional risk and credit underwriting models can be harmful, deceptive, and restrictive to both consumers and merchants. We believe that they are not well-suited for increasingly digital and mobile-first commerce, and are built on legacy infrastructure that does not support the innovation required for modern commerce to evolve and flourish.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.7B | 3.2B | 2.3B | 1.6B | 1.3B | 870M |
| Net Income | 282M | 52M | -518M | -985M | -707M | -441M |
| EPS | $0.81 | $0.15 | $-1.67 | $-3.34 | $-2.51 | $-2.94 |
| Free Cash Flow | 619M | 602M | 291M | -109M | -248M | -213M |
| ROIC | 13.7% | 0.7% | -11.3% | -38.9% | -27.0% | -17.1% |
| Gross Margin | - | 34.4% | 18.2% | - | - | 8.4% |
| Debt/Equity | 0.32 | 2.86 | 1.16 | 0.56 | 0.65 | 0.26 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 231M | -87M | -616M | -1.2B | -866M | -384M |
| Operating Margin | 6.2% | -2.7% | -26.5% | -75.6% | -64.2% | -44.1% |
| ROE | 8.0% | 1.8% | -19.0% | -38.9% | -27.0% | -17.1% |
| Shares Outstanding | 292M | 348M | 310M | 295M | 282M | 150M |
| Metric | 2020 | 2021 | 2022 | 2023 | |||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 510M | 870M | 1.3B | 1.6B | 2.3B | 3.2B | 3.7B |
| Gross Margin | 10.8% | 8.4% | N/A | N/A | 18.2% | 34.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 121M | 384M | 577M | 586M | 525M | 545M | 553M |
| EBIT | -108M | -384M | -866M | -1.2B | -616M | -87M | 231M |
| Op. Margin | -21.2% | -44.1% | -64.2% | -75.6% | -26.5% | -2.7% | 6.2% |
| Net Income | -126M | -441M | -707M | -985M | -518M | 52M | 282M |
| Net Margin | -24.7% | -50.7% | -52.4% | -62.1% | -22.3% | 1.6% | 7.6% |
| Non-Recurring | 0 | 0 | 0 | 36M | 6.8M | 184K | -11K |
| Returns on Capital | |||||||
| ROIC | -6.1% | -17.1% | -27.0% | -38.9% | -11.3% | 0.7% | 13.7% |
| ROE | N/A | -17.1% | -27.0% | -38.9% | -19.0% | 1.8% | 8.0% |
| ROA | -9.0% | -9.1% | -10.1% | -12.1% | -5.4% | 0.5% | 2.2% |
| Cash Flow | |||||||
| Op. Cash Flow | -71M | -193M | -162M | 12M | 450M | 794M | 833M |
| Free Cash Flow | -92M | -213M | -248M | -109M | 291M | 602M | 619M |
| Owner Earnings | -110M | -506M | -606M | -574M | -63M | 247M | 264M |
| CapEx | 21M | 20M | 86M | 121M | 159M | 192M | 214M |
| Maint. CapEx | 9.4M | 20M | 53M | 135M | 169M | 225M | 264M |
| Growth CapEx | 12M | 273K | 34M | 0 | 0 | 0 | 0 |
| D&A | 9.4M | 20M | 53M | 135M | 169M | 225M | 264M |
| CapEx/OCF | N/A | N/A | N/A | 991.5% | 35.4% | 24.2% | 25.7% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 19M | 800K | 86K | 109K | 0 | 250M | 250M |
| Buyback Yield | N/A | 0.0% | 0.0% | 0.0% | N/A | 1.1% | 1.6% |
| Stock-Based Comp | 30M | 293M | 391M | 452M | 345M | 321M | 305M |
| Debt Repayment | 7.7M | 3.2B | 4.1B | 207M | 12.6B | 21.4B | 37M |
| Balance Sheet | |||||||
| Net Debt | -460M | -2.3B | -804M | -370M | 1.2B | 6.1B | -1.9B |
| Cash & Equiv. | 267M | 1.5B | 1.3B | 892M | 1.0B | 1.4B | 3.1B |
| Long-Term Debt | N/A | N/A | N/A | N/A | 1.8B | 7.6B | 7.6B |
| Debt/Equity | -0.20 | 0.26 | 0.65 | 0.56 | 1.16 | 2.86 | 0.32 |
| Interest Coverage | -3.3 | -7.3 | -12.4 | -6.6 | -1.8 | -0.2 | 0.5 |
| Equity | -367M | 2.6B | 2.6B | 2.5B | 2.7B | 3.1B | 3.5B |
| Total Assets | 1.4B | 4.9B | 7.0B | 8.2B | 9.5B | 11.2B | 13.0B |
| Total Liabilities | 965M | 2.3B | 4.4B | 5.6B | 6.8B | 8.1B | 9.4B |
| Intangibles | 2.5M | 68M | 79M | 34M | 14M | 13M | 13M |
| Retained Earnings | -447M | -898M | -1.6B | -2.6B | -3.1B | -3.1B | -2.8B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||
| EPS | -2.63 | -2.94 | -2.51 | -3.34 | -1.67 | 0.15 | 0.81 |
| Owner EPS | -0.41 | -3.37 | -2.15 | -1.95 | -0.20 | 0.71 | 0.90 |
| Book Value | -1.35 | 17.17 | 9.29 | 8.59 | 8.81 | 8.82 | 12.13 |
| Cash Flow/Share | -0.26 | -1.29 | -0.58 | 0.04 | 1.45 | 2.28 | 1.87 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 271.9M | 150.0M | 281.8M | 295.0M | 310.0M | 347.9M | 292.4M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | 453.7 | 64.2 |
| P/FCF | N/A | N/A | N/A | N/A | 32.2 | 39.4 | 24.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 57.4 |
| Price/Book | N/A | 3.8 | 2.2 | 1.8 | 3.4 | 7.7 | 4.3 |
| Price/Sales | N/A | 27.7 | 37.2 | 7.9 | 11.1 | 15.5 | 4.1 |
| FCF Yield | N/A | -2.2% | -4.3% | -2.4% | 3.1% | 2.5% | 4.1% |
| Market Cap | N/A | 9.7B | 5.8B | 4.6B | 9.4B | 23.7B | 15.2B |
| Avg. Price | N/A | 79.40 | 73.77 | 16.88 | 29.60 | 49.65 | 51.97 |
| Year-End Price | N/A | 64.43 | 20.54 | 15.48 | 30.21 | 68.06 | 51.97 |
Affirm Holdings, Inc. passes 2 of 9 quality checks, indicating weak fundamentals.
Affirm Holdings, Inc. trades at 64.2x trailing earnings, compared to its 15-year median P/E of 15.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 24.5x vs a median of 35.8x. The company's 5-year average gross margin is 20.3%. Total shareholder yield (buybacks) is 1.6%. At current prices, the estimated annualized return to fair value is +84.0%.
Affirm Holdings, Inc. (AFRM) has a current P/E ratio of 64.2, compared to its historical median P/E of 15.0. The stock is currently considered Expensive based on its historical valuation range.
Affirm Holdings, Inc. (AFRM) has a 5-year average return on invested capital (ROIC) of -18.7%. This is below average and may indicate limited pricing power.
Affirm Holdings, Inc. (AFRM) has a market capitalization of $15.2B. It is classified as a large-cap stock.
Affirm Holdings, Inc. (AFRM) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.65%.
Based on historical P/E analysis, Affirm Holdings, Inc. (AFRM) appears expensive. The current P/E of 64.2 is 328% above its historical median of 15.0.
Affirm Holdings, Inc. (AFRM) operates in the Personal Credit Institutions industry, within the Financials sector.
Affirm Holdings, Inc. (AFRM) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Affirm Holdings, Inc. (AFRM) has a net profit margin of 1.6%. This is a modest margin.
Affirm Holdings, Inc. (AFRM) generated $602 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Affirm Holdings, Inc. (AFRM) has a debt-to-equity ratio of 2.86. This indicates higher leverage, which may increase financial risk.
Affirm Holdings, Inc. (AFRM) reported earnings per share (EPS) of $0.15 in its most recent fiscal year.
Affirm Holdings, Inc. (AFRM) has a return on equity (ROE) of 1.8%. This indicates moderate shareholder returns.
Affirm Holdings, Inc. (AFRM) has a 5-year average gross margin of 20.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 6 years of financial data for Affirm Holdings, Inc. (AFRM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Affirm Holdings, Inc. (AFRM) has a book value per share of $8.82, based on its most recent annual SEC filing.