Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Affirm Holdings, Inc.

AFRM · Nasdaq · Financial

Fundamental quality

REASONABLE

70

out of 100

Affirm Holdings, Inc. grows profitably: it increases revenue at double digits (42.9% a year) without giving up profitability (net margin 9.6%). On fundamental quality it scores 70 out of 100, profiling it as a company of reasonable quality. Its weakest area is its financial strength (net debt 11.77× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Affirm is a leader in U.S. buy-now-pay-later (BNPL): it finances online purchases in installments, charging merchants and, partly, interest to consumers. It's embedded in giants like Amazon and Shopify.

What will shape its future

  • Consumer financial health: delinquencies on its loans are its central risk.
  • Its cost of funding (interest rates), which directly squeezes or eases its margin.
  • Partnerships with big platforms and competition (Klarna, Afterpay, the banks themselves).

Breakdown by area

I.Growth
95

Revenue growth: 42.9%

II.Profitability
61

Net margin: 9.6% · ROE: 10.1%

III.Financial health
54

Net debt/EBITDA: 11.77x · FCF: 19.8%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its financial strength drags it down the most.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Strengths

  • Revenue growing strongly (42.9% annualized).
  • Strong free-cash-flow generation (FCF margin of 19.8%): profit turns into real cash.
  • It has turned profitable after years of losses.
  • Revenue rising without interruption since 2020.

Risks and weaknesses

  • Very high leverage (net debt of 11.77× EBITDA): more exposed to rates and to a rough patch.
  • Its net debt has grown over the period.
  • Erratic free cash flow, with several years in the red.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020510-113-92-267
2021870-441-213-1,467
20221,349-707-248-1,255
20231,588-985-109-892
20242,323-518291824
20253,224526026,255

Between 2020 and 2025, revenue went from $510M to $3,224M (+533%) and net income went from -$113M to $52M (+146%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

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Is Affirm Holdings, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Affirm Holdings, Inc. a good company to invest in?

In terms of business quality, Affirm Holdings, Inc. scores 70 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Affirm Holdings, Inc. a profitable company?

Affirm Holdings, Inc. is profitable, with a net margin of 9.6%, though a thin one.

Does Affirm Holdings, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 11.77 times its EBITDA, and it has been rising.

Is Affirm Holdings, Inc. growing?

Its revenue has grown 42.9% annualized in recent years, and without interruption since 2020.

Does Affirm Holdings, Inc. generate cash?

Yes. It converts about 19.8% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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