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Fundamental analysis · SEC EDGAR · as of 30/06/2026

Fundamental analysis of Affirm Holdings, Inc.

AFRM · Nasdaq · Financial

Fundamental quality

ATTRACTIVE

81

out of 100

Affirm Holdings, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 35.2%) with wide margins (net margin 45.3%) and a business that keeps growing (37.4% a year). On fundamental quality it scores 81 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 11.33× 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

EPS growth: 150% · Revenue growth: 37.4%

II.Profitability
95

Net margin: 45.3% · ROE: 35.2%

III.Financial health
54

Net debt/EBITDA: 11.33x · FCF: 23.3%

Source: SEC EDGAR · as of 30/06/2026

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

Versus its sector

Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 94%
ROEbeats 91%
Growthbeats 96%
Cash generationbeats 70%
Less debtbeats 5%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

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

Affirm Holdings, Inc. strengths

  • Growing earnings per share (150% annualized).
  • Exceptional net margin (45.3%): the business is clearly profitable.
  • Revenue growing strongly (37.4% annualized).
  • Outstanding return on equity (ROE of 35.2%): it puts shareholder capital to good use.

Affirm Holdings, Inc. risks and weaknesses

  • Very high leverage (net debt of 11.33× 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.

Affirm Holdings, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2021870-441-213-1,467
20221,349-707-248-1,255
20231,588-985-109-892
20242,323-518291824
20253,224526026,255
20264,2611,9309938,164

Between 2021 and 2026, revenue went from $870M to $4,261M (+390%) and net income went from -$441M to $1,930M (+538%).

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

Latest results

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score70→81
  • Net margin9.6%→45.3%
  • ROE10.1%→35.2%
  • FCF margin19.8%→23.3%
  • Revenue growth42.9%→37.4%
  • Net debt/EBITDA11.77×→11.33×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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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 81 out of 100 in our analysis, placing it as a company of high fundamental 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?

Very. Affirm Holdings, Inc. shows a net margin of 45.3% and an ROE of 35.2%, typical of a highly profitable business.

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

Yes, its leverage is high: net debt is 11.33 times its EBITDA, and it has been rising.

Is Affirm Holdings, Inc. growing?

Its revenue has grown 37.4% annualized in recent years and its earnings per share 150%, and without interruption since 2021.

Does Affirm Holdings, Inc. generate cash?

Yes. It converts about 23.3% 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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Who's behind the methodology and model · how the score is computed

Data: see Affirm Holdings, Inc.'s filings on EDGAR

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