Affirm Holdings, Inc. AFRM is making a bold move beyond the United States as it seeks to fuel its next growth phase. The Buy Now Pay Later (BNPL) space has started its international expansion. It recently entered the Canadian market through an extended partnership with Williams-Sonoma and KAYAK. The company officially announced its expansion into the U.K. market, indicating its major expansion beyond North America.
AFRM exited the third quarter of fiscal 2025 with strong revenue growth, reporting $783 million in total revenues — a 36% increase from the prior year, following growth of 17.3% and 46.3% in 2023 and 2024, respectively. Its active consumers boosted 21% year over year to 21.9 million in third-quarter 2025, driven by strong consumer retention, growing adoption of the Affirm Card and the addition of new users through an increase in active merchants and partnerships. It anticipates total revenues to be between $3.163 and $3.193 billion in fiscal 2025.
As a pioneer-fintech company in payment solutions, it primarily focuses on providing transparent, flexible and reliable financial services. It also focuses on expanding its reach in international markets through strategic partnerships.
Affirm is already scaling through its early partnerships with local merchants, setting the stage to expand its services in both the retail and travel industries, which shows the growing adoption of BNPL in today’s world, especially among Gen Z and Millennials. However, achieving sustainable growth will depend on careful implementation, the ability to adapt to regulations and successful integration into local markets.
How Are Competitors Faring?
Some of AFRM’s competitors in the payment solutions space are PayPal Holdings, Inc. PYPL and Sezzle Inc SEZL.
PayPal reported 436 million active accounts in the first quarter of 2025, which rose 2% year over year. Its net revenues increased 1% year over year to $7.8 billion in first-quarter 2025. PayPal’s total payment volume increased 3% year over year in the first quarter of 2025.
Sezzle reported 2.7 million active consumers in the first quarter of 2025, which grew 5.4% year over year. Sezzle’s total revenues grew 123.3% year over year to $104.9 million in the same quarter. Its gross merchandise volume increased 64.1% year over year.
Affirm’s Price Performance, Valuation and Estimates
Over the past year, AFRM’s shares have surged 85.4% compared with the industry’s rise of 37%.
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From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.62, below the industry average of 5.61. The company carries a Value Score of F.
Story Continues Zacks Investment Research
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The Zacks Consensus Estimate for Affirm’s 2025 earnings implies 100.6% growth from the year-ago period. It witnessed five upward estimate revisions in the past 30 days against one movement in the opposite direction.
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Affirm currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report
Sezzle Inc. (SEZL) : Free Stock Analysis Report
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Affirm Expands Global Footprint: Will It Deliver Sustainable Growth?
Affirm Holdings, Inc. AFRM is making a bold move beyond the United States as it seeks to fuel its next growth phase. The Buy Now Pay Later (BNPL) space has started its international expansion. It recently entered the Canadian market through an extended partnership with Williams-Sonoma and KAYAK. The company officially announced its expansion into the U.K. market, indicating its major expansion beyond North America.
AFRM exited the third quarter of fiscal 2025 with strong revenue growth, reporting $783 million in total revenues — a 36% increase from the prior year, following growth of 17.3% and 46.3% in 2023 and 2024, respectively. Its active consumers boosted 21% year over year to 21.9 million in third-quarter 2025, driven by strong consumer retention, growing adoption of the Affirm Card and the addition of new users through an increase in active merchants and partnerships. It anticipates total revenues to be between $3.163 and $3.193 billion in fiscal 2025.
As a pioneer-fintech company in payment solutions, it primarily focuses on providing transparent, flexible and reliable financial services. It also focuses on expanding its reach in international markets through strategic partnerships.
Affirm is already scaling through its early partnerships with local merchants, setting the stage to expand its services in both the retail and travel industries, which shows the growing adoption of BNPL in today’s world, especially among Gen Z and Millennials. However, achieving sustainable growth will depend on careful implementation, the ability to adapt to regulations and successful integration into local markets.
How Are Competitors Faring?
Some of AFRM’s competitors in the payment solutions space are PayPal Holdings, Inc. PYPL and Sezzle Inc SEZL.
PayPal reported 436 million active accounts in the first quarter of 2025, which rose 2% year over year. Its net revenues increased 1% year over year to $7.8 billion in first-quarter 2025. PayPal’s total payment volume increased 3% year over year in the first quarter of 2025.
Sezzle reported 2.7 million active consumers in the first quarter of 2025, which grew 5.4% year over year. Sezzle’s total revenues grew 123.3% year over year to $104.9 million in the same quarter. Its gross merchandise volume increased 64.1% year over year.
Affirm’s Price Performance, Valuation and Estimates
Over the past year, AFRM’s shares have surged 85.4% compared with the industry’s rise of 37%.
Zacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.62, below the industry average of 5.61. The company carries a Value Score of F.
Story Continues Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s 2025 earnings implies 100.6% growth from the year-ago period. It witnessed five upward estimate revisions in the past 30 days against one movement in the opposite direction.
Zacks Investment Research
Image Source: Zacks Investment Research
Affirm currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report
Sezzle Inc. (SEZL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments