Affirm (AFRM) Stock Forecast & Price Target

Affirm Holdings, a leader in the buy-now, pay-later sector, is projected to achieve approximately $36 billion in transaction volume for fiscal 2025, with over 70% of this volume stemming from its interest-bearing loans, which significantly contribute to its revenue. The company has successfully expanded its footprint beyond the United States to Canada and the United Kingdom, enhancing its overall market potential. Analysts express optimism about Affirm's robust volume growth and market share gains, underpinned by its compelling value proposition for both merchants and consumers, leading to increased forecasts across key performance indicators such as gross merchandise volume (GMV), retained loan transaction contribution (RLTC), and adjusted operating income.

Affirm Holdings, a leader in the buy-now, pay-later sector, is facing concerns regarding its FY26 guidance, particularly due to the Street's optimistic net revenue yield forecast that appears overly ambitious. The company's reliance on interest-bearing loans, which constitute over 70% of its transaction volume and revenue, raises doubts about future performance amid changing economic conditions. Additionally, with the majority of its revenue derived from its core U.S. market, Affirm’s growth potential may be hindered as competition intensifies and regulatory scrutiny increases.