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Affirm Holdings AFRM

Affirm Holdings scores excellent on business quality (8.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$80.70Oct 9, 2026
Business qualityExcellent
Next earningsNov 5, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Affirm Holdings does

    Affirm provides buy-now-pay-later digital installment loans at checkout, making money through merchant discount fees and consumer interest. Merchants pay to offer transparent financing that increases their average order values.

  2. What it does best

    Affirm converts online shoppers into buyers by offering zero-percent or low-interest fixed payment plans without hidden fees. Its gross margin of 92.7% beats PayPal's 40.5% by a wide margin, proving strong software-like monetization on every transaction processed.

  3. The main risk

    A sharp rise in consumer defaults could strain credit performance and spike provisions for credit losses. With total debt at $9.8 billion funding its loan portfolio, credit deterioration directly threatens lending capacity and funding costs.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin stands at 20.4% with net income hitting $1.9B. Margins are expanding rapidly as transaction volume scales faster than operating expenses.

MoatFair

Affirm builds a consumer network lock-in through seamless merchant checkout embeds. Its 88th percentile gross margin reflects software-like pricing power that traditional lenders struggle to replicate quickly.

GrowthFast

Revenue surged 32.2% to $4.3B, sitting in the top decile of its sector at the 91st percentile for growth. This rapid expansion is accelerating compared to historical periods.

Financial healthStrong

Total debt sits at $9.8B against $1.6B in cash, while free cash flow reached $993M up from $602M last year. The balance sheet is getting stronger as cash generation accelerates.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $3.8M outside pre-planned sales.

Our sealed record on AFRM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is AFRM a good business?

Affirm Holdings scores excellent on the Cluenex quality check (8.2 of 10), measured against its own industry. Profitability is strong, moat fair, growth fast and financial health strong.

Are insiders buying AFRM?

In the last 90 days of SEC Form 4 filings: 1 sold $3.8M outside pre-planned sales.

When does AFRM report earnings?

Nov 5, 2026.

For members

See AFRM today

  • Today's verdict on AFRM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Affirm Holdings (AFRM)”, https://cluenex.com/stocks/afrm/, data as of Oct 10, 2026.