Affirm (AFRM) Stock Forecast & Price Target

Affirm Holdings has demonstrated substantial growth potential, with approximately $36 billion in transaction volume anticipated for fiscal 2025, primarily driven by its robust interest-bearing loan offerings that constitute over 70% of this volume. The company has established a high-quality offering that provides significant value to both merchants and consumers, fostering positive dynamics in its network and promoting sustained market share gains. Additionally, optimistic forecasts for key performance indicators, including gross merchandise volume, revenue from loan transactions, and adjusted operating income, indicate a promising trajectory for Affirm's financial performance in the near future.

Affirm Holdings is facing concerns regarding its fiscal year 2026 guidance, specifically related to the high net revenue yield forecast set by analysts. There is skepticism about the sustainability of these revenue projections, particularly given that a significant portion of the company's transaction volume relies on interest-bearing loans. Additionally, the reliance on the U.S. market for over 95% of revenues raises further questions about potential growth constraints as competition in the buy-now, pay-later sector intensifies.