Affirm (AFRM) Stock Forecast & Price Target

Affirm Holdings has positioned itself as a significant player in the buy-now, pay-later market, achieving approximately $36 billion in transaction volume in fiscal 2025, with over 70% of this volume derived from interest-bearing loans. The company's offerings present substantial value for both consumers and merchants, facilitating higher average order values and delivering transparent financing solutions. Recent financial forecasts indicate optimism regarding volume growth and market share, with anticipated increases across key performance indicators such as Gross Merchandise Volume (GMV), Revenue Loss Take Rate (RLTC), and adjusted operating income.

Affirm Holdings faces considerable concerns regarding its FY26 guidance, as analysts believe that the projected net revenue yield may be overly optimistic. The company's revenue model relies heavily on interest-bearing loans, which account for over 70% of its transaction volume, a factor that may expose it to increasing risks, particularly in a fluctuating interest rate environment. Moreover, with the vast majority of Affirm's revenue generated within the United States, any potential economic downturns or shifts in consumer behavior could further impact its financial performance.