Affirm Holdings Inc. Class A Common Stock (AFRM)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose earning power is clear, durable, and bought at a sensible price. Affirm operates a pay-over-time network, and the filed figures show a dramatic turn: in fiscal 2024, the year ended 2024-06-30, it lost $517.8M on $826.0M of revenue; in fiscal 2025, the year ended 2025-06-30, net income was $52.2M on $1.1B of revenue; and in fiscal 2026, the year ended 2026-06-30, revenue reached $1.4B and net income was $1.9B, or $5.53 per diluted share. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $334.5M and net income $102.9M, versus $272.5M and $2.8M in fiscal Q3 2025. That is real improvement, and FairStock classifies it as a TURNAROUND. But I am wary. Net income exceeding revenue in fiscal 2026 is an accounting red flag until explained; credit businesses can report volatile or non-recurring gains. The moat is not wide: many firms fund consumer credit, and Affirm depends on merchants, banks, and capital markets. FairStock's calculations at the 2026-10-13 close show a P/E of 14.08, P/B of 4.79, ROE of 45.13%, but also a Graham Number of $44.98, meaning the $77.89 price is 73.17% above that conservative value. EV/EBITDA is 28.40, beta 3.61, D/E 1.83, ROCE only 1.93%, Altman Z 2.56, and Piotroski 5/9. The growth is remarkable, but the price already assumes it persists. I would want a clearer explanation of the profit surge and a margin of safety before calling this a classic value opportunity.

In plain English: Affirm lets shoppers pay for purchases over time at checkout, earning fees from merchants and consumers. The business has swung from big losses to very large reported profits, which looks strong, but the share price is well above a conservative estimate of its value and depends on those profits continuing. It does not look obviously cheap at recent levels.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer