Affirm Holdings, Inc. is a financial technology company that provides transparent and flexible payment solutions to consumers and merchants. Founded in 2012 and headquartered in San Francisco, California, Affirm operates as a next-generation payment network, offering point-of-sale financing and other financial products. The company enables consumers to make purchases with flexible repayment options while helping merchants increase sales and customer satisfaction through its innovative payment platform.
- Interest Income - Earns revenue from interest on loans held for investment, leveraging proprietary risk models to underwrite consumer loans.
- Merchant Network Revenue - Charges fees to merchants for using Affirm's payment solutions, enhancing customer acquisition and conversion rates.
- Gain on Sales of Loans - Generates income by selling loans to third-party buyers or securitization trusts.
- Card Network Revenue - Provides revenue from Affirm's virtual card network, enabling flexible payment options for consumers.
- Servicing Income - Collects fees for servicing loans, ensuring smooth operations for loan management.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Libor Michalek ExecutiveBoard | President | Libor Michalek has been the President of Affirm Holdings, Inc. since December 2022. He previously served as President, Technology, Risk and Operations from May 2021 to December 2022, as President, Technology from 2018 to May 2021, and as Chief Technology Officer from 2015 to 2018. | View Report → | |
Max Levchin ExecutiveBoard | Chief Executive Officer (CEO) | Max Levchin has served as the CEO of Affirm Holdings, Inc. since 2012 while also holding the roles of Founder and Chairman of the Board. He previously co-founded PayPal where he served as Chief Technology Officer and played a significant role at Yelp Inc.. | View Report → | |
Katherine Adkins Executive | Chief Legal Officer and Chief Compliance Officer | Katherine Adkins is the Chief Legal Officer and Chief Compliance Officer at Affirm Holdings, Inc. since July 2021. Previously, she served as Vice President, Legal and Bank Strategy and Deputy General Counsel from 2019 to July 2021. | ||
Michael Linford Executive | Chief Operating Officer (COO) | Michael Linford is Affirm's Chief Operating Officer since September 2024 and has been serving as the Chief Financial Officer since August 2018. He has a robust background in financial leadership with previous roles at HPE Software, Micro Focus International plc, KKR & Co., and McKinsey & Company. | ||
Rob OHare Executive | Chief Financial Officer (CFO) | Rob O'Hare is the Chief Financial Officer (CFO) of Affirm Holdings, Inc. since November 8, 2024. He previously served as Senior Vice President, Finance from August 2020 and has held executive financial roles at other companies such as Tile and Spark Networks. | ||
Brian D. Hughes Board | Class III Director | Independent Consultant and Strategic Advisor to Boston Consulting Group | Brian D. Hughes is a Class III Director at Affirm Holdings, Inc., appointed on July 1, 2024 and serving on the Audit and Compensation Committees of the Board. He brings extensive experience from his previous senior roles at Discover Financial Services, HSBC, and Booz Allen Hamilton. | |
Christa S. Quarles Board | Lead Independent Director | CEO of Alludo | Christa S. Quarles has served on AFRM’s Board of Directors since 2018 and currently holds the role of Lead Independent Director since July 1, 2024. She brings extensive financial and leadership expertise from her active role as CEO of Alludo, as well as prior executive experiences at OpenTable and other companies. | |
Jacqueline D. Reses Board | Class I director | CEO of Lead Bank ; Board Member at Endeavor Group Holdings, Inc. ; Board Member at Nu Holdings Ltd. ; Board Member at TaskUS, Inc. | Jacqueline D. Reses has served on the Affirm board as a Class I director since January 2021 and brings extensive leadership experience across financial services and technology; she is also the CEO of Lead Bank since 2021. | |
Jeremy Liew Board | Member of Affirm's Board of Directors | Partner at Lightspeed Venture Partners | Jeremy Liew has served on Affirm’s Board of Directors since 2013, where he chairs the Compensation Committee and is a member of the Nominating and Governance Committee. He is also a Partner at Lightspeed Venture Partners since 2006 with extensive experience in technology investments and executive leadership. | |
Keith Rabois Board | Member of the Board of Directors | CEO of Miami Labs, Inc since 2021; Managing Partner at Khosla Ventures since January 2024 | Keith Rabois has served as a Member of the Board of Directors at AFRM since 2013. He is also the CEO of Miami Labs, Inc. since 2021 and the Managing Partner at Khosla Ventures since January 2024. | |
Manolo Sánchez Board | Class II Director, Board of Directors | Board Member at Fannie Mae; Board Member at Stewart Information Services Corporation; Adjunct Professor at Rice University's Jones Graduate School of Business | Manolo Sánchez serves as a Class II Director on the Affirm Holdings, Inc. Board effective November 1, 2023, and contributes his extensive experience in banking and finance. Previously, he was the president and CEO of Compass Bank, Inc. (2008–2017) and is an adjunct professor at the Jones Graduate School of Business at Rice University. | |
Noel Watson Board | Class I Director and Chair of the Audit Committee | Chief Financial Officer of LegalZoom.com, Inc. | Noel Watson has been serving as a Class I Director and Chair of the Audit Committee at AFRM since September 1, 2022. He brings a wealth of financial expertise from his current role as Chief Financial Officer of LegalZoom.com, Inc. since November 2020 and previous roles as CFO of TrueCar, Inc. and other leadership positions. |
- Given the noticeable increase in 0% APR loans, can you elaborate on how this strategy impacts your RLTC margin, and at what point might this margin dilution become unsustainable?
- Active customer growth has accelerated, but to what extent is this driven by promotional offers like 0% APR, and how sustainable is this growth without compromising your margins or credit standards?
- With your expansion into international markets such as the UK, how are you mitigating the significant upfront costs, and what specific metrics are you using to evaluate the success and profitability of these endeavors?
- Operating expenses have remained relatively flat, yet with ongoing investments in AI and technology, how do you plan to maintain operating leverage, and should we anticipate an increase in OpEx in the coming quarters?
- Considering the importance of credit quality to your capital partners, how are you balancing the need for growth with the necessity of maintaining low delinquency rates, especially as you consider taking on more risk?
Research analysts who have asked questions during Affirm Holdings earnings calls.
Dan Dolev
Mizuho Financial Group
6 questions for AFRM
James Faucette
Morgan Stanley
6 questions for AFRM
Robert Wildhack
Autonomous Research
6 questions for AFRM
Andrew Bauch
Wells Fargo & Company
5 questions for AFRM
Kyle Peterson
Needham & Company
5 questions for AFRM
Reginald Smith
JPMorgan Chase & Co.
5 questions for AFRM
Matthew O'Neill
Financial Technology Partners
4 questions for AFRM
Ramsey El-Assal
Barclays
4 questions for AFRM
Vincent Caintic
Stephens Inc.
4 questions for AFRM
William Nance
The Goldman Sachs Group, Inc.
4 questions for AFRM
Adam Frisch
Evercore ISI
3 questions for AFRM
Andrew Jeffrey
William Blair & Company
3 questions for AFRM
John Hecht
Jefferies
3 questions for AFRM
Moshe Orenbuch
TD Cowen
3 questions for AFRM
David Scharf
Citizens Capital Markets and Advisory
2 questions for AFRM
Giuliano Anderes-Bologna
Compass Point
2 questions for AFRM
Jason Kupferberg
Bank of America
2 questions for AFRM
Jeffrey Cantwell
Seaport Research Partners
2 questions for AFRM
Timothy Chiodo
UBS Group AG
2 questions for AFRM
Adib Choudhury
William Blair
1 question for AFRM
Dan Perlin
RBC Capital Markets
1 question for AFRM
Giuliano Bologna
Compass Point Research & Trading LLC
1 question for AFRM
Harry Bartlett
Rothschild & Co Redburn
1 question for AFRM
James Friedman
Susquehanna Financial Group, LLLP
1 question for AFRM
Jamie Friedman
Susquehanna International Group
1 question for AFRM
Jill Glaser Shea
UBS
1 question for AFRM
Matt Coad
Truist Securities
1 question for AFRM
Nate Svensson
Deutsche Bank
1 question for AFRM
Reggie Smith
JPMorgan Chase & Co.
1 question for AFRM
Will Nance
Goldman Sachs
1 question for AFRM
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Legacy payment methods such as credit and debit cards provided by card issuing banks are primary competition. | |
Technology solutions provided by payment companies are primary competition. | |
Technology solutions provided by payment companies are primary competition. | |
Mobile wallets are primary competition. | |
Other pay-over-time solutions offered by companies are primary competition. | |
Klarna | Other pay-over-time solutions offered by companies are primary competition. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Butter Holdings Ltd. | 2023 | Affirm completed its acquisition on February 1, 2023, for a total consideration of $16.3 million, including $14.9 million in cash and a $1.5 million note settlement. The deal was accounted for as a business combination under ASC 805, acquiring key assets such as a £9.2 million lending license and generating $9.4 million in goodwill due to anticipated future synergies. |
Fast | 2022 | Affirm acquired Fast on April 19, 2022, for a purchase price of $25.4 million, which included $10.0 million in cash and forgiveness of a $15.0 million senior secured note. The acquisition was treated as an asset acquisition under ASC 805 with significant intangible assets acquired, including an assembled workforce and an option to purchase developed technology, both valued using the replacement cost method. |
Recent press releases and 8-K filings for AFRM.
- Affirm has partnered with FreshBooks, a financial operating software for service-based small businesses, to integrate its pay-over-time options directly into FreshBooks Payments invoices.
- Starting today, FreshBooks Payments customers in the U.S. and Canada can offer Affirm's flexible payment plans to their clients, allowing them to split eligible purchases into biweekly or monthly payments with rates as low as 0% APR.
- Affirm does not charge any late or hidden fees.
- This partnership aims to help small businesses drive overall sales, increase average order values, and reach new customers by providing clients with a preferred payment method.
- Affirm has expanded its partnership with Google to support the Agent Payments Protocol (AP2), an open, payment-agnostic standard for secure, agent-led financial transactions across digital platforms.
- This collaboration integrates Affirm's buy now, pay later (BNPL) service with AP2, enhancing its presence in agentic commerce and working seamlessly with platforms such as Google Pay and Chrome’s autofill feature.
- Affirm's BNPL model offers personalized pay-over-time plans starting at 0% annual percentage rate and is characterized by no late or hidden fees, promoting responsible borrowing.
- Financially, Affirm has shown strong revenue growth of 25.4% over three years and a high gross margin of 67.51%, though it maintains a modest net margin of 1.62% and a debt-to-equity ratio of 2.56.
- Affirm announced its support for Google's Agent Payments Protocol (AP2), an open, payment-agnostic protocol developed to securely support agent-led payments across platforms.
- This collaboration extends Affirm's existing partnership with Google, which includes integrations with Google Pay and Chrome's autofill feature.
- Affirm's contribution to AP2 aims to embed its Buy Now, Pay Later (BNPL) capabilities directly into the architecture of agentic commerce, offering consumers flexible, transparent pay-over-time options.
- Affirm provided FY2026 guidance, setting a GMV floor of $46 billion (implying 25.5% year-on-year growth) and targeting 26% adjusted operating margins. For Q1 FY2026, the high end of guidance calls for 37% GMV growth and 43% revenue less transaction cost growth.
- The company's direct-to-consumer (DTC) channels are significant growth drivers, with Affirm Card GMV growing over 130% in Q4 and monthly 0% loans growing over 90% in Q4, expected to be the fastest-growing loan product in FY26.
- Key competitive advantages include transaction-level underwriting for every purchase, a broad spectrum of loan products (from $35 to $35,000, and terms up to 60 months), and a policy of no late fees.
- International expansion is focused on the UK and Canada, with a recent launch in the UK with Shopify to capitalize on the demand for longer-term monthly installment interest-bearing lending.
- Affirm provided Q1 2026 guidance for 37% GMV growth and 43% revenue less transaction cost (RLTC) growth at the high end, with adjusted operating income margins of 23% to 25% and GAAP operating income margins of 1% to 3%. For FY 2026, the company projects a GMV floor of $46 billion (approximately 25.5% year-on-year growth) and aims for just over 26% adjusted operating margins (a 2-point expansion) and 6% GAAP operating income margins.
- Key growth drivers include direct-to-consumer (DTC) channels, with Affirm Card GMV growing over 130% and monthly 0% loans growing over 90% in Q4. The company is also focused on international expansion in the UK and Canada with Shopify, and sees the expansion of Apple Pay Later to offline checkout as a significant opportunity.
- Affirm emphasizes its competitive advantages, including transaction-level underwriting for every purchase, a broad product offering (from $35 to $35,000 and 6 weeks to 60 months), and a policy of no late fees, which contribute to strong credit outcomes and funding relationships.
- While not using AI for underwriting to maintain explainability, Affirm leverages it for engineer productivity, merchant onboarding, and optimizing consumer loan offers. The company also notes that a 100 basis point movement in interest rates typically results in a 40 basis point change in revenue less transaction costs.
- Affirm provided FY26 guidance, setting a GMV floor of $46 billion, which implies 25.5% year-over-year growth, and projecting a GAAP operating income margin of 6% for the year. The company aims to drive two points of adjusted operating margin expansion in FY26.
- Key growth drivers include direct-to-consumer channels like Affirm Card, which grew over 130% in Q4, and monthly 0% loans, which grew over 90% in Q4. Affirm is also expanding into the services vertical and internationally, with a focus on the UK and Canada in partnership with Shopify, and integrating with Apple Pay Later for offline checkout.
- The company's competitive advantage stems from its transaction-level underwriting for every purchase, enabling quick adjustments to credit decisions. This approach contributes to 95% of Q4 transactions coming from repeat borrowers, who inherently present lower risk.
- Affirm maintains that its customer acquisition costs are effectively negative, as most consumers are acquired through merchant programs. This strategy has led to a growing active consumer base of 23 million, up 24% year-over-year, with increasing engagement.
- Affirm provided its Q1 FY2026 guidance, projecting 37% GMV growth and 43% revenue less transaction cost growth at the high end, alongside 23% to 25% adjusted operating margins and 1% to 3% GAAP operating margins.
- For full-year FY2026, the company set a GMV floor of $46 billion, implying 25.5% year-on-year growth, and targets 2 points of adjusted operating margin expansion to just over 26%, with a 6% GAAP operating income margin.
- Direct-to-consumer (DTC) channels, especially Affirm Card, are driving growth, with Affirm Card GMV increasing over 130% in Q4. Monthly 0% loans also grew over 90% in Q4 and are expected to be the fastest-growing loan product in FY2026.
- Affirm emphasizes its transaction-level underwriting as a key competitive advantage, enabling agile credit decisioning and contributing to lower delinquency rates compared to traditional credit products.
- The company is expanding internationally, focusing on the UK and Canada with a beta launch alongside Shopify, and plans for future expansion into continental Europe.
- Affirm and Klarna have expanded their pay-later options to include in-store purchases using Apple Pay on iPhone in the US, requiring iOS 26 or later.
- Affirm users can split eligible purchases into biweekly or monthly payments with rates from 0% to 36% APR, and the company emphasizes no late or hidden fees.
- In-store Apple Pay transactions for Affirm are processed using either the customer's existing Affirm Card or a one-time use virtual card, building on Affirm's previous availability for online and in-app Apple Pay transactions.
- Affirm Holdings Inc. is rated as a "buy" by Mizuho Americas Senior Financial Technology Analyst Dan Dolev, citing the company's unlimited Total Addressable Market (TAM) and "epic" execution.
- Affirm differentiates itself from competitors like Klarna by offering a wider range of buy now, pay later (BNPL) options, including interest-bearing and non-interest-bearing loans, which are more complex to underwrite than Klarna's basic pay-in-four model.
- The overall BNPL market, currently valued at $70-80 billion in US e-commerce, is growing fast and could be countercyclical in a weaker economic environment, as merchants may increasingly use it to drive conversions.
- Growth in the BNPL market primarily impacts banks by hurting their credit card operations, but it does not negatively affect Visa or MasterCard as BNPL transactions are settled via debit.
- Affirm has expanded its partnership with Stripe, launching the first-ever direct Buy Now, Pay Later (BNPL) integration on Stripe Terminal.
- This integration enables U.S. and Canadian merchants to offer Affirm's pay-over-time options to in-store shoppers directly through Stripe Terminal, which has over one million devices in use.
- Shoppers can use Affirm for cart sizes ranging from $35 to $30,000, with payment options spanning from 30 days to 60 months.
- Affirm states it never charges late or hidden fees, and this offering is expected to help merchants drive overall sales and increase average order value.