Affirm Holdings, Inc. AFRM not too long ago partnered with Pacsun, a youth-focused vogue retailer, to energy pay-over-time choices at checkout. Buyers can break up purchases into installments instantly utilizing Affirm when shopping for Pacsun’s collections. The deal launches throughout the vacation season, aiming to seize larger demand from trend-driven consumers.
Per the deal, Pacsun consumers can select interest-free biweekly funds or longer month-to-month plans as much as 24 months. AFRM’s technique of no hidden charges or late charges continues to drive its quantity and assist stickiness. To spice up adoption, Pacsun is providing a limited-time 10% low cost utilizing a particular AFFIRM code on its Vacation Reward Information, focusing on heavy seasonal spending.
Vogue retail drives frequent, impulse-style purchases, making it a robust match for purchase now, pay later (BNPL). Including Pacsun expands Affirm’s service provider community, which is 420,000 companions sturdy, and locations its product in entrance of a younger viewers that naturally embraces installment funds. With extra transactions, its revenues from service provider charges will possible develop. The corporate expects December quarter revenues to be inside $1.03-$1.06 billion.
The timing additionally issues: vacation buying creates a surge in quantity that BNPL gamers compete fiercely to seize. Profitable a model partnership on this window builds momentum and shareholder confidence. It additionally diversifies Affirm past huge companions, bettering resilience and supporting long-term progress in a crowded BNPL market. AFRM expects its GMV for the December quarter to be within the vary of $13-$13.3 billion.
How Are Different BNPL Suppliers Faring?
AFRM’s friends like PayPal Holdings Inc. PYPL and Block, Inc. XYZ are additionally working towards growing their BNPL footprints and capturing extra market share.
Within the third quarter of 2025, PayPal’s whole fee quantity grew 8% to $458.1 billion. Its energetic accounts elevated 1% throughout this time to 438 million. PYPL’s transaction revenues gained 6% 12 months over 12 months within the quarter.
In the meantime, Block’s BNPL platform’s GMV reached $9.7 billion throughout the third quarter, marking a 17% bounce from a 12 months in the past. It witnessed the BNPL gross revenue develop 23% to $299 million. Block’s post-purchase BNPL choices are anticipated to play an important function in growing Money App Card volumes.
Affirm’s Worth Efficiency, Valuation & Estimates
Shares of Affirm have gained 12.8% 12 months so far, outperforming the broader trade however underperforming the S&P 500 Index.
Affirm’s YTD Worth Efficiency
Picture Supply: Zacks Funding Analysis
From a valuation standpoint, Affirm trades at a ahead price-to-sales ratio of 5.08X, up from the trade common of 4.83X. AFRM carries a Worth Rating of D.
Picture Supply: Zacks Funding Analysis
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies a 566.7% surge 12 months over 12 months, adopted by a 56.4% bounce subsequent 12 months.
Picture Supply: Zacks Funding Analysis
The inventory at the moment carries a Zacks Rank #3 (Maintain). You may see the whole record of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
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PayPal Holdings, Inc. (PYPL) : Free Inventory Evaluation Report
Affirm Holdings, Inc. (AFRM) : Free Inventory Evaluation Report
Block, Inc. (XYZ) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
