Affirm Holdings (AFRM) | News Based Sentiment Analysis

• On August 28th, Affirm reported a strong fourth quarter of fiscal 2025, exceeding analyst expectations with earnings per share (EPS) of $0.20 – $0.09 better than anticipated. Revenue also surpassed estimates, reaching $876.42 million, a 32.9% year-over-year increase, and net profit increased 96.0% over the last two quarters, signaling robust financial performance.
• Affirm continued to expand its reach through strategic partnerships, announcing a multi-year collaboration with Ace Hardware on October 1st. This brings buy-now-pay-later options to over 5,200 U.S. locations for purchases starting at $50, and the company’s stock surged 3.5% following the announcement.
• Expanding beyond retail, Affirm entered the healthcare sector on October 2nd with a partnership with BoomerangFX, enabling point-of-sale financing for patients using the BoomerangFX platform. This move diversified Affirm’s portfolio and its stock jumped 4.2% as a result.
• Analyst sentiment remains largely positive, with a “Moderate Buy” consensus as of October 5th, and an average twelve-month price target of $80.0435. Rothschild & Co. notably upgraded Affirm to a “Buy” rating on October 6th, raising their price target significantly from $74.00 to $101.00, a 36.49% increase.
• Despite the positive outlook, insider selling activity continued, with Director Christa S. Quarles selling 15,000 shares on August 29th for $1,395,000.00, and insiders collectively selling 1,921,456 shares in the last quarter, valued at $160,284,531.
• BTIG reaffirmed a “Neutral” rating on October 6th, noting stable delinquency trends in most of Affirm’s asset-backed securities (ABS) data for August, though they did highlight a 10 basis point increase in mid-stage delinquencies for specific vintages (2024-X, 2024-B1, and 2024-A).
• Institutional investors showed mixed activity in Q2 2025, with 336 increasing holdings and 207 decreasing them. BlackRock, Inc. added 2,423,821 shares (+18.3%), while Citadel Advisors LLC removed 2,526,577 shares (-94.4%).

The Investment Story: October was a positive month for Affirm, characterized by strong earnings, strategic partnerships expanding into both retail and healthcare, and generally positive analyst sentiment. While insider selling and some delinquency concerns exist, the overall narrative points towards continued growth and diversification.

What It Means for Investors: These developments suggest Affirm is successfully executing its growth strategy, expanding beyond its core retail focus and demonstrating strong financial performance. The positive analyst upgrades and partnerships support a constructive outlook, though investors should monitor insider activity and delinquency rates.

Looking Ahead: Investors should closely watch the Q1 2026 earnings report on November 5, 2025, with revenue and EPS forecasts of $881.829 million and $0.112 respectively, to see if Affirm can maintain its growth trajectory. Monitoring the success of the Ace Hardware and BoomerangFX partnerships will also be crucial.

The Bottom Line: Affirm appears well-positioned for continued growth, driven by strategic partnerships, strong financial results, and positive analyst sentiment. The company’s expansion into new sectors and robust liquidity make it an attractive investment, though investors should remain aware of insider selling activity and potential delinquency risks.