We Launch Coverage of Affirm With a $53 Fair Value Estimate and Narrow Moat

Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been unquestionably effective as both transaction volume and the number of merchants using Affirm saw accelerating growth in fiscal 2025. While we do expect transaction volume growth to decelerate in the coming years, we see a long runway for growth for Affirm, with our projections calling for average spending volume growth of 23.2% over the next five years.