Affirm reported strong third-quarter earnings as the company continues to benefit from strong demand for buy now, pay later loans. Revenue increased 35% from last year to $1.26 billion, while net income jumped 103% to $164 million thanks to significant margin expansion.
If transaction volume on the Affirm card continues to grow at such a high rate, it would reduce the firm’s reliance on any individual merchant partner and likely generate more repeat customer transactions.
As the buy now, pay later space reaches maturity, competition among providers could increase, leading to lower merchant payment rates for Affirm’s 0% financing options.
Metric | AFRM |
|---|---|
Price/Earnings (Normalized) | 42.37 |
Price/Book Value | 4.00 |
Price/Sales | 5.17 |
Price/Cash Flow | 18.95 |
Metric | AFRM |
|---|---|
Quick Ratio | 60.91 |
Current Ratio | 63.77 |
Interest Coverage | 2.29 |
Metric | AFRM |
|---|---|
Return on Assets (Normalized) | 16.94% |
Return on Equity (Normalized) | 54.11% |
Return on Invested Capital (Normalized) | 19.85% |
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