Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Equity Bottom-Up

<ul>
<li>Affirm has turned GAAP EBIT positive for the first time in Q425 reflecting disciplined cost control and improving unit economics.</li>
<li>Revenues are on track to reach nearly $4B in FY26, driven by expanding merchant adoption and the rising contribution from the Affirm Card.</li>
<li>The stock is  pricing in sustained 25–30% growth and margin expansion as evident in its elevated valuation multiple of 40.5x 2026 P/E.</li>
</ul>


Affirm has turned GAAP EBIT positive for the first time in Q425 reflecting disciplined cost control and improving unit economics.
Revenues are on track to reach nearly $4B in FY26, driven by expanding merchant adoption and the rising contribution from the Affirm Card.
The stock is  pricing in sustained 25–30% growth and margin expansion as evident in its elevated valuation multiple of 40.5x 2026 P/E.


Affirm Holdings (Nasdaq: AFRM) - Accelerating Growth and Expanding Profitability

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas.</li><li>The company reported a record in key metrics, despite it not being the traditional peak quarter, indicating strong business momentum.</li><li>Affirm's growth is attributed to its continued focus on underwriting precision and consumer engagement, alongside significant contributions from its 0% APR products that are effectively attracting new customers and encouraging repeat usage.</li></ul>

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas.The company reported a record in key metrics, despite it not being the traditional peak quarter, indicating strong business momentum.Affirm's growth is attributed to its continued focus on underwriting precision and consumer engagement, alongside significant contributions from its 0% APR products that are effectively attracting new customers and encouraging repeat usage.

<ul><li>Affirm Holdings, a leader in the "buy now, pay later" (BNPL) sector, reported its financial performance for the third quarter of fiscal 2025.</li><li>Here are the key highlights and considerations for an investment thesis based on the company's recent earnings call.</li><li>Affirm demonstrated growth with an optimistic outlook for the current quarter and fiscal year.</li></ul>

Affirm Holdings, a leader in the "buy now, pay later" (BNPL) sector, reported its financial performance for the third quarter of fiscal 2025.Here are the key highlights and considerations for an investment thesis based on the company's recent earnings call.Affirm demonstrated growth with an optimistic outlook for the current quarter and fiscal year.

Affirm Holdings: Will Its Merchant Offers & Dynamic Optimization Be A Game Changer?

<ul>
<li>AFRM posted solid Q3 2025 results with revenue growing of 35.9% YOY and in line with its stated guidance range. The adjusted operating income margin expanded by ~850 bps YOY.</li>
<li>Q425 guidance was muted with implied revenue growth of 26% at the mid-point. This is much lower compared to 40.7%, 46.6% and 35.9% growth during Q1, Q2 and Q3 2025.</li>
<li>AFRM’s valuation remains rich at 5.1x 2025E P/B and 25.2x 2025E P/E multiple, at a premium to the peer group average. This caps any meaningful upside from the current levels.</li>
</ul>


AFRM posted solid Q3 2025 results with revenue growing of 35.9% YOY and in line with its stated guidance range. The adjusted operating income margin expanded by ~850 bps YOY.
Q425 guidance was muted with implied revenue growth of 26% at the mid-point. This is much lower compared to 40.7%, 46.6% and 35.9% growth during Q1, Q2 and Q3 2025.
AFRM’s valuation remains rich at 5.1x 2025E P/B and 25.2x 2025E P/E multiple, at a premium to the peer group average. This caps any meaningful upside from the current levels.


Affirm Holdings Inc. (AFRM) Financial Factsheet - Growth, Valuation & Peers

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>Our key picks for 1H 2026 are driven by fundamental valuations, margin and growth prospects; top of our buy list is Nexi, with PagSeguro in second place</li>
<li>Our key sell is Affirm; the increasingly competitive BNPL market is a potential “banana skin” for its premium growth forecasts, coupled with potentially worsening consumer credit delinquency</li>
<li>Klarna is one to watch in 1H 2026, but it is not there yet; the share price’s underwhelming performance post-IPO reflects the competitive BNPL market, especially in the US</li>
</ul>


Our key picks for 1H 2026 are driven by fundamental valuations, margin and growth prospects; top of our buy list is Nexi, with PagSeguro in second place
Our key sell is Affirm; the increasingly competitive BNPL market is a potential “banana skin” for its premium growth forecasts, coupled with potentially worsening consumer credit delinquency
Klarna is one to watch in 1H 2026, but it is not there yet; the share price’s underwhelming performance post-IPO reflects the competitive BNPL market, especially in the US


Payment Companies – Our 2026 High Conviction Ideas

United States

Affirm Holdings, Inc. is a financial technology company. The Company builds platform for digital and mobile-first commerce. Affirm Holdings offers financial services tool that allows consumers to purchase goods and services. Affirm Holdings serves customers worldwide.

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Affirm Holdings (AFRM US)

Affirm Holdings (Nasdaq: AFRM) - Accelerating Growth and Expanding Profitability

AFRM screens as a high-growth, improving-profitability BNPL leader trading at premium to peers. While valuation remains elevated, investors are...

GSBR Research

Affirm Holdings: Strategic PSP

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas. The...

Baptista Research

Affirm Holdings: Will Its Merchant Offers & Dynamic Optimization Be A Game Changer?

Affirm Holdings, a leader in the "buy now, pay later" (BNPL) sector, reported its financial performance for the third quarter of fiscal 2025. Here...

Baptista Research

Affirm Holdings Inc. (AFRM) Financial Factsheet - Growth, Valuation & Peers

AFRM's Q3 2025 results show strong revenue growth and expanded operating income margin, but Q4 guidance is lower and valuation remains high,...

GSBR Research

Payment Companies – Our 2026 High Conviction Ideas

Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Affirm Holdings (Nasdaq: AFRM) - Accelerating Growth and Expanding Profitability

AFRM screens as a high-growth, improving-profitability BNPL leader trading at premium to peers. While valuation remains elevated, investors are...

GSBR Research

Affirm Holdings: Strategic PSP

Affirm Holdings, Inc. delivered a robust performance in its fourth quarter of fiscal 2025, marking significant progress in several key areas. The...

Baptista Research

Affirm Holdings: Will Its Merchant Offers & Dynamic Optimization Be A Game Changer?

Affirm Holdings, a leader in the "buy now, pay later" (BNPL) sector, reported its financial performance for the third quarter of fiscal 2025. Here...

Baptista Research

Affirm Holdings Inc. (AFRM) Financial Factsheet - Growth, Valuation & Peers

​AFRM's Q3 2025 results show strong revenue growth and expanded operating income margin, but Q4 guidance is lower and valuation remains high,...

GSBR Research

Payment Companies – Our 2026 High Conviction Ideas

​Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...

Victor Galliano

AFRM's Q3 2025 results show strong revenue growth and expanded operating income margin, but Q4 guidance is lower and valuation remains high,...

Top payment picks for 1H 2026: Buy Nexi, PagSeguro for deep value; Sell Affirm due to BNPL competition and credit risks; Keep an eye on Klarna's...