Affirms Shares Slide 2.64% as Trading Volume Plummets 33.7% to Rank 185th in Market Activity

Affirm Holdings (AFRM) fell 2.64% on August 25, 2025, with a trading volume of $0.44 billion, down 33.71% from the previous day, ranking 185th in market activity. The stock faces scrutiny ahead of its Q4 earnings report scheduled for August 28, 2025, with analysts projecting $0.11 per share earnings and $839.88 million in revenue, reflecting year-over-year growth of 178.6% and 27.4%, respectively. Recent revisions to consensus estimates have risen by 22.6% over 30 days, signaling analysts’ heightened confidence in the company’s performance. Key metrics such as Gross Merchandise Volume (GMV) and active consumer counts are expected to show significant year-over-year increases, with GMV projected at $9.577 billion and active consumers estimated at 22 million.

Analysts anticipate robust growth across Affirm’s revenue streams, including a 29.8% rise in merchant network revenue to $234.97 million and a 37.5% increase in card network revenue to $59.11 million. Interest income is forecast to grow by 23.3% to $416.13 million, while servicing income is expected to rise 22.4% to $33.77 million. These projections highlight Affirm’s expanding market presence, driven by strategic partnerships and a growing merchant network. However, rising transaction costs, projected between $430–445 million, may temper profitability in the short term.

Affirm’s valuation appears stretched relative to peers, trading at 6.33X forward sales, above its three-year median of 3.63X and the industry average of 5.72X. While the stock has outperformed the S&P 500 and its BNPL sector this year, concerns about competitive pressures from PayPal, Klarna, and traditional payment providers persist. The company’s expansion into essential spending categories and international partnerships, such as Shopify and Xsolla, could offset these risks but may require significant investment. Investors remain cautious, with AFRM’s current price above Wall Street’s average target, suggesting limited near-term upside.

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