Affirm Stock Climbs 3.76% on 0% APR Surge 780M Volume Ranks 114th

Affirm Holdings (AFRM) closed 3.76% higher on September 3, 2025, with a trading volume of $780 million, ranking 114th in market activity. The stock's performance followed strategic moves in its 0% APR installment loan offerings, which saw a 93% year-over-year increase in gross merchandise volume (GMV) in Q4 2025. The company expanded visibility of these interest-free options on its Affirm Card, tripling related GMV compared to the prior year, while in-store card spending surged 187% annually.

By eliminating interest charges, Affirm targets budget-conscious consumers, particularly younger shoppers, aiming to convert first-time users into repeat customers. The strategy generates fees from merchants, with higher margins on 0% APR products. However, the model risks margin compression as profitability depends on transaction volume growth and broader merchant adoption rather than interest income.

Despite rising GMV, Affirm trades at a forward price-to-sales ratio of 6.52, above the industry average of 5.68. Analysts project 19.6% revenue growth for fiscal 2026, with a 400% earnings increase forecast. The stock currently holds a Zacks Rank #3 (Hold), reflecting cautious optimism about its market position in the BNPL sector.