Overview
- Calling the goal a believable path, Mizuho raised its Affirm target to $100 as the company pursues $100 billion in annual gross merchandise volume that implies about 25% yearly growth.
- Affirm updated long-range metrics that include RLTC losses of 3.75% to 4.0% of GMV, revenue of 7.5% to 8.5% of GMV, GAAP operating margins of 20% to 25%, adjusted margins of 30% to 35%, and $3 to $4 in GAAP EPS at scale.
- Management is leaning on the Affirm Card, wallet integrations, agentic AI shopping tools, and a new bank product called Affirm Edge to drive usage beyond checkout installment loans.
- The company is expanding through partners like Shopify into Canada, the U.K., Australia, and parts of Europe, targeting a market management sized at more than $5 trillion outside the U.S., Canada, and China.
- Analysts stayed constructive as Bank of America lifted its target to $88 and Needham to $90, while Benzinga reported Affirm shares traded about 3.5% lower during the session.