Affirm jumps as revenue forecast exceeds estimates

• Needham ("buy," PT: $100) says strong credit performance reflects resilient consumers and its transaction-based underwriting model
• BofA ("buy," PT: $93) says AFRM remains best in class among BNPL providers, underscoring the strength of its underwriting and risk management
• TD Cowen (PT: $124) says its card and international will be growth drivers, with the U.K. becoming more meaningful going forward
• Morgan Stanley ("equal weight," PT: $82) says KPIs are indicative of its ability to offer attractive financing options to an expanding range of consumers, from lower income to high income
• William Blair ("outperform,") says AFRM's strong GMV growth shows it is outperforming peers and sees its management, underwriting rigor, and products as best in class
• Citi ("buy," PT: $115) says Affirm is now too big to be slowed down or disintermediated and sees more than 30% volume growth over the next several years
• Jefferies (PT: $95) sees FY27 as another strong year, supported by expansion into new verticals and geographies, card growth, customer engagement
• RBC ("sector perform," PT: 96) says Affirm stands out among BNPL players with strong GMV growth, stable margins and delinquencies, and improving funding costs

Affirm Holdings forecast first-quarter revenue above Wall Street expectations on Thursday after market close.

Shares jump 11.6% premarket