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Investing.com - Truist Securities has reiterated its Buy rating and $72.00 price target on Affirm Holdings Inc. (NASDAQ:AFRM) following the company’s fourth-quarter fiscal 2025 results. The stock, currently trading near its 52-week high of $82.53, has delivered an impressive 92% return over the past year.
The buy-now-pay-later provider reported revenue less transaction costs (RLTC) of $425 million, significantly exceeding analyst expectations of $394 million. Adjusted EBIT came in at $237 million, also surpassing the Street’s forecast of $204 million. According to InvestingPro data, Affirm has maintained strong revenue growth of 38.8% over the last twelve months, with a healthy current ratio of 8.25 indicating robust liquidity.
Affirm’s fiscal year 2026 guidance exceeded consensus expectations, with RLTC guidance more than 3% above analyst projections. The strong results and outlook come despite competitive pressures in the BNPL space, including Synchrony’s competing installment loan offering with Amazon, one of Affirm’s main channel partners.
Key topics for investor focus include Affirm’s volume growth strategy, product mix between interest-bearing and 0% APR loans, credit performance, international expansion plans, and the impact of recent partnership wins such as Costco.
Truist Securities indicated that its model and valuation for Affirm are currently under review following these results.
In other recent news, Affirm Holdings Inc. reported strong quarterly earnings, surpassing expectations and leading to a series of analyst upgrades. The company achieved a revenue of $876 million, marking a 33% increase and exceeding Stephens’ estimate of $835 million. Affirm’s Gross Merchandise Volume (GMV) grew by 43%, outpacing both guidance and analyst expectations. Following these results, RBC Capital raised its price target for Affirm to $97, maintaining a Sector Perform rating. Stephens also increased its price target to $93, keeping an Equal Weight rating, while TD Cowen raised its target to $115 with a Buy rating. Citizens JMP adjusted its price target to $105, citing the accelerating GMV growth. Despite these positive developments, Needham maintained a Hold rating, although it raised its estimates for the company. These updates reflect Affirm’s robust performance and the confidence of several analyst firms in its continued growth.
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