Affirm Stumbles on Walmart Loss but Expected to Maintain Growth Momentum

Affirm Holdings (NYSE: AFRM) took a hit after Walmart (NYSE: WMT) announced it would replace Affirm with Swedish rival Klarna as its exclusive Buy Now, Pay Later (BNPL) provider. The news sent Affirm’s shares down -12.7%, though the stock recovered following Wednesday’s U.S. Federal Reserve meeting.

While losing partnership with Walmart is a setback, it does not derail Affirm’s broader growth trajectory. The company’s partnerships with major U.S. players—including Amazon, Apple, and Target—along with its expanding international presence, most recently with Shopify in the UK, provide a strong foundation for continued growth. Affirm’s financial performance has also been resilient. In the latest quarter, the company reported revenue of $807 million, surpassing the $866 million consensus estimate, driven by a +35% year-over-year increase in gross merchandise value (GMV). Affirm also reported its first profitable quarter, with net income of $80 million.

Analysts expect the momentum to continue in fiscal 2025, with revenue projected to grow +37% year-on-year to $3.2 billion and GMV to rise +32% to $35.2 billion. The company is also expected to turn its first full-year profit, generating $5 million in net income—a sharp turnaround from the $518 million loss reported last year.