AFRM Investor Forum: Strong Growth From Many Channels; Stronger Profitability

Research evidence excerpt

AFRM Investor Forum: Strong Growth From Many Channels; Stronger Profitability

Payments

Affirm Holdings

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

May 12, 2026

Price: $65.43 (05/12/2026) AFRM Investor Forum: Strong Growth From

Price Target: $90.00 Many Channels; Stronger Profitability

BUY (1)

ESG SCORE: 52/100

Moshe Orenbuch THE TD COWEN INSIGHT

646 562 1495

AFRM hosted its Investor Forum. AFRM is firing on all cylinders and expects to continue to

moshe.orenbuch@tdsecurities.com

grow fast through multiple channels, most notably PSPs, digital wallets and Affirm card, as

Hoang Nguyen, CFA well as international expansion. The company also gave a glimpse of how it plans to operate

646 562 1337 the Affirm bank. Finally, AFRM introduced a new improved medium-term financial framework,

hoang.nguyen2@tdsecurities.com

though this was generally expected.

Key Data

Symbol NASDAQ: AFRM New improved medium-term financial framework. AFRM increased its RLTC margin target

Market Cap $19.1B to 3.75–4%, from the previous level of 3-4%, and we note the company has been running

at or above the high end for some time now, despite continued mix shift towards 0% GMV,

which has lower profitability than interest-bearing GMV. The company also targets annual

GMV growth of >25% (>10 ppt driven by merchant POS, >10 ppt driven by Affirm card and

wallets, and 1-5 ppt driven by international expansion), implying a medium-term target of

$100 Bn in annual GMV, which does not contemplate potential upside from initiatives such as

Affirm Edge (i.e. AFRM powering BNPL for banks) or agentic commerce. We believe that some

of these forces should be substantially higher than the framework, most notably the Affirm

card and wallet in-store opportunity, which could add 5 ppt or more to growth annually. This