AFRM: Key thoughts from Investor Forum

研报英文原文证据摘录

AFRM: Key thoughts from Investor Forum

1,379.0E 1,252.0E 1,344.0E

the AFRM Card, expansion within US enterprise, as well as adjacent Adj Op Profit (M)

markets, coupled with international expansion will all play prominently 2025 129.6A 237.8A 173.7A 237.0A

into the medium-term growth algorithm. Specifically, on the AFRM card, 2026 263.9A 337.0A 281.0A 314.0E 2027 360.0E 454.0E 374.0E 429.0E

management believes it can expand both its user base and average

spending from the current 4.4M users/$2.4K avg annual spend to $20M/ All values in USD unless otherwise noted.

$7.5K, resulting in ~$150B in carded GMV. As for US enterprise clients, Priced as of prior trading day's market close, EST (unless otherwise noted).

AFRM currently has 75 of the top 250 ecommerce merchants, thus offering

175 still yet to convert, however AFRM, through its direct-to-consumer

channel, is already driving ~$3.3B in GMV through these merchants. On the

international front, AFRM expects ~1ppt-5ppts of contribution towards its

mid-term GMV guide, with partners being a key unlock as 72% of AFRM's

top 50 merchants operate internationally, with particular benefit from

Shopify.

AFRM’s funding model is increasingly a competitive advantage. One of

the less talked about and less obvious network effects of AFRM’s business

is its funding model, whereby scaling its capital partners overtime and

delivering consistent returns to such partners has the net effect of lower

funding costs, thus scale begets lower funding cost, and in our view is

increasingly a competitive advantage. While the company has a well-

diversified funding model, inclusive of ~200 unique funding partners,

spread across warehouse, ABS, and forward flow agreements, we believe