“`html
Affirm Holdings, Inc. (AFRM) is shifting its strategy to focus on smaller, everyday purchases, recording a 52% year-over-year growth in total transactions in Q1 of fiscal 2026 and achieving $933 million in revenues, a 34% increase year-over-year. The company is now targeting low-ticket items, previously sidelined in its financing model, allowing consumers to buy them in installments to foster loyalty and increase engagement.
With innovations such as tap-to-pay and AI-powered underwriting, Affirm aims to enhance user experience, particularly in low-ticket retail. As of Q1 fiscal 2026, 96% of its customers were repeat users, and gross merchandise volume (GMV) grew by 42%. The company’s forward price-to-sales ratio is 5.12, exceeding the industry average of 4.79.
Affirm’s stock has gained 13.4% year-to-date, while competitors like Klarna Group plc (KLAR) and Visa Inc. (V) continue to expand their payment solutions in the fintech space, with Klarna boasting 114 million active users and Visa processing 10% more transactions year-over-year in fiscal 2025.
“`
