Will Affirm’s Pacsun Holiday BNPL Push Reveal the Durability of Its Retail Strategy (AFRM)?

• Affirm recently announced a partnership with fashion retailer Pacsun, allowing shoppers to use its buy-now-pay-later plans and access a 10% “AFFIRM” promo on Holiday Gift Guide purchases through December 18, 2025.
• This collaboration adds another recognizable retail brand to Affirm’s nearly 420,000-merchant network, underscoring how installment payments are becoming embedded in mainstream seasonal shopping.
• We’ll now look at how this Pacsun tie-up, especially its holiday-focused BNPL offer, could influence Affirm’s broader investment narrative.

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Affirm Holdings Investment Narrative Recap

To own Affirm, you need to believe its BNPL platform can keep adding merchants and users faster than credit risk and competition catch up. The Pacsun partnership fits that thesis but is unlikely to meaningfully affect near term results or change the key swing factors, which remain the holiday impact from losing a major enterprise partner and the profitability of its growing mix of 0% APR products.

Among recent announcements, the expanded Worldpay for Platforms integration is most connected to the Pacsun news, because both deepen Affirm’s presence at checkout in third party retail ecosystems. Together, these relationships speak directly to the core catalyst for the stock: broadening acceptance across online and offline merchants as BNPL becomes a standard payment option rather than a niche add on.

But while these partnerships can help offset some merchant concentration, investors also need to be aware that...

Read the full narrative on Affirm Holdings (it's free!)

Affirm Holdings’ narrative projects $6.0 billion revenue and $756.6 million earnings by 2028. This requires 22.9% yearly revenue growth and about a $704 million earnings increase from $52.2 million today.

Uncover how Affirm Holdings' forecasts yield a $92.83 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Nineteen members of the Simply Wall St Community value Affirm between US$25.09 and US$140 per share, reflecting very different views on its future. Against that backdrop, the reliance on a widening merchant base as a key growth driver, highlighted by the Pacsun and Worldpay deals, becomes a central question for how Affirm’s performance evolves from here.

Explore 19 other fair value estimates on Affirm Holdings - why the stock might be worth less than half the current price!

Build Your Own Affirm Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Affirm Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Affirm Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Affirm Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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