Affirm Holdings, Inc. AFRM recently announced a partnership with outdoor gear retailer Backcountry, giving shoppers a new way to pay for purchases over time at checkout. Customers buying outdoor equipment, apparel, footwear and adventure gear can select Affirm and split purchases into multiple installments, depending on eligibility.
The offering includes transparent payment schedules, with no late fees or hidden charges. The move expands Affirm’s presence in the outdoor recreation category and adds another merchant to its growing network. AFRM’s active merchant count jumped 44% year over year in the third quarter of fiscal 2026 to 515,000. For Backcountry, the partnership provides customers with added payment flexibility, especially for higher-ticket purchases that can make outdoor activities more accessible.
Outdoor gear purchases can be expensive, particularly for premium equipment and seasonal adventures. By adding Affirm, Backcountry lowers the upfront cost barrier for customers while maintaining pricing transparency. The partnership can improve conversion rates, encourage larger purchases and attract shoppers who want flexibility without relying on traditional credit cards.
The partnership could support higher gross merchandise volume (GMV) for Affirm by generating additional transaction activity. The company’s GMV rose 35% year over year to $11.6 billion in the third quarter of fiscal 2026. It expects to generate GMV of $49.265-$49.565 billion for fiscal 2026.
More merchant integrations also strengthen Affirm’s network effect, helping the company acquire users and increase engagement across categories. For Backcountry, offering AFRM’s BNPL options may lift average order values.
AFRM’s YTD Price Performance
Over the year-to-date period, shares of Affirm have gained 5.2% against the 16.7% fall of the industry it belongs to.
Zacks Rank & Key Picks
Affirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader payments space are Klarna Group plc KLAR, Paymentus Holdings, Inc. PAY and Remitly Global, Inc. RELY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.
The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.
The consensus estimate for Remitly Global’s current-year earnings indicates a 331.3% year-over-year surge to $1.38 per share. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.97 billion, implying 20.4% year-over-year growth.
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Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).