Affirm Holdings, Inc. AFRM recently announced the expansion of its partnership with Royal Caribbean Group, one of the world’s leading cruise brands, to the United Kingdom and Canada, allowing travelers to finance cruise bookings through installment payments without compounding interest, late fees or hidden charges. Customers will see the total cost upfront and pay only the amount agreed to at the time of purchase.
The partnership expansion comes ahead of the peak summer travel season, a period that typically sees stronger leisure travel demand. Flexible payment options are becoming increasingly important for travelers planning vacations and other discretionary purchases. The latest development also builds on the companies’ existing relationship in the United States, which has been renewed.
The deal strengthens AFRM’s presence in travel financing, an area that has emerged as a meaningful growth driver for the company. Cruise vacations typically involve higher-ticket purchases, making installment-based payment options attractive to consumers seeking greater budgeting flexibility. Affirm recently reported that travel purchases across its network increased 29% year over year in the quarter ended March 31, 2026.
The partnership expansion could further support AFRM’s gross merchandise volume (GMV) growth and deepen engagement across its merchant network. At the end of Q3 2026, its active merchant count rose 44% year over year to 515,000, while GMV climbed 35% to $11.6 billion.
Total transactions increased 45% year over year to 45.3 million, reflecting strong consumer adoption and merchant activity. The expanded Royal Caribbean partnership is likely to further strengthen Affirm’s position in the growing travel financing market while advancing its broader international expansion strategy.
AFRM’s Stock Price Performance
Shares of Affirm have gained 37% over the past year against the industry’s 13.9% decline.
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AFRM’s Zacks Rank & Key Picks
AFRM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the space are Klarna Group plc KLAR, Visa Inc. V and Pagaya Technologies Ltd. PGY, 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 has witnessed three upward movements against no movement in the opposite direction, indicating a 98.7% year-over-year increase. The consensus estimate for KLAR’s current-year revenues is pegged at $4.44 billion, indicating a 26.5% year-over-year increase.
The Zacks Consensus Estimate for Visa’s current-year earnings is pegged at $13.09 per share, indicating 14.1% year-over-year growth. Visa beat earnings estimates in each of the trailing four quarters, with the average surprise being 3.2%. The consensus estimate for current-year revenues is pegged at $45.35 billion, indicating a 13.4% year-over-year increase.
The Zacks Consensus Estimate for Pagaya’s current-year earnings is pegged at $2.88 per share, which has remained stable over the past 30 days. PGY beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 29%. The consensus estimate for current-year revenues is pegged at $1.48 billion, indicating a 13.7% year-over-year increase.
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Visa Inc. (V): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).