Affirm Holdings, Inc. AFRM is expanding its pay-over-time reach through a new partnership with Crate & Barrel Holdings, bringing its financing option to Crate & Barrel, Crate & Barrel Kids and CB2 customers in the United States and Canada. Shoppers can use Affirm online and in stores, with biweekly or monthly payment options starting at 0% APR and no late fees or hidden charges.
The deal broadens AFRM’s merchant reach through an established North American retailer. Crate & Barrel Holdings operates more than 100 stores and websites across the United States and Canada, while more than 200 million customers visit its stores and websites each year. The partnership adds Crate & Barrel Holdings to Affirm’s network of more than 570,000 active merchant partners, further expanding its reach across the home-furnishing category.
Furniture and home-related purchases can include higher-value items, creating an opportunity for Affirm to facilitate more financed transactions. By offering Affirm across Crate & Barrel’s brands through online and physical channels, the company could drive higher transaction volumes as more customers use installment financing for purchases.
The near-term financial impact is difficult to quantify because the companies did not disclose any transaction volumes or revenue contribution. The partnership’s contribution will ultimately depend on customer engagement and the volume of purchases financed through Affirm. Stronger usage across Crate & Barrel’s brands could gradually increase the partnership’s contribution to Gross Merchandise Volume (GMV) and revenues.
How Are Competitors Faring?
Some of AFRM’s competitors are Block, Inc. XYZ and PayPal Holdings, Inc. PYPL. Both companies continue to expand their pay-over-time offerings, increasing competition for consumer usage and merchant checkout volume.
Block is deepening Afterpay’s integration with Cash App by adding pay-over-time capabilities for eligible peer-to-peer transfers and card purchases. This gives XYZ additional opportunities to broaden installment-payment usage beyond traditional merchant checkout.
PayPal offers Pay in 4 and Pay Monthly. Pay in 4 supports four interest-free biweekly payments, while Pay Monthly provides financing over three to 24 months for eligible purchases up to $10,000. This gives PYPL exposure to both smaller and higher-value transactions.
AFRM’s Price Performance, Valuation & Estimates
Shares of AFRM have risen 51.3% over the past six months compared with the industry’s 30.2% growth.
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From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.27 compared with the industry average of 4.01. AFRM currently carries a Value Score of D.
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The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.87 per share, followed by 53.3% growth next year.
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AFRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).