Affirm Holdings, Inc. AFRM has renewed and expanded its funding partnership with Canada Pension Plan Investment Board (CPP Investments). Under the new 24-month forward-flow agreement, CPP Investments will commit $1.7 billion to purchase Affirm installment loans, with the option to increase that amount to $2.2 billion. The agreement is expected to support approximately $8 billion in consumer loan volume over the next two years.
The relationship between the two companies dates back to 2019, during which CPP Investments purchased nearly $14 billion of Affirm assets via forward-flow agreements and asset-backed securitizations. The expanded commitment supports Affirm’s continued expansion in the buy now, pay later market.
Over the trailing 12 months ended March 31, 2026, the company generated $46 billion in GMV and served almost 27 million active consumers. GMV increased 35% year over year to $11.6 billion in the third quarter of fiscal 2026, highlighting continued strength in platform activity.
The partnership provides additional funding capacity to support future loan originations while preserving balance-sheet flexibility. It also signals continued confidence from a major institutional investor in Affirm’s underwriting discipline and loan performance.
The agreement highlights the strength of Affirm’s funding model, which employs a capital-light structure that supports loan growth without requiring the company to retain all originated assets on its balance sheet. As of March 31, 2026, Affirm had total funding capacity of $28.2 billion, supported by a diversified network of long-term capital partners. Overall, the transaction enhances the company’s ability to meet growing consumer demand while mitigating funding-related risks as the business scales.
How Are Competitors Faring?
Some of AFRM’s competitors in the payments space are Klarna Group plc KLAR and Sezzle Inc. SEZL.
In March 2026, Klarna expanded its forward-flow and whole-loan sale program with funds managed by Elliott Investment Management, doubling the facility size to $2 billion and extending its term to three years. The arrangement allows Klarna to sell newly originated U.S. receivables while retaining underwriting and loan-servicing responsibilities.
In May 2026, Sezzle expanded its funding capacity by securing a new $300 million receivables warehouse facility from Mesirow Alternative Credit, with an additional $75 million accordion feature. The deal increased Sezzle's advance rate and enhanced funding flexibility to support future loan growth.
AFRM’s Price Performance, Valuation & Estimates
Shares of AFRM have risen 16.6% over the past year against the industry’s decline of 12.6%.
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From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.41X, up from the industry average of 3.96X.
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The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.25 per share, implying a 733.3% jump from the year-ago period’s level.
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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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Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
Sezzle Inc. (SEZL): Free Stock Analysis Report
Klarna Group plc (KLAR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).