Affirm Holdings: Impact Of Walmart-Klarna Deal, 'Higher Mix Of Zeroes'

Affirm Holdings Inc.'s AFRM fiscal 2026 revenues are likely to be impacted by Walmart Inc.'s WMT volumes beginning to shift to Klarna-powered OnePay in the coming quarters, as well as a higher mix of non-interest-bearing transactions, according to Needham.

Analyst Kyle Peterson maintained a Hold rating on the stock.

The Affirm Holdings Thesis: Despite the revenue impact, Walmart's volumes shifting to Klarna/OnePay may not affect Affirm’s operating income, as "Walmart’s traffic is less profitable than the rest of AFRM’s merchant partners,” Peterson said in the note.

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Affirm Holdings should be able to retain traffic generated through its app, he added.

Non-interest-bearing transactions were around 30% of the company's GMV (gross merchandise value) in the fiscal third quarter, the analyst stated. This could "remain at an elevated rate versus recent levels as AFRM continues to prioritize consumer-friendly financing and payment options," he wrote.

While these are not long-term concerns, Affirm Holdings' stock may remain volatile as estimates are recalibrated in the coming weeks, Peterson said.

AFRM Price Action: Shares of Affirm Holdings had risen by 1.12% to $67.85 at the time of publication on Wednesday.

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