Affirm Holdings, Inc (NASDAQ:AFRM) recovered some of its Thursday losses after it expanded its long-term capital partnership with New York Life, a leading mutual life insurance company, to strengthen its consumer financing capacity.
• AFRM is building positive momentum. Get the scoop here.
Under the new agreement, New York Life will buy Affirm's installment loans on a forward-flow basis through December 2026, with up to $750 million in outstanding value.
The deal provides off-balance-sheet funding to support about $1.75 billion in annual consumer loan volume, enabling Affirm to offer more flexible, transparent payment options.
Also Read: Flexible Payments Come To All Wayfair Stores Thanks To Affirm
The partnership builds on New York Life's nearly $2 billion investment in Affirm collateral to date, including asset-backed securitizations.
Affirm stock gained over 13% year-to-date, lagging Nasdaq Composite’s (which includes Affirm) over 22% returns.
Affirm stock fell on Wednesday afternoon after the Federal Reserve's latest policy decision. Although the Fed cut its benchmark rate by 25 basis points to a range of 3.75%–4% and paused its balance sheet runoff, Chair Jerome Powell's comments signaled uncertainty about future cuts.
As a "Buy Now, Pay Later" lender, its business depends on borrowing costs — when rates stay high, funding becomes more expensive, profit margins tighten and consumer demand for installment loans can weaken.
However, Affirm remains engaged in strategic partnerships including extending its Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) Google partnership.
AFRM Price Action: Affirm Holdings shares were trading higher by 3.83% to $71.54 at publication on Friday.
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