Affirm Holdings, Inc. has emerged as a prominent player in the Buy Now, Pay Later (BNPL) sector, boasting a market cap of $22.09 billion and a remarkable 46.55% revenue growth over the past year. In its fiscal first quarter of 2025, Affirm exceeded expectations with a revenue of $698 million, driven by strategic partnerships, including a significant collaboration with Apple to integrate BNPL capabilities into Apple Pay. This partnership is anticipated to enhance Affirm's user base and transaction volumes. However, the company faces challenges from increasing regulatory scrutiny that could impact its operations and profitability. Analysts project Affirm could achieve GAAP operating income profitability by late fiscal year 2025, contingent on effective risk management and cost control. The company's international expansion plans, particularly into the UK market, present further growth opportunities. As the BNPL landscape evolves, Affirm's ability to adapt will be crucial for its long-term success.
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