Affirm Holdings, Inc. AFRM recently partnered with Weave Communications, Inc. WEAV, an all-in-one experience platform for healthcare businesses. The deal enables Affirm to provide flexible payment options to Weave’s eligible customers for payment of healthcare costs, which will boost its transaction volumes.
This move bodes well for AFRM as it will be able to offer pay-over-time solutions to Weave’s customers, boosting its business organically. This is an attractive offering for patients as they can pay with Affirm seamlessly and divide their payments according to their needs. Affirm will ease the burden of upfront charges and provide a payment option for veterinary, dental and optometry practices. AFRM will make money from commissions charged to businesses, boosting its top line in the future.
With this partnership, Affirm’s payment options will be available to Weave’s healthcare practices, and their patients can easily afford the care they need. Affirm aims to remove the barrier to care, improve the payment experience and bring about a revolutionary change in the way healthcare companies handle payments. As Affirm will not charge late and hidden fees, it is expected to witness significant demand growth.
Affirm’s focus on expanding its network positions it for long-term growth. With growing dependence on buy now, pay later solutions and similar services due to high inflation, companies like AFRM are expected to continue benefiting from higher volumes. Increased active merchants, Gross Merchandise Volume and transactions are aiding its results.
Moves like this will help the company attain its goal of reaching profitability in fiscal 2024 on an adjusted operating income basis. Also, the adjusted operating margin is estimated to be more than 2% in fiscal 2024, indicating a significant improvement from the negative 4.6% witnessed in fiscal 2023.
Over the year-to-date period, shares of Affirm have surged 105.9% compared with 9% growth of the industry it belongs to.
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Zacks Rank & Key Picks
Affirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services sector are APi Group Corporation APG and FirstCash Holdings, Inc. FCFS. Each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for APi Group’s current-year bottom line suggests 13.5% year-over-year growth. New Brighton, MN-based APG beat earnings estimates in three of the past four quarters and met once, with an average surprise of 4.3%.
The Zacks Consensus Estimate for FirstCash’s current-year earnings indicates a 6.7% year-over-year increase. Fort Worth, TX-based FCFS beat earnings estimates in all the past four quarters, with an average surprise of 7.3%.
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