Affirm HoldingsSTU:78P 81 Gross Margin % is 65.93% as of Mar. 2026, which is 5% above its 10-year median of 62.90. GuruFocus rates STU:78P with a GF Score™ of 81/100. The stock has 7 warning signs investors should review. Among 387 Credit Services companies, Affirm Holdings ranks better than 68.48% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Affirm Holdings had a gross margin of 65.93% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Affirm Holdings Gross Margin % Related Terms
Affirm Holdings Gross Margin % Historical Data
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The historical data trend for Affirm Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:78P vs SYF, SOFI, ALLY: Gross Margin % Comparison
For the Credit Services subindustry, Affirm Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Affirm Holdings Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Affirm Holdings (STU:78P) has a Gross Margin % of 65.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Affirm Holdings and its competitors. This is near median its historical median of 62.90. Over the past decade, Affirm Holdings' Gross Margin % has ranged from 45.01 to 67.51. According to the industry distribution chart, Affirm Holdings ranks #122 out of 387 companies in the Credit Services industry, placing it in the top 31.5%.
Is Affirm Holdings' Gross Margin % too high?
Affirm Holdings' current Gross Margin % of 65.93% is near median its 10-year median of 62.90. Over the past 10 years, this metric has ranged from a low of 45.01 to a high of 67.51. The Credit Services industry median Gross Margin % is 51.88. Affirm Holdings' value of 65.93% is 27.1% above this industry median. Based on the distribution chart, Affirm Holdings ranks #122 out of 387 companies in the Credit Services industry, which is above the industry midpoint. Overall, Affirm Holdings has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Affirm Holdings' Gross Margin % compare to SYF and SOFI?
According to the Credit Services industry distribution chart, Affirm Holdings ranks #122 out of 387 companies for Gross Margin %. This puts Affirm Holdings in the upper half of its industry. The industry median Gross Margin % is 51.88. Affirm Holdings' value of 65.93% is 27.1% above this benchmark. Historically, Affirm Holdings' own Gross Margin % has ranged from 45.01 to 67.51 over the past decade. While the company's 10-year median is 62.90 vs. the industry median of 51.88, Affirm Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Affirm Holdings's current Gross Margin % of 65.93% is 27.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Affirm Holdings and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Affirm Holdings's current Gross Margin % is 65.93%, which is near median its own 10-year median of 62.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Affirm Holdings stock overvalued right now?
Affirm Holdings (STU:78P) has a current Gross Margin % of 65.93%. The current Gross Margin % is 65.93%, which is near median its 10-year median of 62.90 and 27.1% above the Credit Services industry median of 51.88. Affirm Holdings' overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Affirm Holdings (STU:78P), the current Gross Margin % is 65.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Founded in 2012, Affirm is a market leader in the buy now, pay later space with around $36 billion in transaction volume in fiscal 2025. Affirm offers both zero-interest financing, which is merchant subsidized, and interest-bearing loans, which function as personal loans that are approved on a per-transaction basis. Over 70% of Affirm's transaction volume comes from its interest-bearing loans, which also constitute the majority of its revenue. Affirm primarily operates in the United States, which accounted for more than 95% of its revenue in 2025, but it has also expanded to Canada and the United Kingdom.
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