Affirm HoldingsSTU:78P 81 Interest Coverage is 1.78 as of Mar. 2026, which is 125% above its 10-year median of 0.79. GuruFocus rates STU:78P with a GF Score™ of 81/100. The stock has 7 warning signs investors should review. Among 164 Credit Services companies, Affirm Holdings ranks worse than 89.02% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Affirm Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $202.19 Mil. Affirm Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-113.76 Mil.
Affirm Holdings's interest coverage for the quarter that ended in Mar. 2026 was 1.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Affirm Holdings's Interest Coverage or its related term are showing as below:
STU:78P'
s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 0.79 Max: 0.79
Current: 1.74
STU:78P's Interest Coverage is ranked worse than 89.02% of 164
companies
in the Credit Services industry
Industry Median: 49.41
vs STU:78P: 1.74
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Affirm Holdings Interest Coverage Related Terms
Affirm Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for Affirm Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:78P vs SYF, SOFI, ALLY: Interest Coverage Comparison
For the Credit Services subindustry, Affirm Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Affirm Holdings (STU:78P) has a Interest Coverage of 1.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Affirm Holdings and its competitors. This is 125% above median its historical median of 0.79. Over the past decade, Affirm Holdings' Interest Coverage has ranged from 0.79 to 0.79. According to the industry distribution chart, Affirm Holdings ranks #146 out of 164 companies in the Credit Services industry, placing it in the top 89%.
Is Affirm Holdings' Interest Coverage too high?
Affirm Holdings' current Interest Coverage of 1.78 is 125% above median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 0.79. The Credit Services industry median Interest Coverage is 49.41. Affirm Holdings' value of 1.78 is 96.4% below this industry median. Based on the distribution chart, Affirm Holdings ranks #146 out of 164 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Affirm Holdings has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Affirm Holdings' Interest Coverage compare to SYF and SOFI?
According to the Credit Services industry distribution chart, Affirm Holdings ranks #146 out of 164 companies for Interest Coverage. This places Affirm Holdings in the lower half of its industry. The industry median Interest Coverage is 49.41. Affirm Holdings' value of 1.78 is 96.4% below this benchmark. Historically, Affirm Holdings' own Interest Coverage has ranged from 0.79 to 0.79 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 49.41, Affirm Holdings has consistently been below 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 Interest Coverage for a Credit Services company?
The median Interest Coverage among Credit Services companies is 49.41, based on 164 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Affirm Holdings's current Interest Coverage of 1.78 is 96.4% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Affirm Holdings and its competitors. For the Credit Services industry, the median Interest Coverage is 49.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Affirm Holdings's current Interest Coverage is 1.78, which is 125% above median its own 10-year median of 0.79. 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 Interest Coverage of 1.78. The current Interest Coverage is 1.78, which is 125% above median its 10-year median of 0.79 and 96.4% below the Credit Services industry median of 49.41. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Affirm Holdings (STU:78P), the current Interest Coverage is 1.78 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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