Affirm HoldingsSTU:78P 82 Operating Margin % is 19.46% as of Mar. 2026. GuruFocus rates STU:78P with a GF Score™ of 82/100. The stock has 7 warning signs investors should review. Among 412 Credit Services companies, Affirm Holdings ranks better than 52.18% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Affirm Holdings Operating Margin % Related Terms
Affirm Holdings Operating Margin % Historical Data
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The historical data trend for Affirm Holdings's Operating 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: Operating Margin % Comparison
For the Credit Services subindustry, Affirm Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Affirm Holdings's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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 Operating Margin % of 19.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Affirm Holdings and its competitors. According to the industry distribution chart, Affirm Holdings ranks #197 out of 412 companies in the Credit Services industry, placing it in the top 47.8%.
Is Affirm Holdings' Operating Margin % too high?
Affirm Holdings' current Operating Margin % is 19.46%. The Credit Services industry median Operating Margin % is 17.33. Affirm Holdings' value of 19.46% is 12.3% above this industry median. Based on the distribution chart, Affirm Holdings ranks #197 out of 412 companies in the Credit Services industry, which is above the industry midpoint. Overall, Affirm Holdings has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Affirm Holdings' Operating Margin % compare to SYF and SOFI?
According to the Credit Services industry distribution chart, Affirm Holdings ranks #197 out of 412 companies for Operating Margin %. This puts Affirm Holdings in the upper half of its industry. The industry median Operating Margin % is 17.33. Affirm Holdings' value of 19.46% is 12.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Affirm Holdings's current Operating Margin % of 19.46% is 12.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Affirm Holdings and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Affirm Holdings's current Operating Margin % is 19.46%. 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 Operating Margin % of 19.46%. The current Operating Margin % is 19.46% and 12.3% above the Credit Services industry median of 17.33. Affirm Holdings' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Affirm Holdings (STU:78P), the current Operating Margin % is 19.46% 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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