Affirm HoldingsSTU:78P 81 Pretax Margin % is 10.34% as of Mar. 2026. GuruFocus rates STU:78P with a GF Score™ of 81/100. The stock has 7 warning signs investors should review. Among 533 Credit Services companies, Affirm Holdings ranks worse than 66.04% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Affirm Holdings Pretax Margin % Related Terms
Affirm Holdings Pretax Margin % Historical Data
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The historical data trend for Affirm Holdings's Pretax 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: Pretax Margin % Comparison
For the Credit Services subindustry, Affirm Holdings's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Pretax 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.
Affirm Holdings (STU:78P) has a Pretax Margin % of 10.34% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Affirm Holdings and its competitors. According to the industry distribution chart, Affirm Holdings ranks #352 out of 533 companies in the Credit Services industry, placing it in the top 66%.
Is Affirm Holdings' Pretax Margin % too high?
Affirm Holdings' current Pretax Margin % is 10.34%. The Credit Services industry median Pretax Margin % is 20.02. Affirm Holdings' value of 10.34% is 48.4% below this industry median. Based on the distribution chart, Affirm Holdings ranks #352 out of 533 companies in the Credit Services industry, which is below 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' Pretax Margin % compare to SYF and SOFI?
According to the Credit Services industry distribution chart, Affirm Holdings ranks #352 out of 533 companies for Pretax Margin %. This places Affirm Holdings in the lower half of its industry. The industry median Pretax Margin % is 20.02. Affirm Holdings' value of 10.34% is 48.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.02, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Affirm Holdings's current Pretax Margin % of 10.34% is 48.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Affirm Holdings and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Affirm Holdings's current Pretax Margin % is 10.34%. 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 Pretax Margin % of 10.34%. The current Pretax Margin % is 10.34% and 48.4% below the Credit Services industry median of 20.02. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Affirm Holdings (STU:78P), the current Pretax Margin % is 10.34% 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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