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Affirm's Expanded CPP Investments Deal Supports $8B in Loan Volume
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Key Takeaways
Affirm renewed and expanded its CPP Investments funding deal with a 24-month forward-flow agreement.
Affirm expects the commitment to support about $8B in consumer loan volume over two years.
Affirm had $28.2B in funding capacity as of March 31, 2026, backed by capital partners.
Affirm Holdings, Inc. (AFRM - Free Report) has renewed and expanded its funding partnership with Canada Pension Plan Investment Board (CPP Investments). Under the new 24-month forward-flow agreement, CPP Investments will commit $1.7 billion to purchase Affirm installment loans, with the option to increase that amount to $2.2 billion. The agreement is expected to support approximately $8 billion in consumer loan volume over the next two years.
The relationship between the two companies dates back to 2019, during which CPP Investments purchased nearly $14 billion of Affirm assets via forward-flow agreements and asset-backed securitizations. The expanded commitment supports Affirm’s continued expansion in the buy now, pay later market.
Over the trailing 12 months ended March 31, 2026, the company generated $46 billion in GMV and served almost 27 million active consumers. GMV increased 35% year over year to $11.6 billion in the third quarter of fiscal 2026, highlighting continued strength in platform activity.
The partnership provides additional funding capacity to support future loan originations while preserving balance-sheet flexibility. It also signals continued confidence from a major institutional investor in Affirm’s underwriting discipline and loan performance.
The agreement highlights the strength of Affirm’s funding model, which employs a capital-light structure that supports loan growth without requiring the company to retain all originated assets on its balance sheet. As of March 31, 2026, Affirm had total funding capacity of $28.2 billion, supported by a diversified network of long-term capital partners. Overall, the transaction enhances the company’s ability to meet growing consumer demand while mitigating funding-related risks as the business scales.
How Are Competitors Faring?
Some of AFRM’s competitors in the payments space are Klarna Group plc (KLAR - Free Report) and Sezzle Inc. (SEZL - Free Report) .
In March 2026, Klarna expanded its forward-flow and whole-loan sale program with funds managed by Elliott Investment Management, doubling the facility size to $2 billion and extending its term to three years. The arrangement allows Klarna to sell newly originated U.S. receivables while retaining underwriting and loan-servicing responsibilities.
In May 2026, Sezzle expanded its funding capacity by securing a new $300 million receivables warehouse facility from Mesirow Alternative Credit, with an additional $75 million accordion feature. The deal increased Sezzle's advance rate and enhanced funding flexibility to support future loan growth.
AFRM’s Price Performance, Valuation & Estimates
Shares of AFRM have risen 16.6% over the past year against the industry’s decline of 12.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.41X, up from the industry average of 3.96X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.25 per share, implying a 733.3% jump from the year-ago period’s level.
View the Zacks #1 Rank List
Image: Bigstock
Affirm's Expanded CPP Investments Deal Supports $8B in Loan Volume
Key Takeaways
Affirm Holdings, Inc. (AFRM - Free Report) has renewed and expanded its funding partnership with Canada Pension Plan Investment Board (CPP Investments). Under the new 24-month forward-flow agreement, CPP Investments will commit $1.7 billion to purchase Affirm installment loans, with the option to increase that amount to $2.2 billion. The agreement is expected to support approximately $8 billion in consumer loan volume over the next two years.
The relationship between the two companies dates back to 2019, during which CPP Investments purchased nearly $14 billion of Affirm assets via forward-flow agreements and asset-backed securitizations. The expanded commitment supports Affirm’s continued expansion in the buy now, pay later market.
Over the trailing 12 months ended March 31, 2026, the company generated $46 billion in GMV and served almost 27 million active consumers. GMV increased 35% year over year to $11.6 billion in the third quarter of fiscal 2026, highlighting continued strength in platform activity.
The partnership provides additional funding capacity to support future loan originations while preserving balance-sheet flexibility. It also signals continued confidence from a major institutional investor in Affirm’s underwriting discipline and loan performance.
The agreement highlights the strength of Affirm’s funding model, which employs a capital-light structure that supports loan growth without requiring the company to retain all originated assets on its balance sheet. As of March 31, 2026, Affirm had total funding capacity of $28.2 billion, supported by a diversified network of long-term capital partners. Overall, the transaction enhances the company’s ability to meet growing consumer demand while mitigating funding-related risks as the business scales.
How Are Competitors Faring?
Some of AFRM’s competitors in the payments space are Klarna Group plc (KLAR - Free Report) and Sezzle Inc. (SEZL - Free Report) .
In March 2026, Klarna expanded its forward-flow and whole-loan sale program with funds managed by Elliott Investment Management, doubling the facility size to $2 billion and extending its term to three years. The arrangement allows Klarna to sell newly originated U.S. receivables while retaining underwriting and loan-servicing responsibilities.
In May 2026, Sezzle expanded its funding capacity by securing a new $300 million receivables warehouse facility from Mesirow Alternative Credit, with an additional $75 million accordion feature. The deal increased Sezzle's advance rate and enhanced funding flexibility to support future loan growth.
AFRM’s Price Performance, Valuation & Estimates
Shares of AFRM have risen 16.6% over the past year against the industry’s decline of 12.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.41X, up from the industry average of 3.96X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AFRM’s 2026 earnings is pegged at $1.25 per share, implying a 733.3% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
AFRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.