Affirm set to generate $1B+ free cash flow with 24%-25% revenue growth in fiscal 2027, showing strong profitability gains.

Affirm is now a strong free cash flow generator, expected to produce over $1 billion in the next 12 months. The company anticipates 24%-25% revenue growth in fiscal 2027, pushing annual revenues beyond $5 billion. Profit margins are improving, with management targeting a 29% non-GAAP operating margin next fiscal year. Despite competitive risks and current market caution, Affirm appears undervalued with a forward free cash flow multiple of 25x and a PEG ratio around 1x, making it an attractive investment opportunity.