Affirm Holdings Inc.'s ( AFRM )  fiscal 2026 revenues are likely to be impacted by Walmart Inc.'s ( WMT ) volumes beginning to shift to Klarna-powered OnePay in the coming quarters, as well as a higher mix of non-interest-bearing transactions, according to Needham.

Analyst Kyle Peterson maintained a Hold rating on the stock.

The Affirm Holdings Thesis: Despite the revenue impact, Walmart's ( WMT ) volumes shifting to Klarna/OnePay may not affect Affirm’s operating income, as "Walmart’s traffic is less profitable than the rest of AFRM’s merchant partners,” Peterson said in the note.

Check out other analyst stock ratings.

Affirm Holdings ( AFRM ) should be able to retain traffic generated through its app, he added.

Non-interest-bearing transactions were around 30% of the company's GMV (gross merchandise value) in the fiscal third quarter, the analyst stated. This could "remain at an elevated rate versus recent levels as AFRM continues to prioritize consumer-friendly financing and payment options," he wrote.

While these are not long-term concerns, Affirm Holdings' ( AFRM ) stock may remain volatile as estimates are recalibrated in the coming weeks, Peterson said.

AFRM Price Action: Shares of Affirm Holdings ( AFRM ) had risen by 1.12% to $67.85 at the time of publication on Wednesday.

Read More: Subprime Was A Trainwreck In 2008―Now It’s A Sweet Spot, Says Goldman Sachs