Affirm's latest financial report data is good - quarterly revenue of $993 million, a year-on-year increase of 34%, beating the expected growth rate of 26%. Key indicator GMV surged 42% to $10.8 billion, and the gross margin is also improving, with RLTC accounting for 4.2%, exceeding the company's target of 3-4%. The GMV of the credit card business skyrocketed by 135%.

But investors are more concerned about whether Affirm can surpass Klarna. The data is interesting - Klarna's GMV is 3 times that of Affirm (32.7 billion vs 10.8 billion), but Affirm has a higher quarterly revenue by 3 billion. The reason is that 72% of Klarna's loans are interest-free, which attracts consumers but results in thin profits (operating interest rate of -1.5%), while Affirm relies on interest to drive an extremely high profit margin of 28%.

Both paths of Growth vs Profitability are being explored. Analysts are generally bullish, with Affirm's target price at $87 (+32% upside potential) and Klarna at $49 (+54%). Economic downturn is a common risk.