Affirm is a U.S. consumer finance company offering buy now, pay later (BNPL) services in partnership with merchants like Amazon.

Is Klarna profitable?

No, Klarna still reports net losses despite revenue growth.

Which company has better cash flow?

Affirm generates positive operating cash flow, while Klarna has negative cash flow.

Is Affirm a good investment in 2026?

It depends on your investment goals; Affirm has strong partnerships and positive cash flow but has not yet achieved profitability.

Affirm vs. Klarna: Which Tech Stock Is a Better Buy in 2026?

A comparison of BNPL companies Affirm and Klarna. Affirm focuses on the U.S. market with strong partnerships and positive cash flow, while Klarna expands globally with nearly a million merchants but still incurs net losses.

According to a report from Motley Fool, Affirm (NASDAQ: AFRM) and Klarna (pre-IPO) present two different models in the buy now, pay later (BNPL) sector.

Strengths of Each Company

Affirm

U.S. Partnerships: Affirm relies on strong partnerships with major U.S. retailers, including Amazon (AMZN) and Shopify (SHOP).
Cash Flow: The company generates positive operating cash flow, enhancing its financial stability.
Profitability: Although Affirm has not yet achieved net profitability, improving cash flow signals progress toward profitability.

Klarna

Global Reach: Klarna boasts nearly a million merchants worldwide, giving it a broad international presence.
Brand Recognition: Klarna is a well-known brand in Europe and is expanding into new markets.
Ongoing Losses: The company still reports net losses, raising questions about its ability to achieve profitability.

Financial Comparison

Metric	Affirm	Klarna
Revenue (annual)	~$1.5B (estimated)	~$2B (estimated)
Net Income	Loss	Loss
Free Cash Flow	Positive	Negative
Number of Merchants	~200,000	~1,000,000

What This Means for Investors

Choosing the better stock depends on investor goals: if you seek a company with strong cash flow and strategic U.S. partnerships, Affirm may be the better choice. If you prefer exposure to a broader global market with a strong brand, Klarna might be appealing, but with the risk of ongoing losses.