Jim Cramer Favors Affirm and SoFi Amid Credit Tech Reevaluation

Jim Cramer has shifted his focus within the fintech credit space, advocating for Affirm Holdings (AFRM) and SoFi Technologies (SOFI) over Klarna Holding AB (KLAR), emphasizing structural advantages and operational resilience. Cramer pointed to Affirm’s adjusted EBITDA margin of 12.3% in Q4 2025 as a key differentiator, contrasting it with Klarna’s reported negative adjusted EBITDA of -4.1% during the same period. He also noted SoFi’s net interest margin of 14.7%, which outpaced Klarna’s 9.8% in the same quarter, indicating more efficient capital deployment. The commentary comes amid increasing scrutiny of Klarna’s business model following a 28% decline in its stock price since October 2025, driven by rising credit loss provisions and slower consumer credit demand in Europe. In contrast, Affirm reported a 17% year-over-year increase in transaction volume, while SoFi’s total loan originations grew 22% year-over-year, with 68% of its loans issued to borrowers with FICO scores above 700—highlighting lower risk exposure. Cramer also underscored the strategic positioning of both AFRM and SOFI in the U.S. market, where regulatory clarity and consumer demand for installment financing remain robust. Klarna’s recent challenges in scaling beyond Europe, particularly in North America, were cited as a limiting factor, with its U.S. market share declining from 11% to 7% between Q1 2024 and Q4 2025. The shift in sentiment has already influenced investor behavior, with Affirm’s stock rising 6.4% in early trading following the commentary, while SoFi gained 4.9%. Klarna’s share price dipped 2.3% on the same day, reflecting market reassessment of credit risk and growth sustainability.