#1FY Q1 2022 Earnings Supplement Updated on January 31, 2022 affírm) Say yes to a new look START SHOPPING DETERM SEWATERIN (செயமை கcைence) கிராச்சு:#2Safe Harbor Statement/Use of Non-GAAP Financial Measures Cautionary Note About Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including statements regarding: our strategy and future operations; our future financial position, gross market value, revenue, transaction costs, operating income, provision for credit losses, and cash flows; and general economic trends and trends in the industry and markets. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and assumptions include factors relating to: our need to attract additional merchants and consumers and retain and grow our relationships with existing merchants and consumers; our need to maintain a consistently high level of consumer satisfaction and trust in our brand; the concentration of a large percentage of our revenue with a single merchant partner; our ability to sustain our revenue growth rate or the growth rate of our related key operating metrics; the highly competitive nature of our industry; risks relating to our agreement with one of our originating bank partners; the risk that our existing funding arrangements may not be renewed or replaced or our existing funding sources may be unwilling or unable to provide funding to us on terms acceptable to us, or at all; our ability to effectively underwrite loans facilitated through our platform and accurately price credit risk; the performance of loans facilitated through our platform; risks associated with changes in market interest rates; risks relating to our securitizations, warehouse credit facilities and forward flow agreements; the impact on our business of general economic conditions, the financial performance of our merchants, and fluctuations in the U.S. consumer credit market; our ability to grow effectively through acquisitions or other strategic investments or alliances; risks associated with expanding our operations internationally; the potential impact of any cyber-attacks, misconduct, computer viruses, or physical or electronic break-ins that we might experience; risks associated with our business being subject to extensive regulation, examination, and oversight in a variety of areas; and other risks that are described in our Annual Report on Form 10-K for our fiscal year ended June 30, 2021 and in our other filings with the Securities and Exchange Commission. These forward-looking statements reflect our views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and we assume no obligation and do not intend to update these forward-looking statements. Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Revenue less transaction costs, revenue less transaction costs as a percentage of GMV, adjusted operating loss and adjusted operating margin. We also present certain operating expenses on a non-GAAP basis, as well as those non-GAAP operating expenses as a percentage of GAAP total revenue. Definitions of each non-GAAP financial measure and reconciliations of each historical non-GAAP financial measure with the most directly comparable GAAP financial measure are included in this presentation. However, a reconciliation of adjusted operating loss to the comparable GAAP measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Our management uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our operating results and the effectiveness of our business strategy, and in evaluating our financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, and our use of these non-GAAP financial measures has limitations as an analytical tool. Accordingly, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP measures should be considered along with other operating and financial performance measures presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. 2#3Our Mission: Build honest financial products that improve lives. affírm) 9:41 Hello to your savings SAVINGSBALANCE $123.45 Withdraw Interest INTEREST EARNED YTD $0.00 Savings goals Add money ♦ Shop 1.80% +New savings goal ● Save Asum Shop Fondi Apple See all stores Welcome back, Avery Kim Shop any store Q Where you shopping? 9:41 FASHION t Nike The Hom ● She Manage X Profile HOVE O Toget TREA → C 3#4FY Q1 2022 Operating and Financial Highlights affírm) 4#5First Quarter FY'22 Highlights GROSS MERCHANDISE VOLUME ($M) affirm $1,476 71% Growth FY Q1'21 Notes: 1. $2,713 84% Growth FY Q1'22 Metrics are unaudited ACTIVE CONSUMERS (M) 3,882 63% Growth FY Q1'21 8,692 124% Growth FY Q1'22 TRANS. PER ACTIVE CONSUMER 2.3 2.2 10% Growth FY Q1'21 8% Growth FY Q1'22 REVENUE ($M) $174 98% Growth $269 55% Growth FY Q1'21 FY Q1'22 5#6FY Q1 2022 Business Highlights affírm) 6#7Gross Merchandise Volume Notes: 1. affirm 2 3. $861 $594 FY Q1'20 $1,342 $1,231 $1,203 $568 $612 $672 FY Q2'20 FY Q3'20 84% Growth $1,476 $661 FY Q4'20 FY Q1'21 GMV ($M) GMV defined as the total dollar amount of all transactions on the Affirm platform during the period, net of refunds Average Order Value (AOV) defined as GMV divided by the number of transactions conducted on the Affirm platform during the period Metrics are unaudited $2,075 $541 FY Q2'21 AOV ($) $2,257 $564 $2,484 $495 FY Q3'21 FY Q4'21 138% Ex-Peloton Growth '$2,713 $402 FY Q1'22 7#8Power Transactions Across Diverse Channels POS VS. AFFIRM¹ TRANSACTIONS FY Q1 2022 24% Affirm¹ 76% Point of Sale Interest-Bearing vs 0% APR GMV FY Q1 2022 43% 0% APR Notes: 1. Based on transactions initiated by Affirm through mobile app and website channels affirm 2. Excludes volume from transactions facilitated through Affirm virtual card at non-integrated merchants 3. Metrics are unaudited 57% Interest-Bearing Industry GMV Mix² FY Q1 2022 10% 10% 13% 12% Fashion Beauty Home / Lifestyle Travel / Ticketing Other 16% 22% 16% Sporting Goods and Outdoors Electronics 8 Equipment / Auto#9Active Consumers affirm Notes: 1. 2. 3. 2,383 2.0 FY Q1'20 2,965 2.1 FY Q2'20 3,346 2.1 3,618 2.1 124% *****…………………………………………………………… ¹¹8,692 Growth Active Consumers (K) 3,882 2.2 4,493 2.2 5,364 2.3 7,121 2.3 2.3 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 Transactions per Active Consumer Active Consumer defined as a consumer who engages in at least one transaction on our platform during the 12 months prior to the measurement date, presented as of the end of the period. Active Consumers includes consumers who engaged in at least one transaction on the PayBright and Returnly platforms during the 12 months prior to the measurement date and prior to the acquisitions of PayBright and Returnly by Affirm Transactions per Active Consumer defined as the average number of transactions that an Active Consumer has conducted on our platform during the 12 months prior to the measurement date, presented as of the end of the period. Transactions per Active Consumer includes transactions completed by Active Consumers on the PayBright and Returnly platforms during the 12 months prior to the measurement date and prior to the acquisitions of PayBright and Returnly by Affirm Metrics are unaudited 9#10Active Merchants affirm Notes: 1. 2. 3.6 FY Q1'20 4.1 4.8 5.7 1,468% Growth 1 I I I 6.5 7.9 11.5 FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 Active Merchants (K) Active Merchant defined as a merchant an active merchant as a merchant which engages in at least one transaction on its platform during the 12 months prior to the measurement date Metrics are unaudited 29.0 3.5x QoQ Growth 102.2 FY Q4'21 FY Q1'22 10#11Revenue affirm Notes: 1. 2. $88 10.2% $130 9.7% $138 11.2% FY Q1'20 FY Q2'20 FY Q3'20 $153 12.7% 55% Growth $174 11.8% FY Q4'20 FY Q1'21 Revenue ($M) $204 9.8% FY Q2'21 % of GMV $231 10.2% FY Q3'21 $262 *$269 10.5% FY Q4'21 9.9% FY Q1'22 FY Q4'21 and FY Q3'21 Revenue figures include reductions to revenue of $2.3 million and $3.5 million, respectively, recorded in relation to the estimated financial impact of Peloton's voluntary recall of its Tread+ and Tread products Metrics are unaudited 11#12Interest Income and Loans Held for Investment Composition Interest Income Composition Composition of Average Loans Held for Investment ("LHFI") $40 $7 $33 18% FY Q1'20 affirm $45 $8 $37 18% 2. Notes: 1. $52 $9 $43 18% $74 $22 $54 $15 $52 $49 $10 $39 $39 27% 21% 30% $95 $32 $63 33% $117 $104 $38 $32 $72 31% $79 33% FY FY FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Other Interest Income ($M) Amortization of Discount ($M) Amortization of Discount as % of Total Interest Income $772 $216 28% $911 $246 $665 27% FY FY Q1'20 Q2'20 $1,224 $1,001 $1,012 $306 $250 $314 $751 25% FY Q3'20 $698 31% $918 25% $1,651 $809 $842 49% $2,042 $2,109 $2,134 $886 $875 $1,041 $1,001 51% $1,223 $1,259 Avg. Interest Bearing LHFI Balance Avg. 0% APR LHFI Balance 0% APR Balance % of Avg LHFI 42% 41% FY FY FY FY FY FY Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Amortization of discount is associated primarily with 0% loans or loans with below market value APRS; Other interest income includes interest income on unpaid principal balance net of amortization of premiums on loans and interest receivable charged-off Metrics are unaudited 12#13Transaction Costs Transaction Costs $63 7.3% 6.9% FY FY Q1'20 Q2'20 affirm Notes: 1. $93 234 56 3. COVID Stress Applied to, Allowance $148 COVID Stress 2. Released from Allowance $46 3.8% $119 8.0% $109 5.3% FY FY FY FY Q3'20 Q4'20 Q1'21 Q2'21 $97 $114 4.3% 4.6% $157 5.8% FY FY FY Q3'21 Q4'21 Q1'22 Transaction Costs ex-Provision FY Q1'20 $62 $65 $38 4.4% 4.7% 5.3% $78 6.5% $90 6.1% $97 $98 4.7% 4.3% $89 $94 3.6% 3.5% FY FY FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Transaction Costs ($M) % of GMV Transaction Costs ex-Provision ($M) % of GMV In March 2020, we updated loss assumptions in our allowance for credit losses to reflect expected stress emerging from forecasted delinquencies and defaults. This resulted in an increase of the allowance for credit losses as a percent of loans held for investment from 8.9% as of February 29, 2020, to 14.6% as of March 31, 2020. In the months subsequent to this, we saw stronger than expected repayment history in the portfolio resulting in a release of the allowance. These applications or releases of stress on the allowance impact the income statement via the provision for credit losses operating expense line. Transaction Costs include Loss on loan purchase commitment, Provision for credit losses, Funding costs and Processing and servicing Transaction Costs ex-Provision include Loss on loan purchase commitment, Funding costs and Processing and servicing FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation. Metrics are unaudited 13#14Revenue Less Transaction Costs $37 $25 2.9% 2.8% FY FY Q1'20 Q2'20 affirm Notes: 1. 2 3. 4. 5. Revenue Less Transaction Costs (0.8)% $108 8.9% $55 $95 3.7% 4.6% $134 $148 5.9% 5.9% $(9) FY FY FY FY FY Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 FY $112 103% YoY 4.1% FY Q1'22 $50 5.8% Revenue Less Transaction Costs ex-Provision $67 5.0% FY FY Q1'20 Q2'20 $73 $75 5.9% 6.3% $84 $107 5.7% 5.2% $133 5.9% $173 $176 7.0% 109% YoY 6.5% FY FY FY FY FY FY FY Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Revenue Less Transaction Costs ($M) % of GMV Transaction Costs include Loss on loan purchase commitment, Provision for credit losses, Funding costs and Processing and servicing Transaction Costs ex-Provision include Loss on loan purchase commitment, Funding costs and Processing and servicing FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation. Metrics are unaudited Revenue Less Transaction Costs ex-Provision ($M) % of GMV 14#15Non-GAAP Operating Expenses Technology & Data Analytics Sales and Marketing 23% $26 $28 $28 $28 $20 20% 20% affirm 18% Notes: 1. 2. $36 16% % 18% $49 21% $44 17% $51 FY FY FY FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 19% Technology & Data Analytics ($M) % of Revenue $4 $6 $6 $4 $7 $20 10% $30 13% $40 $41 15% 15% 3.% 40 470 FY FY FY FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Sales and Marketing ($M) % of Revenue General and Administrative 27% $27 $28 $29 $28 21% 20% 19% $24 $36 16% 18% Non-GAAP operating expenses exclude (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the amortization of its commercial agreement asset; and (d) certain other costs Metrics are unaudited $51 $50 11 22% 19% $66 25% FY FY FY FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 General and Administrative ($M) % of Revenue 15#16GAAP and Adj. Operating Income / (Loss) $(33) $(33) (37)% affirm) Notes: 1. 2. 3. GAAP Operating Income / (Loss) (25)% $(82) 4. (59)% FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 $39 16% $(33) $(27) (19)% (13 % $(114) (44)% $(166) (62)% $(209) (91)% FY FY FY Q3'21 Q4'21 Q1'22 Adjusted Operating Income / (Loss) $(22) $(22) (26)% (17)% $(71) (51)% $47 70% $(8) (5)% $3 2% FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 $5 $14 2% 5% $(45) (17)% FY FY FY Q3'21 Q4'21 Q1'22 Operating Income / (Loss) ($M)- Operating Margin Adj. Operating Income / (Loss) ($M) Adj. Op Margin Adjusted Operating Income calculated as GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the amortization of its commercial agreement asset; and (d) certain other costs FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020 FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation. Metrics are unaudited 16#17Platform Portfolio and Funding Mix Notes: 1. 2. 3. affirm 4 5. $1,605 12% $794 $811 FY Q1'20 $2,156 $1,136 10% $1,020 $2,351 $1,353 10% $998 $2,482 $1,428 9% $1,054 $2,893 $1,434 $540 8% $919 FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 On Balance Sheet (non-securitized) ($M) Off Balance Sheet (non-securitized) ($M) Equity Capital Req % Platform $3,673 $1,720 $882 8% $1,071 $4,180 $1,905 $1,294 5% $981 $4,660 $315 $2,275 $1,201 4% $869 FY Q2'21 FY Q3'21 On Balance Sheet (securitized) ($M) Off Balance Sheet (securitized) ($M) FY Q4'21 $4,982 $269 $2,432 $1,630 3% $652 FY Q1'22 On Balance Sheet (Non-Securitized) includes Loans Pledged as Collateral in warehouse financing vehicles or held by Affirm and consolidated on Affirm's balance sheet On Balance Sheet (Securitized) includes Loans Pledged as Collateral in securitizations and consolidated on Affirm's balance sheet Off Balance Sheet includes Loans Held by Third Parties and not consolidated on Affirm's balance sheet Equity Capital Required is the sum of the balance of loans held for investment and loans held for sale, less the balance of funding debt and notes issued by securitization trusts as of the balance sheet date Metrics are unaudited 17#18Funding Capacity affirm Notes: 1. $2.2 73% FY Q1'20 Metrics are unaudited $2.5 86% $2.6 90% $3.3 75% FY Q2'20 FY Q3'20 FY Q4'20 Funding Capacity ($B) $4.2 $4.7 78% $5.8 72% $6.5 72% 69% FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 Total Platform Portfolio % of Funding Capacity $7.3 68% FY Q1'22 18#19Loan Held for Investment by ITACS Score ($ in 000s) Amortized Cost Basis of Loans Held for Investment by ITACS Score $ 746,758 $ 96+ 94-96 90-94 <90 No score Total loan receivables 96+ 94-96 90-94 <90 No score June 30, 2020 September 30, 2020 $ Total loan receivables 196,083 82,368 8,004 Percentage of Amortized Cost Basis of Loans Held for Investment by ITACS Score 77 % 20,864 1,054,077 71 % 19 % 8% 1% 2% 1,123,357 239,007 58,028 8,017 100 % 31,010 1,459,419 16 % 4 % 1 % 2 % 100 % Quarter Ending December 31, 2020 $ 1,459,271 357,629 74,199 25,517 36,994 1,953,610 75 % 18 % 4 % 1 % 2 % 100 % $ $ March 31, 2021 1,562,547 391,934 109,868 29,444 100,141 2,193,934 71 % 18 % 5 % 1 % 5 % 100 % $ $ June 30, 2021 Notes: 1. Metrics are unaudited affirm 2. Table presents ITACS score distribution of the unpaid principal balance of loans held for investment 3. Balance for loans with "No score" represents loan receivables in experimental products or new markets without sufficient data currently available for use of the Affirm scoring methodology 1,338,059 407,539 138,991 26,379 108,916 2,019,884 66 % 20 % 7 % 1 % 5 % 100 % September 30, 2021 $ $ 1,402,266 451,859 171,723 55,738 148,231 2,229,817 63 % 20 % 8 % 2 % 7 % 100 % 19#20Q1'22 Loan Balance and Net Charge-offs by Loan Origination Year as of September 30, 2021 2022 Amortized Cost Basis by Fiscal Year of Origination $ Total Current period charge-offs Current period recoveries Current period net charge-offs affirm) Notes: 1. Metrics are unaudited 1,080,556 $ (350) (350) 2021 1,047,077 (29,104) 1,200 (27,904) 2020 95,851 (943) 978 35 $ 2019 6,038 (56) 839 783 $ 2018 277 (1) 385 384 $ Prior 18 $ T 309 309 Total 2,229,817 (30,454) 3,711 (26,743) 20#21Allowance and Loans Held for Investment affirm) Notes: 1. 2. $76 9.4% FY Q1'20 $86 8.5% $145 14.6% $95 9.2% FY Q2'20 FY Q3'20 FY Q4'20 Allowance for Losses ($M) $123 $125 8.7% 6.6% $114 5.2% FY Q1'21 FY Q2'21 FY Q3'21 $118 5.8% $152 Allowance % of Loans Held for Investment 6.8% FY Q4'21 FY Q1'22 FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020. The adjustment increased the FY Q1'21 beginning Allowance by $10 million Metrics are unaudited 21#22Guidance affírm) 22#23FY Q2 2022 and FY 2022 Guidance Fiscal Q2 2022 $3.55 to $3.65 billion $320 to $330 million $143 to $148 million $178 to $183 million (7) to (5) percent 285 million affirm GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Loss as a Percentage of Revenue Weighted Average Shares Outstanding Fiscal Year 2022 $13.13 to $13.38 billion $1,225 to $1,250 million $645 to $655 million $580 to $595 million (14) to (12) percent 290 million Affirm's financial outlook for the fiscal second quarter and full year 2022 assumes the following: The Company's outlook does not include estimates of potential contributions to GMV, revenue, or transaction costs from its partnership with Amazon. However, certain technology and marketing expenses associated with the onboarding and ramping of the expanded Amazon partnership are included in the Company's outlook for adjusted operating margin for Fiscal Year 2022. Beginning with its fiscal third quarter, the Company plans to begin including estimates of the GMV, revenue, and transaction costs related to the Amazon partnership in its financial outlook The Company's outlook assumes no material impact to GMV, revenue, or transaction costs from the rollout of its Affirm Debit+ card or its recently announced partnership to enter the Australian market 23#24Financials affírm) 24#25Components of Interest Income ($ in 000s) Interest income on unpaid principal balance Amortization of discount on loans held for investment Amortization of premiums on loans Interest receivable charged-off, net of recoveries Total interest income affirm Notes: 1. Metrics are unaudited September 30, 2019 $ $ 34,988 $ 7,406 (1,103) December 31, 2019 (1,123) 40,168 $ 39,747 8,323 (1,432) (1,565) 45,073 $ $ March 31 2020 46,444 9,175 (1,701) (1,546) 52,372 $ $ June 30, 2020 42,195 10,347 (1,921) (1,504) 49,117 Three Months Ended September 30, 2020 $ $ 40,188 14,770 (1,958) 1,237 54,237 December 31, 2020 $ $ 54,243 22,448 (2,118) (716) 73,857 March 31, 2021 $ $ 65,921 31,625 (2,373) (643) 94,530 $ $ June 30, 2021 74,860 32,235 (2,569) (733) September 30, 2021 $ 103,793 $ 82,941 38,445 (2,737) (1,347) 117,302 25#26Fully Diluted Shares Outstanding (FY Q1'22) affirm Common Shares Outstanding Plus: Balance of Options, Weighted Average Strike Price: $24.50 Less: Treasury Stock Reduction of Options Outstanding Plus: Restricted Stock Units Fully Diluted Shares, Treasury Stock Method Notes: 1. Metrics are unaudited (Shares in millions) 278 36 (5) 14 323 Derivation of Fully Diluted Shares Outstanding Estimate relies upon below inputs and assumptions: Common shares outstanding and restricted stock units are as of September 30, 2021 Balance of options outstanding as of September 30, 2021 and reduced by 5 million shares using treasury stock method with $163.37 closing stock price as of November 8, 2021 26#27Reconciliations affírm) 27#28Income Statement Reconciliations Three Months Ended June 30, 2020 Income Statement Reconciliations ($K) Total Revenue Operating Expenses Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs September 30, 2019 Plus: Amortization of commercial Plus: Other costs* Adjusted Operating Income (Loss) $ Technology and data analytics Sales and marketing General and administrative Total Operating Expenses Operating Income (Loss) Reconciliation from Revenue to Revenue Less Transaction Total Revenue $ Less: Loss on loan purchase commitment Less: Provision for credit losses Less: Funding costs Less: Processing and servicing Revenue Less Transaction Costs Plus: Provision for credit losses Revenue Less Transaction Costs ex- $ 4. Metrics are unaudited $ $ $ December 31, 2019 March 31, 2020 $ 87,947 $ 19,961 $ 24,844 8,128 9,695 62,628 $ 25,368 5,219 27,704 120,919 $ $ 25,319 24,844 50,163 $ 129,976 $ (32,972) $ 2,112 8,425 42,661 30,178 8,167 11,652 92,658 31,612 7,651 (22,435) $ $ $ Reconciliation from from Operating Income (Loss) to Adjusted Operating Income (Loss) Operating Income (Loss) $ Plus: Depreciation and amortization (32,633) $ 2,432 8,294 Plus: Stock-based compensation expense 30,688 162,609 $ (32,633) $ (32,972) $ Costs and Revenue Less Transaction Costs ex-Provision 87,947 $ 138,273 $ 19,961 24,844 8,128 9,695 129,976 $ 42,661 30,178 8,167 11,652 37,318 $ 30,178 67,496 $ 138,273 $ (21,907) $ 43,519 $ 82,216 8,204 13,678 147,617 33,654 7,108 31,399 219,778 $ (81,505) $ $ 43,519 82,216 8,204 13,678 (9,344) $ 82,216 72,872 $ (81,505) $ 2,877 7,970 (70,658) $ 153,332 55,311 (32,171) 7,817 14,806 45,763 31,744 5,066 31,439 114,012 39,320 September 30, 2020 $ $ $ $ $ 153,332 $ 55,311 (32,171) 7,817 14,806 107,569 $ (32,171) 75,398 $ 39,320 $ 2,023 5,400 46,743 $ 173,978 December 31, 2020 March 31, 2021 $ $ 65,868 28,931 10,352 13,498 118,649 33,768 22,582 32,273 207,272 $ (33,294) $ $ 173,978 65,868 28,931 10,352 13,498 55,329 $ 28,931 84,260 $ (33,294) $ 3,720 6,203 14,261 1,191 (7,919) $ 204,041 $ $ 67,768 12,521 12,060 16,802 109,151 41,634 39,112 40,916 230,813 $ (26,772) $ $ 204,041 $ 67,768 12,521 12,060 16,802 94,890 $ 12,521 107,411 $ (26,772) $ 3,351 6,521 17.039 2,971 3,110 $ June 30, 2021 230,665 $ 62,054 $ (1,063) 14,665 21,368 97,024 104,806 58,184 179,999 440,013 $ (209,348) $ $ 230,665 $ 62,054 (1,063) 14,665 21,368 133,641 $ (1,063) 132,578 $ (209,348) $ 5,021 179,639 16,668 12,953 4,933 $ 261,780 September 30, 2021 $ $ 51,010 25,489 15,623 21,910 114,032 $ 69,128 62,312 130,561 376,033 $ (114,253) $ 261,780 51,010 25,489 15,623 21,910 147,748 $ 25,489 173,237 $ (114,253) $ 7,887 100,144 16,853 3,582 14,213 $ Notes: 1. Other costs include adjustments for one-time IPO expenses, PayBright, Returnly, Kite and Shopbrain acquisition expenses and sublease impairment charge 2. FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 3. FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based affirm compensation 269,385 51,678 63,647 16,753 25,201 157,279 78,013 63,960 136,204 435,456 (166,071) 269,385 51,678 63,647 16,753 25,201 112,106 63,647 175,753 (166,071) 10,541 93,189 17.039 209 (45,093) 28#29GAAP to Non-GAAP Expense Reconciliations, Q1'22 ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses Notes: affirm) 1. Metrics are unaudited $ $ $ $ $ GAAP 51,678 $ 63,647 16,753 25,201 157,279 78,013 63,960 136,204 278,177 $ $ $ 435,456 $ D&A O O 0 227 227 7,418 482 2,414 10,314 $ Compensation Expense Shopify Warrant Expense $ $ $ $ Three Months Ended September 30, 2021 10,541 $ Stock-Based 0 0 O 356 356 $ $ 20,067 5,024 67,742 92,833 $ 93,189 $ O O O Olo 0 $ 17,039 tA $ 0 $ 17,039 0 17,039 $ $ Other Costs O O O O O 0 $ 0 O 209 209 $ $ LA $ 209 $ Non-GAAP 51,678 63,647 16,753 24,618 156,696 50,528 41,415 65,839 157,782 314,478 29#30GAAP to Non-GAAP Expense Reconciliations, H2'21 ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses $ $ $ $ $ $ $ $ $ $ GAAP GAAP 51,010 25,489 15,623 21,910 114,032 $ $ 69,128 $ 62,312 130,561 262,001 $ 376,033 $ 62,054 $ (1,063) 14,665 21,368 97,024 $ 104,806 58,184 179,999 342,989 $ $ 440,013 $ D&A D&A O O O 153 153 5,178 636 1,920 7.734 7,887 O O O 120 120 Compensation Expense Shopify Warrant Expense $ $ $ $ $ $ $ Three Months Ended June 30, 2021 Stock-Based $ 3,655 $ 475 771 4,901 $ 5,021 $ 0 0 0 459 459 Compensation Expense $ $ 19,817 5,183 74,685 99,685 $ 100,144 $ Three Months Ended March 31, 2021 Stock-Based 0 0 0 1,446 1,446 $ 52,058 $ 10,568 115,567 178,193 179,639 O O O Olo $ $ 0 Shopify Warrant Expense $ 16,853 0 $ 16,853 0 16,853 OOO $ lo tA $ $ $ $ tA $ O $ 16,668 0 16,668 $ 16,668 $ Other Costs Other Costs O O O O O 0 $ O O OO O o o o o $ 3,582 3,582 3,582 $ 0 $ LA $ $ LA $ $ 12,953 12,953 $ 12,953 $ Non-GAAP 51,010 25,489 15,623 21,298 113,420 44,133 39,640 50,374 134,147 247,567 Non-GAAP 62,054 (1,063) 14,665 19,802 95,458 49,093 30,473 50,708 130,274 225,732 Notes: 1. FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation 30 affirm 2 Metrics are unaudited#31GAAP to Non-GAAP ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses Non-GAAP Expense Reconciliations, H1'21 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 67,768 $ 12,521 12,060 16,802 109,151 $ 41,634 $ 39,112 40,916 121,662 230,813 $ $ 65,868 $ 28,931 10,352 13,498 118,649 $ 33,768 $ 22,582 32,273 88,623 $ 207,272 $ D&A D&A சு எ 0 0 0 85 85 O O 0 77 77 Compensation Expense Shopify Warrant Expense $ $ $ 2,723 439 104 3,266 $ 3,351 $ $ Three Months Ended December 31, 2020 Stock-Based $ $ 3,124 $ 406 113 3,643 $ 3,720 $ 0 0 O Stock-Based 287 287 2,556 581 3,097 6,234 6,521 Compensation Expense $ 0 0 0 26 26 $ Three Months Ended September 30, 2020 $ $ $ $ O O O Olo 2,213 760 3,204 6,177 $ 6,203 $ 0 Shopify Warrant Expense $ 0 $ 17,039 0 17,039 17,039 000 To 0 14,261 0 14,261 $ 14,261 tA $ $ $ $ tA $ $ $ $ Other Costs Other Costs 0 $ O O O O O 0 $ 942 2,029 2,971 $ 2,971 $ O O O OC $ 0 $ 0 LA $ $ LA 1,191 1,191 1,191 $ $ Non-GAAP 67,768 12,521 12,060 16,430 108,779 affirm) Notes: 1. FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 2. Metrics are unaudited Non-GAAP 36,355 20,111 35,686 92,152 200,931 65,868 28,931 10,352 13,395 118,546 28,431 7,155 27,765 63,351 181,897 31#32GAAP to Non-GAAP Expense Reconciliations, H2'20 ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses affirm) Notes: 1. Metrics are unaudited $ $ $ $ $ $ $ $ $ $ GAAP GAAP 55,311 $ (32,171) 7,817 14,806 45,763 $ 31,744 $ 5,066 31,439 68,249 $ 114,012 $ 43,519 $ 82,216 8,204 13,678 147,617 33,654 7,108 31,399 72,161 219,778 $ $ $ $ D&A D&A O oc 40 40 1,702 237 44 1,983 2,023 O O O 87 87 2,188 503 99 2,790 2,877 Compensation Expense Shopify Warrant Expense $ $ $ $ $ $ $ $ $ Three Months Ended June 30, 2020 Stock-Based LA Compensation Expense $ $ 0 0 O 28 28 1,988 868 2,496 5,352 $ 5,380 $ 0 0 0 27 27 $ Three Months Ended March 31, 2020 Stock-Based 3,360 918 3,665 7,943 7,970 $ $ $ O O O Olc $ $ 0 Shopify Warrant Expense $ oooo O O O O c oooo $ tA $ $ $ $ $ LA $ LA $ $ Other Costs Other Costs O O O O O 0 $ O O O O 0 O O O O c ܘ ܘ ܘ ܘ $ $ LA $ $ $ LA $ $ $ Non-GAAP 55,311 (32,171) 7,817 14,738 45,695 28,054 3,961 28,899 60,914 106,609 Non-GAAP 43,519 82,216 8,204 13,564 147,503 28,106 5,687 27,635 61,428 208,931 32#33GAAP to Non-GAAP ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses affirm) Notes: 1. Metrics are unaudited $ $ $ $ $ $ $ $ $ $ GAAP GAAP 42,661 30,178 8,167 11,652 92,658 $ 31,612 $ 7,651 30,688 69,951 $ $ 162,609 $ 25,368 5,219 27,704 58,291 19,961 $ 24,844 8,128 9,695 62,628 $ $ $ 120,919 $ Expense Reconciliations, H1'20 D&A D&A O 0 O 82 82 1,808 457 85 2,350 O O 0 60 60 1,601 388 62 2,051 Compensation Expense $ $ $ 2,432 $ $ $ $ $ Three Months Ended December 31, 2019 Stock-Based $ 2,111 $ ~NO O O Stock-Based Compensation Expense 32 32 $ $ 3,610 963 3,689 8,262 $ 8,294 $ Three Months Ended September 30, 2019 Shopify Warrant Expense $ 0 0 0 (5) (5) 3,327 1,291 3,812 8,430 8,425 $ $ O O O Olc $ $ 0 OOOO Shopify Warrant Expense $ 0 O O O Olc oooo $ tA $ $ $ $ $ LA $ LA $ $ Other Costs Other Costs O O O O O 0 $ O O O O 0 O O O O c ܘ ܘ ܘ ܘ $ $ LA $ $ $ LA $ $ $ Non-GAAP 42,661 30,178 8,167 11,538 92,544 Non-GAAP 26,194 6,231 26,914 59,339 151,883 19,961 24,844 8,128 9,640 62,573 20,440 3,540 23,830 47,810 110,383 33