Affirm Results Presentation Deck

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Technology

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February 2021

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#1FY Q2 2021 Earnings Supplement February 11, 2021 affírm) Say yes to a new look YO 3#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 extensive regulation, examination, and oversight in a variety of areas; and other risks that are described in our prospectus relating to our initial public offering filed on January 14, 2021 pursuant to Rule 424(b) under the Securities Act and in our other filings with the SEC. 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, adjusted operating margin, adjusted cash flow from operations, free cash flow, cash flow from loan financing and repayment, and free cash flow after loan financing and repayment. Definitions of each non-GAAP financial measure and reconciliations of each non-GAAP financial measure with the most directly comparable GAAP financial measure are included in this presentation. 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 analytical tools. Accordingly, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reporting 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 SAVINGS BALANCE $123.45 Withdraw Interest INTEREST EARNED YTD $0.00 Savings goals Add money Shop 1.80% + New savings goal Save Olgate Shop Man See all stores 9:41 Welcome back, Avery Kim FASHION Shop any store HOME O C 3#4FY Q2 2021 Operating and Financial Highlights affírm) 4#5Second Quarter 2021 Highlights TRANS. PER ACTIVE CONSUMER GROSS MERCHANDISE VOLUME ($M) $1,342 100% Growth $2,075 affirm 55% Growth FY Q2 2020 Notes: 1. Metrics are unaudited FY Q2 2021 ACTIVE CONSUMERS (M) 3.0 99% Growth FY Q2 2020 4.5 52% Growth FY Q2 2021 2.1 3% Growth FY Q2 2020 2.2 7% Growth FY Q2 2021 REVENUE ($M) $130 87% Growth FY Q2 2020 $204 57% Growth FY Q2 2021 01 5#6FY Q2 2021 Business Highlights affírm) 6#7Gross Merchandise Volume Notes: 1. affirm) 2 3. $861 $594 FY Q1 2020 55% Growth $1,342 $568 FY Q2 2020 ‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ $1,231 $612 $1,203 FY Q3 2020 IGMV ($M) $672 FY Q4 2020 AOV GMV defined as the total dollar amount of all transactions on the Affirm platform during the period, net of refunds AOV defined as GMV divided by the number of transactions conducted on the Affirm platform during the period Metrics are unaudited ‒‒‒‒‒‒‒‒‒‒‒‒‒ $1,476 $661 FY Q1 2021 $2,075 $541 FY Q2 2021 7#8Power Transactions Across Diverse Channels POS VS. AFFIRM¹ TRANSACTIONS Interest-Bearing vs 0% APR GMV FY Q2 2021 Industry GMV Mix² FY Q2 2021 FY Q2 2021 32% Affirm ¹ 68% Point of Sale Notes: 1. Based on transactions initiated by Affirm through mobile app and website channels 2. Excludes volume from Affirm Anywhere 3. Metrics are unaudited 0% APR 46% Interest-Bearing 54% 9% 12% 9% 4% 17% Sporting Goods and Outdoors Fashion / Beauty Equipment / Auto ■Travel / Ticketing 31% 17% Home / Lifestyle Other Electronics 8#9Active Consumers affirm Notes: 1. 2. 3. 2,383 2.0x FY Q1 2020 52% Growth 2,965 2.1x ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ FY Q2 2020 3,346 2.1x -------- FY Q3 2020 Active Consumers 3,618 2.1x ‒‒‒‒‒‒‒‒‒‒ 3,882 2.2x FY Q4 2020 FY Q1 2021 -Transactions per Active Consumer 4,493 2.2x FY Q2 2021 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 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 Metrics are unaudited 9#10Revenue affirm Notes: 1. $88 10.2% FY Q1 2020 Metrics are unaudited 57% Growth $130 9.7% FY Q2 2020 $138 11.2% FY Q3 2020 Revenue ($M) $153 12.7% FY Q4 2020 $174 11.8% FY Q1 2021 Revenue % of GMV $204 9.8% FY Q2 2021 10#11Transaction Costs $63 7.3% FY Q1 2020 Notes: 1. 2. affirm) 3. 4. $93 6.9% Transaction Costs COVID Stress Applied to Allowance¹ $148 12.0% COVID Stress Released from Allowance¹ $46 3.8% $130 FY Q4 2020 8.8% $114 5.5% $38 4.4% FY Q1 2021 FY Q2 2021 Transaction Costs ex-Provision $62 FY Q1 2020 4.7% $65 5.3% FY Q2 2020 FY Q3 2020 Transaction Costs ex-Provision ($M) $78 6.5% FY Q2 2020 FY Q3 2020 Transaction Costs ($M) Transaction Costs % of GMV In March 2020, we updated loss assumptions in our allowance for credit losses to reflect expected stressed 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 14.8% as of March 31, 2020. In the months subsequent to this, we have seen 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 Metrics are unaudited $90 6.1% $97 4.7% FY Q4 2020 FY Q1 2021 FY Q2 2021 Transaction Costs ex-Provision % of GMV 11#12Revenue Less Transaction Costs $25 2.9% Revenue Less Transaction Costs Notes: 1. 2. affirm) 3 141% Growth $37 2.8% (0.8%) $108 8.9% $44 3.0% $90 ($9) FY Q1 2020 FY Q2 2020 FY Q3 2020 FY Q4 2020 FY Q1 2021 FY Q2 2021 Revenue Less Transaction Costs ($M) Revenue Less Transaction Costs % of GMV 4.3% Revenue Less Transaction Costs ex-Provision $50 5.8% 59% Growth $67 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 Metrics are unaudited 5.0% ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ $73 5.9% $75 6.3% ‒‒‒‒‒‒‒ $84 5.7% $107 5.2% FY Q1 2020 FY Q2 2020 FY Q3 2020 FY Q4 2020 FY Q1 2021 FY Q2 2021 Revenue Less Transaction Costs ex-Provision ($M) Revenue Less Transaction Costs ex-Provision % of GMV 12#13GAAP and Adj. Operating Income / (Loss) ($33) (37%) affirm Notes: 1. GAAP Operating Income / (Loss) 2. ($33) (25% (59% $39 26% (26%) ($45) (16%) ($32) Adjusted Operating Income / (Loss) (17%) (25%) ($22) ($22) 51% $46 30% 11% ($82) ($71) FY Q1 2020 FY Q2 2020 FY Q3 2020 FY Q4 2020 FY Q1 2021 FY Q2 2021 FY Q1 2020 FY Q2 2020 FY Q3 2020 FY Q4 2020 FY Q1 2021 FY Q2 2021 Operating Income / (Loss) ($M) Op Margin Adj. Operating Income / (Loss) ($M) Adj. Op Margin ($20) (1%) ($2) 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 non-recurring items Metrics are unaudited 13#14Platform Portfolio and $1,605 12% $794 3. affirm) 4. 5. $811 FY Q1 2020 Notes: 1. 2. $2,156 $1,136 10% $1,020 On Balance Sheet (Non-Securitized) ($M) FY Q2 2020 and Funding Mix $2,351 $1,353 10% $998 FY Q3 2020 $2,482 $1,428 9% $1,054 FY Q4 2020 On Balance Sheet (Securitized) ($M) $2,893 $1,434 $540 8% $919 FY Q1 2021 Off Balance Sheet ($M) $3,673 $1,720 $882 8% $1,071 FY Q2 2021 Equity Capital Req % Platform 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 14#15Allowance and Loans Held for Investment affirm Notes: 1. $76 9.4 % FY Q1 2020 Metrics are unaudited $86 8.5 % FY Q2 2020 $145 14.6 % FY Q3 2020 Allowance for Losses ($M) $95 9.2 % $124 8.8 % FY Q4 2020 FY Q1 2021 Allowance % of Loans Held for Investment $131 6.9 % FY Q2 2021 15#16Non-GAAP Free Cash Flow Statement of Cash Flows ($K) Net Loss Provision for losses Net charge-offs Amortization of premiums and discounts on loans Stock-based compensation Depreciation and amortization Amortization of commercial agreement Changes in fair value of convertible debt derivatives Other net loss reconciliations from cash flow from operations Change in operating assets and liabilities. Change in restricted cash Adj. Cash Flow from Operations Additions to property, equipment and software Free Cash Flow Loan Purchases & Originations Loan Sale Balances Sold Debt Financing, Net Principal repayments of loans Net charge-offs Cash Flow from Loan Financing & Repayment Free Cash Flow After Loan Financing & Repayment Plus: Change in restricted cash Less: Acquisition funds in transit Less: Proceeds from issuance of convertible debt, net Less: Proceeds, Repurchases & Issuance of Preferred & Common Stock Net Increase (Decrease) in Cash and Restricted Cash, GAAP Cash and restricted cash, Beginning of Period Cash and Restricted Cash, End of Period Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 $ (30,795) $ 24,844 (15,090) (6,303) 8,425 2,112 $ $ $ $ $ $ (18) (736) (4,564) (22,125) $ (5,411) $ (27,536) $ $ 437,642 15,090 (16,240) $ (43,776) $ 4,564 15,361 (30,996) $ (85,620) $ 30,178 82,216 (20,153) (19,887) (6,891) (7,474) 8,369 7,795 2,432 2.877 $ (901,793) $ (1,522,868) $ (1,244,575) $ (1,262,567) $ (1,524,647) $ (2,201,056) 385,513 793,202 588,426 526,323 397,541 778,098 47,308 181,495 382,220 425,935 505,844 20,153 (22,174) $ 44,759 686,946 17,533 12,994 $ (945) $ (3,416) 75,000 958 749,128 11,320 15,562 $ (18,227) $ 951,681 9,116 (36,226) $ (71,639) $ (76,044) $ (23,851) $ 357,771 333,920 $ 2,263 5,623 (36,604) (45,779) $ (8,091) $ (53,870) $ (1,870) 31,226 14,006 23,269 $ (5,202) $ 18,067 $ 36,604 (30,599) 664,401 19,887 (2,460) $ 15,607 $ (14,006) 154 34,813 $ (32,171) (17,533) (6,937) 5,036 2,023 (39,704) (79,144) $ 1,755 $ 333,920 254,776 254,776 $ 256,531 $ 3,834 1,032 (5,137) 3,416 (11,624) $ (2,315) $ (13,939) $ (15,275) $ (31,557) 40,267 (11,320) 17,468 (9,116) (20,330) (11,123) 6,203 3,720 6,521 3,351 17,039 14,261 (30,106) 1,491 12,644 (40,382) (29,620) $ (4,169) $ (33,789) $ 71,597 $ 256,531 328,128 S 40,382 435,591 $ 14,598 (113,628) 21,585 Q2 YoY Growth YOY % YOY # 561 (9,744) 22,006 2,824 (4,121) (14,598) (32,519) $ 13,260 (2,894) $ 5,197 (35,413) $ 18,457 (561) (12,710) 11,037 (1,848) 919 17,039 $ (678,188) (15,104) 244,440 445,837 (11,037) (14,052) 4,405 (22,006) (113,628) 61,289 457,746 $ (149,084) $ (69,940) 328,128 785,874 451,954 785,874 $ 636,790 $ 382,014 2% (42%) (55%) (22%) 38% 25% (173%) (60%) (29%) (64%) (34%) 45% (2%) 135% 88% (55%) 63% (6%) (60%) (154%) 88% 135% 150% Notes: 1. Loan purchases & origination includes Purchases of loans held for sale, Purchases of loans, and Origination of loans from Cash Flow Statement 2. Loan sale balances sold includes (Gain) loss on sales of loans, Purchases of loans held for sale and Proceeds from the sale of loans from Cash Flow Statement 3. Debt Financing, Net includes Proceeds from funding debt, Capitalization of debt issuance costs, Principal repayments of funding debt, Proceeds from issuance of notes and certificates by securitization trust and Principal repayments of notes issued by securitization trust affirm) 4. Metrics are unaudited 16#17Guidance affírm) 17#18FY Q3 2021 and FY 2021 Guidance affirm GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Loss Weighted Average Shares Outstanding FY Q3 2021 $1.80 to $1.85 billion $185 to $195 million $125 to $130 million $60 to $65 million ($47.5) to ($52.5) million 226 million FY 2021 $7.25 to $7.35 billion $760 to $780 million $500 to $510 million $260 to $270 million ($120) to ($130) million 155 million 18#19Financials affírm) 19#20Balance Sheet affirm Notes: 1. Metrics are unaudited Balance Sheet ($K) Cash and cash equivalents Restricted cash Loans held for sale Loans held for investment Allowance for loan losses Loans held for investment, net Accounts receivable, net Property, equipment and software, net Other assets Total Assets Accounts payable Payable to third-party loan buyers Accrued interest payable Accrued expenses and other liabilities. Convertible debt Notes issued by securitization trusts Funding debt Total liabilities Redeemable convertible preferred stock Common stock, $0.00001 par value Class A common stock, $0.00001 par value Class B common stock, $0.00001 par value Additional paid in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders' deficit Total Liabilities, Redeemable Preferred and Stockholders' Deficit Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 $ 292,033 $ 176,285 $ 192,046 $ 267,059 $ 684,423 41,887 101,451 78,491 6,255 1,012,987 (85,855) 64,485 8,979 989,597 (144,930) 844,667 44,014 61,069 4,459 1,034,312 (95,137) 939,175 1,289,884 4,085 1,414,157 (124,273) 927,132 45,085 46,160 59,001 49,026 67,046 47,278 48,140 49,562 49,358 37,842 41,878 44,286 48,176 16,287 72,118 185,359 23,348 1,402,251 $ 1,191,348 $ 1,326,785 $ 1,217,756 $ 2,250,549 $ 2,708,122 $ $ $ $ 808,683 (76,060) 732,623 8,667 $ 19,859 2,392 14,716 617,142 799,178 662,776 $ 859,771 $ 64,890 25 12,837 $ 23,589 813,555 $ 804,170 $ $ 2,688 21,479 (349,898) $ (284,983) $ $ 12,410 $ 22,960 2,224 21,929 769,099 828,622 $ 804,170 $ $ 18,361 S 24,471 $ 24,998 21,205 1,860 2,132 27,810 25,877 74,222 817,926 965,177 804,170 $ 498,921 698,892 818,446 804,960 $ 1,271,498 $ 1,730,435 $ 1,327,163 $ 1,327,271 $ $ 520,741 116,049 12,302 1,888,432 (131,165) 1,757,267 59,195 67,809 80,373 114,226 10 (864) (302) 104 (396,361) (481,981) (447,167) (462,442) (337,156) $ (415,036) $ (367,096) $ (348,112) $ 26,224 33,043 3,133 44,629 142,477 1,938 (493,999) (349,584) $ 1,191,348 $ 1,326,785 $ 1,217,756 $ 1,402,251 $2,250,549 $ 2,708,122 20#21Income Statement Active Consumers (k) Transactions per Active Consumer Gross Merchandise Volume (GMV) ($M) Income Statement ($K) Merchant network revenue Virtual card network revenue Interest in come Gain on sales of loans Servicing Income Total Revenues Operating Expenses 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 Total Operating Expenses Operating Income (Loss) Other Income* Income (Loss) Before Income Taxes Income tax benefit (expense) Net Income Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Revenue Less Transaction Costs % of GMV $ Adjusted Operating Income (Loss) % of Revenue $ $ $ $ $ $ $ $ $ Excess Return to Preferred on Repurchase S Net Income (Loss) to Common Stockholders $ $ $ 2,383 2.0 861 $ $ 36,389 $ 3,601 40,168 5,725 2,064 87,947 $ 19,961 $ 24,844 8,128 9,695 62,628 $ 25,368 5,219 27,704 120,919 $ (32,972) $ 2,273 $ (30,699) $ (96) $ (30,795) $ $ (30,795) $ 25,319 $ 2.9% 2,965 2.1 1,342 $ (22,415) $ (25.5%) 67,764 $ 7,110 4,738 5,291 129,976 $ 42,661 $ 30,178 8,167 11,652 92,658 $ 31,612 7,651 30,688 162,609 $ (32,633) $ 1,730 $ (30,903) $ (93) $ (30,996) $ (13,205) $ (44,201) $ 37,318 $ 2.8% 3,346 2.1 1,231 $ (21,907) $ (16.9%) 67,350 $ 5,930 52,3 9,866 2,755 138,273 $ 3,618 2.1 1,203 $ 85,249 $ 2,699 43,519 $ 82,216 8,204 13,678 147,617 $ 33,654 7,108 31,399 219,778 $ (81,505) $ (4,022) $ (85,527) $ (93) $ (85,620) $ $ (85,620) $ (9,344) $ (0.8%) (70,658) $ (51.1%) (1,837) $ (92%) (19,248) $ (11.1%) (0.9%) Notes: affirm) Q1 2021E Other Income includes non-cash gain resulting from the extinguishment of a beneficial conversion feature embedded within the Convertible Debt that was raised in FQ4'20 and converted to preferred stock in FQ1'21 2. Metrics are unaudited 49,1 11,578 16,434 4,084 4,689 153,332 $ 173,978 $ 55,311 $ (32,171) 7,817 14,806 45,763 3,882 2.2 1,476 $ 31,744 5,066 31,439 114,012 $ 39,320 $ (4,413) $ 34,907 $ (94) $ 34,813 $ $ 34,813 $ 93,265 $ 5,958 107,569 $ 8.9% 46,374 $ 30.2% 4,493 2.2 2,075 65,868 $ 40,267 10,352 13,498 $ 99,630 $ 10,820 73,85 14,560 5,174 204,041 $ $ 129,985 $ 114,098 $ 33,768 41,634 39,112 22,582 32,266 218,601 $ (44,623) $ 29,445 $ (15,178) $ (97) $ (15,275) $ $ (15,275) $ 43,993 $ 3.0% 40,916 235,760 $ (31,719) $ 240 $ (31,479) $ (78) $ (31,557) $ $ $ 67,768 $ 17,468 12,060 16,802 Q2 YoY Growth (31,557) 89,943 $ 4.3% YOY # 1,528 0.1 734 31,866 3,710 28,7 9,822 (117) 74,065 25,107 (12,710) 3,893 5,150 21,440 10,022 31,461 10,228 73,151 914 (1,490) (576) 15 (561) 13,205 12,644 52,625 YOY % 20,070 52% 7% 55% 47% 52% 64% 207% (2%) 57% 59% (42%) 48% 44% 23% 32% 411% 33% 45% (3%) (86%) 2% (16%) 2% (100%) (29%) 141% 21#22GAAP Statement of Cash Flows affirm Notes: 1. Metrics are unaudited Statement of Cash Flows (SK) Net Income (Loss) Provision for losses Amortization of premiums and discounts on loans (Gain) loss on sales of loans Changes in fair value of servicing assets and liabilities Changes in fair value of convertible debt derivatives Changes in fair value of residual trust certificates Amortization of commercial agreement Amortization of debt issuance costs Stock-based compensation Depreciation and amortization Deferred tax (benefit) expense Other Purchases of loans held for sale Proceeds from the sale of loans held for sale Change in operating assets and liabilities: Cash Flows from Operating Activities Purchases of loans. Origination of loans Proceeds from the sale of loans Principal repayments of loans Acquisition funds in transit Additions to property, equipment and software Purchases of intangible assets Cash Flows from Investing Activities Proceeds from funding debt Capitalization of debt issuance costs Principal repayments of funding debt Proceeds from issuance of notes and certificates by securitization trust Principal repayments of notes issued by securitization trust Proceeds from issuance of convertible debt, net Proceeds from issuance of preferred stock, net Repurchase of preferred stock Proceeds from issuance of common stock Repurchase of common stock Cash Flows from Financing Activities Net Increase (Decrease) in Cash and Restricted Cash Cash and restricted cash, Beginning of Period Cash and Restricted Cash, End of Period Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 $ $ (736) (18,528) $ $ $ (558,305) $ $ $ (30,795) $ (30,996) $ 24,844 30,178 (6,303) (6,891) (5,725) (741) (4,738) 1.643 $ 600 8,425 2,112 96 27 (343,488) 333,156 58,082 437,642 (5,411) (67,992) $ 410,534 $ (363,226) 15,483 - 743 (865) 62,669 $ (23,851) $ 357,771 333,920 $ 542 8,369 2,432 93 (15) (741,322) 718,965 519 7,795 2,877 93 (874) (551,140) 523,646 31,226 (8,210) $ (781,546) S (693,435) $ 5,623 (16,117) $ 78,975 505,844 (8,091) (204,818) $ 559,248 $ (1,371) (376,382) (2) (22,591) 478 (17,589) 141,791 $ (85,620) $ 82,216 (79,144) $ 333,920 254,776 $ (7,474) (9,866) (1,608) 74,646 664,401 (5,202) 40,410 $ 558,965 $ (12) (589,552) 554 (400) (30,445) $ 34,813 $ (32,171) (6,937) (11,578) (281) 3,834 91,730 686,946 (2,315) (20,673) $ 604,058 $ (6,304) (552,995) 75,000 14,261 1,083 652 5,036 2,023 6,203 3,720 103 97 558 407 (465,533) (346,878) 446,171 338,926 (5,137) 12,644 (28,447) $ (2,304) $ (797,034) $ (1,177,769) $ (1,404,972) (109,047) 129,911 951,681 (113,628) (2,894) (548,949) 759,441 (2,170) (653,946) 378,223 (55,613) 958 120,717 $ (15,275) $ 40,267 (11,123) (16,434) (96) (30,106) 1,755 $ 71,597 $ 254,776 256,531 256,531 $ 328,128 $ 75,049 749,128 (4,169) (357,761) $ 773,938 $ (4,617) (890,556) 518,232 (14,777) 434,434 1,741 (584) 817,811 $ (31,557) 17,468 (20,330) (14,560) (92) 457,746 $ 328,128 785,874 $ - (274) 17,039 1,278 6,521 3,351 78 1,834 (687,037) 662,747 (4,121) (47,655) 108 21,676 (199) 447,520 (149,084) 785,874 636,790 22#23Reconciliations affírm) 23#24Income Statement Reconciliations Income Statement Reconciliations ($K) Total Revenues Operating Expenses 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 Total Operating Expenses Operating Income (Loss) Less: Funding costs Less: Processing and servicing Revenue Less Transaction Costs Plus: Provision for credit losses Revenue Less Transaction Costs ex-Provision Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 $ Plus: Depreciation & Amortization Plus: Stock-Based Compensation (included in OpEx) Plus: Amortization of commercial agreement Plus: Other Non-Recurring Items* Adjusted Operating Income (Loss) $ $ $ 87,947 $ 129,976 Reconciliation from Revenues to Revenue Less Transaction Costs and Total Revenues 87,947 $ 19,961 $ Less: Loss on loan purchase commitment Less: Provision for credit losses 24,844 $ 19,961 $ 42,661 24,844 30,178 8,128 8,167 9,695 11,652 13,678 62,628 92,658 $ 147,617 $ 25,368 31,612 5,219 7,651 30,688 162,609 $ (32,633) $ 27,704 120,919 $ (32,972) $ 8,128 9,695 25,319 $ 24,844 $ 50,163 $ $ 138,273 $ 11,652 37,318 $ 30,178 67,496 $ Reconciliation from Operating Income (Loss) to Adjusted Operating Income (Loss) Operating Income (Loss) $ (32,972) $ (32,633) $ 2,112 2,432 8,445 8,294 43,519 $ 82,216 8,204 33,654 7,108 31,399 219,778 $ (81,505) $ 153,332 $ (81,505) $ 2,877 7,970 Revenue Less Transaction Costs ex-Provision 129,976 $ 138,273 $ 42,661 43,519 30,178 82,216 8,167 8,204 13,678 (9,344) $ 82,216 72,872 $ 55,311 $ (32,171) 7,817 65,868 $ 40,267 10,352 13,498 14,806 45,763 31,744 129,985 $ 33,768 5,066 22,582 31,439 32.266 114,012 $ 218,601 $ 39,320 $ (44,623) $ $ 173,978 $ (32,171) 7,817 14,806 107,569 $ (32,171) 75,398 $ 39,320 $ 2,023 5,031 (44,623) $ 3,720 204,041 6,203 14,261 1,191 (19,248) $ 67,768 17,468 12,060 153,332 $ 173,978 $ 55,311 65,868 40,267 10,352 13,498 43,993 $ 40,267 16,802 89,943 $ 17,468 84,260 $ 107,411 $ $ 25,107 (12,710) 3,893 5,150 16,802 114,098 21,440 41,634 10,022 39,112 40,916 235,760 $ 73,151 31,461 10,228 (31,719) $ 914 204,041 $ 67,768 17,468 12,060 6,521 17,039 2,971 (1,837) $ (22,415) $ (21,907) $ (70,658) $ 46,374 $ Notes: 1. Other Non-Recurring Items includes adjustment for one-time IPO expenses ($1.2M in Q1'21, $1.0M in Q2'21) and $2.0M for one-time Paybright acquisition expenses in Q2'21 affirm) 2. Metrics are unaudited (31,719) $ 3,351 $ Q2 YOY Growth YOY # YOY % 74,065 74,065 25,107 (12,710) 3,893 5,150 52,625 (12,710) 39,915 914 919 (1,773) 17,039 2,971 $ 20,070 57% 59% (42%) 48% 44% 23% 32% 411% 33% 45% (3%) 57% 59% (42%) 48% 44% 141% (42%) 59% (3%) 38% (21%) (92%) 24#25Cash Flow Statement Reconciliations affirm Statement of Cash Flows Reconciliations ($K) Reconciliation from Adjusted Cash Flow from Operations to Cash Flows from Operating Activities Adj. Cash Flow from Operations Plus: Net charge-offs Plus: Change in restricted cash Plus: Purchases of loans held for sale Plus: Proceeds from the sale of loans held for sale Plus: (Gain) loss on sales of loans Cash Flows from Operating Activities Plus: Change in restricted cash Less: Acquisition funds in transit Less: Proceeds from issuance of convertible debt, net $ Reconciliation from Free Cash Flow After Loan Financing & Repayment to Free Cash Flow After Loan Financing & Repayment $ Less: Proceeds, Repurchases & Issuance of Preferred & Common Stock Net Increase (Decrease) in Cash and Restricted Cash Three Months Ended Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Net Increase (Decrease) in Cash and Restricted Cash Cash and restricted cash, Beginning of Period Cash and Restricted Cash, End of Period Notes: 1. Metrics are unaudited $ (22,125) $ 15,090 4,564 (343,488) 333,156 $ (45,779) $ 20,153 36,604 23,269 $ (11,624) $ 19,887 17,533 (14,006) (3,416) (551,140) (465,533) 446,171 (741,322) 718,965 523,646 (5,725) (4,738) (9,866) (18,528) $ (16,117) $ (8,210) $ $ $ Net Increase (Decrease) in Cash and Restricted Cash (43,776) $ (76,044) $ 15,607 $ 4,564 36,604 (945) $ (3,416) (14,006) 15,361 (23,851) $ (23,851) $ 357,771 333,920 $ (39,704) (79,144) $ (79,144) $ 333,920 254,776 $ 154 1,755 $ (11,578) (28,447) $ 1,755 $ 254,776 256,531 $ 75,000 958 71,597 $ 71,597 $ 256,531 328,128 $ (29,620) $ 11,320 40,382 (346,878) 338,926 (16,434) (2,304) $ (18,227) $ 40,382 (32,519) 9,116 14,598 (687,037) 662,747 (14,560) (47,655) 457,746 $ 328,128 785,874 $ (71,639) 14,598 (113,628) 21,585 435,591 457,746 $ (149,084) (149,084) 785,874 636,790 25

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