#1FY Q2 2023 Earnings Supplement February 8, 2023 affírm) 9:41 + You're prequalified to Pay in 4 with Affirm GOOD MORNING, ALEX SHOP YOUR FAVORITE STORES A $2,000 Prequalified to spend where are you shopping? Shoo X O APR EXPRESINA BAVS Virtual card Get as low as 0% APR on Prime Day A Marija 5 in store Ba#2Safe Harbor Statement/Use of Non-GAAP Financial Measures Cautionary Note About Forward-Looking Statements This document 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: the Company's strategy and future operations, including the Company's partnerships with certain key merchants and commerce platforms; the development, innovation, introduction and performance of, and demand for, the Company's products, including the Debit+ Card; acquisition and retention of merchants and consumers; the Company's future growth, investments, network expansion, product mix, brand awareness, 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 Company's industry and markets. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's 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: the Company's need to attract additional merchants, partners and consumers and retain and grow its relationships with existing merchants, partners and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; the terms of its agreement with one of its originating bank partners; its existing funding arrangements that may not be renewed or replaced or its existing funding sources that may be unwilling or unable to provide funding to it on terms acceptable to it, or at all; its ability to effectively underwrite loans facilitated through its platform and accurately price credit risk; the performance of loans facilitated through its platform; changes in market interest rates; its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of inflation and increasing recessionary concerns, the financial performance of its merchants, and fluctuations in the U.S. consumer credit market; its ability to grow effectively through acquisitions or other strategic investments or alliances; seasonal fluctuations in our revenue as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; the impact of any reduction in its workforce, including its ability to realize certain cost savings anticipated as a result of the reduction and its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company's 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, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does 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: Deliver Honest Financial Products that Improve Lives affirm#4FY Q2 2023 Operating & Financial Highlights affirm#5Second Quarter FY'23 Highlights ACTIVE CONSUMERS (M) GROSS MERCHANDISE VOLUME ($M) $5,658 affirm $4,458 115% Growth FY Q2'22 Notes: 1. 27% Growth FY Q2'23 Metrics are unaudited 11.2 150% Growth 15.6 39% Growth FY Q2'22 FY Q2'23 TRANS. PER ACTIVE CONSUMER 2.5 15% Growth FY Q2'22 3.5 38% Growth FY Q2'23 REVENUE ($M) $361 77% Growth $400 11% Growth FY Q2'22 FY Q2'23 LO 5#6FY Q2 2023 Business Highlights affirm#7Gross Merchandise Volume 27% Growth Notes: 1. affirm 2 3. $2,075 $541 FY Q2'21 $2,257 $564 $2,484 $495 FY Q3'21 FY Q4'21 $2,713 $402 $4,458 $365 FY Q1'22 FY Q2'22 GMV ($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 $3,916 $374 FY Q3'22 AOV ($) $4,396 $368 $4,389 $331 35% Ex-Peloton Growth $5,658 $307 FY Q4'22 FY Q1'23 FY Q2'23 7#8Power Transactions Across Diverse Channels POS vs. Affirm¹ Transactions FY Q2 2023 19% Affirm¹ 81% Point of Sale 2,3 Affirm Product Composition ², FY Q2 2023 23% Pay in 4 (Bi-Weekly 0% APR) 10% Core 0% APR 67% Interest-Bearing Notes: 1. Based on transactions initiated by Affirm through mobile app and website channels 2. Beginning last quarter, Affirm modified the definition of its low Average Order Value product from Split Pay to Pay in 4. Pay in 4 includes volume from loan transactions with 0% APR and 6-8 week term lengths but now excludes volume from monthly installment loans with 0% APR and 3 month term lengths. affirm 3. For comparative purposes, Fiscal Q2 2022 GMV was 18% Pay in 4 under the new definition. 4. Metrics are unaudited 8#9Partnerships Across Wide Range of Categories Category Volume Growth Q2 Year over Year % Change affirm FY Q2'23 Industry Gross Merchandise Volume Mix General Merchandise Fashion / Beauty Electronics Home / Lifestyle Travel / Ticketing Sporting Goods and Outdoors Equipment / Auto Other 5% 5% 9% 7% 9% 8% Notes: 1. Metrics are unaudited 2. Excludes volume from transactions facilitated through Affirm virtual card at non-integrated merchants 18% 39% +120% +13% (11)% +2% +63% (49)% +4% +57% 9#10Active Consumers affirm Notes: 1. 2. 3. 4,493 2.2 FY Q2'21 5,364 2.3 FY Q3'21 7,121 2.3 8,692 2.3 39% Growth 11,231 2.5 12,733 2.7 13,980 3.0 14,722 3.3 FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 FY Q1'23 Active Consumers (K) Transactions per Active Consumer 38% Transactions per Active Consumer Growth 15,615 3.5 FY Q2'23 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 10#11Quarterly Transactions affirm Notes: 1. 3.8 1.1 2.7 4.0 1.1 Metrics are unaudited 2.9 5.0 1.3 3.7 6.7 1.9 4.9 51% Growth 12.2 3.0 9.2 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 Repeat Customer Transactions (M) 10.5 2.0 8.5 12.0 1.9 10.1 13 1.9 11.3 86% Repeat Customers First Time Customer Transactions (M) 18.4 2.6 15.9 FY Q3'22 FY Q4'22 FY Q1'23 FY Q2'23 11#12Active Merchants affirm Notes: 1. 8 FY Q2'21 Metrics are unaudited 12 3 FY Q3'21 102 70 45% Growth 32 168 29 15 14 FY Q4'21 FY Q1'22 FY Q2'22 112 > $1,000 TTM GMV (K) 56 207 136 71 235 152 83 FY Q3'22 FY Q4'22 <= $1,000 TTM GMV (K) 245 157 88 61% Growth in Merchants with > $1k TTM GMV 243 153 90 FY Q1'23 FY Q2'23 12#13Revenue affirm) Notes: 1. $204 9.8% $231 Metrics are unaudited 10.2% $262 10.5% $269 9.9% 11% Growth $361 8.1% FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 Revenue ($M) $355 9.1% FY Q3'22 % of GMV $364 8.3% $362 8.2% $400 7.1% FY Q4'22 FY Q1'23 FY Q2'23 13#14Merchant Fee Rates Illustrative merchant fees, transaction fees, and virtual card network fees divided by product level GMV 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% -% affirm) Notes: 1. 2. FY Q2'21 FY Q3'21 Core 0% Long FY Q4'21 FY Q1'22 Core 0% Short FY Q2'22 FY Q3'22 FY Q4'22 Pay in 4 Core IB FY Q1'23 Non-Integrated Virtual Card FY Q2'23 Core 0% Long includes loans with term lengths greater than 12 months and 0% APR; Core 0% Short includes loans with term lengths at least three months long but less than or equal to 12 months and 0% APR; Core IB includes loans with interest from Affirm integrated merchants; Pay in 4 (formerly known as Split Pay) includes loans with 0% APR and 6-8 week term lengths; Non-Integrated Virtual Card includes loans made by Affirm at non-integrated merchants using Affirm's virtual card technology; excludes loans made in Canada via Affirm or legacy Paybright business and excludes Returnly transactions Metrics are unaudited 14#15Interest Income and Loans Held for Investment Composition Interest Income Composition Composition of Average Loans Held for Investment ("LHFI") $74 $22 $51 30% affirm $95 $32 $63 FY Q2'21 FY Q3'21 2. 3. 33% Notes: 1. $104 $32 $72 31% $117 $38 $79 33% $138 $55 $83 40% $135 $45 $89 34% $138 $46 $91 34% $137 $39 $98 28% FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 FY Q1'23 Consumer & Other Interest Income ($M) Amortization of Discount ($M) Amortization of Discount as % of Total Interest Income $155 $39 $116 25% FY Q2'23 $1,651 $809 49% $842 $2,042 $2,109 $2,134 $886 $875 $1,041 51% $1,001 42% $1,223 FY Q2'21 FY Q3'21 FY Q4'21 41% $1,259 FY Q1'22 $2,335 $957 41% $1,378 $2,464 $2,465 $961 $887 39% 36% $1,503 $1,577 FY Q2'22 FY Q3'22 FY Q4'22 Avg. Interest Bearing LHFI Balance Avg. 0% APR LHFI Balance 0% APR Balance % of Avg LHFI $2,593 $959 37% $1,633 $3,169 $1,172 37% $1,996 FY Q1'23 FY Q2'23 Amortization of discount is driven by either loan purchases from originating bank partners or the origination of loans with 0% APR or below market interest rates; Consumer & Other Interest Income consists primarily of interest charged to consumers over the term of the consumers' loans based on the principal outstanding 0% APR Loans Held For Investment include all loans that are not interest bearing, including Pay in 4 (formerly known as Split Pay) loans Metrics are unaudited 15#16Transaction Costs Transaction Costs $109 5.3% FY Q2'21 affirm Notes: 1. 2. 3. 4. $97 4.3% $114 4.6% $157 5.8% $177 4.0% $172 Transaction Costs ($M) 4.4% $180 $179 4.1% 4.1% % of GMV $255 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 FY Q1'23 FY Q2'23 4.5% $97 4.7% $98 4.3% FY Q2'21 FY Q3'21 Transaction Costs ex-Provision $89 $94 3.6% 3.5% FY Q4'21 $125 $106 2.8% 2.7% FY Q1'22 FY Q2'22 FY Q3'22 Transaction Costs ex-Provision ($M) $107 2.4% FY Q4'22 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 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 $115 2.6% FY Q1'23 % of GMV $149 2.6% FY Q2'23 16#17Revenue Less Transaction Costs $95 affirm 4.6% FY Q2'21 Notes: 1. 2. 3. 4. 5. Revenue Less Transaction Costs $134 $148 5.9% 5.9% FY Q3'21 FY Q4'21 $112 $184 $182 $184 4.1% 4.1% FY Q1'22 FY Q2'22 4.7% 4.2% 4.2% FY Q3'22 $182 FY Q4'22 (21)% YoY $144 % of GMV 2.5% FY Q1'23 FY Q2'23 $107 5.2% FY Q2'21 Revenue Less Transaction Costs ex-Provision $133 5.9% FY Q3'21 $173 $176 7.0% FY Q4'21 6.5% FY Q1'22 $236 5.3% FY Q2'22 $249 6.4% FY Q3'22 $257 5.8% FY Q4'22 Revenue Less Transaction Costs ex-Provision ($M) $247 5.6% FY Q1'23 Revenue Less Transaction Costs ($M) 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. % of GMV 6% YOY $251 4.4% FY Q2'23 17#18Non-GAAP Operating Expenses Technology & Data Analytics Sales and Marketing $36 18% affirm) $49 21% 2. Notes: 1. $44 17% $51 $65 $67 19% 18% 19% $80 22% $84 23% FY FY FY FY FY FY FY FY FY Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $88 22% Technology & Data Analytics ($M) % of Revenue $20 10% $30 13% $40 $41 15% 15% FY FY FY Q2'21 Q3'21 Q4'21 $49 14% $29 8% $39 11% $25 7% $31 Sales and Marketing ($M) % of Revenue 8% FY FY FY FY FY FY Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 $36 17% General and Administrative $51 $50 22% 19% $66 24% $79 22% $84 24% $95 $93 26% 26% General and Administrative ($M) % of Revenue $88 FY FY FY FY FY FY FY FY FY Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Non-GAAP operating expenses exclude (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) expenses related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs Metrics are unaudited 22% 18#19GAAP and Adj. Operating Income / (Loss) $(27) (13)% FY Q2'21 $(209) 2. affirm) 3. 4. (91)% FY Q3'21 Notes: 1. GAAP Operating Income / (Loss) $(114) (44)% $(166) (62)% $(196) (54)% $(227) (64)% FY FY FY FY Q4'21 Q1'22 Q2'22 Q3'22 $(277) $(287) (90)% $(360) FY FY FY Q4'22 Q1'23 Q2'23 $3 2% FY Q2'21 Adjusted Operating Income / (Loss) $5 2% $14 5% $(45) (17)% $(8) (2)% $4 1% FY FY FY FY FY Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 $(19) $(29) (8)% (5)% $(62) Operating Income / (Loss) ($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) expenses related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs FY Q2'21 amount includes 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 Metrics are unaudited (16)% FY FY FY Q4'22 Q1'23 Q2'23 19#20Platform Portfolio and Funding Mix affirm Notes: 1. 2. 3. 4. 5. $3,673 $1,720 $882 8% $1,071 $4,180 $1,905 $15294 $981 FY Q2'21 FY Q3'21 $4,660 $315 $2,275 $1,201 4% $869 FY Q4'21 $4,982 $269 $2,432 $1,630 $652 $6,327 $488 $3,362 $1,616 4% $862 FY Q1'22 FY Q2'22 On Balance Sheet (non-securitized) ($M) Off Balance Sheet (non-securitized) ($M) Equity Capital Req % Platform $6,679 $767 $3,381 $1,433 2% $1,099 $7,147 $1,016 $3,610 $1,661 3% $860 $7,342 $818 $3,810 $1,684 2% $1,030 On Balance Sheet (securitized) ($M) Off Balance Sheet (securitized) ($M) $8,416 $644 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 $4,080 $1,362 FY Q3'22 FY Q4'22 FY Q1'23 FY Q2'23 5% $2,330 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 20#21Platform Portfolio Loans - Remaining Term Length Weighted average remaining term of Total and On Balance Sheet Platform Portfolio (in months), as of quarter end date affirm 18 15 FY Q2'21 Notes: 1. 2. 3. 17 16 FY Q3'21 16 12 FY Q4'21 15 11 FY Q1'22 Total Platform Portfolio 14 9 FY Q2'22 Total Platform Portfolio includes loans owned by Affirm and third parties, on balance sheet portfolio includes loans owned by Affirm Excludes loans made internationally via Affirm or legacy Paybright business and excludes Returnly transactions Metrics are unaudited 14 9 FY Q3'22 13 8 FY Q4'22 On Balance Sheet Platform Portfolio 13 9 FY Q1'23 12 10 FY Q2'23 21#22Funding Capacity affirm $4.7 78% $5.8 72% $6.5 $7.3 72% $8.8 Funding Capacity ($B) 72% $9.0 74% $10.6 $11.1 Notes: 1. Metrics are unaudited 2. Financial data as of January 31, 2023 is preliminary and based on information available as of the date of this supplement $10.5 68% 67% 66% FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 FY Q1'23 FY Q2'23 Jan. '23 80% Total Platform Portfolio % of Funding Capacity $11.3 74% ---- 22#23Delinquency Performance: Monthly DQ30+ Notes: 1. affirm) 2 3. 4.0% 3.0% 2.0% 1.0% -% Jul Delinquencies (DQ) of 30+ days as % of Active Balances Excluding Pay in 4 Loans 2018 Sep 2019 2020 FY 2023 Dec 2021 Data as of January 2023 US loans only, excludes Pay in 4 (formerly known as Split Pay) loan transactions with 0% APR and 6-8 week term lengths Metrics are unaudited 2022 Mar 2023 FY 2018 FY 2022 FY 2019 FY 2020 FY 2021 23#24Delinquency Performance: Monthly DQ30+ ex-Peloton affirm) Notes: 1. 2. 3. 4.0% 3.0% 2.0% 1.0% -% Jul Delinquencies (DQ) of 30+ days as % of Active Balances Excluding Pay in 4 and Peloton Loans 2018 Sep 2019 2020 FY 2023 Dec 2021 2022 Mar 2023 Data as of January 2023 US loans only, excludes Pay in 4 (formerly known as Split Pay) loan transactions with 0% APR and 6-8 week term lengths and loans made for Peloton purchases Metrics are unaudited FY 2018 FY 2019 FY 2022 FY 2020 FY 2021 24#25Delinquency Rates Ex-Pay in 4 30+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 60+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 90+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 affirm September 30 3.9% 2.9% 2.5% 0.8% 1.5% 2.7% 2.3% 1.6% 1.4% 0.5% 0.9% 1.6% 1.0% 0.8% 0.6% 0.2% 0.4% 0.7% Three Months Ending December 31 3.8% 2.5% 2.1% 0.8% 1.6% 2.4% 2.2% 1.4% 1.2% 0.4% 0.9% 1.5% 1.0% 0.7% 0.6% 0.2% 0.4% 0.7% Notes: 1. US loans only, excludes Pay in 4 (formerly known as Split Pay) loan transactions with 0% APR and 6-8 week term lengths 2. Metrics are unaudited March 31 2.9% 2.0% 1.9% 0.7% 2.1% 1.7% 1.2% 1.1% 0.4% 1.2% 0.8% 0.5% 0.5% 0.2% 0.5% June 30 2.6% 1.9% 1.1% 0.9% 2.1% 1.4% 1.1% 0.8% 0.5% 1.2% 0.6% 0.5% 0.4% 0.2% 0.5% 25#26Delinquency Rates Ex-Pay in 4 & Peloton Three Months Ending 30+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 60+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 90+ Days Delinquent FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 affirm September 30 4.0% 3.3% 3.2% 1.4% 2.1% 3.2% 2.3% 1.9% 1.8% 0.8% 1.2% 1.9% 1.1% 0.9% 0.8% 0.4% 0.6% 0.9% December 31 3.8% 3.2% 2.9% 1.3% 2.1%. 2.7% 2.2% 1.8% 1.7% 0.7% 1.2% 1.6% 1.0% 0.9% 0.8% 0.3% 0.6% 0.8% March 31 3.2% 2.7% 2.8% 1.2% 2.7% 1.8% 1.6% 1.6% 0.7% 1.6% 0.9% 0.7% 0.7% 0.3% 0.6% Notes: 1. US loans only, excludes Pay in 4 (formerly known as Split Pay) loan transactions with 0% APR and 6-8 week term lengths and loans made for Peloton purchases 2. Metrics are unaudited June 30 2.9% 2.6% 1.8% 1.3% 2.5% 1.6% 1.5% 1.3% 0.7% 1.4% 0.7% 0.6% 0.6% 0.3% 0.6% 26#27Loans Held for Investment by ITACS Score Three Months Ending December 31, 2021 ($ in 000s) 96+ March 31, 2021 Amortized Cost Basis of Loans Held for Investment by ITACS Score $ 1,459,271 357,629 74,199 25,517 94-96 90-94 <90 No score Total loan receivables $ 1,953,610 96+ 94-96 90-94 December 31, 2020 <90 No score 36,994 Total loan receivables 18 % 4 % 1 % 2 % Percentage of Amortized Cost Basis of Loans Held for Investment by ITACS Score 75 % 100 % $1,562,547 $ 1,338,059 407,539 391,934 109,868 29,444 100,141 108,916 $ 2,193,934 $ 2,019,884 71 % 18 % do 5 % 1 June 30, 2021 % 5 % 138,991 100 % 26,379 66 % 20 % 7 % 1 % 5 % September 30, 2021 100 % $1,402,266 $ 451,859 171,723 55,738 148,231 63 % 20 % $2,229,817 $ 2,433,340 ⁰⁰ 8 % 2 % 7 % 1,392,997 532,108 100 % 229,844 87,594 190,797 57 % 22 % 9 % 4 % 8 % 100 % March 31, 2022 $ 1,409,388 $ 1,374,223 584,290 232,187 59,753 200,470 $ 2,486,088 57 % 24 % 9 8⁰0 % 2 % 8 % June 30, 2022 100 % 632,431 223,952 44,437 210,491 $ 2,485,534 55 % 25 % 9 % 2 00 8 do 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 by the Affirm scoring methodology % 100 % September 30, 2022 $ 1,539,374 663,923 161,883 34,795 265,409 $ 2,665,384 58 % 25 % 6 % 1 % 10 % 100 % December 31, 2022 $ 2,211,085 900,297 127,076 28,979 355,556 $ 3,622,993 61 % 25 % 4 % 1 % 10 % 100 % 27#28Q2'23 Loan Balance and Net Charge-offs by Loan Origination Year as of and for three months ended December 31, 2022 2023 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 2,998,233 $ (15,175) 1,102 (14,073) 2022 523,645 $ (64,740) 4,373 (60,367) 2021 80,605 $ (1,433) 1,249 (184) 2020 20,130 (175) 367 192 $ 2019 348 $ (29) 265 236 Prior 32 (10) 215 205 $ Total 3,622,993 (81,562) 7,571 (73,991) 28#29Allowance and Loans Held for Investment affirm) $125 6.6% FY Q2'21 Notes: 1. 2. $114 5.2% FY Q3'21 $118 5.8% FY Q4'21 $152 6.8% FY Q1'22 Allowance for Losses ($M) $158 6.5% FY Q2'22 $159 6.4% FY Q3'22 $155 FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020. Metrics are unaudited 6.2% FY Q4'22 $153 5.7% FY Q1'23 Allowance % of Loans Held for Investment $182 5.0% FY Q2'23 29#30Change in Allowance Quarterly Change in Allowance $153 Allowance (September 2022) $103 Beginning of Period Allowance (+) Provision for Loan Losses (-) Charge-offs, Net End of Period Allowance affirm) Loans Held for Investment Allowance % of Loans Held for Investment Notes: 1. 2. Provision for Losses Charge-offs, Net $(74) Dollars in millions. Metrics are unaudited $ $ $182 Allowance December 2022 March 31, 2022 158 62 (61) 159 Last 12 Months Change in Allowance 2,503 6.4 % $ $ $ Allowance (December 2021) Quarter Ending June 30, 2022 159 68 (72) $158 155 2,504 6.2 % Last 12 Months Change in Allowance $ $ $ $295 September 30, 2022 155 Provision for Losses Charge-offs, Net 2,682 62 (64) 153 $ $ 5.7% $(271) December 31, 2022 153 103 (74) $ 182 3,656 5.0 % $ $ $182 Allowance December 2022 12 Months Ending December 31, 2022 158 295 (271) 182 3,656 5.0 % 30#31Outlook affirm#32FY Q3 2023 and FY 2023 Outlook Fiscal Q3 2023 $4.40 to $4.50 billion $360 to $380 million $220 to $230 million $140 to $150 million (11) to (7) percent affirm GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Margin Weighted Average Shares Outstanding 298 million Fiscal Year 2023 $19.00 to $20.00 billion $1,475 to $1,550 million $865 to $890 million $610 to $660 million (9.0) to (7.5) percent 296 million Affirm's financial outlook for the fiscal third quarter and full year 2023 assumes the following: Macroeconomic stress and the current interest rate curve will persist through the remainder of the fiscal year. February restructuring plan expected to drive $77 million to $83 million in operating expenses and capitalized development costs through reduced employee cash compensation and benefits and reduced lease expenses. Charges associated with the restructuring plan will be excluded from financial results presented on a non-GAAP basis. Similar to the fiscal third quarter of 2022, GMV and Revenue anticipated to decline sequentially in the fiscal third quarter. No material impact to GMV, Revenue, or RLTC from the Debit+ card or other new product initiatives. 32#33Financials affirm)#34Components of Interest Income ($ 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 $ $ 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) 103,793 $ September 30, 2021 82,941 $ 38,445 (2,737) (1,347) Three Months Ended 117,302 $ December 31, 2021 88,674 54,965 (2,995) (2,289) 138,355 $ $ March 31, 2022 95,253 45,443 (3,407) (2,690) $ 134,599 $ June 30, 2022 99,125 46,197 (3,946) (3,752) 137,624 $ $ September 30, 2022 106,138 $ 38,969 (4,374) December 31, 2022 (3,931) 136,802 $ 125,858 38,838 (4,580) (4,795) 155,321 34#35Fully Diluted Shares Outstanding (FY Q2'23) affirm Common Shares Outstanding Plus: Balance of Options, Weighted Average Strike Price: $14.87 Plus: Vested Warrants, Weighted Average Strike Price: $0.01 Less: Treasury Stock Reduction of Options and Vested Warrants Outstanding Notes: 1. Metrics are unaudited Plus: Restricted Stock Units Fully Diluted Shares, Treasury Stock Method (Shares in millions) Derivation of Fully Diluted Shares Outstanding Estimate relies upon below inputs and assumptions: Common shares outstanding and restricted stock units are as of December 31, 2022 295 19 3 (17) 23 324 Balance of options and vested warrants outstanding as of December 31, 2022 and reduced by 17 million shares using treasury stock method with $17.21 closing stock price as of 2/7/2023 Vested warrants include penny warrants Excludes 12.5 million Value Creation Awards with $49.00 strike price and $100.00 strike price warrants 35#36Share-Based Payment Expense $23.6 $17.0 $6.5 FY Q2'21 Notes: 1. Metrics are unaudited. affirm) 2. Dollars in millions $196.3 $16.7 $38.5 $141.2 FY Q3'21 $117.0 $16.9 3. Amounts above are included in Operating Expenses $45.4 $54.7 FY Q4'21 $110.2 $17.0 $42.3 $50.9 FY Q1'22 $176.3 $64.9 $5.8 $17.0 $42.3 $46.3 FY Q2'22 Employee Stock-Based Compensation Shopify Commercial Agreement Asset Amortization Amazon Enterprise Warrant Vesting $217.4 $92.2 $10.2 $16.7 $29.0 $69.4 FY Q3'22 $230.4 $97.7 $10.3 $11.5 $27.2 $83.7 FY Q4'22 $247.9 $108.7 $10.4 $9.0 $27.5 $92.3 FY Q1'23 CEO Value Creation Award Amazon Commercial Agreement Asset Amortization $269.4 $128.1 $10.5 $9.0 $27.5 $94.3 FY Q2'23 36#37Reconciliations affirm)#38Quarterly Revenue & Transaction Cost Detail Three Months Ended December 31, 2021 4,458 ($ in 000s except GMV) Gross Merchandise Value ($M) Revenue Merchant network revenue Virtual card network revenue Total network revenue Interest income Gain (loss) on sales of loans Servicing income Total Revenue, net Transaction Costs Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Revenue Less Transaction Costs Line Items as a % of GMV Gross Merchandise Value Revenue Merchant network revenue Virtual card network revenue Total network revenue Interest income Gain (loss) on sales of loans Servicing income Total Revenue, net Transaction Costs Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Revenue Less Transaction Costs $ $ $ $ $ $ $ December 31, 2020 2,075 99,630 10,820 110,450 73,857 14,560 5,174 204,041 67,768 12,521 12,060 16,802 109,151 94,890 100.0 % 4.8 % 0.5 % 5.3% 3.6 % 0.7 % 0.2 % 9.8 % 3.3 % 0.6 % 0.6 % 0.8 % 5.3% 4.6 % $ $ $ $ $ $ $ March 31, 2021 2,257 97,999 13,809 111,808 94,530 16,350 7,977 230,665 62,054 (1,063) 14,665 21.368 97,024 133,641 100.0 % 4.3 % 0.6 % 5.0 % 4.2 % 0.7 % 0.4 % 10.2 % 2.7% 0.0 % 0.6 % 0.9 % 4.3 % 5.9 % $ $ $ $ $ $ $ June 30, 2021 2,484 88,657 19,264 107,921 $ 103,793 42,582 7,484 261,780 100.0 % $ 51,010 $ 25,489 15,623 21,910 114,032 3.6 % 0.8 % 4.3 % 4.2 % 1.7% 0.3 % 10.5 % $ 2.1% 1.0 % 0.6 % 0.9 % 4.6 % 147,748 $ 5.9 % $ $ September 30, 2,713 92,244 $ 19,395 111,639 117,302 30,979 9,465 269,385 51,678 63,647 16,753 25,201 157,279 112,106 100.0 % 3.4 % 0.7 % 4.1% 4.3 % 1.1 % 0.3 % 9.9 % 1.9 % 2.3 % 0.6 % 0.9 % 5.8 % 4.1 % $ affirm) 2. FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 3. Metrics are unaudited $ $ $ $ $ 127,087 $ 26,558 153,645 $ 138,355 57,690 11,321 361,011 65,265 52,640 17,700 41,849 177,454 183,557 100.0 % 2.9 % 0.6 % 3.4 % 3.1 % 1.3 % 0.3% 8.1 % 1.5 % 1.2 % 0.4 % 0.9 % 4.0 % 4.1 % 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 $ $ $ $ $ March 31, 2022 3,916 $ 121,054 23,169 144,223 134,599 52,484 23,456 354,762 182,420 100.0 % 46,853 66,294 15,824 43,371 172,342 $ 3.1% 0.6 % 3.7% 3.4% 1.3 % 0.6 % 9.1% 1.2 % 1.7% 0.4 % 1.1 % 4.4 % $ 4.7% $ $ $ $ June 30, 2022 4,396 40,285 72,691 19,417 47,393 179,786 118,126 $ 31,574 149,700 137,624 55,282 21,528 364,134 184,348 100.0 % 2.7 % 0.7% 3.4 % 3.1% 1.3 % 0.5 % 8.3 % 0.9 % 1.7 % 0.4 % 1.1 % 4.1% September 30, 2022 4,389 4.2 % $ $ $ $ $ $ 113,149 26,708 139,857 136,802 63,595 21,370 361,624 182,339 100.0 % 2.6% 0.6 % 3.2 % 3.1% 1.4 % 0.5 % 8.2 % 35,610 $ 64,250 25,066 54,359 179,285 0.8 % 1.5 % 0.6 % 1.2 % 4.1 % $ 4.2 % $ $ $ $ $ December 31, 2022 5,658 134,019 29,117 163,136 155,321 59,607 21,494 399,558 38,422 106,689 43,751 66,508 255,370 144,188 100.0 % 2.4 % 0.5% 2.9 % 2.7% 1.1% 0.4 % 7.1% 0.7% 1.9 % 0.8 % 1.2 % 4.5 % 2.5 % 38#39Annual Revenue & Transaction Cost Detail ($ in 000s except GMV) Gross Merchandise Value ($M) Revenue Merchant network revenue Virtual card network revenue Total network revenue Interest income Gain (loss) on sales of loans Servicing income Total Revenue, net Transaction Costs Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Revenue Less Transaction Costs Line Items as a % of GMV Gross Merchandise Value Revenue Merchant network revenue Virtual card network revenue Total network revenue Interest income Gain (loss) on sales of loans Servicing income Total Revenue, net Transaction Costs Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Revenue Less Transaction Costs affirm $ $ $ $ $ June 30, 2020 4,637 256,752 19,340 276,092 186,730 31,907 14,799 509,528 161,452 105,067 32,316 49,831 348,666 160,862 100.0 % 5.5 % 0.4 % 6.0 % 4.0 % 0.7 % 0.3 % 11.0 % 3.5 % 2.3% 0.7 % 1.1 % 7.5 % 3.5 % $ $ $ $ $ $ $ Twelve Months Ended June 30, 2021 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 2. FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 3. Metrics are unaudited 8,292 379,551 49,851 429,402 326,417 89,926 24,719 870,464 246,700 65,878 52,700 73,578 438,856 431,608 100.0 % 4.6 % 0.6 % 5.2 % 3.9 % 1.1 % 0.3% 10.5 % 3.0 % 0.8 % 0.6 % 0.9 % 5.3% 5.2 % $ $ $ $ $ $ $ June 30, 2022 15,483 458,511 100,696 559,207 527,880 196,435 65,770 1,349,292 204,081 255,272 69,694 157,814 686,861 662,431 100.0 % 3.0 % 0.7% 3.6 % 3.4 % 1.3 % 0.4% 8.7% 1.3 % 1.6 % 0.5 % 1.0 % 4.4 % 4.3 % 39#40Income Statement Reconciliations December 31, 2020 September 30, 2021 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 Technology and data analytics Sales and marketing General and administrative Total Operating Expenses Operating Income (Loss) Reconciliation from Revenue to Revenue Less 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-Provision Reconciliation from from Operating Income (Loss) to Operating Income (Loss) Plus: Depreciation and amortization Plus: Stock-based compensation expense Plus: Enterprise warrant and share-based expense Plus: Other costs* Adjusted Operating Income (Loss) $ $ $ $ $ $ $ $ $ March 31, 2021 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 $ 230,665 $ 62,054 (1,063) 14,665 21,368 97,024 104,806 58,184 179,999 440,013 $ (209,348) $ $ June 30, 2021 $ 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 $ $ 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 $ 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) $ December 31, 2021 361,011 - 361,011 65,265 52,640 17,700 March 31, 2022 $ 65,265 52,640 17,700 41,849 177,454 $ 94,989 143,476 141,292 557,211 $ (196,200) $ $ $ 41,849 183,557 $ 52,640 236,197 $ Fiscal Quarter September 30, 2022 (196,200) $ 11,964 88,537 87,673 94 (7,932) $ June 30, 2022 354,762 $ 46,853 $ 66,294 15,824 43,371 172,342 110,291 156,214 142,466 581,313 $ (226,551) $ $ 354,762 $ 46,853 66,294 15,824 248,714 43,371 182,420 $ 66,294 $ (226,551) $ 13,102 98,387 119,039 25 4,002 $ 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 2. FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense affirm) 3. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs 4. Metrics are unaudited 364,134 $ 40,285 $ 72,691 19,417 47,393 179,786 135,350 168,693 157,531 641,360 $ (277,226) $ $ 364,134 $ 40,285 72,691 19,417 47,393 184,348 $ 72,691 257,039 $ (277,226) $ 17,115 110,870 119,517 415 (29,309) $ 361,624 $ 35,610 64,250 25,066 54,359 179,285 144,961 163,873 160,972 649,091 $ (287,467) $ $ $ 361,624 $ 35,610 64,250 25,066 54,359 182,339 $ 64,250 246,589 $ (287,467) $ 20,882 119,808 128,205 5 (18,567) $ December 31, 2022 399,558 38,422 106,689 43,751 66,508 255,370 156,747 188,334 158,639 759,090 (359,532) 399,558 38,422 106,689 43,751 66,508 144,188 106,689 250,877 (359,532) 23,004 121,775 147,516 5,203 (62,034) 40#41Income Statement Reconciliations - Fiscal Year Twelve Months Ended Income Statement Reconciliations ($K) Total Revenue Operating Expenses Loss on loan purchase commitment Provision for credit losses Funding costs Less: Processing and servicing Revenue Less Transaction Costs Plus: Provision for credit losses Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Total Operating Expenses Operating Income (Loss) Reconciliation from Revenue to Revenue Less Transaction Costs and Revenue Less Transaction Costs ex-Provision Total Revenue $ Less: Loss on loan purchase commitment Less: Provision for credit losses Less: Funding costs Revenue Less Transaction Costs ex-Provision Reconciliation from from Operating Income (Loss) to Adjusted Operating Income (Loss) Operating Income (Loss) Plus: Depreciation and amortization Plus: Stock-based compensation expense $ Plus: Enterprise warrant and share-based expense Plus: Other costs* Adjusted Operating Income (Loss) $ $ $ $ $ $ $ $ June 30, 2020 509,528 $ 161,452 105,067 32,316 49,831 348,666 122,378 25,044 121,230 617,318 (107,790) $ $ 509,528 161,452 105,067 32,316 49,831 160,862 105,067 265,929 $ $ $ $ $ (107,790) $ 9,444 30,089 (68,257) $ 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 2. FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense June 30, 2021 870,464 870,464 246,700 65,878 52,700 246,700 65,878 52,700 73,578 438,856 249,336 182,190 383,749 1,254,131 $ (383,667) $ $ 497,486 $ 3. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs affirm 4. Metrics are unaudited $ 73,578 431,608 $ 65,878 $ $ (383,667) $ 19,979 292,507 64,821 20,697 14,337 $ June 30, 2022 1,349,292 204,081 255,272 69,694 157,814 686,861 418,643 532,343 577,493 2,215,340 (866,048) 1,349,292 204,081 255,272 69,694 157,814 662,431 255,272 917,703 (866,048) 52,722 390,983 343,268 743 (78,332) 41#42GAAP to Non-GAAP Expense Reconciliations, H1'23 Three Months Ended December 31, 2022 Stock-Based ($ 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 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 38,422 $ 106,689 43,751 66,508 255,370 $ 156,747 $ 188,334 158,639 503,720 $ 759,090 $ 35,610 $ 64,250 25,066 54,359 $ 179,285 144,961 $ 163,873 160,972 469,806 $ 649,091 $ D&A D&A O 0 O 108 108 ܘ ܘ ܘ ܘ ܗ Compensation Expense 95 $ 20,154 2,161 581 22,896 23,004 $ $ $ $ $ 95 $ 0 0 0 17,963 $ 2,199 625 20,787 $ 20,882 $ 1,033 1,033 Compensation Expense 48,534 5,549 66,659 120,742 121,775 O O Enterprise Warrant & Share Based Expenses $ 0 912 912 $ $ $ $ Three Months Ended September 30, 2022 Stock-Based $ $ 000 43,428 8,128 67,340 118,896 $ 119,808 $ O 0 0 147,516 147,516 147,516 Enterprise Warrant & Share Based Expenses $ 0 0 O 0 128,205 0 128,205 128,205 $ $ $ $ $ $ $ $ $ $ Other Costs Other Costs Notes: 1. Metrics are unaudited 2. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs O O O O O 5,203 0 $ 1,930 3,273 5,203 0 O O O O 0 ܘ ܘ ܩ ܩ 5 $ 5 $ $ $ $ $ $ $ 5 $ Non-GAAP 38,422 106,689 43,751 65,367 254,229 88,059 31,179 88,126 207,363 461,592 Non-GAAP 35,610 64,250 25,066 53,352 178,278 83,570 25,341 93,002 201,913 380,191 42#43GAAP to Non-GAAP Expense Reconciliations, H2'22 ($ 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 ($ 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 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 40,285 $ 72,691 19,417 47,393 179,786 $ 135,350 $ 168,693 157,531 461,574 $ 641,360 $ 46,853 66,294 15,824 43,371 172,342 $ 110,291 $ 156,214 142,466 408,971 $ 581,313 $ D&A D&A O 0 0 145 145 000 124 124 Compensation Expense $ 13,992 2,314 664 16,970 17,115 $ $ $ $ $ Three Months Ended June 30, 2022 Stock-Based $ $ 10,058 2,372 549 12,978 $ 13,102 $ 0 O 0 895 895 Compensation Expense Enterprise Warrant & Share Based Expenses $ 41,398 7,569 61,008 109,975 $ 110,870 $ $ $ Three Months Ended March 31, 2022 Stock-Based 0 O 0 650 650 $ $ 000 33,639 5,998 58,100 97,737 $ 98,387 $ O 0 0 119,517 Enterprise Warrant & Share Based Expenses $ 119,517 $ 119,517 $ 0 0 O O 119,039 0 119,039 $ 119,039 $ $ $ $ $ $ $ Other Costs Other Costs Notes: 1. Metrics are unaudited 2. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs OOO OO 00 $ O O O O O LA $ 25 $ tA 415 415 $ 415 $ $ $ O $ 0 25 25 $ $ Non-GAAP 40,285 72,691 19,417 46,353 178,746 79,960 39,293 95,444 214,697 393,443 Non-GAAP 46,853 66,294 15,824 42,597 171,568 66,594 28,805 83,792 179,192 350,760 43#44GAAP to Non-GAAP Expense Reconciliations, H1'22 ($ 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 ($ 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 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 65,265 $ 52,640 17,700 41,849 177,454 94,989 143,476 141,292 379,757 $ $ $ 557,211 $ 16,753 25,201 157,279 51,678 $ 63,647 $ 78,013 63,960 136,204 278,177 $ 435,456 $ $ D&A D&A O 0 O 108 108 9,012 2,377 467 11,856 11,964 000 227 227 Compensation Expense $ $ $ $ $ $ $ Three Months Ended December 31, 2021 Stock-Based 7,418 482 2,414 10,314 $ 10,541 $ $ 0 Compensation Expense 0 530 530 Enterprise Warrant & Share Based Expenses $ $ $ 21,427 4,633 61,947 88,007 $ 88,537 $ Three Months Ended September 30, 2021 Stock-Based O O 0 356 356 $ 000 20,067 $ 5,024 67,742 92,833 $ 93,189 $ O 0 0 87,673 0 87,673 87,673 Enterprise Warrant & Share Based Expenses $ 000 $ $ $ $ $ $ 0 0 $ $ O 17,039 0 17,039 17,039 $ $ Other Costs Other Costs Notes: 1. Metrics are unaudited 2. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs O O O O O 0 0 94 94 ooooo O 0 209 209 $ 209 LA $ 94 $ tA $ $ $ $ $ $ $ Non-GAAP 65,265 52,640 17,700 41,211 176,816 64,550 48,794 78,784 192,127 368,942 Non-GAAP 51,678 63,647 16,753 24,618 156,696 50,528 41,415 65,839 157,782 314,478 44#45GAAP 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 $ 14,665 21,368 97,024 62,054 $ (1,063) $ $ 104,806 58,184 179,999 342,989 $ 440,013 $ D&A D&A O 0 O 153 153 0 0 O 120 120 5,178 636 1,920 7,734 $ 7,887 $ 3,655 475 771 4,901 5,021 Compensation Expense $ $ $ $ $ $ Three Months Ended June 30, 2021 Stock-Based $ Compensation Expense $ 0 O 0 459 459 19,817 5,183 74,685 99,685 100,144 0 0 O Three Months Ended March 31, 2021 Stock-Based 1,446 1,446 Enterprise Warrant & Share Based Expenses $ $ $ 179,639 $ $ $ 52,058 $ 10,568 115,567 178,193 0 0 Enterprise Warrant & Share Based Expenses $ $ $ 000 $ O 16,853 0 16,853 $ 16,853 $ lo $ $ $ $ O $ 16,668 0 16,668 16,668 $ $ Other Costs Other Costs 0 $ bo olo 0 3,582 3,582 3,582 0 $ O 0 OOO LA 0 $ $ $ $ $ O $ 0 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 affirm) 2. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs 3 Metrics are unaudited 45#46GAAP to Non-GAAP Expense Reconciliations, H1'21 Three Months Ended December 31, 2020 Stock-Based ($ 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 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 67,768 $ 12,521 12,060 16,802 109,151 41,634 39,112 40,916 121,662 230,813 $ $ 207,272 $ $ 65,868 $ 28,931 10,352 13,498 118,649 $ 33,768 $ 22,582 32,273 88,623 $ $ D&A D&A O O O 85 85 OOONE 77 Compensation Expense 2,723 439 104 3,266 3,351 $ $ $ 3,720 $ $ $ 77 $ $ 3,124 406 113 3,643 $ Compensation Expense 0 O 0 287 287 $ Enterprise Warrant & Share Based Expenses $ 2,556 581 3,097 6,234 $ 6,521 $ $ $ 0 0 0 26 26 Three Months Ended September 30, 2020 Stock-Based 0 $ 2,213 $ 760 3,204 6,177 $ 6,203 $ 0 0 O 17,039 0 17,039 17,039 Enterprise Warrant & Share Based Expenses $ 000 lo $ $ $ $ $ $ $ 0 $ 14,261 0 14,261 14,261 $ $ Other Costs Other Costs 0 0 0 0 942 2,029 2,971 olo o o o 0 O $ $ 2,971 $ 1,191 $ $ $ $ $ 1,191 1,191 $ $ Non-GAAP 67,768 12,521 12,060 16,430 108,779 Non-GAAP 36,355 20,111 200,931 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. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs 3. Metrics are unaudited 35,686 92,152 65,868 28,931 10,352 13,395 118,546 28,431 7,155 27,765 63,351 181,897 46#47GAAP to Non-GAAP Expense Reconciliations FY'21 & FY'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 ($ 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) $ $ $ $ $ $ $ $ $ $ GAAP 204,081 $ 255,272 69,694 GAAP 157,814 686,861 418,643 532,343 577,493 1,528,479 2,215,340 $ $ $ 249,336 182,190 383,749 815,275 246,700 $ 65,878 52,700 73,578 438,856 1,254,131 $ $ $ $ $ D&A D&A O O O 604 604 O O 0 435 435 40,480 7,544 4,094 52,118 $ 14,680 1,956 2,908 19,544 Compensation Expense $ 52,722 $ 19,979 $ $ $ $ $ Twelve Months Ended June 30, 2022 Stock-Based $ Compensation Expense $ 0 0 0 2,431 2,431 116,531 23,224 248,797 388,552 $ 390,983 $ Enterprise Warrant & Share Based Expenses $ Twelve Months Ended June 30, 2021 Stock-Based 0 O 0 $ $ 2,218 2,218 $ $ 76,644 17,092 196,553 290,289 $ O O O OC Enterprise Warrant & Share Based Expenses $ 292,507 $ 343,268 0 $ 343,268 0 343,268 000 0 $ C tA $ $ $ $ $ 0 $ 64,821 0 64,821 64,821 $ $ Other Costs Other Costs Notes: 1. Metrics are unaudited 2. Other costs consists of expenses incurred in the period associated with the Company's initial public offering, its acquisitions, sublease impairment charges, restructuring and severance costs OOO OO 0 0 O $ $ ooooo $ LA 743 743 $ 743 $ $ $ $ O 942 19,755 20,697 20,697 $ $ Non-GAAP 204,081 255,272 69,694 154,779 683,826 261,631 158,307 323,859 743,797 1,427,623 Non-GAAP 246,700 65,878 52,700 70,925 436,203 158,012 97,379 164,533 419,924 856,127 47