#1FY Q4 2021 Earnings Supplement Corrected on September 21, 2021 September 9, 2021 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 Quarterly Report on Form 10-Q for our fiscal quarter ended March 31, 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, 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. 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 $0.00 Savings goals Add money ♦ Shop 1.80% +New savings goal ● Save Asum Shop Fondi Apple See all stores Welcome back, Avery Kim Shop any store Q Where you shopping? 9:41 FASHION t Nike The Hom ● She Manage X Profile HOVE O Toget TREA → C 3#4FY Q4 2021 Operating and Financial Highlights affírm) 4#5Fourth Quarter 2021 Highlights GROSS MERCHANDISE VOLUME ($M) ACTIVE CONSUMERS (M) affirm $1,203 54% Growth FY Q4'20 Notes: 1. $2,484 106% Growth FY Q4'21 Metrics are unaudited 3.6 77% Growth 7.1 97% Growth FY Q4'20 FY Q4'21 TRANS. PER ACTIVE CONSUMER 2.1 5% Growth 2.3 8% Growth FY Q4'20 FY Q4'21 REVENUE ($M) $153 120% Growth $262 71% Growth FY Q4'20 FY Q4'21 5#6FY Q4 2021 Business Highlights affírm) 6#7Gross Merchandise Volume Notes: 1. affirm 2 3. $861 $594 FY Q1'20 $1,342 $568 FY Q2'20 $1,231 $1,203 $612 106% Growth FY Q3'20 $672 FY Q4'20 GMV ($M) 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 I $1,476 $661 FY Q1'21 FY Q2'21 AOV ($) $2,257 $2,075 II $541 $564 FY Q3'21 178% Ex-Peloton Growth $2,484 $495 FY Q4'21 7#8Power Transactions Across Diverse Channels POS VS. AFFIRM¹ TRANSACTIONS FY Q4 2021 29% Affirm¹ 71% Point of Sale Interest-Bearing vs 0% APR GMV FY Q4 2021 38% 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 62% Interest-Bearing 11% Industry GMV Mix² FY Q4 2021 9% 14% 10% Fashion Beauty Sporting Goods and Outdoors Equipment / Auto Other 18% 20% 18% Home / Lifestyle Travel / Ticketing Electronics 8#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 97% Growth 3,618 2.1 FY Q3'20 FY Q4'20 Active Consumers (K) 3,882 2.2 4,493 2.2 5,364 2.3 FY Q1'21 FY Q2'21 FY Q3'21 Transactions per Active Consumer 7,121 2.3 FY Q4'21 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. 3.1 June 30, 2019 5.7 84% Growth June 30, 2020 Active Merchants (K) Active Merchant defined as a merchant which engages in at least one transaction on Affirm's platform during the 12 months prior to the measurement date Metrics are unaudited 29.0 412% Growth June 30, 2021 10#11Revenue affirm Notes: 1. 2. $88 10.2% FY Q1'20 $130 9.7% $138 11.2% FY Q2'20 FY Q3'20 71% Growth $153 12.7% FY Q4'20 Revenue ($M) $174 11.8% FY Q1'21 $204 % of GMV 9.8% FY Q2'21 $231 10.2% FY Q3'21 $262 10.5% FY Q4'21 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#12Network Revenue Take Rate Consolidated Network Revenue Take Rate and Illustrative Network Revenue Take Rate by Financial Product affirm) FY Q1'20 4.6% Notes: 1. 2. 3. _5.6% FY Q2'20 6.0% FY Q3'20 7.3% Core 0% Short FY Q4'20 6.7% Core IB FY Q1'21 5.3% FY Q2'21 5.0% FY Q3'21 -4,3% Core 0% Long - - Split Pay Non-Integrated Virtual Card Total network revenue take rate calculated as network revenue, which combines merchant network revenue and virtual card network revenue from our consolidated income statement, divided by consolidated GMV; network revenue for all other products estimated as sum of gross merchant fees, transaction fees and virtual card network fees divided by product level GMV 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; 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 FY Q4'21 Total 12#13Transaction Costs $63 7.3% FY Q1'20 affirm Notes: 1. 2. 3. 4. 5. $93 6.9% FY Q2'20 Transaction Costs COVID Stress Applied to, Allowance $148 COVID Stress 12.0 Released from Allowance $46 3.8% $119 8.0% FY FY FY Q3'20 Q4'20 Q1'21 $109 5.3% FY Q2'21 $97 4.3% $114 4.6% FY FY Q3'21 Q4'21 $38 4.4% 4.7% FY Q1'20 Transaction Costs ex-Provision $62 $65 5.3% $78 6.5% $90 6.1% $97 $98 4.7% 4.4% FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 $89 3.6% FY Q4'21 Transaction Costs ($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 s 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 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 Metrics are unaudited 13#14Revenue Less Transaction Costs $37 $25 2.9% 2.8% FY Q1'20 affirm) Notes: 1. 2. 3 Revenue Less Transaction Costs 4. (0.8)% $(9) FY FY Q2'20 Q3'20 $108 8.9% $55 $95 3.7% 4.6% FY FY FY Q4'20 Q1'21 Q2'21 $133 $5.9% FY Q3'21 $148 % of GMV 5.9% FY Q4'21 $50 Revenue Less Transaction Costs ex-Provision 5.8% FY Q1'20 $67 5.0% $73 5.9% 130% Growth $75 6.3% וווו illi $84 5.7% $107 5.2% ********* $173 $132 5.9% 7.0% FY FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Revenue Less Transaction Costs ($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 Metrics are unaudited Revenue Less Transaction Costs ex-Provision ($M) % of GMV 14#15Non-GAAP Operating Expenses Technology & Data Analytics Sales and Marketing $20 23% affirm) $26 Notes: 1. 2. $28 $28 $28 20% 20% 18% $36 16% 18% $49 21% $44 FY FY FY FY FY FY FY FY Q1'20Q2'2003'2004'20Q1'21Q2'21 Q3'21Q4'21 17% Technology & Data Analytics ($M) % of Revenue $4 $6 $6 FY $4 $7 $20 10% $30 13% $40 3% FY FY FY FY FY FY FY Q1'20Q2'2003'2004'20Q1'21Q2'21 Q3'21 Q4'21 Sales and Marketing ($M) % of Revenue 15% $24 General and Administrative $29 $27 $28 21% 20% 19% $28 $36 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 $50 22% 19% 16% 18% 1926 19% FY FY FY FY FY FY FY FY Q1'20Q2'2003'2004'2001'21Q2'21 Q3'21Q4'21 General and Administrative ($M) % of Revenue 15#16GAAP and Adj. Operating Income / (Loss) $(33) (37)% FY Q1'20 Notes: 1. 2. affirm) 3. 4. GAAP Operating Income / (Loss) $(33) (25)% $(82) (59)% $39 26% $(33) (19)% FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 $(27) (13)% $(194) (84)% I $(125) FY FY FY Q2'21 Q3'21 Q4'21 $(22) (26)% Adjusted Operating Income / (Loss) $(22) (17)% $(71) (51)% $47 30% 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 Metrics are unaudited $(8) (5)% $3 2% $5 2% $14 5% FY FY FY FY FY FY FY FY Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Operating Income / (Loss) ($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 16#17Platform Portfolio and Funding Mix Notes: 1. 2. 3. affirm 4 5. $1,605 $794 $811 FY Q1'20 $2,156 $1,136 10% $1,020 $2,351 $1,353 10% $998 $2,482 $1,428 9% $1,054 FY Q2'20 FY Q3'20 FY Q4'20 On Balance Sheet (non-securitized) ($M) Off Balance Sheet (non-securitized) ($M) Equity Capital Req % Platform $2,893 $1,434 $540 070 $919 $3,673 $1,720 $882 8% $1,073 $4,180 $1,905 $1,294 5% $981 FY Q1'21 FY Q2'21 FY Q3'21 On Balance Sheet (securitized) ($M) Off Balance Sheet (securitized) ($M) $4,660 $315 $2,275 $1,201 4% $869 FY Q4'21 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% $4.2 $4.7 78% $5.8 72% 69% FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 Funding Capacity ($B) Total Platform Portfolio % of Funding Capacity $6.5 72% FY Q4'21 18#19Allowance and Loans Held for Investment affirm) Notes: 1. 2. $76 9.4% FY Q1'20 $86 8.5% $145 14.6% FY Q2'20 FY Q3'20 $95 9.2% FY Q4'20 Allowance for Losses ($M) $123 8.7% $125 6.6% FY Q1'21 FY Q2'21 $114 5.2% FY Q3'21 Allowance % of Loans Held for Investment $118 5.8% FY Q4'21 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 19#20Non-GAAP Free Cash Flow September 30, 2019 December 31, 2019 (30,795) $ (30,996) 24,844 30,178 (15,090) (20,153) (6,303) (6,891) 8,425 8,369 2,112 2,432 ($ in 000s) 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 assets Changes in fair value of assets and liabilities Other net loss reconciliations from cash flow from operations Change in operating assets and liabilities Change in restricted cash Adjusted Cash Flow from Operations Additions to property equipment and software Free Cash Flow Loans purchases and originations Loan sale balances sold Debt financing, net Principal repayment of loans Net charge-offs Cash Flow from Loan Financing and Repayment Free Cash Flow After Loan Financing and Repayment Plus: Change in restricted cash Plus: Proceeds from initial public offering, net Plus: Other investing cash inflows Less: Other investing cash outflows Less: Acquisition funds, net Less: Acquisition of commercial agreement assets Less: Proceeds from issuance of convertible debt, net Less: Proceeds, repurchases and issuance of preferred and common stock Less: Payments of tax withholding for stock-based compensation Plus: Exchange rate effects on cash, cash equivalents and restricted cash Net Increase (Decrease) in Cash and Restricted Cash, GAAP Cash and restricted cash, beginning of period Cash and Restricted Cash, end of period $ $ $ $ $ $ $ $ $ (741) 723 (736) (4,564) (22,125) (5,411) (27,536) $ (901,793) $ 385,513 47,308 437,642 $ 15,090 (16,240) $ (43,776) $ 4,564 15,361 $ (23,851) $ 357,771 333,920 $ $ 1,643 620 5,623 (36,604) (45,779) $ (8,091) (53,870) $ (1,522,868) $ 793,202 181,495 505,844 20,153 (22,174) $ (76,044) $ 36,604 (39,704) (79,144) $ 333,920 254,776 $ March 31 2020 (85,620) 82,216 (19,887) (7,474) 7,795 2,877 (1,608) (262) $ 31,226 14,006 23,269 (5,202) 18,067 $ (1,244,575) $ 588,426 (30,599) 664,401 154 $ 19,887 (2,460) $ 15,607 $ (14,006) 1,755 254,776 256,531 $ $ Three Months Ended June 30, 2020 34,813 (32,171) (17,533) (6,937) 5,036 2,023 September 30, 2020 (3,946) 28,931 (11,320) $ 3,553 1,313 (5,137) 3,416 (11,624) $ (2,315) (13,939) $ (1,262,567) $ 526,323 44,759 686,946 75,000 958 17,533 12,994 $ (945) $ (3,416) $ $ 71,597 256,531 328,128 $ (11,123) 6,203 3,720 14,261 (30,202) 1,691 12,547 (40,382) (29,620) $ (4,169) (33,789) $ (1,524,647) $ 397,541 382,220 749,128 IIII December 31, 2020 $ 11,320 15,562 $ (18,227) $ 40,382 435,591 Corrected on September 21, 2021 457,746 $ 328,128 785,874 $ (26,610) $ 12,521 (9,116) (20,330) 6,521 3,351 17,039 (366) 3,193 (4,124) (14,598) (32,519) $ (2,894) (35,413) $ (2,201,056) $ 778,098 425,935 951,681 9,116 (36,226) $ (71,639) $ 14,598 (113,628) 21,585 $ (149,084) $ 785,874 636,790 $ March 31, 2021 (272,140) $ (1,063) (10,245) (29,252) 164,728 5,021 18,797 75,878 16,954 (81,192) (67,281) (179,795) (5,351) (185,146) $ (2,228,803) $ 724,766 290,511 1,301,542 10,245 98,261 $ (86,885) $ 67,281 1,305,301 337 (22,000) 8,852 $ 20,382 (127,566) 4,510 $ 1,170,212 $ 636,790 1,807,002 $ June 30, 2021 (128,227) 25,489 (20,559) (29,666) 110,581 7,887 19,006 6,345 1,251 19,021 (42,744) (31,616) (7,838) (39,454) (2,583,480) 1,428,515 (148,503) 1,322,267 20,559 39,358 Notes: 1. The impact of net charge-offs for the quarter ended June 30, 2021 was corrected on September 21, 2021 2. Loan purchases & origination includes Purchases of loans held for sale and Purchases and originations of loans from Cash Flow Statement 3. Loan sale balances sold includes (Gain) loss on sales of loans, Proceeds from sale of loans held for sale and Proceeds from the sale of loans from Cash Flow Statement 4. 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 5. 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 6. Metrics are unaudited affirm (96) 42,744 (125) 1,116 (10,178) (117,657) 3,213 (30,714) (2,673) (114,370) 1,807,002 1,692,632 20#21Guidance affírm) 21#22FY Q1 2022 and FY 2022 Guidance Fiscal Q1 2022 $2.42 to $2.52 billion $240 to $250 million $145 to $150 million $95 to $100 million $(68) to $(63) million 275 million affirm) GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Loss Weighted Average Shares Outstanding Fiscal Year 2022 $12.45 to $12.75 billion $1,160 to $1,190 million $605 to $620 million $555 to $570 million $(145) to $(135) million 290 million Affirm's financial outlook for GMV and Revenue assumes the following: The Company has not included estimates of potential contributions to GMV or revenue from the recently announced partnership with Amazon, which is currently being tested with select customers. The Company plans to provide additional detail on the financial impact of the partnership in subsequent quarters The Company has also not included any potential GMV or Revenue contributions from its forthcoming rollout of Affirm Debit+ and plans to update its outlook as the offering is more widely available The Company expects a moderation in GMV and revenue from Peloton in fiscal year 2022 Split Pay offerings, which include the Company's Shopify partnership, are expected to contribute 10-15% of the Company's fiscal year 2022 GMV, with the majority of this volume coming from the Shop Pay Installments program 22#23Financials affírm) 23