#1FY Q2 2022 Earnings Supplement February 10, 2022 affírm) Say yes to a new look START SHOPPING DETERM SEWATERIN (செயமை கcைence) கிராச்சு:#2Safe Harbor Statement/Use of Non-GAAP Financial Measures Cautionary Note About Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including statements regarding: our strategy and future operations; our future financial position, gross market value, revenue, transaction costs, operating income, provision for credit losses, and cash flows; and general economic trends and trends in the industry and markets. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and assumptions include factors relating to: our need to attract additional merchants and consumers and retain and grow our relationships with existing merchants and consumers; our need to maintain a consistently high level of consumer satisfaction and trust in our brand; the concentration of a large percentage of our revenue with a single merchant partner; our ability to sustain our revenue growth rate or the growth rate of our related key operating metrics; the highly competitive nature of our industry; risks relating to our agreement with one of our originating bank partners; the risk that our existing funding arrangements may not be renewed or replaced or our existing funding sources may be unwilling or unable to provide funding to us on terms acceptable to us, or at all; our ability to effectively underwrite loans facilitated through our platform and accurately price credit risk; the performance of loans facilitated through our platform; risks associated with changes in market interest rates; risks relating to our securitizations, warehouse credit facilities and forward flow agreements; the impact on our business of general economic conditions, the financial performance of our merchants, and fluctuations in the U.S. consumer credit market; our ability to grow effectively through acquisitions or other strategic investments or alliances; risks associated with expanding our operations internationally; the potential impact of any cyber-attacks, misconduct, computer viruses, or physical or electronic break-ins that we might experience; risks associated with our business being subject to extensive regulation, examination, and oversight in a variety of areas; and other risks that are described in our most recent Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. These forward-looking statements reflect our views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and we assume no obligation and do not intend to update these forward-looking statements. Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Revenue less transaction costs, revenue less transaction costs as a percentage of GMV, adjusted operating loss and adjusted operating margin. We also present certain operating expenses on a non-GAAP basis, as well as those non-GAAP operating expenses as a percentage of GAAP total revenue. Definitions of each non-GAAP financial measure and reconciliations of each historical non-GAAP financial measure with the most directly comparable GAAP financial measure are included in this presentation. However, a reconciliation of adjusted operating loss to the comparable GAAP measure is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Our management uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our operating results and the effectiveness of our business strategy, and in evaluating our financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, and our use of these non-GAAP financial measures has limitations as an analytical tool. Accordingly, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP measures should be considered along with other operating and financial performance measures presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. 2#3Our Mission: Build honest financial products that improve lives. affírm) 9:41 Hello to your savings SAVINGSBALANCE $123.45 Withdraw Interest INTEREST EARNED YTD $0.00 Savings goals Add money ♦ Shop 1.80% +New savings goal ● Save Asum Shop Fondi Apple See all stores Welcome back, Avery Kim Shop any store Q Where you shopping? 9:41 FASHION t Nike The Hom ● She Manage X Profile HOVE O Toget TREA → C 3#4FY Q2 2022 Operating and Financial Highlights affírm) 4#5Second Quarter FY'22 Highlights ACTIVE CONSUMERS (M) GROSS MERCHANDISE VOLUME ($M) affirm $2,075 55% Growth FY Q2¹21 Notes: 1. $4,458 115% Growth FY Q2¹22 Metrics are unaudited 4.5 52% Growth 11.2 150% Growth FY Q2¹21 FY Q2'22 TRANS. PER ACTIVE CONSUMER 2.2 7% Growth FY Q2¹21 2.5 15% Growth FY Q2'22 REVENUE ($M) $204 57% Growth $361 77% Growth FY Q2'21 FY Q2'22 5#6FY Q2 2022 Business Highlights affírm) 6#7Gross Merchandise Volume Notes: 1. affirm 2 3. $1,342 $1,231 $1,203 $568 $612 $672 FY Q2'20 FY Q3'20 FY Q4'20 $1,476 $661 FY Q1'21 115% Growth $2,075 $541 $564 FY Q2'21 GMV ($M) $2,257 GMV defined as the total dollar amount of all transactions on the Affirm platform during the period, net of refunds Average Order Value (AOV) defined as GMV divided by the number of transactions conducted on the Affirm platform during the period Metrics are unaudited FY Q3'21 AOV ($) $2,484 $495 $2,713 $402 152% Ex-Peloton Growth $4,458 $365 FY Q4'21 FY Q1'22 FY Q2'22 7#8Power Transactions Across Diverse Channels POS VS. AFFIRM¹ TRANSACTIONS FY Q2 2022 Industry GMV Mix² FY Q2 2022 22% Affirm¹ 78% Point of Sale Interest-Bearing vs 0% APR GMV FY Q2 2022 44% 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 56% Interest-Bearing 7% 11% 13% 6% 6% 14% General Merchandise Sporting Goods and Outdoors Home / Lifestyle Equipment / Auto 23% 21% Fashion Beauty Electronics Travel / Ticketing Other 8#9Active Consumers affirm Notes: 1. 2. 3. 2,965 2.1 FY Q2'20 3,346 2.1 FY Q3'20 3,618 3,882 2.1 2.2 150% Growth Active Consumers (K) 4,493 2.2 5,364 2.3 7,121 2.3 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 8,692 FY Q1'22 Transactions per Active Consumer 11,231 2.5 FY Q2'22 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#10Quarterly Transactions affirm Notes: 1. 2.4 0.9 1.5 FY Q2'20 Metrics are unaudited 2.0 0.7 1.3 FY Q3'20 2.2 0.6 1.6 218% Growth 3.8 1.1 1.8 0.6 1.2 FY Q4'20 FY Q1'21 FY Q2'21 2.7 Repeat Customer Transactions (M) 4.0 1.1 2.9 5.0 1.3 3.7 6.7 1.9 4.9 FY Q3'21 FY Q4'21 FY Q1'22 First Time Customer Transactions (M) 12.2 3.0 9.2 FY Q2'22 10#11Active Merchants affirm Notes: 1. 2. 4.1 FY Q2'20 4.8 FY Q3'20 5.7 FY Q4'20 6.5 2030% Growth 7.9 11.5 FY Q1'21 FY Q2'21 FY Q3'21 Active Merchants (K) Active Merchant defined as a merchant which engages in at least one transaction on its platform during the 12 months prior to the measurement date Metrics are unaudited 29.0 102.2 FY Q4'21 FY Q1'22 64% QOQ Growth 168.0 FY Q2'22 11#12Revenue affirm Notes: 1. 2. $130 9.7% $138 11.2% $153 12.7% FY Q2'20 FY Q3'20 FY Q4'20 $174 11.8% FY Q1'21 77% Growth $204 9.8% FY Q2'21 Revenue ($M) $231 10.2% FY Q3'21 % of GMV $262 10.5% FY Q4'21 $269 9.9% FY Q1'22 $361 8.1% FY Q2'22 FY Q4'21 and FY Q3'21 Revenue figures include reductions to revenue of $2.3 million and $3.5 million, respectively, recorded in relation to the estimated financial impact of Peloton's voluntary recall of its Tread+ and Tread products Metrics are unaudited 12#13Merchant 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 Q2'20 FY Q3'20 Core 0% Long FY Q4'20 FY Q1'21 Core 0% Short FY Q2'21 FY Q3'21 Split Pay Core IB FY Q4'21 FY Q1'22 Non-Integrated Virtual Card FY Q2'22 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 or 3 month 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 13#14Interest Income and Loans Held for Investment Composition Interest Income Composition Composition of Average Loans Held for Investment ("LHFI") $45 $8 $37 affirm $52 $9 $43 Notes: 1. 2. $49 $10 $39 21% $54 $15 $39 27% $74 $22 $52 30% $95 $32 $63 33% $104 $32 $72 $117 $38 $79 31% 33% $138 $55 18% 18% FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 $83 40% Consumer & Other Interest Income ($M) Amortization of Discount ($M) Amortization of Discount as % of Total Interest Income $911 $246 $1,224 $1,001 $1,012 $306 $250 $314 31% 27% 25% $665 $751 $698 $1,651 $809 49% $2,042 $2,109 $2,134 $886 $875 $1,041 51% 42% 41% 41% 25% $918 $842 $1,001 $1,223 $1,259 $1,378 FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 Avg. Interest Bearing LHFI Balance Avg. 0% APR LHFI Balance 0% APR Balance % of Avg LHFI $2,335 $957 Amortization of discount is driven by either loan purchases from originating bank partners or the origination of a loan; Other interest income consists primarily of interest charged to consumers over the term of the consumers' loans based on the principal outstanding Metrics are unaudited FY Q2'22 14#15Transaction Costs Transaction Costs $93 6.9% FY Q2'20 affirm COVID Stress Applied to Allowance Notes: 1. 2. 3. 4. 5. COVID Stress Released from Allowance $148 4.9% FY Q3'20 $46 3.8% $119 8.0% $109 5.3% $97 $114 4.3% 4.6% FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 $157 5.8% FY Q1'22 $177 4.0% FY Q2'22 $62 $65 4.7% 5.3% Transaction Costs ex-Provision $78 6.5% $90 6.1% $97 $98 4.7% 4.3% $89 $94 3.6% 3.5% FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 $125 2.8% FY Q1'22 Transaction Costs ($M) % of GMV Transaction Costs ex-Provision ($M) % of GMV In March 2020, we updated loss assumptions in our allowance for credit losses to reflect expected stress emerging from forecasted delinquencies and defaults. This resulted in an increase of the allowance for credit losses as a percent of loans held for investment from 8.9% as of February 29, 2020, to 14.6% as of March 31, 2020. In the months subsequent to this, we saw stronger than expected repayment history in the portfolio resulting in a release of the allowance. These applications or releases of stress on the allowance impact the income statement via the provision for credit losses operating expense line. Transaction Costs include Loss on loan purchase commitment, Provision for credit losses, Funding costs and Processing and servicing Transaction Costs ex-Provision include Loss on loan purchase commitment, Funding costs and Processing and servicing FY 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 15#16Revenue Less Transaction Costs 2.8% $37 FY Q2'20 affirm Notes: 1. 2. 3. 4. 5. Revenue Less Transaction Costs (0.8)% $108 I 3.7% $55 $95 4.0% $134 $148 5.9% 5.9% $(9) FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 $112 4.1% FY Q1'22 Revenue Less Transaction Costs ($M) % of GMV 93% YoY $184 Revenue Less Transaction Costs ex-Provision FY Q2'22 5.0% 4.1% $67 5.9% 6.3% 57% $75 $84⁰ $73 II FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 $107 5.2% FY Q2'21 $133 5.9% FY Q3'21 $173 $176 7.0% 6.5% 120% YoY $236 Transaction Costs include Loss on loan purchase commitment, Provision for credit losses, Funding costs and Processing and servicing Transaction Costs ex-Provision include Loss on loan purchase commitment, Funding costs and Processing and servicing FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation. Metrics are unaudited 5.3% FY Q4'21 FY Q1'22 FY Q2'22 Revenue Less Transaction Costs ex-Provision ($M) % of GMV 16#17Non-GAAP Operating Expenses Technology & Data Analytics Sales and Marketing $26 $28 $28 $28 20% 20% affirm .8% Notes: 1. 2. $36 16% 18% $49 21% $44 17% $51 $65 FY FY FY FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 19% 18% Technology & Data Analytics ($M) % of Revenue $6 $6 $7 $20 $30 10% 13% $40 $41 15% 15% $49 $4 4% 3% FY FY FYO FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Sales and Marketing ($M) % of Revenue 14% General and Administrative $27 $28 $29 21% 20% 19% $28 $36 16% 18% $51 $50 || 22% 19% $66 $79 Non-GAAP operating expenses exclude (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) expenses related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs Metrics are unaudited 25%22% FY FY FY FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 General and Administrative ($M) % of Revenue 17#18GAAP and Adj. Operating Income / (Loss) $(33) $(82) (25)% GAAP Operating Income / (Loss) Notes: 1. 2. affirm) 3. 4. (59)% $39 76% $(33) $(27) $(209) $(114) $(166) $(196) [¹] (44)% (19)% (91)% FY FY FY FY FY FY Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 (13)% (62)% (54)% FY FY FY Q4'21 Q1'22 Q2¹22 Adjusted Operating Income / (Loss) $(22) (17)% $(71) FY Q2'20 (51)% $47 30% $(8) (5)% $3 2% $5 $14 2% FY FY FY FY FY Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 5% $(45) (17)% $(8) (2)% FY FY FY Q4'21 Q1'22 Q2'22 Operating Income / (Loss) ($M)- Operating Margin Adj. Operating Income / (Loss) ($M)- Adj. Op Margin Adjusted Operating Income calculated as GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) expenses related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020 FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense Metrics are unaudited 18#19Platform Portfolio and Funding Mix Notes: 1. 2. 3. affirm 4 5. $2,156 $1,136 10% $- $1,020 $2,351 $1,353 10% $- $998 $2,482 $1,428 $1,054 $2,893 $1,434 $540 $919 $3,673 $1,720 $882 $1,071 FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 FY Q2'21 On Balance Sheet (non-securitized) ($M) Off Balance Sheet (non-securitized) ($M) Equity Capital Req % Platform $4,180 $1,905 $1,294 5% $981 $4,660 $315 $2,275 $1,201 4% $869 $4,982 $269 $2,432 $1,630 3% $652 FY Q3'21 FY Q4'21 FY Q1'22 On Balance Sheet (securitized) ($M) Off Balance Sheet (securitized) ($M) $6,327 $488 $3,362 $1,616 4% $862 FY Q2'22 On Balance Sheet (Non-Securitized) includes Loans Pledged as Collateral in warehouse financing vehicles or held by Affirm and consolidated on Affirm's balance sheet On Balance Sheet (Securitized) includes Loans Pledged as Collateral in securitizations and consolidated on Affirm's balance sheet Off Balance Sheet includes Loans Held by Third Parties and not consolidated on Affirm's balance sheet Equity Capital Required is the sum of the balance of loans held for investment and loans held for sale, less the balance of funding debt and notes issued by securitization trusts as of the balance sheet date Metrics are unaudited 19#20Funding Capacity affirm Notes: 1. $2.5 86% $2.6 90% Metrics are unaudited $3.3 75% $4.2 69% FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 Funding Capacity ($B) $4.7 78% $5.8 $6.5 72% $7.3 72% FY Q2'21 FY Q3'21 FY Q4'21 Total Platform Portfolio % of Funding Capacity 68% FY Q1'22 $8.8 72% FY Q2'22 20#21Delinquency Performance affirm Notes: 1. 2. 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Jul US loans only Metrics are unaudited Delinquencies (DQ) of 30+ days as % of Active Balances Sep - 2019 2020 Dec 2021 2022 Mar Jun FY 2019 FY 2022 YTD FY 2020 FY 2021 21#22Loans Held for Investment by ITACS Score ($ in 000s) June 30, 2020 September 30, 2020 Amortized Cost Basis of Loans Held for Investment by ITACS Score $ 746,758 $ 1,123,357 96+ 94-96 90-94 <90 No score Total loan receivables 96+ 94-96 90-94 <90 No score 196,083 Total loan receivables 82,368 8,004 20,864 1,054,077 $ Percentage of Amortized Cost Basis of Loans Held for Investment by ITACS Score 71% 19 % 8% 1% 2% 239,007 100 % 58,028 8,017 31,010 1,459,419 $ 77 % 16 % 4 % 1 % December 31, 2020 2 % $ 100 % 1,459,271 357,629 74,199 25,517 36,994 1,953,610 75 % 18 % 4 % 1 % 2 % 100 % Quarter Ending $ March 31, 2021 1,562,547 391,934 109,868 29,444 100,141 71 % 18 % 5 % 1 % 108,916 2,193,934 $ 2,019,884 5 % $ 100 % June 30, 2021 1,338,059 407,539 138,991 26,379 66 % 20 % 7 % 1 % 5 % 100 % September 30, 2021 $ Notes: 1. Metrics are unaudited affirm 2. Table presents ITACS score distribution of the unpaid principal balance of loans held for investment 3. Balance for loans with "No score" represents loan receivables in experimental products or new markets without sufficient data currently available for use by the Affirm scoring methodology 1,402,266 $ 451,859 171,723 55,738 148,231 2,229,817 63 % 20 % 8 % 2 7 % % December 31, 2021 100 % 1,392,997 532,108 229,844 87,594 190,797 2,433,340 57 % 22 % 9 % 4 8 % % 100 % 22#23Q2'22 Loan Balance and Net Charge-offs by Loan Origination Year as of December 31, 2021 2022 Amortized Cost Basis by Fiscal Year of Origination Total $ Current period charge-offs Current period recoveries Current period net charge-offs affirm) Notes: 1. Metrics are unaudited 1,806,832 $ (13,276) 100 (13,176) 2021 552,142 (33,755) 1,999 (31,756) 2020 70,865 (496) 823 327 $ 2019 3,324 (35) 686 651 $ 2018 170 (11) 315 304 $ Prior 7 $ 223 223 Total 2,433,340 (47,573) 4,146 (43,427) 23#24Allowance and Loans Held for Investment affirm) Notes: 1. 2. $86 8.5 $145 14.6% $95 9.2% $123 $125 8.7% FY Q2'20 FY Q3'20 FY Q4'20 FY Q1'21 Allowance for Losses ($M) 6.6% $114 5.2% $118 5.8% FY Q2'21 FY Q3'21 FY Q4'21 $152 6.8% FY Q1'22 Allowance % of Loans Held for Investment $158 6.5% FY Q2'22 FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020. The adjustment increased the FY Q1'21 beginning Allowance by $10 million Metrics are unaudited 24#25Guidance affírm) 25#26FY Q3 2022 and FY 2022 Guidance Fiscal Q3 2022 $3.61 to $3.71 billion $325 to $335 million $187 to $192 million $138 to $143 million (21) to (19) percent 290 million affirm GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Loss as a Percentage of Revenue Weighted Average Shares Outstanding Fiscal Year 2022 $14.58 to $14.78 billion $1,290 to $1,310 million $705 to $715 million $585 to $595 million (14) to (12) percent 285 million Affirm's financial outlook for the fiscal third quarter and full year 2022 assumes the following: Now includes estimates of GMV, revenue, and transaction costs related to its partnership with Amazon The Company's outlook assumes no material impact to GMV, revenue, or transaction costs from the rollout of its Affirm Debit+ card Split Pay offerings, which include the Company's Shopify partnership, are expected to contribute 15-20% of the Company's fiscal year 2022 GMV, with the majority of this volume coming from the Shop Pay Installments program 26#27Financials affírm) 27#28Components of Interest Income ($ 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, 2019 39,747 8,323 (1,432) (1,565) 45,073 $ $ March 31 2020 46,444 $ 9,175 (1,701) (1,546) 52,372 $ June 30, 2020 42,195 $ 10,347 (1,921) (1,504) 49,117 $ September 30, 2020 40,188 14,770 (1,958) 1,237 54,237 Three Months Ended 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) December 31, 2021 (1,347) 117,302 $ 88,674 54,965 (2,995) (2,289) 138,355 28#29Fully Diluted Shares Outstanding (FY Q2'22) affirm . Common Shares Outstanding Plus: Balance of Options, Weighted Average Strike Price: $27.40 Plus: Vested Warrants, Weighted Average Strike Price: $21.81 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) 283 31 2 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, 2021 Balance of options and vested warrants outstanding as of December 31, 2021 and reduced by 12 million shares using treasury stock method with $74.68 closing stock price as of February 9, 2022 Vested warrants include penny warrants and warrants with $100 strike price (12) 13 318 29#30Reconciliations affírm) 30#31Income Income Statement Reconciliations ($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 Statement Reconciliations December 31, 2019 Plus: Depreciation and amortization Plus: Stock-based compensation expense $ Plus: Enterprise warrant and share-based expense Plus: Other costs* Adjusted Operating Income (Loss) $ $ $ 42,661 30,178 43,519 $ 82,216 8,167 8,204 Processing and servicing 11,652 92,658 $ Total Transaction Costs Technology and data analytics Sales and marketing 31,612 7,651 13,678 147,617 33,654 7,108 31,399 219,778 $ (81,505) $ 30,688 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 $ 162,609 $ (32,633) $ 129,976 $ 138,273 $ 153,332 $ 42,661 55,311 Less: Loss on loan purchase commitment Less: Provision for credit losses 30,178 (32,171) Less: Funding costs 8,167 7,817 11,652 37,318 30,178 $ March 31 2020 129,976 $ $ Revenue Less Transaction Costs ex-Provision $ Reconciliation from from Operating Income (Loss) to Adjusted Operating Income (Loss) Operating Income (Loss) $ $ $ 67,496 $ (32,633) $ 2,432 8,294 138,273 (21,907) $ June 30, 2020 43,519 82,216 8,204 $ $ 13,678 (9.344) $ 82,216 72,872 $ (81,505) $ 2,877 7,970 153,332 $ (70,658) $ 55,311 $ (32,171) 7,817 14,806 45,763 31,744 5,066 31,439 114,012 $ 39,320 $ 14,806 107,569 (32,171) 75,398 39,320 2,023 5,400 $ $ $ $ 46,743 $ September 30, 2020 Three Months Ended December 31, 2020 173,978 $ 65,868 $ 28,931 10,352 13,498 118,649 33,768 22,582 32,273 207,272 $ (33,294) $ 173,978 $ 65,868 28,931 10,352 $ 13,498 55,329 $ 28,931 84,260 $ (33,294) $ 3,720 6,203 affirm) 3. FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 4. Metrics are unaudited 14,261 1,191 (7,919) $ 204,041 $ 67,768 12,521 12,060 16,802 109,151 $ 41,634 39,112 40,916 230,813 $ (26,772) $ $ 204,041 $ 67,768 12,521 12,060 16,802 94,890 $ 12,521 107,411 $ Notes: 1. Other costs include adjustments for one-time IPO expenses, PayBright, Returnly, Kite and Shopbrain acquisition expenses and sublease impairment charge 2. FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020 (26,772) $ 3,351 6,521 17,039 2,971 3,110 $ March 31, 2021 230,665 $ June 30, 2021 62,054 $ (1,063) 51,010 $ 25,489 14,665 15,623 21,910 21,368 97,024 $ 114,032 $ 104,806 58,184 179,999 440,013 $ (209,348) $ 69,128 62,312 130,561 376,033 $ (114,253) $ 132,578 $ 261,780 $ 230,665 $ 62,054 (1,063) 261,780 51,010 25,489 14,665 15,623 21,368 21,910 133.641 $ 147.748 (1,063) 25,489 (209,348) $ 5,021 179,639 16,668 12,953 4,933 $ 173,237 $ (114,253) $ 7,887 100,144 16,853 3,582 14,213 $ September 30, 2021 269,385 $ 51,678 63,647 16,753 25,201 157,279 78,013 63,960 136,204 435,456 $ (166,071) $ $ 25,201 112,106 63,647 $ 269,385 $ 51,678 63,647 16,753 $ 175,753 $ (166,071) $ 10,541 93,189 17,039 209 (45,093) $ December 31, 2021 361,011 65,265 52,640 17,700 41,849 177,454 94,989 143,476 141,292 557,211 (196,200) 361,011 65,265 52,640 17,700 41,849 183,557 52,640 236,197 (196,200) 11,964 88,537 87,673 94 (7,932) 31#32GAAP to Non-GAAP Expense Reconciliations, H1'22 Three Months Ended December 31, 2021 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 Notes: 1. Metrics are unaudited $ $ $ $ $ $ $ $ $ $ GAAP GAAP 65,265 $ 52,640 17,700 41,849 177,454 94,989 143,476 141,292 379,757 $ $ 557,211 $ 78,013 63,960 136,204 278,177 $ 51,678 $ 63,647 16,753 25,201 157,279 435,456 $ $ $ $ D&A D&A O 0 O 108 108 9,012 2,377 467 11,856 11,964 O O O 227 227 Compensation Expense $ $ $ $ $ $ $ $ 7,418 482 2,414 10,314 $ 10,541 $ 0 Compensation Expense 0 530 530 Stock-Based 21,427 4,633 61,947 88,007 $ 88,537 $ Enterprise Warrant & Share Based Expenses $ $ $ Three Months Ended September 30, 2021 0 0 O 356 356 $ $ 000 Enterprise Warrant & Share Based Expenses $ 20,067 5,024 67,742 92,833 $ 93,189 $ O 0 0 87,673 0 87,673 87,673 O Oo oo $ 17,039 $ $ $ $ $ $ O $ 17,039 0 17,039 $ $ Other Costs Other Costs O O O O O O O 0 94 94 O O O O O $ LA 209 209 $ tA $ 94 $ $ $ $ 0 $ 0 $ 209 $ 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 32#33GAAP to Non-GAAP Expense Reconciliations, H2'21 ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses $ $ $ $ $ $ $ $ $ $ GAAP GAAP 51,010 25,489 15,623 21,910 114,032 $ $ 69,128 $ 62,312 130,561 262,001 $ 376,033 $ 62,054 $ (1,063) 14,665 21,368 97,024 $ 104,806 58,184 179,999 342,989 $ $ 440,013 $ D&A D&A O O O 153 153 5,178 636 1,920 7.734 7,887 O O O 120 120 Compensation Expense $ $ $ $ $ $ Three Months Ended June 30, 2021 Stock-Based $ 3,655 $ 475 771 4,901 $ 5,021 $ 0 0 O 459 459 Compensation Expense $ Enterprise Warrant & Share Based Expenses $ $ 19,817 5,183 74,685 99,685 $ 100,144 $ Three Months Ended March 31, 2021 Stock-Based 0 0 0 1,446 1,446 $ 52,058 $ 10,568 115,567 178,193 179,639 O O O Oc Enterprise Warrant & Share Based Expenses $ $ $ $ +A 0 $ 16,853 0 16,853 16,853 lo $ $ $ 0 $ 0 tA $ O $ 16,668 0 16,668 $ 16,668 $ Other Costs Other Costs O O O O O 0 $ O O OO O o o o o $ 3,582 3,582 3,582 $ 0 $ LA $ $ LA $ $ 12,953 12,953 $ 12,953 $ Non-GAAP 51,010 25,489 15,623 21,298 113,420 44,133 39,640 50,374 134,147 247,567 Non-GAAP 62,054 (1,063) 14,665 19,802 95,458 49,093 30,473 50,708 130,274 225,732 Notes: 1. FY Q3'21 and FY Q4'21 amounts include adjustments to amounts previously reported due to understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation 33 affirm 2 Metrics are unaudited#34GAAP to Non-GAAP ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses Non-GAAP Expense Reconciliations, H1'21 $ $ $ $ $ $ $ $ $ $ GAAP GAAP 67,768 $ 12,521 12,060 16,802 109,151 $ 41,634 $ 39,112 40,916 121,662 $ 230,813 $ 65,868 $ 28,931 10,352 13,498 118,649 $ 33,768 $ 22,582 32,273 88,623 $ 207,272 $ D&A D&A சு எ 0 0 0 85 85 O O 0 77 77 Compensation Expense $ $ 2,723 439 104 3,266 $ 3,351 $ $ Three Months Ended December 31, 2020 Stock-Based $ $ 3,124 $ 406 113 3,643 $ 3,720 $ 0 0 O Stock-Based 287 287 2,556 581 3,097 6,234 6,521 Compensation Expense Enterprise Warrant & Share Based Expenses $ 0 0 0 26 26 $ $ Three Months Ended September 30, 2020 $ $ $ $ O O O O O Enterprise Warrant & Share Based Expenses $ 2,213 760 3,204 6,177 $ 6,203 $ 0 $ 17,039 0 17,039 17,039 $ lo tA $ 14,261 $ 0 $ 0 $ tA $ 0 $ 14,261 0 14,261 $ $ Other Costs Other Costs 0 $ O O O O O 0 $ 942 2,029 2,971 $ 2,971 $ O O O OC $ 0 $ 0 LA $ $ LA 1,191 1,191 1,191 $ $ Non-GAAP 67,768 12,521 12,060 16,430 108,779 affirm) Notes: 1. FY Q1'21 and FY Q2'21 amounts include adjustments to amounts previously reported due to effects of adoption of accounting standards effective July 1, 2020; FY Q3'21 amounts include adjustments to amounts previously reported due to an adjustment to stock-based compensation expense 2. Metrics are unaudited Non-GAAP 36,355 20,111 35,686 92,152 200,931 65,868 28,931 10,352 13,395 118,546 28,431 7,155 27,765 63,351 181,897 34#35GAAP to Non-GAAP Expense Reconciliations, H2'20 ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses affirm) Notes: 1. Metrics are unaudited $ $ $ $ $ $ $ $ $ $ GAAP GAAP 55,311 $ (32,171) 7,817 14,806 45,763 $ 31,744 $ 5,066 31,439 68,249 $ 114,012 $ 43,519 $ 82,216 8,204 13,678 147,617 33,654 7,108 31,399 72,161 219,778 $ $ $ $ D&A D&A O oc 40 40 1,702 237 44 1,983 2,023 O O O 87 87 2,188 503 99 2,790 2,877 Compensation Expense $ $ $ $ $ $ $ $ Three Months Ended June 30, 2020 Stock-Based LA Compensation Expense $ $ 0 0 O 28 28 1,988 868 2,496 5,352 Enterprise Warrant & Share Based Expenses $ $ 5,380 $ 0 0 0 27 27 $ Three Months Ended March 31, 2020 Stock-Based 3,360 918 3,665 7,943 7,970 $ Enterprise Warrant & Share Based Expenses $ $ $ O O O O O $ $ Oo oo 000 To oooo $ tA $ $ $ $ $ LA $ $ $ Other Costs Other Costs O O O O O 0 $ O O O O 0 O O O O c ܘ ܘ ܘ ܘ $ $ LA $ $ $ LA $ $ $ Non-GAAP 55,311 (32,171) 7,817 14,738 45,695 28,054 3,961 28,899 60,914 106,609 Non-GAAP 43,519 82,216 8,204 13,564 147,503 28,106 5,687 27,635 61,428 208,931 35#36GAAP to Non-GAAP ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses ($ in 000s) Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs Technology and data analytics Sales and marketing General and administrative Other Operating Expenses Total Operating Expenses affirm) Notes: 1. Metrics are unaudited $ $ $ $ $ $ $ $ $ $ GAAP GAAP 42,661 30,178 8,167 11,652 92,658 $ 31,612 $ 7,651 30,688 69,951 $ $ 162,609 $ 25,368 5,219 27,704 58,291 19,961 $ 24,844 8,128 9,695 62,628 $ $ $ 120,919 $ Expense Reconciliations, H1'20 D&A D&A O 0 O 82 82 1,808 457 85 2,350 O O 0 60 60 1,601 388 62 2,051 Compensation Expense $ $ $ 2,432 $ $ $ $ $ Three Months Ended December 31, 2019 Stock-Based $ 2,111 $ OOONN Stock-Based Compensation Expense 32 32 Enterprise Warrant & Share Based Expenses $ 3,610 963 3,689 8,262 $ 8,294 $ Three Months Ended September 30, 2019 $ $ 3,327 1,291 3,812 8,430 8,425 0 0 0 (5) (5) $ $ Enterprise Warrant & Share Based Expenses $ O O O O O $ $ Oo oo O O O lo oooo $ tA $ $ $ $ $ LA $ $ $ Other Costs Other Costs O O O O O 0 $ O O O O 0 O O O O c ܘ ܘ ܘ ܘ $ $ LA $ $ $ LA $ $ $ Non-GAAP 42,661 30,178 8,167 11,538 92,544 Non-GAAP 26,194 6,231 26,914 59,339 151,883 19,961 24,844 8,128 9,640 62,573 20,440 3,540 23,830 47,810 110,383 36