Affirm Results Presentation Deck

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#1FY Q1 2023 Earnings Supplement November 8, 2022 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 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, 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; 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 Q1 2023 Operating & Financial Highlights affirm#5First Quarter FY'23 Highlights GROSS MERCHANDISE VOLUME ($M) $2,713 affirm) 84% Growth FY Q1'22 FY Q1'23 $4,389 62% Growth Notes: 1. Metrics are unaudited ACTIVE CONSUMERS (M) 8.7 124% Growth 14.7 69% Growth FY Q1'22 FY Q1'23 TRANS. PER ACTIVE CONSUMER 2.3 8% Growth FY Q1'22 3.3 39% Growth FY Q1'23 REVENUE ($M) $269 55% Growth FY Q1'22 $362 34% Growth FY Q1'23 5#6FY Q1 2023 Business Highlights affirm#7Gross Merchandise Volume Notes: 1. affirm 2 3. $1,476 $661 FY Q1'21 $2,075 $541 $2,257 $564 FY Q2'21 FY Q3'21 $2,484 I $495 62% Growth $2,713 $402 FY Q4'21 FY Q1'22 GMV ($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 $4,458 $365 FY Q2'22 AOV ($) -$3,916- $374 FY Q3'22 $4,396 $368 73% Ex-Peloton Growth $4,389 $331 FY Q4'22 FY Q1'23 7#8Power Transactions Across Diverse Channels POS vs. Affirm¹ Transactions FY Q1 2023 22% Affirm¹ 78% Point of Sale 2,3 Affirm Product Composition ², FY Q1 2023 18% Pay in 4 (Bi-Weekly 0% APR) 19% Core 0% APR 64% Interest-Bearing Notes: 1. Based on transactions initiated by Affirm through mobile app and website channels 2. Beginning this quarter, Affirm has 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 Q4 2022 GMV was 17% Pay in 4 and Fiscal Q1 2022 GMV was 15% Pay in 4 under the new definition. 4. Metrics are unaudited 8#9Partnerships Across Wide Range of Categories Category Volume Growth Q1 Year over Year % Change affirm FY Q1'23 Industry Gross Merchandise Volume Mix General Merchandise Fashion / Beauty Travel / Ticketing Home / Lifestyle Electronics Equipment / Auto Sporting Goods and Outdoors Other 7% 6% 7% 12% 11% 10% Notes: 1. Metrics are unaudited 2. Excludes volume from transactions facilitated through Affirm virtual card at non-integrated merchants 19% 29% +508% +36% +90% +15% +32% +15% (42)% +115% 9#10Active Consumers affirm Notes: 1. 2. 3. 3,882 FY Q1'21 4,493 2.2 FY Q2'21 5,364 2.3 7,121 2.3 69% Growth Active Consumers (K) 8,692 11,231 12,733 13,980 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 3.0 Transactions per Active Consumer 39% Transactions per Active Consumer Growth 14,722 3.3 FY Q1'23 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. 2.2 0.6 1.6 FY Q1'21 Metrics are unaudited 3.8 1.1 2.7 4.0 1.1 2.9 5.0 1.3 3.7 97% Growth 6.7 Repeat Customer Transactions (M) 1.9 4.9 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 12.2 3.0 9.2 10.5 2.0 8.5 12.0 1.9 10.1 FY Q2'22 FY Q3'22 FY Q4'22 First Time Customer Transactions (M) 85% Repeat Customers 13.3 1.9 11.3 FY Q1'23 11#12Active Merchants affirm Notes: 1. 2. 6.5 FY Q1'21 7.9 11.5 29.0 140% Growth 102.2 168.0 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 Active Merchants (K) Active Merchant defined as a merchant which engages in at least one transaction on our platform during the 12 months prior to the measurement date Metrics are unaudited 207.0 234.8 FY Q3'22 FY Q4'22 244.9 FY Q1'23 12#13Revenue affirm) Notes: 1. $174 11.8% FY Q1'21 Metrics are unaudited $204 9.8% $231 34% Growth $262 $269 10.2% $10.5% 9.9% FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 Revenue ($M) -$361- 8.1% FY Q2'22 % of GMV $355 9.1% FY Q3'22 $364.... 8.3% FY Q4'22 $362 8.2% FY Q1'23 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 Q1'21 FY Q2'21 Core 0% Long FY Q3'21 FY Q4'21 Core 0% Short FY Q1'22 Core IB - FY Q2'22 - Pay in 4 FY Q3'22 FY Q4'22 Non-Integrated Virtual Card FY Q1'23 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") $54 $15 $39 27% FY Q1'21 affirm $74 $22 2. 3. $51 30% FY Q2'21 Notes: 1. $95 $32 $63 33% $117 $104 $38 $32 $72 31% $79 33% $138 $55 $83 40% $135 $45 $89 34% $138 $137 $46 $39 $91 34% $98 Consumer & Other Interest Income ($M) Amortization of Discount ($M) Amortization of Discount as % of Total Interest Income 28% FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 FY Q3'22 FY Q4'22 FY Q1'23 $1,224 $306 $918 25% $1,651 $809 49% $842 $2,042 $2,109 $2,134 $1,041 $886 $875 51% $1,001 FY Q1'21 FY Q2'21 FY Q3'21 42% 41% $1,223 $1,259 FY Q4'21 FY Q1'22 $2,335 $957 $2,464 $2,465 $961 $887 41% $1,378 $1.59.3 FY Q2'22 FY Q3'22 Avg. Interest Bearing LHFI Balance Avg. 0% APR LHFI Balance 0% APR Balance % of Avg LHFI $1,577 36% $2,593 $959 $1,633 37% FY Q4'22 FY Q1'23 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 $119 8.0% affirm $109 Notes: 1. 2. 3. 4. 5.3% $97 4.3% $114 4.6% $157 5.8% FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 $177 Transaction Costs ($M) 4.0% $172 4.4% FY Q3'22 % of GMV $180 $179 4.1% 4.1% FY Q4'22 FY Q1'23 $90 6.1% $97 4.7% FY Q1'21 FY Q2'21 Transaction Costs ex-Provision $98 4.3% FY Q3'21 $89 $94 3.6% 3.5% $125 2.8% 2.7% FY Q4'21 FY Q1'22 FY Q2'22 $106 $107 Transaction Costs ex-Provision ($M) FY Q3'22 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 2.4% 2.6% FY Q4'22 FY Q1'23 % of GMV 16#17Revenue Less Transaction Costs $55 affirm 3.7% FY Q1'21 Notes: 1. 2. 3. 4. 5. Revenue Less Transaction Costs $95 4.6% FY Q2'21 $134 $148 5.9% 5.9% $112 4.1% $184 $182 4.1% FY Q3'21 FY Q4'21 FY Q1'22 FY Q2'22 4.7% $184 $182 4.2% 63% YoY % of GMV 4.2% FY Q3'22 FY Q4'22 FY Q1'23 $84 5.7% FY Q1'21 Revenue Less Transaction Costs ex-Provision $107 5.2% $133 5.9% $173 $176 7.0% FY Q2'21 FY Q3'21 FY Q4'21 6.5% $236 5.3% FY Q1'22 FY Q2'22 Revenue Less Transaction Costs ex-Provision ($M) $249 6.4% FY Q3'22 $257 5.8% FY Q4'22 Revenue Less Transaction Costs ($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 40% YOY $247 5.6% FY Q1'23 17#18Non-GAAP Operating Expenses Technology & Data Analytics Sales and Marketing $28 16% affirm) $36 18% 2. Notes: 1. $49 21% $44 17% $51 19% $65 $67 18% 19% $80 22% FY FY FY FY FY FY FY FY FY Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 $84 Technology & Data Analytics ($M) % of Revenue 23% $20 $7 10% $30 13% FY FY FY Q1'21 Q2'21 Q3'21 $40 $41 15% 15% $49 14% $29 8% $39 11% FY FY FY FY FY Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Sales and Marketing ($M) % of Revenue $25 7% FY Q1'23 $28 16% FY Q1'21 General and Administrative $36 17% $51 $50 22% 19% $66 24% $79 22% $84 24% $95 $93 26% 26% FY FY FY FY FY FY FY FY Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 General and Administrative ($M) % of Revenue 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 18#19GAAP and Adj. Operating Income / (Loss) $(33) (19)% $(27) (13)% Notes: 1. 2. affirm) 3. 4. GAAP Operating Income / (Loss) $(209) (91)% $(114) (44)% $(166) FY FY FY FY FY FY Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 (54)% (62)% $(196) (64)% $(227) (76)% $(277) FY FY Q3'22 Q4'22 (79)% $(287) FY Q1'23 $(8) (5)% Adjusted Operating Income / (Loss) $3 2% $5 2% $14 5% $(45) (17)% $(8) (2)% FY FY FY FY FY FY Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 $4 1% $(29) (8)% FY FY Q3'22 Q4'22 Operating Income / (Loss) ($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 $(19) (5)% FY Q1'23 19#20Platform Portfolio and Funding Mix Notes: 1. 2. 3. affirm 4 5. $2,893 $1,434 $540 8% $919 FY Q1'21 $3,673 $1,720 $882 8% $1,071 FY Q2'21 $4,180 $1,905 $1,294 5% $981 $4,660 $315 $2,275 $1,201 470 $869 $4,982 $269 $2,432 $1,630 3% $652 FY Q3'21 FY Q4'21 FY Q1'22 On Balance Sheet (non-securitized) ($M) Off Balance Sheet (non-securitized) ($M) Equity Capital Req % Platform $6,327 $488 $3,362 $1,616 4% $862 $6,679 $767 $3,381 $1,433 2% $1.099 $7,147 On Balance Sheet (securitized) ($M) Off Balance Sheet (securitized) ($M) $1,016 $3,610 $1,661 <-70 $860 FY Q2'22 FY Q3'22 FY Q4'22 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 $7,342 $818 $3,810 $1,684 2% $1,030 FY Q1'23 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 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 19 16 FY Q1'21 Notes: 1. 2. 3. 18 15 FY Q2'21 17 16 FY Q3'21 16 12 FY Q4'21 Total Platform Portfolio 15 11 FY Q1'22 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 Q2'22 14 On Balance Sheet Platform Portfolio 9 FY Q3'22 13 8 FY Q4'22 13 9 FY Q1'23 21#22Funding Capacity affirm Notes: 1. $4.2 69% $4.7 Metrics are unaudited 78% $5.8 72% $6.5 72% FY Q1'21 FY Q2'21 FY Q3'21 FY Q4'21 Funding Capacity ($B) $7.3 68% $8.8 72% $9.0 74% FY Q1'22 FY Q2'22 FY Q3'22 $10.6 67% FY Q4'22 Total Platform Portfolio % of Funding Capacity $11.1 66% FY Q1'23 22#23Delinquency Performance: Monthly DQ30+ 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 Loans Sep FY 2023 2018 2021 Data as of October 2022 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 2019 Dec -2020 2022 Mar 2023 FY 2018 FY 2022 FY 2019 Jun FY 2020 FY 2021 23#24Delinquency Performance: Monthly DQ30+ ex-Peloton affirm) Notes: 1. 2. 3. 4.0% 3.0% 2.0% 1.0% -% Delinquencies (DQ) of 30+ days as % of Active Balances Excluding Pay in 4 and Peloton Loans Jul Sep FY 2023 Dec Mar 2018 2019 -2020 - 2021 2022 Data as of October 2022 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 2023 FY 2018 FY 2019 FY 2022 Jun 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% 2.2% 1.4% 1.2% 0.4% 0.9% 1.0% 0.7% 0.6% 0.2% 0.4% 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% 2.2% 1.8% 1.7% 0.7% 1.2% 1.0% 0.9% 0.8% 0.3% 0.6% 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 ($ in 000s) September 30, December 31, 2020 2020 Amortized Cost Basis of Loans Held for Investment by ITACS Score $ 1,123,357 $ 1,459,271 357,629 74,199 25,517 36,994 96+ 94-96 90-94 <90 No score 96+ 94-96 90-94 <90 239,007 58,028 No score 8,017 Total loan receivables 31,010 Percentage of Amortized Cost Basis of Loans Held for Investment by ITACS Score 77 % 16 % Total loan receivables $ 1,459,419 $ 1,953,610 $ 2,193,934 $ 2,019,884 4 % 1 % 2 % 100 % 75 % 18 % 4 % 1 % March 31, 2021 June 30, 2021 2 % $ 1,562,547 100 % 391,934 109,868 29,444 100,141 71 % 18 % 5 % 1 % $1,338,059 5 % 100 % 407,539 138,991 26,379 108,916 66 % 20 % 7 % 1 % 5 % 100 % September 30, December 31, 2021 2021 $1,402,266 $ 1,392,997 451,859 171,723 55,738 148,231 $2,229,817 63 % 20 % 0⁰0 8 % 2 % 7 % 100 % 532,108 229,844 87,594 190,797 $2,433,340 57 % 22 % 9 do % 4 % 8 % 100 % March 31, 2022 $1,409,388 584,290 232,187 59,753 200,470 $ 2,486,088 57 % 24 % 9 % 2 00 8 de 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 % June 30, 2022 $ 1,374,223 632,431 223,952 44,437 210,491 $2,485,534 55 % 25 % 9 % 2 % 8 % 100 % September 30, 2022 $ 1,539,374 663,923 161,883 34,795 265,409 $ 2,665,384 58 % 25 % 6 % 1 10 % % 100 % 27#28Q1'23 Loan Balance and Net Charge-offs by Loan Origination Year as of September 30, 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 1,419,342 $ (251) 4 (247) 2022 1,094,957 $ (66,889) 3,590 (63,299) 2021 120,139 $ (3,709) 1,858 (1,851) 2020 30,501 $ (162) 650 488 2019 394 (16) 419 403 $ Prior 51 (9) 279 270 $ Total 2,665,384 (71,036) 6,800 (64,236) 28#29Allowance and Loans Held for Investment affirm) Notes: 1. 2. 8.7% $123 FY Q1'21 $125 6.6% FY Q2'21 $114 5.2% FY Q3'21 $118 5.8% FY Q4'21 Allowance for Losses ($M) $152 6.8% FY Q1'22 $158 6.5% FY Q2'22 $159 6.4% FY Q3'22 $155 6.2% FY Q4'22 Allowance % of Loans Held for Investment $153 5.7% FY Q1'23 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 29#30Change in Allowance Quarterly Change in Allowance $155 Allowance (June 2022) $62 Beginning of Period Allowance (+) Provision for Loan Losses (-) Charge-offs, Net End of Period Allowance affirm) Provision for Losses Notes: 1. 2. Loans Held for Investment Allowance % of Loans Held for Investment Dollars in millions. Metrics are unaudited $(64) Charge-offs, Net $ $153 $ Allowance September 2022 December 31, 2021 152 50 (43) 158 Last 12 Months Change in Allowance 2,426 6.5 % $ $ $ Allowance (September 2021) Quarter Ending March 31, 2022 $152 158 $ 62 (61) 159 2,503 6.4 % Last 12 Months Change in Allowance $ $ $242 Provision for Losses June 30, 2022 159 68 (72) 155 2,504 6.2 % $ $(241) September 30, 2022 155 $ $ Charge-offs, Net 62 (64) 153 2,682 5.7% $ 12 Months Ending September 30, 2022 152 $ ta $153 Allowance September 2022 242 (241) 153 2,682 5.7% 30#31Outlook affirm#32FY Q2 2023 and FY 2023 Guidance Fiscal Q2 2023 $5.73 to $5.83 billion $400 to $420 million $244 to $254 million $156 to $166 million (20) to (16) percent 294 million affirm GMV Revenue Transaction Costs Revenue Less Transaction Costs Adjusted Operating Margin Weighted Average Shares Outstanding Fiscal Year 2023 $20.50 to $21.50 billion $1,600 to $1,675 million $885 to $910 million $715 to $765 million (7.0) to (5.5) percent 298 million Affirm's financial outlook for the fiscal second quarter and full year 2023 assumes the following: Revenue and RLTC as a % of GMV will trough in Q2'23. We expect revenue to remain within our 6-8% long-term guidance range, but RLTC will temporarily dip below our 3-4% long-term guidance range, driven by a seasonal shift in product mix towards interest-bearing loans and higher utilization of our warehouse funding channel. These shifts result in revenue and RLTC being recognized longer time horizons. Macroeconomic stress and the current interest rate curve will persist through the remainder of the fiscal year. Equity Capital Required as a % of Total Platform Portfolio may increase to be slightly more than 5% over the remainder of this fiscal year. No material impact to GMV, revenue, or RLTC from the Debit+ card or other new product initiatives. 32#33Financials affirm)#34Components of Interest Income ($ 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 $ September 30, 2020 $ 40,188 $ 14,770 (1,958) 1,237 December 31, 2020 54,237 $ 54,243 $ 22,448 (2,118) (716) 73,857 $ March 31, 2021 65,921 31,625 (2,373) (643) 94,530 $ $ June 30, 2021 74,860 $ 32,235 (2,569) (733) September 30, 2021 103,793 $ 82,941 38,445 (2,737) (1,347) 117,302 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) (3,931) 136,802 34#35Fully Diluted Shares Outstanding (FY Q1'23) affirm Common Shares Outstanding Plus: Balance of Options, Weighted Average Strike Price: $15.66 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) 287 20 3 (20) 23 313 Derivation of Fully Diluted Shares Outstanding Estimate relies upon below inputs and assumptions: Common shares outstanding and restricted stock units are as of September 30, 2022 Balance of options and vested warrants outstanding as of September 30, 2022 and reduced by 20 million shares using treasury stock method with $15.63 closing stock price as of 11/7/2022 Vested warrants include penny warrants Excludes 12.5 million Value Creation Awards with $49.00 strike price and $100.00 strike price warrants 35#36Reconciliations affirm)#37Quarterly Revenue & Transaction Cost Detail December 31, 2020 2,075 ($ 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 $ affirm) 3. Metrics are unaudited $ $ $ $ $ $ September 30, 2020 1,476 93,265 5,958 99,223 54,237 16,434 4,084 173,978 65,868 28,931 10,352 13,498 118,649 100.0 % 6.3 % 0.4 % 6.7 % 3.7% 1.1% 0.3% 11.8% 4.5 % 2.0% 0.7% 0.9 % 8.0 % $ 3.7 % $ 55,329 $ $ $ $ $ 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 7,977 230,665 100.0 % 4.3 % 0.6 % 5.0 % 4.2 % 0.7% 0.4 % 10.2 % 62,054 $ (1,063) 14,665 21,368 97,024 $ 2.7% (0.0)% 0.6 % $ 133,641 $ 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 51,010 25,489 15,623 21.910 114,032 147,748 100.0 % 3.6 % 0.8 % 4.3 % 4.2 % 1.7 % 0.3% 10.5 % 2.1% 1.0 % 0.6 % 0.9 % 4.6 % 5.9 % Three Months Ended September 30, 2021 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 Revenue Less Transaction Costs 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 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 % $ $ $ $ $ $ $ December 31, 2021 4,458 127,087 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% $ $ $ $ $ $ $ March 31, 2022 3,916 121,054 23,169 144,223 134,599 52,484 23,456 354,762 46,853 66,294 15,824 43,371 172,342 182,420 100.0 % 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 4,396 118,126 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 % 40,285 $ 72,691 19,417 47,393 179,786 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 35,610 64,250 25,066 54,359 179,285 182,339 100.0 % 37 2.6 % 0.6 % 3.2 % 3.1% 1.4% 0.5 % 8.2 % 0.8 % 1.5 % 0.6 % 1.2 % 4.1% 4.2 %#38Annual 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 % 38#39Income Statement Reconciliations September 30, 2020 Income Statement Reconciliations ($K) Total Revenue Operating Expenses Loss on loan purchase commitment Provision for credit losses Funding costs Processing and servicing Total Transaction Costs 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) $ $ $ $ $ $ $ $ $ 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 December 31, 2020 14,261 1,191 (7,919) $ 204,041 March 31, 2021 $ 67,768 12,521 12,060 16,802 109,151 41,634 39,112 40,916 230,813 $ (26,772) $ 16,802 94,890 12,521 $ $ 204,041 $ 67,768 12,521 12,060 $ 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) $ 21,368 133,641 (1,063) June 30, 2021 $ 230,665 $ 62,054 (1,063) 14,665 $ 132,578 $ (209,348) $ 5,021 179,639 16,668 12,953 4,933 $ September 30, 2021 261,780 $ 51,010 25,489 15,623 21,910 114,032 69,128 62,312 130,561 376,033 $ (114,253) $ $ 21,910 147,748 25,489 $ 261,780 $ 51,010 25,489 15,623 $ 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) $ $ 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) $ Fiscal 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) $ 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 one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges 4. Metrics are unaudited March 31, 2022 $ 361,011 $ 65,265 52,640 17,700 236,197 41,849 183,557 $ 52,640 $ (196,200) $ 11,964 88,537 87,673 94 (7,932) $ Quarter 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 $ $ $ 43,371 182,420 $ 66,294 248,714 $ (226,551) $ 13,102 98,387 119,039 25 4,002 $ September 30, 2022 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) 39#40Income 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 3. Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges affirm) 4. Metrics are unaudited 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 $ $ 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) 40#41GAAP to Non-GAAP Expense Reconciliations, H1'23 Three Months Ended September 30, 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 $ $ $ $ $ GAAP 35,610 $ 64,250 25,066 54,359 179,285 $ 144,961 $ 163,873 160,972 469,806 $ 649,091 $ D&A O 0 O 95 95 Compensation Expense $ $ $ 17,963 2,199 625 20,787 $ 20,882 $ O O 0 912 912 Enterprise Warrant & Share Based Expenses $ $ $ 43,428 8,128 67,340 118,896 $ 119,808 $ 000 Notes: affirm) 1. Metrics are unaudited 2. Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges $ O 0 $ 0 $ 128,205 0 128,205 $ 128,205 $ Other Costs O O O O O OO 5 5 $ 5 LA 0 $ $ tA $ $ Non-GAAP 35,610 64,250 25,066 53,352 178,278 83,570 25,341 93,002 201,913 380,191 41#42GAAP 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 $ $ 33,639 5,998 58,100 97,737 $ 98,387 $ 000 O 0 0 119,517 Enterprise Warrant & Share Based Expenses $ 119,517 Notes: 1. Metrics are unaudited 2. Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges $ 119,517 $ 0 0 O O 119,039 0 119,039 119,039 $ $ $ $ $ $ $ $ Other Costs Other 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 42#43GAAP 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 $ $ $ $ $ $ $ $ $ $ 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 $ $ $ $ $ $ $ 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 $ 20,067 $ 5,024 67,742 92,833 $ 93,189 $ 000 Enterprise Warrant & Share Based Expenses $ Notes: 1. Metrics are unaudited 2. Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges O 0 0 87,673 0 87,673 87,673 000 $ O 17,039 0 17,039 17,039 $ $ $ $ $ 0 0 $ $ $ $ Other Costs Other 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 43#44GAAP 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 Enterprise Warrant & Share Based Expenses $ Three Months Ended March 31, 2021 Stock-Based 1,446 1,446 $ $ $ $ 0 0 $ 52,058 $ 10,568 115,567 178,193 $ 179,639 $ 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 one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges 3 Metrics are unaudited 44#45GAAP 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 one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges 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 45#46GAAP 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 $ Enterprise Warrant & Share Based Expenses $ 292,507 $ O O O OC 343,268 Notes: 1. Metrics are unaudited 2. Other costs consists of one-time expenses incurred in the period associated with the Company's initial public offering, its acquisitions, and sublease impairment charges 0 $ 343,268 0 343,268 000 0 $ C tA $ $ $ $ $ 0 $ 64,821 0 64,821 64,821 $ $ Other Costs Other Costs OOO OO 0 0 O $ ooooo $ O 942 19,755 20,697 20,697 $ 743 743 $ LA 743 $ $ $ $ $ $ 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 46

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