10-QQ1ended 30 Sept 20265 Nov
8-KFirst Fiscal Quarter 2027We opened fiscal ‘27 with another set of stellar results, from the top line to the bottom. Fellow Affirm shareholders, 2 Affirm FQ1’27 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. It feels great to print another no-apologies quarter. Taking a wider view, we are especially proud of the reliability of the results we’ve been able to deliver throughout the years. Keeping consistent, yet staying uncorrelated to the conventional wisdom, has been Affirm’s way since the beginning. Affirm is a counterintuitive success story in the world of consumer finance. Our original product bet can be restated as “asking the consumer to do more work (than the most successful alternative) when borrowing money will result in more purchases and happier buyers.” We deliberately introduced what looked like checkout friction: don’t just tap! – apply for a loan, review terms, agree to pay us back over time, etc., etc. – positing that this will improve conversion. This did turn out to be highly accretive, driving 20% conversion lift, flying in the face of the received wisdom. Early on, der expertes wrote this off as simply the work one will do when no easier sources of credit are available. But the data tells a different story: about half of our borrowers are prime or super-prime, and approximately 85% have a credit card with an open line of credit. Greater awareness of the true cost of credit offers our consumers a sense of certainty and control, even with a few extra steps. All comparisons on a year-over-year basis unless otherwise indicated $617M$14.4B Revenue Less Transaction Costs (“RLTC”)1 12th consecutive quarter of >30% growth +34% Accelerating sequentially from FQ4’26 4.3% of GMV Growing to $380 millionGrowing to $187 million 8 consecutive quarters of GAAP profitability +36% $1.3B Revenue +35% Gross Merchandise Volume (“GMV”) Net Income +$83M 30% Adjusted Operating Income1 As a percent of Revenue +2 pp 15% Operating Income As a percent of Revenue +8 pp $164M3 The results of this work are nothing short of a leap in our underwriting performance. The first version of the transformer-based model delivered an incremental 3.4% of end-to-end conversion via significantly higher credit approvals, while keeping credit losses flat. In other words, we are able to lend profitably to a greater pool of responsible borrowers, helping our merchants sell more, and delivering more high-quality assets to our capital partners. All this, while continuing to ensure that all decisions are deterministic, transparent, and explainable to consumers. This conscious consumer engagement at the point of sale generates the very data we learn from to improve our ability to approve more borrowers on better terms. Which brings us back to the point about the false tradeoff between intentionality and value creation. There is a nice symmetry between the work our consumers do to get smarter about credit, and the work we do every day within our AI/ML teams to get smarter about credit underwriting. Fifteen years ago, when we chose to eschew late penalties and compounding interest, we knew we set our risk management bar very high, perhaps fatuously so. Without the extra margin of these hidden fees to pay for credit decisioning slop, we had to become very good at underwriting. In fact, we had to reinvent major parts of the discipline to stay ahead. We did that again recently. For years, we carefully selected model features (data that helps predict credit outcomes, such as repayment consistency) entirely by hand. This can work really well if the hands (and the brains) doing the selecting are exceptional, but there are only so many brains you can throw at the problem. Fortunately, we’ve been working for several years to combine everything we’ve learned during the decade of manual feature refinement with an entirely new approach for automatically learning subtle patterns in relevant data. Powered by a transformer-based architecture, this intelligent system is directly inspired by, and is quite similar to, the ones behind some of today’s most popular LLMs. Affirm FQ1’27 Shareholder LetterAs we integrate Affirm into agentic commerce experiences, we can already see that agents will indeed free shoppers from the drudgery of filling out forms and clicking buttons. But the interaction and context awareness required to maximize the value of a personal shopping agent is a feature, not a temporary shortcoming before the models get even smarter. Humans will have more time to enjoy shopping, and with Affirm, a real sense of control over their finances. Our merchant- and brand-sponsored offers will be easier to find than ever, too. Your favorite agent will delight you with the perfect gift idea for this holiday’s shopping list… and it most certainly won’t let you miss out on the sweet 0% APR offer from Affirm. “We take risk” was the first line of an early draft of our S-1. This, understandably, didn’t survive the final cut, but it remains the very throughline of how Affirm goes about conducting our business. We take on and manage various forms of uncertainty for all members of our broad ecosystem… and meanwhile, look at the bottom line! While the news of agentic breakthroughs, inflation fears, interest rate speculation, etc. bombards us daily, we at Affirm are moving with deliberate aggression, quarter after quarter, in a single-minded pursuit of our mission. Instead of running from it, we embrace uncertainty as a key dimension to manage, as we plot our path to scaling our network to $100 billion and beyond. Thank you to all Affirmers working in shifts to prepare for BFCM for another great quarter filled with many wins, and just as importantly, with many risks, well-managed. Here’s to a great holiday season and a strong rest of FY’27. Onward, 4 Affirm FQ1’27 Shareholder Letter • New merchants and expansions: Launched with AliExpress and Antom. We also signed or recently announced partnerships with Farfetch, J. Crew (including their J. Crew Factory and Madewell brands), Sam’s Club, and Sur La Table. We renewed our partnership with Seatgeek and expanded the partnership to include Canada. • Affirm Card and Affirm Edge: Active cardholders increased 112% to 6 million while Card GMV grew 117%. Card generated more GMV in FQ1’27 than Affirm’s entire business did in the same quarter five years ago. We continue to expect the first Affirm Edge pilots to go live in the first calendar half of 2027. • Shared AI platform and LLM gateway: A double-digit (and growing) share of our AI inference traffic now runs through an Affirm- developed gateway, allowing us to route between leading frontier and open-weight models behind a single interface, improving speed of adoption and token cost management. • Purchasing power: We rolled out the latest iteration of our Card-specific risk model, enabling us to reward Affirm's more responsible users with more purchasing power, unlocking more Card GMV without sacrificing unit economics. • Bank accounts for down payments: Affirm borrowers with connected bank accounts can now make down payments that way instead of using their debit card, reducing an important operating cost. • Quick personal update: A meaningful chunk of my Affirm time is now spent working with the zt1 team (when not prepping for earnings), greatly improving this CEO's job satisfaction. Other achievementsGross Merchandise Volume (GMV) grew 34% to $14.4 billion, marking the twelfth consecutive quarter of GMV growth sustained above 30%.2 The mix of GMV derived from top five partners declined to 40% compared to 44% during the same period in the prior year, as a result of the continued diversification of GMV across merchants and platform partners and the growth of our direct to consumer products such as Affirm Card, with Card alone accounting for 23% of GMV during the quarter. All categories grew during the quarter, with notable strength in the services, home/lifestyle, and the "other" category that includes GMV from long-tail merchants and wallet partners. Independent Software Vendor ("ISV") partners continued to drive the strong growth of the services category, while a home improvement retailer and e-commerce marketplace specializing in home furnishings accounted for the strength of the home/lifestyle category. Growth was consistent across loan product types with GMV from each of our loan products growing at least 30%. FQ1’27 Operating Highlights Direct-to-Consumer GMV (D2C GMV) grew 55% to $5.1 billion driven almost entirely by Affirm Card GMV, which grew 117% to $3.3 billion. Active cardholders again more than doubled year over year to 6.0 million as card attach rate increased to approximately 21%, up about two points sequentially versus the prior quarter and up nine points year over year.4 Total transactions during the quarter increased to 56 million, growing 34%, in line with overall GMV growth, while Average Order Value (AOV) declined by 1%, to $258. The increase in transaction count and slight decline in AOV is largely attributable to continued efforts to lower cart floors to address a wider range of transactions. Active consumers increased 19% to 28.7 million as of September 30, 2026, while transactions per active consumer also increased 19% to 7.3 over the trailing twelve month period ending September 30, 2026. Active merchant count increased 48% to 621 thousand as of September 30, 2026. The increase in merchant count was diversified across several drivers, with the largest being the ongoing scaling of a wallet partnership, continued success serving long-tail merchants via ISV partners, and the ramping of our partnership with a large digital invoicing platform. Additionally, our ongoing international expansion into Canada and the UK accounted for approximately 20% of the quarter-over-quarter increase in active merchant count. 2 All growth rate references are on a year-over-year basis unless otherwise indicated. 3 International defined as growth from outside of North America. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period. Affirm FQ1’27 Shareholder Letter5 FQ1'27 Year-over-Year GMV Growth Drivers 18% 15% 1% 34% D2C and wallets Merchant POS International FQ1'27 growth 0% 5% 10% 15% 20% 25% 30% 35% 3Total revenue grew 35% to $1,262 million. Revenue as a percentage of GMV was 8.79%, above the high end of our 7.5% to 8.5% medium term range, and an increase of 11 basis points compared to FQ1’26. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 23%, slower than overall GMV growth, in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 24 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 45%, slightly above the 38% increase in average net loans held for investment and above overall GMV growth. The average APR on interest-bearing loans increased by approximately 40 basis points year over year and 10 basis points quarter over quarter as the mix of D2C GMV increased compared to prior periods; interest-bearing D2C products generally have a higher APR than our overall average. • Gain on sales of loans grew 36%, slightly more than overall GMV growth, and increased by 2 basis points as a percent of GMV. The increase in gain on sales of loans was driven in part by a 27% growth in loans sold. Additionally, gain on sale as a percentage of loans sold increased by 17 basis points due to more favorable loan sale pricing. • Servicing income grew 22% or generally in line with the growth of the average off-balance sheet platform portfolio. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ1’27 Financial Highlights 6 Affirm FQ1’27 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.8% RLTC as a % of GMV 4.3% +7 bps Operating Income $187M +194% All comparisons on a year-over-year basis +11 bps Adj. Operating Income $380M 4% Year-over-Year Change in Revenue as a % of GMV 8.68% (0.24%) 0.36% 0.02% (0.03%) 8.79% FQ1'26 Total network revenue Interest income Gain on sales of loans Servicing income FQ1'27 0% 2% 4% 6% 8% 10%7 Affirm FQ1'27 Shareholder Letter On a loan product basis, GMV mix shifted slightly to interest-bearing loans, which increased 34%. Affirm Card GMV, which grew 117% in the quarter, continues to skew heavily towards interest-bearing loans and therefore contributed to the slight overall mix shift towards interest- bearing loans. Loan Product Mix On a year-over-year basis, funding costs remained a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 69 basis points to 6.0%. However, funding costs increased 27 basis points sequentially due the increase in benchmark interest rates during FQ1. Our fixed-cost funding helped mitigate the impact of higher interest rates and, as of quarter end, represented more than 70% of our outstanding, on-balance sheet funding. Average Annualized Cost of Funds 6.7% 6.0% FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 FQ4'26 FQ1'27 0% 2% 4% 6% 8% RLTC grew 36% to $617 million. RLTC as a percentage of GMV increased 7 basis points to 4.30%, above the high end of our 3.75 to 4% medium-term target range. The approximate 7 basis point increase was attributable to an 11 basis point increase in revenue, 9 basis point improvement in loss on loan purchase commitment, 9 basis point improvement in funding costs, and a 7 basis point improvement in processing and servicing expenses. These tailwinds were mostly offset by a 29 basis point increase in provision for loan losses. Year-over-Year Change in RLTC as a % of GMV 4.23% 0.11% 0.09% 0.09% 0.07% (0.29%) 4.30% FQ1'26 Revenue Loss on loan purchase commitment Funding costs Processing and servicing Provision for credit losses FQ1'27 0% 1% 2% 3% 4% 5% 33% YoY growth 34% YoY growth 32% YoY growth 72% 13% 15%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $380 million, a $116 million improvement and 44% increase from the $264 million of Adjusted Operating Income in FQ1’26. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 30% during the period, compared to 28% during FQ1’26. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $116 million increase in Adjusted Operating Income consisted of a $162 million increase in RLTC, which was partially offset by a $46 million increase, or 24% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $22 million, or 28%. Almost all of this increase was attributable to infrastructure expenses, which increased $19 million, or 41%, primarily due to a 34% increase in transaction count. • Non-GAAP Sales and marketing increased $9 million, or 37%, primarily due to higher comarketing expenses. • Non-GAAP General and administrative increased $15 million, or 17% driven by higher customer service, software and subscription, and professional service expenses. 8 Affirm FQ1’27 Shareholder Letter Operating Income Operating Income was $187 million, a $123 million improvement compared to the $64 million in FQ1’26. Operating Income as a percentage of revenue, or Operating Margin, was approximately 14.8% in the period, compared to 6.8% during FQ1’26. The $187 million of Operating Income is inclusive of $51 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $123 million improvement in Operating Income was driven by a $162 million increase in RLTC and partially offset by a $39 million increase in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $35 million, or 21%. The increase was primarily driven by a $21 million, or 33%, increase in amortization of internally- developed software expense. Infrastructure expenses also increased $19 million, or 41%; these expenses are closely linked with transaction count, which increased 34%. • Sales and marketing increased $8 million, or 11%, due to a $6 million increase in loss on loan origination for certain self-originated 0% APR loans as well as a $6 million increase in comarketing expense. • General and administrative decreased $4 million, or 3%, as increases in customer service, software and subscription, and professional service expenses were more than offset by a $19 million decrease in stock- based compensation expense.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ1’27 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 9 basis points year over year and increased 35 basis points quarter over quarter to 2.9%. FY’23 FY’24 FY’25 FY’26 FY'27 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ3’23 through FQ3’26 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ1’25 through May 2026 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.Capital and Funding Update Funding Capacity increased to $31.7 billion at the end of FQ1’27, up from $26.6 billion at the end of FQ1’26, and $30.0 billion at the end of FQ4’26. We estimate this capacity can support more than $70 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ1’27. The main highlights across the funding channels as of the end of FQ1’27 were: ABS: capacity increased by approximately $1.3 billion year over year and $600 million compared to FQ4’26. During the quarter, we closed the 2026-3, 2026-4, and 2026-5 ABS transactions, issuing approximately $1.7 billion of notes in aggregate. In addition to increasing ABS capacity, our ABS program had two other notable achievements: first, we added a second major rating agency. Second, the 2026-5 notes marked our inaugural issuance of five-year notes. We believe the addition of another major rating agency and the issuance of longer-dated notes broadened investor demand. Insurance investors, which typically seek longer- dated assets, were particularly active in the 2026-5 transaction. Forward flow: capacity increased by approximately $1.6 billion year over year and approximately $900 million compared to FQ4’26. Most of the year-over-year increase came from insurance and major asset management partners. 10 Affirm FQ1’27 Shareholder Letter Warehouse and other funding debt: capacity increased by approximately $2.0 billion year over year and approximately $250 million compared to FQ4’26. The substantial majority of the year-over-year increase came from increases in warehouse facility capacity at several multinational banks. Capital Allocation and Liquidity At the end of September, we had approximately $3.0 billion in total liquidity split between cash and equivalents and securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.9 billion increased by $761 million year over year as cash and securities available for sale increased by $764 million, while convertible debt outstanding increased by $3 million. Quarter over quarter, net cash increased by $402 million as cash and securities available for sale increased by $403 million. On December 17, 2025, the Affirm board of directors authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026. There were no repurchases under this authorization during FQ1'27.11 Affirm FQ1’27 Shareholder Letter Assumptions and other considerations embedded within the outlook Enterprise warrant expense Enterprise warrant expense is expected to be seasonally higher in FQ2 compared to other quarters in the fiscal year. The launch of Affirm at a large enterprise partner in the UK in late FQ1 is also expected to accelerate the rate at which enterprise warrants are earned in FQ2'27 and beyond. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to increase during FY'27 compared to FY'26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain at or below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’27. Fiscal Q2 2027 Fiscal 2027 GMV $17.9 to $18.2 billion More than $65.25 billion Revenue $1,435 to $1,465 million Similar to FY'26 as a % of GMV (~8.49%) Revenue Less Transaction Costs $705 to $720 million Similar to FY'26 as a % of GMV (~4.16%) Operating Margin 11.50 to 13.50% More than 14.75% Adjusted Operating Margin5 29.50 to 31.50% More than 30.75% Weighted Avg. Basic Shares Outstanding 343 million 345 million Weighted Avg. Diluted Shares Outstanding 354 million 355 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ1’27 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss first fiscal quarter 2027 financial results on November 5, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin (Founder and Chief Executive Officer), Michael Linford (President), and Rob O’Hare (Chief Financial Officer). The conference call will be webcast live from the Company's investor relations website at https://investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Citi FinTech Conference November 9, 2026 New York, NY UBS Global Technology and AI Conference December 1-2, 2026 Scottsdale, AZ13 Affirm FQ1’27 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended September 30, 2026 2025 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 14.4 $ 10.8 Total Transactions (count) 55.6 41.4 Total Revenue, net $ 1,262.2 $ 933.3 Total Revenue as a % of GMV 8.8 % 8.7 % Transaction Costs (Non-GAAP) $ 645.1 $ 478.1 Transaction Costs as a % of GMV 4.5 % 4.4 % Revenue Less Transaction Costs (Non-GAAP) $ 617.1 $ 455.2 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.3 % 4.2 % Operating Income (Loss) $ 187.1 $ 63.7 Operating Margin 14.8 % 6.8 % Adjusted Operating Income (Non-GAAP) $ 379.7 $ 263.9 Adjusted Operating Margin (Non-GAAP) 30.1 % 28.3 % Net Income $ 164.2 $ 80.7 September 30, 2026 June 30, 2026 September 30, 2025 (unaudited) Active Consumers (in millions) 28.7 27.8 24.1 Transactions per Active Consumer 7.3 7.0 6.1 Active Merchants (in thousands) 620.8 570.8 418.9 Total Platform Portfolio (Non-GAAP) (in billions) $ 21.6 $ 20.2 $ 16.1 Equity Capital Required (Non-GAAP) (in millions) $ 988.9 $ 896.3 $ 626.5 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.6 % 4.4 % 3.9 % Allowance for Credit Losses as a % of Loans Held for Investment 6.3 % 5.9 % 5.9 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income (Loss) - The Company defines adjusted operating income (loss) as its GAAP operating income (loss), excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating income (loss); and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Adjusted operating income (loss) is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ1’27 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. Incremental Margin - The Company defines incremental margin as the year-over-year change in either Operating Income (Loss) or Adjusted Operating Income (Loss) divided by the year-over-year change in Revenue Less Transaction Costs (RLTC). Incremental margin is presented because the Company believes that it is a useful financial measure to both the Company and investors as it reflects the rate at which additional RLTC converts into operating income (or adjusted operating income, as applicable) from one period to the next. 15 Affirm FQ1’27 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. Dollar-Based Net Expansion - The Company defines dollar-based net expansion as the quarterly GMV generated by merchants who were active during the same quarter in the prior fiscal year, divided by the GMV generated by that same group of merchants during the same quarter in the prior fiscal year. This calculation excludes GMV from outside the U.S., as well as GMV from Returnly, and direct-to-consumer products such as Affirm Card and virtual cards. The Company believes dollar-based net expansion is a useful performance indicator to both the Company and investors as it reflects the ability to retain and grow GMV from its existing merchant base over time. 16 Affirm FQ1’27 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ1’27 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s promotions and products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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 merchant partners, commerce platforms and consumers and retain and grow its relationships with existing merchant partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of persistent inflation, ongoing recessionary concerns, international conflicts, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to sustain profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ1’27 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ1’27 Shareholder Letter September 30, 2026 June 30, 2026 Assets Cash and cash equivalents $ 2,072,399 $ 1,630,038 Restricted cash 498,631 803,005 Securities available for sale at fair value 932,808 972,642 Loans held for sale — 1 Loans held for investment 10,114,596 9,560,742 Allowance for credit losses (636,124) (563,295) Loans held for investment, net 9,478,472 8,997,447 Accounts receivable, net 356,915 284,350 Property, equipment and software, net 691,350 685,834 Goodwill 525,343 524,452 Intangible assets 25,456 26,416 Commercial agreement assets 35,241 38,326 Deferred tax assets 1,433,080 1,467,036 Other assets 431,644 360,601 Total assets $ 16,481,340 $ 15,790,148 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 83,247 $ 84,647 Payable to third-party loan owners 164,847 199,557 Accrued interest payable 33,417 28,568 Accrued expenses and other liabilities 192,305 199,493 Convertible senior notes, net 1,130,556 1,129,581 Notes issued by securitization trusts 6,221,183 5,331,229 Funding debt 2,904,541 3,333,248 Total liabilities 10,730,096 10,306,324 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 298,389,237 shares issued and outstanding as of September 30, 2026; 3,030,000,000 shares authorized, 296,636,147 shares issued and outstanding as of June 30, 2026 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,530,194 shares issued and outstanding as of September 30, 2026; 140,000,000 shares authorized, 40,539,552 shares issued and outstanding as of June 30, 2026 1 1 Additional paid in capital 6,745,341 6,647,214 Accumulated deficit (962,859) (1,127,025) Accumulated other comprehensive loss (31,241) (36,368) Total stockholders’ equity 5,751,244 5,483,824 Total liabilities and stockholders’ equity $ 16,481,340 $ 15,790,148 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Revenue Merchant network revenue $ 296,928 $ 251,147 Card network revenue 96,490 69,330 Total network revenue 393,418 320,477 Interest income 658,128 454,122 Gain on sales of loans 162,172 119,049 Servicing income 48,498 39,689 Total revenue, net 1,262,216 933,337 Operating expenses Loss on loan purchase commitment 82,573 71,552 Provision for credit losses 259,357 162,752 Funding costs 134,373 110,027 Processing and servicing 168,808 133,807 Technology and data analytics 202,652 168,106 Sales and marketing 86,841 78,491 General and administrative 140,560 144,941 Total operating expenses 1,075,164 869,676 Operating income $ 187,052 $ 63,661 Other income, net 18,000 19,358 Income before income taxes $ 205,052 $ 83,019 Income tax expense 40,886 2,326 Net income $ 164,166 $ 80,694 Other comprehensive income (loss) Foreign currency translation adjustments $ 1,268 $ (10,003) Unrealized gain (loss) on securities available for sale, net (2,797) 812 Gain (loss) on cash flow hedges 6,656 (129) Net other comprehensive income (loss) 5,127 (9,320) Comprehensive income $ 169,294 $ 71,373 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.48 $ 0.24 Diluted $ 0.47 $ 0.23 Weighted average common shares outstanding Basic 341,335,987 330,238,205 Diluted 351,783,888 348,278,403 Three Months Ended September 30, 2026 2025 General and administrative $ 36,542 $ 55,773 Technology and data analytics 16,449 24,764 Sales and marketing 2,548 5,076 Processing and servicing 162 240 Total stock-based compensation in operating expenses $ 55,702 $ 85,853 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Cash flows from operating activities Net income $ 164,166 $ 80,694 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for losses 259,357 162,752 Amortization of premiums and discounts on loans (86,858) (65,072) Gain on sales of loans (162,172) (119,049) Gain on extinguishment of debt — (1,495) Changes in fair value of assets and liabilities 404 (110) Amortization of commercial agreement assets 3,085 8,056 Amortization of debt issuance costs 8,058 6,828 Accrued interest on securities available for sale (9,874) (9,959) Commercial agreement warrant expense 48,040 40,977 Stock-based compensation 55,702 85,853 Depreciation and amortization 86,810 65,329 Deferred income tax expense 33,968 1,990 Other (7,974) (4,930) Change in operating assets and liabilities: Purchases and origination of loans held for sale (578,231) (749,202) Proceeds from the sale of loans held for sale 577,776 748,761 Accounts receivable, net (74,791) 138,862 Other assets (61,764) 28,965 Accounts payable (1,401) (24,801) Payable to third-party loan owners (34,710) (17,910) Accrued interest payable 4,927 1,621 Accrued expenses and other liabilities (17,442) (3,586) Net cash provided by operating activities 207,077 374,572 Cash flows from investing activities Purchases and origination of loans held for investment (13,792,617) (9,797,362) Proceeds from the sale of loans held for investment 5,834,184 4,282,839 Principal repayments and other loan servicing activity 7,486,203 5,359,253 Additions to property, equipment and software (62,509) (54,365) Purchases of securities available for sale (159,951) (146,462) Proceeds from maturities and repayments of securities available for sale 207,086 216,425 Other investing inflows 55 61 Other investing outflows (1,548) — Net cash used in investing activities (489,098) (139,611) Cash flows from financing activities Proceeds from the issuance of funding debt 13,626,316 7,980,435 Proceeds from issuance of notes and certificates by securitization trust 1,650,000 1,100,000 Principal repayments of funding debt (14,058,843) (7,818,589) Principal repayments of notes issued by securitization trust (750,000) (1,100,000) Payment of debt issuance costs (15,666) (9,466) Extinguishment of convertible debt — (24,814) Proceeds from exercise of common stock options and warrants and contributions to ESPP 12,075 94,828 Taxes paid related to net share settlement of equity awards (44,704) (112,307) Net cash provided by financing activities 419,179 110,086 Effect of exchange rate changes on cash, cash equivalents and restricted cash 829 (3,861) Net increase in cash, cash equivalents and restricted cash 137,987 341,187 Cash, cash equivalents and restricted cash, beginning of period 2,433,043 1,756,423 Cash, cash equivalents and restricted cash, end of period $ 2,571,030 $ 2,097,610 1 Prior period deferred tax amounts have been reclassified out of other assets to conform to the current period presentation as a separate line item on the condensed consolidated statements of cash flowsAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Supplemental disclosures of cash flow information Cash payments for interest expense $ 122,401 $ 103,252 Cash paid for operating leases 1,529 4,253 Cash paid for income taxes 14,160 1,749 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 29,414 52,885 Right of use assets obtained in exchange for operating lease liabilities 1,982 — Three Months Ended September 30, 2026 2025 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 2,072,399 $ 1,428,848 Restricted cash 498,631 668,762 Total cash, cash equivalents and restricted cash $ 2,571,030 $ 2,097,610RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ1’27 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended September 30, 2026 2025 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 82,573 $ 71,552 Provision for credit losses 259,357 162,752 Funding costs 134,373 110,027 Processing and servicing 168,808 133,807 Transaction costs (Non-GAAP) $ 645,111 $ 478,138 Technology and data analytics 202,652 168,106 Sales and marketing 86,841 78,491 General and administrative 140,560 144,941 Total operating expenses $ 1,075,164 $ 869,676 Total revenue $ 1,262,216 $ 933,337 Less: Transaction costs (Non-GAAP) (645,111) (478,138) Revenue less transaction costs (Non-GAAP) $ 617,105 $ 455,199 Operating income (loss) $ 187,052 $ 63,661 Add: Depreciation and amortization 85,833 65,328 Add: Stock-based compensation included in operating expenses 55,702 85,853 Add: Enterprise warrant and share-based expense 51,125 49,033 Adjusted operating income (Non-GAAP) $ 379,712 $ 263,875 Divided by: Total revenue, net $ 1,262,216 $ 933,337 Adjusted operating margin (Non-GAAP) 30.1 % 28.3 % General and administrative expense $ 140,560 $ 144,941 Less: Depreciation and amortization included in general and administrative expense (464) (550) Less: Stock-based compensation included in general and administrative expense (36,542) (55,773) Non-GAAP General and administrative expense $ 103,554 $ 88,618 Technology and data analytics expense $ 202,652 $ 168,106 Less: Depreciation and amortization included in technology and data analytics expense (85,302) (64,631) Less: Stock-based compensation included in technology and data analytics expense (16,449) (24,764) Non-GAAP Technology and data analytics expense $ 100,901 $ 78,711 Sales and marketing expense $ 86,841 $ 78,491 Less: Depreciation and amortization included in sales and marketing expense (46) (117) Less: Stock-based compensation included in sales and marketing expense (2,548) (5,076) Less: Enterprise warrant and share-based included in sales and marketing expense (51,125) (49,033) Non-GAAP Sales and marketing expense $ 33,122 $ 24,265 September 30, 2026 June 30, 2026 September 30, 2025 (in thousands) Loans held for investment $ 10,114,596 $ 9,560,742 $ 7,235,177 Add: Loans held for sale — 1 12 Less: Funding debt (2,904,541) (3,333,248) (1,777,906) Less: Notes issued by securitization trusts (6,221,183) (5,331,229) (4,830,819) Equity capital required (Non-GAAP) $ 988,872 $ 896,266 $ 626,464 1 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ1’27 Shareholder Letter Monthly Installment Loan (ex-Peloton) Monthly Installment Loan Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 2.8% 2.5% FY 2027 2.9% 60+ Day Delinquencies FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.6% 1.5% FY 2027 1.7% 90+ Day Delinquencies FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% 0.7% 0.6% FY 2027 0.8% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 2.8% 2.5% FY 2027 2.9% 60+ Day Delinquencies FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.7% 1.5% FY 2027 1.7% 90+ Day Delinquencies FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% 0.7% 0.6% FY 2027 0.8%5 Nov
DEFA14ADefinitive additional materials23 Oct
DEF 14ADefinitive proxy statement23 Oct
ARSAnnual report to security holders23 Oct
S-8Registration statement (employee benefit plan)27 Aug
10-KFY 2026ended 30 Jun 202627 Aug
8-KResults of Operations and Financial Condition27 Aug
8-KEntry into a Material Definitive Agreement25 Jun
10-QQ3ended 31 Mar 20267 May
8-KThird Fiscal Quarter 2026We delivered another outstanding set of results this quarter, especially in the broader context of global economic uncertainty: Fellow Affirm shareholders, 2 Affirm FQ3’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. $498M Revenue Less Transaction Costs (“RLTC”)1 +41% $1,039M Revenue +33% $11.6B Gross Merchandise Volume (“GMV”) +35% Net Income +$100M 27.0% Adjusted Operating Income1 As a percent of Revenue +5 pp 8.5% Operating Income As a percent of Revenue +10 pp $103M Given our Investor Forum scheduled for next week, I’ll keep to the whole brevity thing. We delivered 35% GMV growth, our 10th consecutive quarter of over-30% growth – without compromising unit economic discipline. Revenue grew 33% and RLTC 41%. While top-line growth continues at a very brisk pace, Affirm is maturing like fine wine further down the P&L. Our Operating Margin increased 10 percentage points, to 9% of Revenue. Adjusted Operating Margin was 27%, up 5 points year over year. Our Incremental Margins were similarly very strong: over 70% of RLTC dollar growth flowed to Adjusted Operating Income. All comparisons on a year-over-year basis unless otherwise indicated This is what happens when you find a genuine product market fit: your growth is natural, your credit and capital market results are excellent and harmonious, and your team is getting more and more productive every day. Developer productivity There is a tremendous amount of ink being spilled about amazing feats of productivity achieved in software engineering by AI-first startups. But what can a dev team firmly in its second decade and with millions of human- made lines of code do, measurably, to benefit from AI? Turns out, a lot, you just have to be disciplined about it.3 Affirm FQ3’26 Shareholder Letter Consumer health The Affirm consumer remains financially healthy. We see neither a change in demand nor in our consumers’ ability to repay. Delinquencies were up in line with expectations, with roughly half of the increase coming from a reduced denominator primarily due to stronger tax refund seasonality. Additionally, very strong unit economics (RLTC over 4.3% of GMV), gave us room to capture demand that delivered great returns – credit continues to be a setting we choose for our business. Zesty capital markets demand was a resounding vote of confidence in our approach to credit. We grew capacity despite the lower seasonal volume of our third fiscal quarter. We also priced our third consecutive revolving ABS transaction under a 5% blended yield in March, and our average annualized cost of funds reached the lowest level in three and a half years. Earlier this quarter we took a full week as a development team to re-tool Affirm software engineering to be truly AI- first. You can see the difference below, with agentically- written code dominating non-agentic essentially overnight after this effort. The chart shows pull requests per week (each pull request is a product feature, a major bug fix, etc) as a function of time. We think an order of magnitude gain in software development productivity is entirely plausible, yet we expect to modestly grow our development team – the limiting factor for Affirm has always been engineering cycles, not ideas for what to do with them. Pull requests (PRs) merged per week4 Affirm FQ3’26 Shareholder Letter When asked at an all-hands Q&A a few weeks ago whether I thought Affirm was still a startup, I responded with an emphatic affirmative. There are plenty of risks and even more opportunities. We have all sorts of plans for very ambitious new initiatives (some of which will surely not work out), cutting-edge AI/ML research profoundly accretive to all parts of our business, and exciting upcoming partnerships. …and yet for all our compounding growth we are but a very small fraction of global commerce. Nearly 15 years in, we are still a tightly-knit crew of idealist pirates on a mission, trying to improve lives and having a lot of fun doing it. Thank you to all Affirmers for another great quarter, watching you execute is the great privilege of captaining this ship. I’ll see many of you in person next week. Onward, 2 ‘All Forms of Credit Are Not Created Equal’. Published by Affirm in June 2025. Lotta ins, lotta outs • We announced the next Big Nothing event, May 13-15. Stay tuned for great 0% APR offers from thousands of our merchant partners! • Truly excited to add Nordstrom and URBN to our merchant roster in the US. • Sleep Number is also a new addition, with 0% APR offers up to 12 months at launch. • We are ramping our partnerships with Lowe’s and Intuit, and are pleased with the early reads. • The Card continues to scale nicely, now with 4.4 million active Cardholders and $2.1 billion in Card GMV. • Let me go find a cash machine – we don’t brag enough about the cash flow Affirm is already generating. We added approximately $230 million to our net cash (now at $1.35 billion) since December, and $370 million in the last year.Gross Merchandise Volume (GMV) grew 35% to $11.6 billion.3 Approximately 40% of growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to- consumer business and wallet partnerships. The mix of GMV derived from top five partners declined to 42% compared to 45% during the same period in the prior year. All categories grew during the quarter, with notable strength in categories such as services, home/lifestyle, and the "other" category that includes GMV from long-tail merchants and wallet partners. From a product perspective, GMV from 0% APR products inclusive of Pay in X grew 41% and continued to outpace our overall growth rate. Pay in X growth of 52% represents the fourth consecutive quarter with a growth rate greater than 50%. Direct-to-Consumer GMV (D2C GMV) grew 48% to $3.7 billion driven primarily by Affirm Card GMV, which grew 146% to $2.1 billion. In-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 4.4 million as card attach rate increased to approximately 17%, up about two points sequentially versus the prior quarter and up eight points year over year.4 FQ3’26 Operating Highlights 5 Affirm FQ3’26 Shareholder Letter Total transactions during the quarter increased to 45 million, growing 45% and outpacing overall GMV growth, as Average Order Values declined by 7% due to the strong growth in Pay in X across several merchants and partners. Transaction count increased in part due to the growth of Pay-in-X GMV, which increased 52%. Active consumers, increased 22% to 26.8 million as of March 31, 2026 while transactions per active consumer increased 20% to 6.7 during the same time period. Active merchant count increased 44% to 515 thousand as of March 31, 2026 with the year-over-year growth rate accelerating 2 percentage points from the prior quarter. The majority of the increase in merchant count was driven by two wallet partnerships, as well as the scaling of several independent software vendor (ISV) partnerships. 3 All growth rate references are on a year-over-year basis unless otherwise indicated. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period.Total revenue grew 33% to $1,039 million. Revenue as a percentage of GMV was 8.98%, a decrease of 17 basis points compared to FQ3’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 23%, or slightly below overall GMV growth in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 29 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 32%, driven primarily by a 29% increase in average net loans held for investment. As a percent of GMV, interest income declined 10 basis points as the GMV mix evolved towards 0% APR products. Including Pay in X loans, 0% APR products collectively increased from 28% of GMV in FQ3’25 to 29% in FQ3’26, leading to a lower average interest yield on loans than if the product mix had remained constant. • Gain on sales of loans grew 68% and increased by 21 basis points as a percent of GMV. The increase in gain on sales of loans was driven primarily by a 40% growth in loans sold, which slightly outpaced overall GMV growth. Gain on sale as a percentage of loans sold increased by 42 basis points due to more favorable loan sale pricing. • Servicing income grew 39% and increased by 1 basis point as a percent of GMV. Servicing income is primarily driven by the size of the average off-balance sheet platform portfolio, which grew by 39% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ3’26 Financial Highlights 6 Affirm FQ3’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 9.0% RLTC as a % of GMV 4.3% +19 bps Operating Income as a % of Revenue 8.5% +10 pp All comparisons on a year-over-year basis (17) bps Adj. Operating Income as a % of Revenue .0% 5 Year-over-Year Change in Revenue as a % of GMV 9.15% (0.29%) (0.10%) 0.21% 0.01% 8.98% FQ3'25 Total network revenue Interest income Gain on sales of loans Servicing income FQ3'26 0% 2% 4% 6% 8% 10%7 Affirm FQ3'26 Shareholder Letter We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 30% while Pay-in-X volume increased 52%. Loan Product Mix *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 126 basis points year over year and 34 basis points sequentially to 5.8%. Average funding costs declined as we continue to execute well in the ABS market and benefit from favorable repricing across all funding channels. Average Annualized Cost of Funds 5.8% FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 0% 2% 4% 6% 8% RLTC grew 41% to $498 million. RLTC as a percentage of GMV increased 19 basis points to 4.31%, above the high end of our 3 to 4% long-term target range. The approximate 19 basis point increase was primarily attributable to a 27 basis point improvement in funding costs, which was partially offset by a (17) basis point decline in revenue. Year-over-Year Change in RLTC as a % of GMV 4.12% (0.17%) 0.02% 0.27% 0.06% 4.31% FQ3'25 Revenue Provision for credit losses Funding costs Other txn costs* FQ3'26 0% 1% 2% 3% 4% 5% 52% YoY growth 33% YoY growth 30% YoY growth 71% 13% 16%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $281 million, a $107 million improvement and 62% increase from the $174 million of Adjusted Operating Income in FQ3’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 27% during the period compared to 22% during FQ3’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $107 million increase in Adjusted Operating Income consisted of a $146 million increase in RLTC, which was partially offset by a $39 million increase, or 22% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $21 million, or 29%. Of this increase, infrastructure expenses grew by $13 million, or 34%, primarily due to the 45% growth in transaction count. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Non-GAAP Sales and marketing increased $2 million, or 9%, primarily due to higher comarketing expenses. • Non-GAAP General and administrative increased $15 million, or 18%. The increase was primarily due to growth in payroll and personnel and software and subscription expenses. 8 Affirm FQ3’26 Shareholder Letter Operating Income Operating Income was $88 million, a $97 million improvement compared to the $8 million loss in FQ3’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 8.5% in the period, compared to (1.1)% during FQ3’25. The $88 million of Operating Income is inclusive of $44 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $97 million improvement in Operating Income was driven by a $146 million increase in RLTC and partially offset by a $49 million increase in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $39 million, or 26%. The increase was primarily driven by a $16 million, or 27%, increase in amortization of internally- developed software. Infrastructure expenses also increased $13 million, or 34%, primarily due to a 45% increase in transaction count. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Sales and marketing declined $1 million, or 2%, primarily due to a $3 million decline in enterprise warrant expense. Excluding enterprise warrant expense, sales and marketing expense increased $2 million, or 8%, primarily due to higher comarketing expenses. • General and administrative increased $11 million, or 8%. The increase was primarily due to growth in payroll and personnel, excluding stock-based compensation, and software and subscription expenses.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ3’26 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 29 basis points year over year and increased 7 basis points quarter over quarter to 2.8%. Allowance for credit losses as a percent of loans held for investment was 6.0%, up from 5.7% in FQ3’25 and 5.4% in FQ2'26. FY’22 FY’23 FY’24 FY’25 FY’26 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ1’23 through FQ1’26 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ3’23 through Nov 2025 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.Capital and Funding Update Funding Capacity increased to $28.2 billion at the end of FQ3’26, up from $23.3 billion at the end of FQ3’25, and $28.0 billion at the end of FQ2’26. We estimate this capacity can support more than $65.0 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ3’26. The main highlights across the funding channels as of the end of FQ3’26 were: • ABS: capacity increased by $1.4 billion year over year and $100.0 million compared to FQ2’26 as we priced and closed our 2026-2 revolving ABS transaction. Despite macroeconomic uncertainty, the transaction was successfully upsized from $500 to $750 million and remained more than 2x oversubscribed following the upsize. The transaction also had a three year term, which is one year longer than most of our previous ABS transactions. Compared to a similar three-year ABS transaction that we priced in September, credit spreads tightened slightly despite funding market volatility. 10 Affirm FQ3’26 Shareholder Letter • Forward flow: capacity increased by $1.8 billion year over year and declined approximately $300 million compared to FQ2’26. The $300 million decline is largely attributable to the planned maturity of a single fund with a single funding partner. We pre-emptively replaced that maturing facility with a new facility during 2025, resulting in minimal net change in overall forward flow capacity with this partner. Our forward flow partnerships are diversified across approximately 20 institutional loan buyers, including insurers, pensions, asset managers, and global banks. • Warehouse and other funding debt: capacity increased by $1.3 billion year over year and approximately $400.0 million compared to FQ2’26. This capacity increase included the upsizing, favorable repricing, and two-year extension of a $1.9 billion facility, as well as the launch of our inaugural UK warehouse partnership. Our warehouse facilities are diversified across approximately 15 lenders, primarily major US and international banks. Capital Allocation and Liquidity At the end of March, we had approximately $2.5 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.4 billion increased by $373 million year over year as cash and securities available for sale increased by $350 million, while convertible debt outstanding decreased by $23 million. Quarter over quarter, net cash increased by $229 million as cash and securities available for sale increased by $230 million. On December 17, 2025, the Affirm board of directors authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026. There were no repurchases under this authorization during FQ3'26.11 Affirm FQ3’26 Shareholder Letter Assumptions embedded within the outlook Product mix The mix of 0% APR GMV inclusive of Pay-in-X products in FQ4'26 is expected to remain stable on a year-over-year basis. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to remain stable during FQ4'26 compared to FQ3'26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Deferred tax asset valuation allowance If our earnings trajectory continues, the Company expects that there may be sufficient positive evidence to support the release of a significant portion of the U.S. deferred tax valuation allowance by the end of fiscal year 2026. Fiscal Q4 2026 Fiscal 2026 GMV $13.15 to $13.45 billion $49.265 to $49.565 billion Revenue $1,080 to $1,110 million $4,175 to $4,205 million Revenue Less Transaction Costs $535 to $550 million $2,031 to $2,046 million Operating Margin 9.5 to 11.5% 8.9 to 9.4% Adjusted Operating Margin5 27.5 to 29.5% 28.2 to 28.8% Weighted Avg. Basic Shares Outstanding 341 million 336 million Weighted Avg. Diluted Shares Outstanding 352 million 349 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ3’26 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss third fiscal quarter 2026 financial results on May 7, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company's investor relations website at https:// investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Evercore TMT Global Conference June 3, 2026 San Francisco, CA Affirm 2026 Investor Forum Affirm will host an Investor Forum on Tuesday, May 12, 2026 at 2:00 pm ET in New York. Affirm’s management team will provide an update on Affirm’s vision, commercial and product initiatives, and medium-term financial framework. The event will also be webcast live from Affirm’s investor relations website. A replay of the webcast will be available for a limited period of time following the event. William Blair Growth Stock Conference June 4, 2026 Chicago, IL13 Affirm FQ3’26 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended March 31, 2026 2025 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 11.6 $ 8.6 Total Transactions (count) 45.3 31.3 Total Revenue, net $ 1,038.8 $ 783.1 Total Revenue as a % of GMV 9.0 % 9.2 % Transaction Costs (Non-GAAP) $ 540.6 $ 430.6 Transaction Costs as a % of GMV 4.7 % 5.0 % Revenue Less Transaction Costs (Non-GAAP) $ 498.2 $ 352.6 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.3 % 4.1 % Operating Income (Loss) $ 88.4 $ (8.4) Operating Margin 8.5 % (1.1) % Adjusted Operating Income (Non-GAAP) $ 280.8 $ 173.7 Adjusted Operating Margin (Non-GAAP) 27.0 % 22.2 % Net Income $ 102.9 $ 2.8 March 31, 2026 June 30, 2025 March 31, 2025 (unaudited) Active Consumers (in millions) 26.8 23.0 21.9 Transactions per Active Consumer 6.7 5.8 5.6 Active Merchants (in thousands) 515.2 376.8 358.4 Total Platform Portfolio (Non-GAAP) (in billions) $ 18.4 $ 15.1 $ 13.7 Equity Capital Required (Non-GAAP) (in millions) $ 827.7 $ 568.9 $ 636.8 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.5 % 3.8 % 4.6 % Allowance for Credit Losses as a % of Loans Held for Investment 6.0 % 5.6 % 5.7 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ3’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. Incremental Margin - The Company defines incremental margin as the year-over-year change in either Operating Income or Adjusted Operating Income divided by the year-over-year change in Revenue Less Transaction Costs (RLTC). Incremental margin is presented because the Company believes that it is a useful financial measure to both the Company and investors as it reflects the rate at which additional RLTC converts into operating income (or adjusted operating income, as applicable) from one period to the next. 15 Affirm FQ3’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 16 Affirm FQ3’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ3’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of persistent inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ3’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ3’26 Shareholder Letter March 31, 2026 June 30, 2025 Assets Cash and cash equivalents $ 1,723,413 $ 1,354,455 Restricted cash 750,892 401,968 Securities available for sale at fair value 757,597 871,425 Loans held for sale — — Loans held for investment 8,572,972 7,025,534 Allowance for credit losses (512,314) (396,929) Loans held for investment, net 8,060,659 6,628,606 Accounts receivable, net 230,703 426,177 Property, equipment and software, net 668,292 572,637 Goodwill 529,284 534,156 Intangible assets 27,436 12,935 Commercial agreement assets 41,377 57,210 Other assets 351,927 295,360 Total assets $ 13,141,580 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 59,590 $ 82,820 Payable to third-party loan owners 178,275 211,700 Accrued interest payable 28,456 24,465 Accrued expenses and other liabilities 217,938 157,272 Convertible senior notes, net 1,128,617 1,153,000 Notes issued by securitization trusts 5,327,589 4,833,855 Funding debt 2,417,705 1,622,808 Total liabilities 9,358,170 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 294,229,690 shares issued and outstanding as of March 31, 2026; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,616,641 shares issued and outstanding as of March 31, 2026; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,550,639 6,140,893 Accumulated deficit (2,743,638) (3,056,818) Accumulated other comprehensive loss (23,594) (15,069) Total stockholders’ equity 3,783,410 3,069,009 Total liabilities and stockholders’ equity $ 13,141,580 $ 11,154,929 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Revenue Merchant network revenue $ 268,027 $ 213,973 Card network revenue 66,467 58,572 Total network revenue 334,494 272,545 Interest income 532,449 402,701 Gain on sales of loans 127,200 75,838 Servicing income 44,622 32,050 Total revenue, net 1,038,765 783,135 Operating expenses Loss on loan purchase commitment 67,964 57,290 Provision for credit losses 196,543 147,252 Funding costs 113,762 107,631 Processing and servicing 162,291 118,398 Technology and data analytics 191,619 152,620 Sales and marketing 72,854 74,022 General and administrative 145,304 134,303 Restructuring and other — 12 Total operating expenses 950,337 791,527 Operating income (loss) $ 88,429 $ (8,393) Other income, net 18,948 13,738 Income (loss) before income taxes $ 107,376 $ 5,345 Income tax expense 4,476 2,541 Net income $ 102,900 $ 2,804 Other comprehensive income (loss) Foreign currency translation adjustments $ (10,665) $ 3,550 Gain (loss) on cash flow hedges 5,100 (1,279) Unrealized gain (loss) on securities available for sale, net (1,090) 778 Net other comprehensive income (loss) (6,655) 3,049 Comprehensive income $ 96,245 $ 5,853 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.31 $ 0.01 Diluted $ 0.30 $ 0.01 Weighted average common shares outstanding Basic 337,142,686 324,053,967 Diluted 348,096,861 344,224,332 Three Months Ended March 31, 2026 2025 General and administrative $ 46,105 $ 50,344 Technology and data analytics 23,615 21,309 Sales and marketing 3,897 3,749 Processing and servicing 219 205 Total stock-based compensation in operating expenses $ 73,837 $ 75,607 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Cash flows from operating activities Net income $ 102,900 $ 2,804 Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 196,543 147,252 Amortization of premiums and discounts on loans (81,467) (60,531) Gain on sales of loans (127,200) (75,838) Gain on extinguishment of debt — — Changes in fair value of assets and liabilities (1,024) 834 Amortization of commercial agreement assets 3,018 10,913 Amortization of debt issuance costs 6,732 10,308 Accrued interest on securities available for sale (7,798) (7,564) Commercial agreement warrant expense 40,497 36,063 Stock-based compensation 73,837 75,607 Depreciation and amortization 75,063 59,467 Other (12,995) 12,131 Change in operating assets and liabilities: Purchases and origination of loans held for sale (612,118) (789,323) Proceeds from the sale of loans held for sale 611,864 789,362 Accounts receivable, net 35,554 (19,884) Other assets 3,850 9,429 Accounts payable 2,362 (9,568) Payable to third-party loan buyers 47,947 19,751 Accrued interest payable (128) (2,277) Accrued expenses and other liabilities 29,065 1,453 Net cash provided by operating activities 386,501 210,389 Cash flows from investing activities Purchases and origination of loans held for investment (10,935,508) (7,676,063) Proceeds from the sale of loans held for investment 4,497,409 2,858,471 Principal repayments and other loan servicing activity 6,676,040 4,988,174 Additions to property, equipment and software (61,405) (53,012) Purchases of securities available for sale (330,490) (368,710) Proceeds from maturities and repayments of securities available for sale 303,515 263,817 Other investing inflows 158 64,841 Other investing outflows (279) (42,000) Net cash provided by investing activities 149,440 35,518 Cash flows from financing activities Proceeds from the issuance of convertible notes — — Proceeds from the issuance of funding debt 10,058,005 6,130,641 Proceeds from issuance of notes and certificates by securitization trust 1,750,000 1,000,000 Principal repayments of funding debt (10,671,063) (6,383,990) Principal repayments of notes issued by securitization trust (1,250,000) (900,000) Payment of debt issuance costs (20,178) (19,689) Extinguishment of convertible debt — — Proceeds from exercise of common stock options and warrants and contributions to ESPP 38,582 10,527 Repurchase of common stock — — Taxes paid related to net share settlement of equity awards (57,974) (83,043) Net cash used in financing activities (152,626) (245,554) Effect of exchange rate changes on cash, cash equivalents and restricted cash (3,582) (1,548) Net increase (decrease) in cash, cash equivalents and restricted cash 379,733 (1,198) Cash, cash equivalents and restricted cash, beginning of period 2,094,572 1,737,157 Cash, cash equivalents and restricted cash, end of period $ 2,474,305 $ 1,735,959AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Supplemental disclosures of cash flow information Cash payments for interest expense $ 108,438 $ 101,662 Cash paid for operating leases 4,341 4,179 Cash paid for income taxes 1,552 1,322 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 41,648 44,369 Securities retained under unconsolidated securitization transactions — — Right of use assets obtained in exchange for operating lease liabilities — 7,418 Three Months Ended March 31, 2026 2025 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,723,413 $ 1,351,148 Restricted cash 750,892 384,811 Total cash, cash equivalents and restricted cash $ 2,474,305 $ 1,735,959RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ3’26 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended March 31, 2026 2025 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 67,964 $ 57,290 Provision for credit losses 196,543 147,252 Funding costs 113,762 107,631 Processing and servicing 162,291 118,398 Transaction costs (Non-GAAP) $ 540,560 $ 430,571 Technology and data analytics 191,619 152,620 Sales and marketing 72,854 74,022 General and administrative 145,304 134,303 Restructuring and other — 12 Total operating expenses $ 950,337 $ 791,527 Total revenue $ 1,038,765 $ 783,135 Less: Transaction costs (Non-GAAP) (540,560) (430,571) Revenue less transaction costs (Non-GAAP) $ 498,205 $ 352,564 Operating income (loss) $ 88,429 $ (8,393) Add: Depreciation and amortization 74,994 59,476 Add: Stock-based compensation included in operating expenses 73,837 75,607 Add: Enterprise warrant and share-based expense 43,515 46,975 Add: Restructuring and other 1 — 12 Adjusted operating income (Non-GAAP) $ 280,775 $ 173,677 Divided by: Total revenue, net $ 1,038,765 $ 783,135 Adjusted operating margin (Non-GAAP) 27.0 % 22.2 % General and administrative expense $ 145,304 $ 134,303 Less: Depreciation and amortization included in general and administrative expense (492) (571) Less: Stock-based compensation included in general and administrative expense (46,105) (50,344) Non-GAAP General and administrative expense $ 98,706 $ 83,388 Technology and data analytics expense $ 191,619 $ 152,620 Less: Depreciation and amortization included in technology and data analytics expense (74,408) (58,757) Less: Stock-based compensation included in technology and data analytics expense (23,615) (21,309) Non-GAAP Technology and data analytics expense $ 93,596 $ 72,554 Sales and marketing expense $ 72,854 $ 74,022 Less: Depreciation and amortization included in sales and marketing expense (64) (117) Less: Stock-based compensation included in sales and marketing expense (3,897) (3,749) Less: Enterprise warrant and share-based included in sales and marketing expense (43,515) (46,975) Non-GAAP Sales and marketing expense $ 25,377 $ 23,181 March 31, 2026 June 30, 2025 March 31, 2025 (in thousands) Loans held for investment $ 8,572,972 $ 7,025,534 $ 6,630,446 Add: Loans held for sale — — 1 Less: Funding debt (2,417,705) (1,622,808) (1,908,693) Less: Notes issued by securitization trusts (5,327,589) (4,833,855) (4,084,934) Equity capital required (Non-GAAP) $ 827,678 $ 568,871 $ 636,820 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ3’26 Shareholder Letter Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 2.8% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% 0.7% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 2.8% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.7% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% 0.7% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan7 May
CORRESPFiling review correspondence19 Mar
10-QQ2ended 31 Dec 20255 Feb
8-KSecond Fiscal Quarter 2026We delivered another round of excellent results in Affirm’s second quarter of FY’26. Fellow Affirm Shareholders, 2 Affirm FQ2’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. $543M Revenue Less Transaction Costs (“RLTC”)1 +29% $1,123M Revenue +30% $13.8B Gross Merchandise Volume (“GMV”) +36% Net Income +$49M 30.0% Adjusted Operating Income1 As a percent of Revenue +3 pp 10.5% Operating Income As a percent of Revenue +11 pp $130M We Believe In Nossing We started the quarter with the inaugural Big Nothing, our 0% APR event. Collaborating with hundreds of our merchant partners, we curated a huge selection of unbeatable consumer deals, Affirm-style: no fees, no gotchas, and for three days in October, no interest at all, for nearly every consumer shopping at participating retailers with Affirm. As the merchants lit up their 0% deals, they saw a solid 5% GMV lift, with that number rising to a robust 27% as we highlighted them on Affirm surfaces. Affirm truly shines when the transaction really matters, and for higher AOV baskets we saw a progressively greater lift. All comparisons on a year-over-year basis unless otherwise indicated Big Nothing GMV uplift from 0% APR offers Transaction Size3 Affirm FQ2’26 Shareholder Letter AdaptAI and BoostAI Affirm AdaptAI and BoostAI, a pair of our internally- developed yield optimization technologies, played an outsized role in achieving these results. AdaptAI automatically selects optimal financing offers for each transaction to maximize sales conversion and minimize risk. AdaptAI is now deployed on nearly all Affirm surfaces, including digital wallets, and contributed to an approximately 10% year-over-year improvement in end-to- end checkout conversion. The more recently developed BoostAI takes this idea a step further: this new model optimizes offers of financing by running automatic A/B-test programs at participating merchants and other surfaces, which includes introducing new financing programs and deploying incremental MDR- funded incentives. BoostAI demonstrates consistent performance lift, with merchants seeing an average 5–15% increase in GMV, driven by higher conversion and consumer take-up. Merchants set the conversion-boosting budget if desired, but neither AdaptAI nor BoostAI require any technical or integration work on their part. Since its launch a few months ago, BoostAI has been deployed at 47 enterprise merchants (and hundreds of SMBs). We are excited to continue rolling BoostAI across our entire merchant network. The Big Nothing accounted for approximately 15% of all GMV in October, and delivered durable second-order effects across the ecosystem – e.g., daily Affirm cardholder signups increased 21% during the event. We achieved these results with merchant funding and without sacrificing unit economics. We saw a significant increase in both top-of-funnel and conversion metrics at merchants participating in the Big Nothing, and yet did not observe a corresponding drop in the days and weeks after – suggesting that these purchases would not have occurred without Affirm’s unique value proposition. We are already hard at work planning the next Big Nothings, of course. BFCM and Affirm Card With the success of the Big Nothing we rolled our way into the semis of Black Friday / Cyber Monday. Armed with some fresh learnings from Big Nothing, we delivered our largest BFCM ever with excellent stability and availability metrics. The scale and intensity of both the run-up to, and the by-the-second monitoring and management of the biggest shopping days of the year are hard to overstate, and I am especially grateful to the massive cross-functional team effort across Engineering, Product, Operations, Analytics, and Marketing who put on an amazing set of events this quarter. Our merchant partners were excited to step up once again with some very compelling 0% offers, and US 0% APR monthly installment GMV within the Affirm marketplace grew 62% year over year during BFCM. Affirm Card signups during the shopping weekend grew 130% year over year, with approximately 65% of new activations coming from near-prime or better credit borrowers. Affirm Card also had a banner quarter, growing GMV 159%, and active cardholders rose 121%. Connecting with the deal-focused quarter, Card 0% APR GMV increased 190% year over year, now representing almost 20% of the total Card GMV mix, a 4 percentage point increase sequentially, a nearly threefold increase in mix over two years. Overall, over 65% of approved U.S. loan applications were presented with a 0% APR offer, and 39% of all transactions during the quarter were 0% APR (Pay in X or monthly installments).4 Affirm FQ2’26 Shareholder Letter Commercial Highlights On Affordability This holiday shopping season was also, inevitably, a referendum on affordability, something we care about greatly at Affirm. Our model – no late fees, no deferred interest, no revolving debt – works because it aligns our interests with our borrowers’. With Affirm, consumers receive clear upfront pricing where they always know the total cost, including interest, if any. The fixed term, closed-end structure of our loans provides choice and flexibility at a lower cost than many revolving credit cards. We estimate that U.S. households in 2024 could have saved up to $18 billion using Affirm instead of revolving on a credit card, with some households saving up to 30% annually on their total borrowing costs.2 What we learned this holiday season is that consumers are smart and, when it comes to finding alternatives to credit cards or other offerings with junk fees, they are getting smarter. While they do not seem to be cutting back on buying holiday gifts, they are certainly allotting more thoughtful consideration to how they are spending. Indeed, consumers are increasingly choosing Affirm at scale. We estimate that Affirm grew more than 5x the growth rate of overall U.S. credit card spend in 2025 and 4x the rate of e- commerce growth. Consumers aren't avoiding credit. They’re avoiding credit that profits from their confusion. My sincere gratitude to all Affirmers for another great quarter – in the age of AI, it’s the humans that make this company such a privilege (and so much fun) to lead. I invite all our fans to join us at our next Investor Forum event, on May 12th. Onward, 2 ‘All Forms of Credit Are Not Created Equal’. Published by Affirm in June 2025. Our Revenue team went out and achieved. In recent months, we: • Entered into a multi-year partnership with Intuit to become the exclusive pay-over-time solution built into QuickBooks Payments, enabling more small and mid-market businesses to offer Affirm when invoicing customers. • Renewed and expanded our exclusive partnership with Expedia in the US and Canada. • Signed Virgin Media O2 in the UK to provide financing for devices and other hardware for one of the country's largest telecommunications providers. • Expanded the relationship with our long-time partner Wayfair to Canada and the UK. • Continued to broaden our reach in the US by partnering with Fanatics and a leading US-based department store.Gross Merchandise Volume (GMV) grew 36% to $13.8 billion, accelerating from a 35% growth rate in the same period in the prior year.3 Over 40% of growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to- consumer business led by Affirm Card, and wallet partnerships. All categories grew during the quarter and, from a product perspective, GMV from 0% APR products inclusive of Pay in X grew 60% and continued to outpace our overall growth rate. GMV from our top five merchants and platform partners collectively grew 23%, and the concentration of GMV derived from top five partners declined to 46% compared to 51% during the same period in the prior year. Merchants increasingly utilized 0% APR offers as a demand-generation tool. Approximately 60 thousand merchants funded these offers during the quarter — nearly quadrupling year over year. Partner commitment remained high, with over 95% of 0% APR monthly installment GMV at integrated merchants being merchant funded, resulting in robust economics for the Affirm network. Consumer adoption was equally robust. More than 60% of new Affirm customers chose a 0% APR product for their first transaction. Strategic initiatives to increase visibility of such offers – including our inaugural Big Nothing event in October – contributed to a 190% surge in 0% APR GMV on the Affirm Card. FQ2’26 Operating Highlights 5 Affirm FQ2’26 Shareholder Letter Direct-to-Consumer GMV (D2C GMV) grew 52% to $4.3 billion driven primarily by Affirm Card GMV, which grew 159% to $2.2 billion. In-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 3.7 million as card attach rate increased to approximately 14%, up about three points sequentially versus the prior quarter.4 Active consumers, increased 23% to 25.8 million as of December 31, 2025 while transactions per active consumer increased 20% to 6.4 during the same time period. Active merchant count increased 42% to 478 thousand as of December 31, 2025 with the year-over-year growth rate accelerating 12 percentage points from the prior quarter. The majority of the increase in merchant count was driven by two wallet partnerships, as well as the scaling of several independent software vendor (ISV) partnerships. 3 All growth rate references are on a year-over-year basis unless otherwise indicated. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period.Total revenue grew 30% to $1,123 million. Revenue as a percentage of GMV was 8.14%, a decrease of 40 basis points compared to FQ2’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 32%, or slightly below overall GMV growth in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 8 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 21%, driven primarily by a 22% increase in average net loans held for investment. As a percent of GMV, interest income declined 46 basis points as the GMV mix evolved towards 0% APR products. Including Pay in X loans, 0% APR products collectively increased from 28% of GMV in FQ2’25 to 32% in FQ2’26, leading to a lower average interest yield on loans than if the product mix had remained constant. • Gain on sales of loans grew 48% and increased by 11 basis points as a percent of GMV. This increase was driven by both an increase in loans sold, which grew 29%, as well as more favorable loan sale pricing. Gain on sale as a percentage of loans sold increased by 39 basis points due to consistent execution by our Capital team and favorable funding market conditions. • Servicing income grew 49% and increased by 3 basis points as a percent of GMV. Servicing income is primarily driven by the size of the average off-balance sheet platform portfolio, which grew by 50% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off- balance sheet platform portfolio on an annualized basis. FQ2’26 Financial Highlights 6 Affirm FQ2’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.14% RLTC as a % of GMV 3.93% (20) bps Operating Income as a % of Revenue 10.5% +11 pp All comparisons on a year-over-year basis (40) bps Adj. Operating Income as a % of Revenue 30.0% 3 Year-over-Year Change in Revenue as a % of GMV 8.54% (0.08%) (0.46%) 0.11% 0.03% 8.14% FQ2'25 Total network revenue Interest income Gain on sales of loans Servicing income FQ2'26 0% 2% 4% 6% 8% 10%7 Affirm FQ2'26 Shareholder Letter We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 65% while Pay-in-X volume increased 55%. Network revenue as a percentage of GMV for 0% APR monthly installment loans remained stable after adjusting for variations in loan duration. Loan Product Mix *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 109 basis points year over year and 57 basis points sequentially to 6.2%. Average funding costs declined as we continue to execute well in the ABS market and benefit from favorable repricing across all funding channels. Average Annualized Cost of Funds 6.2% FQ2'24 FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 0% 2% 4% 6% 8% RLTC grew 29% to $543 million. RLTC as a percentage of GMV decreased (20) basis points to 3.93%, at the high end of our 3 to 4% long-term target range. The approximate (20) basis point decrease was primarily attributable to a (40) basis point decline in revenue. This decline was partially offset by a 25 basis point improvement in funding costs. Year-over-Year Change in RLTC as a % of GMV 4.13% (0.40%) (0.04%) 0.25% (0.01%) 3.93% FQ2'25 Revenue Provision for credit losses Funding costs Other txn costs* FQ2'26 0% 1% 2% 3% 4% 5% 55% YoY growth 27% YoY growth 65% YoY growth 67% 16% 17%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $337 million, a $99 million improvement and 42% increase from the $238 million of Adjusted Operating Income in FQ2’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 30% during the period compared to 27% during FQ2’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $99 million increase in Adjusted Operating Income consisted of a $123 million increase in RLTC, which was partially offset by a $24 million increase, or 13% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $16 million, or 23%, driven by a $12 million, or 31%, increase in infrastructure expenses which primarily increased due to the 44% growth in transactions. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Non-GAAP Sales and marketing declined $1 million, or 4%, with the majority of the decline due to decreases in profit share expenses. • Non-GAAP General and administrative increased $9 million, or 11%, with the increase primarily due to increases in software and subscriptions. 8 Affirm FQ2’26 Shareholder Letter Operating Income Operating Income was $118 million, a $122 million improvement compared to the $4 million loss in FQ2’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 10.5% in the period, compared to (0.5)% during FQ2’25. The $118 million of Operating Income is inclusive of $66 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $122 million improvement in Operating Income was driven by a $123 million increase in RLTC and $1 million decrease in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $37 million, or 25%, as transaction count increased 44% and led to higher infrastructure expenses. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Sales and marketing declined $37 million, or 27%, due to a $35 million decline in enterprise warrant expense. Certain tranches of enterprise warrants completed their amortization period during FQ1’25 and therefore no longer contributed to sales and marketing expenses in subsequent periods. Excluding enterprise warrant expense, sales and marketing expense decreased $2 million, or 6%, due to a decreases in profit share expense. • General and administrative increased $2 million, or 1%, with the increase primarily due to increases in software and subscriptions.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ2’26 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 18 basis points year over year and decreased 7 basis points quarter over quarter to 2.7%. Allowance for credit losses as a percent of loans held for investment was 5.4%, consistent with FQ2’25 and down from 5.9% in FQ1'26. FY’22 FY’23 FY’24 FY’25 FY’26 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ4’22 through FQ4’25 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ3’24 through Aug 2025 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.10 Affirm FQ2’26 Shareholder Letter Capital and Funding Update Funding Capacity increased to $28.0 billion at the end of FQ2’26, from $26.6 billion at the end of FQ1’26. We believe this capacity can support more than $65 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ2’26. The main highlights across the funding channels were: • Forward flow: we added approximately $600 million in capacity compared to FQ1’26, which was primarily driven by onboarding AB CarVal, a global alternative investment manager. • Warehouse and other funding debt: we added approximately $100 million in warehouse funding capacity in the US as we upsized an expansionary facility with a multinational bank. • ABS: in November, we priced 2025-X2, our largest static securitization to date and our 26th ABS bond offering overall, bringing our lifetime issuance to over $14.1 billion. The transaction executed at an all-in cost of funds of 5.96% including the residual yield. This is more than a 100 basis point improvement over our last static transaction 2025-X1 which priced in FQ4’24. There was robust investor demand for the notes which led to the issuance being approximately six times oversubscribed. The residual order book was particularly deep, which contributed to the residual pricing at the lowest yield since we began conducting static securitizations. Capital Allocation and Liquidity At the end of December, we had approximately $2.3 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.1 billion increased by $408 million year over year as cash and securities available for sale increased by $384 million, while convertible debt outstanding decreased by $23 million. Quarter over quarter, net cash increased by $10 million as cash and securities available for sale increased by $10 million. The Affirm board of directors has authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026.11 Affirm FQ2’26 Shareholder Letter Assumptions embedded within the outlook Product mix On a year-over-year basis, the mix of 0% APR GMV inclusive of Pay-in-X products is expected to increase. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to decline modestly during FY’26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Deferred tax asset valuation allowance If our earnings trajectory continues, the Company expects that there may be sufficient positive evidence to support the release of a significant portion of the U.S. deferred tax valuation allowance by the end of fiscal year 2026. Fiscal Q3 2026 Fiscal Q4 2026 Fiscal 2026 GMV $11.00 to $11.25 billion $12.75 to $13.05 billion $48.30 to $48.85 billion Revenue $970 to $1,000 million $1,060 to $1,090 million $4,086 to $4,146 million Revenue Less Transaction Costs $450 to $465 million $510 to $525 million $1,958 to $1,988 million Operating Margin 4.5 to 6.0% 8.5 to 10.5% 7.7 to 8.6% Adjusted Operating Margin5 24.5 to 25.5% 26.5 to 28.5% 27.4 to 28.1% Weighted Avg. Basic Shares Outstanding 338 million 341 million 336 million Weighted Avg. Diluted Shares Outstanding 352 million 353 million 351 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ2’26 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss second fiscal quarter 2026 financial results on February 5, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company's investor relations website at https:// investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Morgan Stanley Technology, Media, and Telecom March 3-4, 2026 San Francisco, CA Affirm 2026 Investor Forum Affirm will host an Investor Forum on Tuesday, May 12, 2026. Affirm’s management team will provide an update on the Company’s vision, commercial and product initiatives, and financial framework. The event will be webcast live from the Company's investor relations website. More details about the event, including registration information, will be shared closer to the event. Wolfe FinTech Forum March 11, 2026 New York, NY13 Affirm FQ2’26 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended December 31, 2025 2024 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 13.8 $ 10.1 Total Transactions (count) 54.9 38.1 Total Revenue, net $ 1,123.0 $ 866.4 Total Revenue as a % of GMV 8.1 % 8.5 % Transaction Costs (Non-GAAP) $ 580.5 $ 447.0 Transaction Costs as a % of GMV 4.2 % 4.4 % Revenue Less Transaction Costs (Non-GAAP) $ 542.5 $ 419.4 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 3.9 % 4.1 % Operating Income (Loss) $ 117.6 $ (4.3) Operating Margin 10.5 % (0.5) % Adjusted Operating Income (Non-GAAP) $ 337.0 $ 237.8 Adjusted Operating Margin (Non-GAAP) 30.0 % 27.4 % Net Income $ 129.6 $ 80.4 December 31, 2025 June 30, 2025 December 31, 2024 (unaudited) Active Consumers (in millions) 25.8 23.0 21.0 Transactions per Active Consumer 6.4 5.8 5.3 Active Merchants (in thousands) 478.3 376.8 337.2 Total Platform Portfolio (Non-GAAP) (in billions) $ 19.0 $ 15.1 $ 14.0 Equity Capital Required (Non-GAAP) (in millions) $ 892.0 $ 568.9 $ 640.5 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.7 % 3.8 % 4.6 % Allowance for Credit Losses as a % of Loans Held for Investment 5.4 % 5.6 % 5.4 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ2’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. 15 Affirm FQ2’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 16 Affirm FQ2’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ2’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ2’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ2’26 Shareholder Letter December 31, 2025 June 30, 2025 Assets Cash and cash equivalents $ 1,527,880 $ 1,354,455 Restricted cash 566,692 401,968 Securities available for sale at fair value 723,375 871,425 Loans held for sale 6 — Loans held for investment 8,773,542 7,025,534 Allowance for credit losses (478,103) (396,929) Loans held for investment, net 8,295,439 6,628,606 Accounts receivable, net 268,177 426,177 Property, equipment and software, net 639,891 572,637 Goodwill 533,441 534,156 Intangible assets 12,619 12,935 Commercial agreement assets 44,395 57,210 Other assets 344,986 295,360 Total assets $ 12,956,899 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 57,228 $ 82,820 Payable to third-party loan owners 130,327 211,700 Accrued interest payable 28,784 24,465 Accrued expenses and other liabilities 184,459 157,272 Convertible senior notes, net 1,127,658 1,153,000 Notes issued by securitization trusts 4,834,736 4,833,855 Funding debt 3,046,846 1,622,808 Total liabilities 9,410,038 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 291,506,324 shares issued and outstanding as of December 31, 2025; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,700,781 shares issued and outstanding as of December 31, 2025; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,410,335 6,140,893 Accumulated deficit (2,846,538) (3,056,818) Accumulated other comprehensive loss (16,939) (15,069) Total stockholders’ equity 3,546,861 3,069,009 Total liabilities and stockholders’ equity $ 12,956,899 $ 11,154,929 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Revenue Merchant network revenue $ 328,380 $ 244,895 Card network revenue 73,035 58,142 Total network revenue 401,415 303,037 Interest income 493,626 409,367 Gain on sales of loans 185,231 125,287 Servicing income 42,748 28,690 Total revenue, net 1,123,019 866,381 Operating expenses Loss on loan purchase commitment 96,065 70,278 Provision for credit losses 214,153 152,980 Funding costs 111,717 107,762 Processing and servicing 158,582 115,960 Technology and data analytics 184,871 148,213 Sales and marketing 98,782 136,038 General and administrative 141,223 139,412 Restructuring and other — 60 Total operating expenses 1,005,393 870,703 Operating income (loss) $ 117,626 $ (4,322) Other income, net 15,612 87,181 Income (loss) before income taxes $ 133,238 $ 82,859 Income tax expense 3,652 2,499 Net income $ 129,586 $ 80,360 Other comprehensive income (loss) Foreign currency translation adjustments $ 7,836 $ (35,469) Loss on cash flow hedges (305) (89) Unrealized gain (loss) on securities available for sale, net (81) (2,873) Net other comprehensive income (loss) 7,450 (38,431) Comprehensive income $ 137,037 $ 41,929 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.39 $ 0.25 Diluted $ 0.37 $ 0.23 Weighted average common shares outstanding Basic 334,270,750 322,282,334 Diluted 349,365,762 345,196,568 Three Months Ended December 31, 2025 2024 General and administrative $ 50,588 $ 57,719 Technology and data analytics 23,012 23,677 Sales and marketing 3,984 4,482 Processing and servicing 215 220 Total stock-based compensation in operating expenses $ 77,800 $ 86,098 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Cash flows from operating activities Net income $ 129,586 $ 80,360 Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 214,153 152,980 Amortization of premiums and discounts on loans (78,927) (59,233) Gain on sales of loans (185,231) (125,287) Gain on extinguishment of debt (42) (62,794) Changes in fair value of assets and liabilities 2,015 2,954 Amortization of commercial agreement assets 4,759 14,255 Amortization of debt issuance costs 7,244 6,907 Accrued interest on securities available for sale (8,313) (10,821) Commercial agreement warrant expense 61,207 86,776 Stock-based compensation 77,800 86,098 Depreciation and amortization 75,593 54,894 Other (14,165) 58 Change in operating assets and liabilities: Purchases and origination of loans held for sale (728,196) (1,043,397) Proceeds from the sale of loans held for sale 727,912 1,043,380 Accounts receivable, net 11,054 102,664 Other assets (69,985) (20,588) Accounts payable (791) (6,936) Payable to third-party loan buyers (63,462) 5,210 Accrued interest payable 3,433 1,048 Accrued expenses and other liabilities 8,091 3,489 Net cash provided by operating activities 173,735 312,017 Cash flows from investing activities Purchases and origination of loans held for investment (12,665,105) (8,663,556) Proceeds from the sale of loans held for investment 5,323,088 3,633,664 Principal repayments and other loan servicing activity 5,890,329 4,528,811 Additions to property, equipment and software (55,704) (43,905) Purchases of securities available for sale (67,935) (48,158) Proceeds from maturities and repayments of securities available for sale 210,251 504,890 Other investing inflows 80 186 Other investing outflows — (1,000) Net cash used in investing activities (1,364,996) (89,068) Cash flows from financing activities Proceeds from the issuance of convertible notes — 920,000 Proceeds from the issuance of funding debt 9,292,589 4,704,356 Principal repayments of funding debt (8,032,176) (4,259,168) Payment of debt issuance costs (1,230) (18,749) Extinguishment of convertible debt (944) (892,800) Proceeds from exercise of common stock options and warrants and contributions to ESPP 9,270 35,792 Repurchase of common stock — (250,000) Taxes paid related to net share settlement of equity awards (80,929) (95,335) Net cash provided by financing activities 1,186,580 144,096 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,641 (14,510) Net increase (decrease) in cash, cash equivalents and restricted cash (3,038) 352,535 Cash, cash equivalents and restricted cash, beginning of period 2,097,610 1,384,622 Cash, cash equivalents and restricted cash, end of period $ 2,094,572 $ 1,737,157AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Supplemental disclosures of cash flow information Cash payments for interest expense $ 102,537 $ 101,623 Cash paid for operating leases 484 656 Cash paid for income taxes 4,190 4,163 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 46,636 44,708 Securities retained under unconsolidated securitization transactions 44,608 41,940 Right of use assets obtained in exchange for operating lease liabilities 11,513 — Three Months Ended December 31, 2025 2024 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,527,880 $ 1,200,381 Restricted cash 566,692 536,776 Total cash, cash equivalents and restricted cash $ 2,094,572 $ 1,737,157RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ2’26 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended December 31, 2025 2024 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 96,065 $ 70,278 Provision for credit losses 214,153 152,980 Funding costs 111,717 107,762 Processing and servicing 158,582 115,960 Transaction costs (Non-GAAP) $ 580,517 $ 446,980 Technology and data analytics 184,871 148,213 Sales and marketing 98,782 136,038 General and administrative 141,223 139,412 Restructuring and other — 60 Total operating expenses $ 1,005,393 $ 870,703 Total revenue $ 1,123,019 $ 866,381 Less: Transaction costs (Non-GAAP) (580,517) (446,980) Revenue less transaction costs (Non-GAAP) $ 542,502 $ 419,401 Operating income (loss) $ 117,626 $ (4,322) Add: Depreciation and amortization 75,587 54,950 Add: Stock-based compensation included in operating expenses 77,800 86,098 Add: Enterprise warrant and share-based expense 65,966 101,032 Add: Restructuring and other 1 — 60 Adjusted operating income (Non-GAAP) $ 336,979 $ 237,818 Divided by: Total revenue, net $ 1,123,019 $ 866,381 Adjusted operating margin (Non-GAAP) 30.0 % 27.4 % General and administrative expense $ 141,223 $ 139,412 Less: Depreciation and amortization included in general and administrative expense (563) (573) Less: Stock-based compensation included in general and administrative expense (50,588) (57,719) Non-GAAP General and administrative expense $ 90,072 $ 81,120 Technology and data analytics expense $ 184,871 $ 148,213 Less: Depreciation and amortization included in technology and data analytics expense (74,876) (53,683) Less: Stock-based compensation included in technology and data analytics expense (23,012) (23,677) Non-GAAP Technology and data analytics expense $ 86,982 $ 70,853 Sales and marketing expense $ 98,782 $ 136,038 Less: Depreciation and amortization included in sales and marketing expense (117) (664) Less: Stock-based compensation included in sales and marketing expense (3,984) (4,482) Less: Enterprise warrant and share-based included in sales and marketing expense (65,966) (101,032) Non-GAAP Sales and marketing expense $ 28,715 $ 29,860 December 31, 2025 June 30, 2025 December 31, 2024 (in thousands) Loans held for investment $ 8,773,542 $ 7,025,534 $ 6,796,167 Add: Loans held for sale 6 — — Less: Funding debt (3,046,846) (1,622,808) (2,166,806) Less: Notes issued by securitization trusts (4,834,736) (4,833,855) (3,988,887) Equity capital required (Non-GAAP) $ 891,966 $ 568,871 $ 640,474 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ2’26 Shareholder Letter Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan5 Feb
8-KDeparture of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers16 Jan
8-KSubmission of Matters to a Vote of Security Holders18 Dec 2025
10-QQ1ended 30 Sept 20256 Nov 2025
8-KFirst Fiscal Quarter 2026We delivered another set of stellar results to get fiscal 2026 started, in both growth and profitability rubrics. Fellow Affirm Shareholders, 2 Affirm FQ1’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. Network effects of data Affirm is a payment network, a multi-sided one: we connect consumers, merchants, payment processors, capital partners, etc. Although we are primarily thought of as a payments provider, a better mental model is a message router: we are shuttling packets of information, which happen to encode in some detail who paid whom, for what, and the risk-based prices of credit for such transactions. The network effects of the payment industry are well understood, but the incremental value gained with each new connection varies. Because most legacy payment methods route data-light messages devoid of, for example, purchasing or credit details, their value curves flatten with scale. Each additional seller or buyer does not enhance the underlying network’s product, only its revenue base. Setting another highest-ever GMV record in a quarter with relatively few shopping holidays showcases the consistency of Team Affirm, once again executing to beat the band. Results like these are never an accidental success, and the last several quarters really felt like the team has accelerated from strength to strength. The quote attributed to the American cycling great Greg LeMond – “it doesn’t get any easier, you just get faster” – finds its way into a fair number of internal communications here at Affirm, both as a rallying cry and a reminder to never rest on our successes. However, given the nature of our business, I propose that some aspects should, in fact, become easier with scale. $455M Revenue Less Transaction Costs (“RLTC”)1 +60% $933M Revenue +34% $10.8B Gross Merchandise Volume (“GMV”) +42% Net Income +$181M 28% Adjusted Operating Income1 As a percent of Revenue +10 pp 7% Operating Income As a percent of Revenue +26 pp $81M All comparisons on a year-over-year basis unless otherwise indicated3 Affirm FQ1’26 Shareholder Letter We are different. From day one, Affirm was designed to build towards network effects of data. Routing information-rich messages allows us to rapidly improve the products we offer, ensuring the value curve keeps rising and creating a moat around our business. The rich data we gather during each transaction’s lifetime improves our many models: credit and fraud, AdaptAI (personalized incentives to maximize sales conversion), BoostAI (program selection for merchants), etc. As we refine these models using data other lenders can’t access, we improve credit approvals and consumer take-up at the point of sale, which improves merchant value, as well as credit outcomes. Better approvals bring more new consumers into our network, strengthening the case for Affirm as a required payment mark at more merchants, which naturally increases overall network frequency, and therefore, the rate of data acquisition. The growth of the data asset we’re able to put to work is accelerating. So perhaps the most interesting question one can ask is neither ‘when will this get easier?’ nor ‘how fast can we go?’ (answer to that, by the way, is governed by our unwavering attention to our credit metrics and unit economics) but ‘what other kinds of messages might we route on Network Affirm?’ The trust asset Credit comes to us from credere, Latin for trust. Last quarter we made approximately 40 million data-informed decisions to trust consumers to repay us as we funded their purchases. That’s only one half of it. A myriad of decisions to trust Affirm take place every day. Consumers trust us to secure the information they share with us in the underwriting process, to debit their connected bank account for repayment, and to honor our upfront pricing and never charge hidden fees (an unrepentant betrayal of trust so common elsewhere in our industry). Our merchant partners trust us to maximize the value we deliver to them in exchange for the margin and signal-rich data they share with us: more sales, higher conversion, a buyer experience that more than stands up to their own standards. Our capital partners trust us to be accurate and timely with our reporting, and to deliver consistent credit outcomes. While we firmly believe that the depth of our network’s moat is proportional to the petabytes of data we collect (fun fact: since inception, we’ve processed about 6 billion live model decisions over nearly 15 years, with a data footprint of about 6 petabytes), our most important asset is trust.We don’t take that lightly. We keep earning it by doing the fundamentally honest thing by all our partners, customers, consumers, and indeed, shareholders, with integrity and transparency. Staying with the cycling metaphor, if building Affirm is a grand tour, we are still racing its earliest stages; but we are getting more efficient and intelligent as a team. My continued gratitude to all Affirmers – here’s to more top podium steps in fiscal 2026. Onward, 44 Affirm FQ1’26 Shareholder Letter ● Earlier this week, we extended our US agreement with Amazon for an additional five years through January 2031, and we look forward to continuing to serve these customers going forward. Notable achievements ● More than 7 million consumers began a transaction on Affirm owned-and-operated surfaces over the past twelve months. ● The Card continued to shine this quarter. Card GMV was up 135% year over year, and active cardholders grew another 500 thousand from last quarter to reach 2.8 million. ● While still experimental, we are very excited to see first successful efforts in cash flow underwriting specific to Affirm Card. ● Affirm and Shopify have expanded our global partnership with the UK launch of Shop Pay Instalments. The Affirm App is also now available in the UK. ● Announced partnerships with ServiceTitan, Vagaro, and launched Ace Hardware in-store, as we continue to bring honest financial products to new merchants, platforms, and categories. ● Signed Worldpay for Platforms, enabling us to serve their more than one thousand ISVs. ● Launched Affirm Connected Accounts (which we designed to power Shop Pay Installments) at key enterprise partners, enabling a much faster and more intuitive checkout. ● Credit outcomes remained steady and well within our targets, but does not change the fact that credit is always job #1 at Affirm.Gross Merchandise Volume (GMV) grew 42% to $10.8 billion with about half of growth coming from direct merchant point-of-sale integrations, a third from the direct-to-consumer business led by Affirm Card, and the remainder from wallet partnerships. From a product perspective, GMV from 0% APR products inclusive of Pay in X grew 64% and significantly outpaced our overall growth rate. GMV from our top five merchants and platform partners collectively grew 33%, and the concentration of GMV derived from top five partners declined slightly to 44% compared to 47% during the same period in the prior year.2 GMV from 0% APR monthly installment loans grew 74% as the number of merchants funding 0% APR offers more than tripled to over 40 thousand merchants. These merchants showed strong willingness to pay for such offers, with approximately 95% of GMV from 0% APR monthly installments at integrated merchants being funded by the merchant. We also increased the prominence and availability of 0% APR offers on Affirm Card, which led to 0% APR GMV on Card growing 158%. All categories except sporting goods and outdoors grew during the quarter, with notable strength in services and travel and ticketing. The fashion and beauty category also accelerated to its highest growth rate in three years. FQ1’26 Operating Highlights 5 Affirm FQ1’26 Shareholder Letter Direct-to-Consumer GMV (D2C GMV) grew 53% to $3.2 billion and Affirm Card GMV within this grew 135% to $1.4 billion. GMV derived from in-store usage of Card grew 170%, and the mix of in-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 2.8 million as card attach rate increased to approximately 12%, up about two points sequentially versus the prior quarter.3 Active consumers increased 24% to 24.1 million as of September 30, 2025, marking the seventh consecutive quarter that the year-over-year growth rate of active consumers accelerated. Active merchant count increased 30% to 419 thousand as of September 30, 2025 with the year-over-year growth rate accelerating 6 percentage points from the prior quarter. The increase in merchant count was driven by two wallet partnerships, as well as the launch of several independent software vendor (ISV) partnerships. 2 All growth rate references are on a year-over-year basis unless otherwise indicated. 3 Card attach rate defined as active cardholders divided by total active consumers during a given period.Within the PSP channel, ISVs have become essential partners to serve long-tail merchants, particularly those with in-store use cases. These ISV partners serve a variety of end industries – from auto repair shops, to elective medical, and professional services such as legal advice – that historically have been underserved by legacy payment methods. Given the diversity of end markets and use cases, ISVs particularly value the range and simplicity of financial products that we offer: from 14 days to 60 months, and $35 to $30,000, with no late fees or gimmicks ever. During FQ1’26, GMV from ISVs grew 68% year over year. ISVs accounted for approximately 27 thousand active merchants, with Affirm being presented as a default payment option and chosen by consumers at more than half of these merchants. Capitalizing on distribution partnerships Wallets and payment service providers (PSPs) have become important channels for consumers to transact with Affirm. These partners allow us to address long-tail merchants, simplify merchant onboarding, and deliver a consistent user experience across channels. Wallets play an important role because they allow us to serve both integrated and non-integrated merchants. Today we are partnered with four of the top wallets. For the twelve month period ending September 30, 2025, these wallets collectively accounted for more than $7 billion of GMV, and grew nearly 70% year over year in FQ1’26. Payment Service Provider U.S. TPV $1 E-comm status In-store status Default payment status Partner A $2.6T Partner B $2T Partner C $1.9T Partner D $600B Partner E $300B 1 Source: TSG eReport 2025 = Live = Currently being built or on commercial roadmap = In discussions Logos indicate ISV partners that are either live with Affirm or have signed and are in the process of being integrated 6 Affirm FQ1’26 Shareholder Letter PSPs are also a crucial distribution channel. In 2024, our top five PSP partners processed an immense $7 trillion in volume. More directly, they contributed over $4 billion to our GMV across more than 50 thousand merchants in the twelve months ending September 30, 2025. Our current focus is enhancing these integrations: we are already a default payment option with a top PSP, transacting at approximately 20 thousand merchants through this motion in FQ1’26, and are in discussions to become a default payment option at four of our top five PSPs. We are also expanding into physical retail by supporting in-store transactions with three of these partners already, with more to follow. Independent software vendors (ISVs)Total revenue grew 34% to $933 million. Revenue as a percentage of GMV was 8.7%, a decrease of 52 basis points compared to FQ1’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: ● Network revenue grew 38%, or slightly below overall GMV growth in part due to a mix shift towards direct-to-consumer (D2C) GMV, which comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 7 basis points due to the aforementioned growth in DTC GMV and an approximately 6% decline in the average term length of 0% APR monthly installment loans on a year-over-year basis. On average, network revenue as a percent of GMV for 0% APR products scales directly with the duration of the underlying loan, and shorter-duration 0% APR products have a lower network revenue as a percent of GMV than longer-duration products. ● Interest income grew 20%, driven primarily by a 19% increase in average loans held for investment. As a percent of GMV, interest income declined 74 basis points as we sold more loans as a percent of GMV and therefore retained less loans on the balance sheet. Additionally, the mix of 0% APR loans, including Pay in X loans, increased from 25% in FQ1’25 to 28% in FQ1’26, leading to a lower average interest yield on loans than if the product mix had remained constant. ● Gain on sales of loans grew 87% and increased by 27 basis points as a percent of GMV. This increase was driven primarily by an increase in loans sold, which grew approximately 76%. The mix of loans sold as a percent of GMV continued to be higher compared to some prior periods due to the ramping of the Sixth Street and other forward flow partnerships. Additionally, we saw an increase in loan sale pricing, with gain on sale as a percentage of loans sold increasing by 14 basis points. ● Servicing income grew 53% and increased by 3 basis points as a percent of GMV. Servicing income is primarily driven by the size of the off-balance sheet platform portfolio, which grew by approximately 60% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ1’26 Financial Highlights 7 Affirm FQ1’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.7% RLTC as a % of GMV 4.2% +48 bps Operating Income as a % of Revenue 7% +26 pp All comparisons on a year-over-year basis (52) bps j i I f 8 10 pp Year-over-Year Change in Revenue as a % of GMV8 Affirm FQ1’26 Shareholder Letter Mix-stabilized network revenue as a % of 0% APR Monthly Installment GMV Loan Product Mix We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 74% while Pay-in-X volume increased 55%. Network revenue as a percentage of GMV for 0% APR monthly installment loans remained stable after adjusting for variations in loan duration. *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Year-over-year Change in RLTC as a % of GMV RLTC grew 60% to $455 million. RLTC as a percentage of GMV increased 48 basis points to 4.2% and exceeded our 3 to 4% long-term target range. The approximate 48 basis point increase was primarily attributable to a 59 basis point improvement in provision for credit losses and 35 basis point improvement in funding costs, partially offset by a 52 basis point decline in revenue. Average Funding Costs Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 98 basis points year over year and 7 basis points sequentially to 6.7%. Average funding costs declined as we continue to execute well in the ABS market and benefit from the repricing of both ABS and warehouse facilities. 15% Pay in X (Short-term 0% APR) 72% Interest- bearing 13% 0% APR monthly 15% Pay in X (Short-term 0% APR) 72% Interest- bearing 13% 0% APR monthly 68% YoY growth 35% YoY growth 55% YoY growth 55% YoY growth 35% YoY growth 74% YoY growthAdjusted Operating Income Adjusted Operating Income was $264 million, a $134 million improvement and 104% increase from the $130 million of Adjusted Operating Income in FQ1’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 28% during the period compared to 19% during FQ1’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $134 million increase in Adjusted Operating Income consisted of a $170 million increase in RLTC, which was partially offset by a $36 million increase, or 23% increase, in operating expenses excluding transaction costs. Within these operating expenses: ● Technology and data analytics increased $16 million, or 25%, driven by an $11 million, or 34%, increase in infrastructure expenses which primarily increased due to the 52% growth in transactions. ● Sales and marketing increased $6 million, or 36%, with the majority of the increase attributable to increases in comarketing and profit share expenses. ● General and administrative increased $14 million, or 18%, primarily driven by payroll, professional services related to consulting and legal fees, and software and subscription expenses. 9 Affirm FQ1’26 Shareholder Letter Operating Income Operating Income was $64 million, a $196 million improvement compared to the ($133) million loss in FQ1’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 7% in the period, compared to (19%) during FQ1’25. The $64 million of Operating Income is inclusive of $49 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $196 million improvement in Operating Income was driven by a $170 million increase in RLTC and $26 million decrease, or 6% decline, in operating expenses excluding transaction costs. Within these operating expenses: ● Technology and data analytics increased $34 million, or 25%, as transaction count increased 52% and led to higher infrastructure expenses. Additionally, we continued to invest in products such as Card, wallet partnerships, and international expansion, including investments made into incremental headcount associated with these projects. ● Sales and marketing declined $67 million, or 46%, due to a $72 million decline in enterprise warrant expense. Certain tranches of enterprise warrants completed their amortization period during FQ2’25 and therefore no longer contributed to sales and marketing expenses in subsequent periods. Excluding enterprise warrant expense, sales and marketing expense increased $6 million, or 24%, due to increases in comarketing and profit share expenses. ● General and administrative increased $6 million, or 5%, with the increase split primarily between professional services related to consulting and legal fees and software and subscription expenses.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 10 Affirm FQ1’26 Shareholder Letter Credit Quality 30+ day delinquencies excluding Peloton and Pay in X loans declined 4 basis points year over year and increased 45 basis points quarter over quarter. The slight decline year over year is attributable in part to a mix shift towards 0% APR products, as well as a decline in the average loan term for these products. 0% APR products tend to have a lower credit risk profile than comparable interest-bearing products. The increase relative to FQ4’25 is primarily driven by seasonality and is consistent with prior years.Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ3’22 through FQ3’25 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is consistent with the performance of historic loan cohorts. 11 Affirm FQ1’26 Shareholder Letter Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. loans only All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV. Net Charge-off Performance12 Affirm FQ1’26 Shareholder Letter Capital and Funding Update Funding Capacity increased to up to $26.6 billion at the end of FQ1’26, from $26.1 billion at the end of FQ4’25. We believe this capacity can support more than $60 billion in annual GMV based upon our weighted-average loan duration of 5 months at the end of FQ1’26. The main highlights across the funding channels were: ● ABS: in September we closed AFFRM 2025-3, which was the third issuance out of our Master Trust. The transaction was our largest ABS issuance to date at $1.1 billion and had the lowest weighted-average yield since FY’22. It was also our first ABS issuance with a three year revolving period, which provides greater stability through market cycles by reducing refinancing pressure and increasing total available ABS debt funding. Offsetting this issuance was the ongoing amortization of previously-issued static ABS deals. ● Forward flow: we added approximately $500 million in capacity compared to FQ4’25 as we expanded our partnerships with several large insurers and onboarded a new asset management partner. ● Warehouse and other funding debt: we added $300 million in funding capacity in the US as we upsized our agreement with two existing bank partners. Efficiency also improved as we benefited from a higher advance rate in one of those facilities resulting from favorable and predictable credit performance across a multi-year relationship with the bank partner. In Canada, we also improved efficiency through the addition of a mezzanine note to one of our facilities. Capital Allocation and Liquidity At the end of September, we had approximately $2.2 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.1 billion increased by $196 million year over year as cash and securities available for sale increased by $121 million, while convertible debt outstanding decreased by $75 million. Quarter over quarter, net cash increased by $41 million as cash and securities available for sale increased by $15 million, while convertible debt outstanding decreased by $25 million. The Affirm board of directors has authorized the repurchase of up to $200 million in aggregate principal amount of our outstanding 2026 convertible notes during the period from July 1, 2025 through December 31, 2025. As of September 30, $174 million of this authorization remains available.1313 Affirm FQ1’26 Shareholder Letter Product mix On a year-over-year basis, the mix of 0% APR GMV inclusive of Pay-in-X products is expected to increase. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that has previously expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Enterprise warrant expense Enterprise warrant expense in FQ2’26 is expected to decrease approximately 25% compared to FQ2’25, and FY’26 enterprise warrant expense is expected to decrease at least 30% from FY’25. Assumptions Embedded Within the Outlook Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to decline modestly during FY’26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Fiscal Q2 2026 Fiscal 2026 GMV $13.00 - 13.30 billion More than $47.5 billion Revenue $1,030 - 1,060 million ~8.4% of GMV Revenue Less Transaction Costs $510 - 525 million ~4% of GMV Operating Margin 6.5 - 8.5% More than 7.5% Adjusted Operating Margin4 28 - 30% More than 27.1% Weighted Avg. Basic Shares Outstanding 335 million 336 million Weighted Avg. Diluted Shares Outstanding 354 million 353 million Financial Outlook 4 A reconciliation of adjusted operating margin 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.14 Affirm FQ1’26 Shareholder Letter About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, and never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Conference Call Affirm will host a conference call and webcast to discuss first fiscal quarter 2026 financial results on November 6, 2025, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company’s investor relations website at https://investors.affirm.com/. A replay will be available on the investor relations website following the call. UBS Global Technology and AI Conference December 2, 2025 Scottsdale, AZ Upcoming Investment Conferences Affirm will be attending the following upcoming investment conference: never harge any late or hidden f es.Three Months Ended September 30, 2025 2024 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 10.8 $ 7.6 Total Transactions (count) 41.4 27.2 Total Revenue, net $ 933.3 $ 698.5 Total Revenue as a % of GMV 8.7 % 9.2 % Transaction Costs (Non-GAAP) $ 478.1 $ 413.4 Transaction Costs as a % of GMV 4.4 % 5.4 % Revenue Less Transaction Costs (Non-GAAP) $ 455.2 $ 285.1 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.2 % 3.8 % Operating Income (Loss) $ 63.7 $ (132.6) Operating Margin 6.8 % (19.0) % Adjusted Operating Income (Non-GAAP) $ 263.9 $ 129.6 Adjusted Operating Margin (Non-GAAP) 28.3 % 18.6 % Net Income (Loss) $ 80.7 $ (100.2) Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators September 30, 2025 June 30, 2025 September 30, 2024 (unaudited) Active Consumers (in millions) 24.1 23.0 19.5 Transactions per Active Consumer 6.1 5.8 5.1 Active Merchants (in thousands) 418.9 376.8 323.0 Total Platform Portfolio (Non-GAAP) (in billions) $ 16.1 $ 15.1 $ 11.8 Equity Capital Required (Non-GAAP) (in millions) $ 626.5 $ 568.9 $ 581.3 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 3.9 % 3.8 % 4.9 % Allowance for Credit Losses as a % of Loans Held for Investment 5.9 % 5.6 % 5.6 % 15 Affirm FQ1’26 Shareholder LetterKey Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 16 Affirm FQ1’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. 17 Affirm FQ1’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a contractual point-of-sale relationship with Affirm or a platform partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. The Company believes that active merchants is a useful performance indicator to both the Company and investors because it measures the reach of the Company's network. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 18 Affirm FQ1’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non-GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: ● Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; ● Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and ● Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 19 Affirm FQ1’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 20 Affirm FQ1’26 Shareholder LetterSeptember 30, 2025 June 30, 2025 Assets Cash and cash equivalents $ 1,428,848 $ 1,354,455 Restricted cash 668,762 401,968 Securities available for sale at fair value 812,442 871,425 Loans held for sale 12 — Loans held for investment 7,235,177 7,025,534 Allowance for credit losses (425,801) (396,929) Loans held for investment, net 6,809,376 6,628,606 Accounts receivable, net 283,726 426,177 Property, equipment and software, net 613,938 572,637 Goodwill 529,910 534,156 Intangible assets 12,685 12,935 Commercial agreement assets 49,154 57,210 Other assets 269,713 295,360 Total assets $ 11,478,567 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 58,019 $ 82,820 Payable to third-party loan owners 193,790 211,700 Accrued interest payable 25,649 24,465 Accrued expenses and other liabilities 165,830 157,272 Convertible senior notes, net 1,127,668 1,153,000 Notes issued by securitization trusts 4,830,819 4,833,855 Funding debt 1,777,906 1,622,808 Total liabilities 8,179,682 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 289,324,958 shares issued and outstanding as of September 30, 2025; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,723,546 shares issued and outstanding as of September 30, 2025; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,299,395 6,140,893 Accumulated deficit (2,976,124) (3,056,818) Accumulated other comprehensive loss (24,389) (15,069) Total stockholders’ equity 3,298,885 3,069,009 Total liabilities and stockholders’ equity $ 11,478,567 $ 11,154,929 AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 1 Within the table presented certain columns may not sum due to the use of rounded numbers 21 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, 2025 2024 Revenue Merchant network revenue $ 251,147 $ 184,339 Card network revenue 69,330 47,480 Total network revenue 320,477 231,819 Interest income 454,122 377,064 Gain on sales of loans 119,049 63,613 Servicing income 39,689 25,983 Total revenue, net 933,337 698,479 Operating expenses Loss on loan purchase commitment 71,552 54,237 Provision for credit losses 162,752 159,824 Funding costs 110,027 104,145 Processing and servicing 133,807 95,146 Technology and data analytics 168,106 134,290 Sales and marketing 78,491 145,233 General and administrative 144,941 138,482 Restructuring and other — (255) Total operating expenses 869,676 831,102 Operating income (loss) $ 63,661 $ (132,623) Other income, net 19,358 34,303 Income (loss) before income taxes $ 83,019 $ (98,320) Income tax expense 2,326 1,902 Net income (loss) $ 80,694 $ (100,222) Other comprehensive income (loss) Foreign currency translation adjustments $ (10,003) $ 8,346 Loss on cash flow hedges (129) (1,492) Unrealized gain on securities available for sale, net 812 5,589 Net other comprehensive income (loss) (9,320) 12,443 Comprehensive income (loss) $ 71,373 $ (87,779) Per share data: Net income (loss) per share attributable to common stockholders for Class A and Class B Basic $ 0.24 $ (0.31) Diluted $ 0.23 $ (0.31) Weighted average common shares outstanding Basic 330,238,205 318,234,555 Diluted 348,278,403 318,234,555 Three Months Ended September 30, 2025 2024 General and administrative $ 55,773 $ 62,804 Technology and data analytics 24,764 25,972 Sales and marketing 5,076 5,195 Processing and servicing 240 262 Total stock-based compensation in operating expenses $ 85,853 $ 94,233 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbers 22 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended September 30, 2025 2024 Cash flows from operating activities Net income (loss) $ 80,694 $ (100,222) Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 162,752 159,824 Amortization of premiums and discounts on loans (65,072) (52,064) Gain on sales of loans (119,049) (63,613) Gain on extinguishment of debt (1,495) (19,624) Changes in fair value of assets and liabilities (110) 1,668 Amortization of commercial agreement assets 8,056 14,256 Amortization of debt issuance costs 6,828 6,083 Accrued interest on securities available for sale (9,959) (15,797) Commercial agreement warrant expense 40,977 107,263 Stock-based compensation 85,853 94,233 Depreciation and amortization 65,329 46,720 Other (4,930) (2,209) Change in operating assets and liabilities: Purchases and origination of loans held for sale (749,202) (1,219,022) Proceeds from the sale of loans held for sale 748,761 1,219,061 Accounts receivable, net 138,862 41,117 Other assets 30,955 (6,833) Accounts payable (24,801) 16,543 Payable to third-party loan buyers (17,910) (7,608) Accrued interest payable 1,621 846 Accrued expenses and other liabilities (3,586) (23,755) Net cash provided by operating activities 374,572 196,867 Cash flows from investing activities Purchases and origination of loans held for investment (9,797,362) (6,388,350) Proceeds from the sale of loans held for investment 4,282,839 1,630,671 Principal repayments and other loan servicing activity 5,359,253 4,132,682 Additions to property, equipment and software (54,365) (44,152) Purchases of securities available for sale (146,462) (136,727) Proceeds from maturities and repayments of securities available for sale 216,425 215,680 Other investing inflows 61 36,197 Other investing outflows — (21,000) Net cash used in investing activities (139,611) (574,999) Cash flows from financing activities Proceeds from the issuance of funding debt 7,980,435 3,188,998 Proceeds from issuance of notes and certificates by securitization trust 1,100,000 750,000 Principal repayments of funding debt (7,818,589) (3,289,384) Principal repayments of notes issued by securitization trust (1,100,000) — Payment of debt issuance costs (9,466) (4,321) Extinguishment of convertible debt (24,814) (120,056) Proceeds from exercise of common stock options and warrants and contributions to ESPP 94,828 3,596 Taxes paid related to net share settlement of equity awards (112,307) (63,208) Net cash provided by financing activities 110,086 465,625 Effect of exchange rate changes on cash, cash equivalents and restricted cash (3,861) 1,730 Net increase in cash, cash equivalents and restricted cash 341,187 89,223 Cash, cash equivalents and restricted cash, beginning of period 1,756,423 1,295,399 Cash, cash equivalents and restricted cash, end of period $ 2,097,610 $ 1,384,622 1 Within the table presented certain columns may not sum due to the use of rounded numbers 23 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) Three Months Ended September 30, 2025 2024 Supplemental disclosures of cash flow information Cash payments for interest expense $ 103,252 $ 99,506 Cash paid for operating leases 4,253 4,159 Cash paid for income taxes 1,749 454 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 52,885 49,478 Three Months Ended September 30, 2025 2024 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,428,848 $ 1,046,160 Restricted cash 668,762 338,462 Total cash, cash equivalents and restricted cash $ 2,097,610 $ 1,384,622 24 Affirm FQ1’26 Shareholder LetterRECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended September 30, 2025 2024 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 71,552 $ 54,237 Provision for credit losses 162,752 159,824 Funding costs 110,027 104,145 Processing and servicing 133,807 95,146 Transaction costs (Non-GAAP) $ 478,138 $ 413,352 Technology and data analytics 168,106 134,290 Sales and marketing 78,491 145,233 General and administrative 144,941 138,482 Restructuring and other — (255) Total operating expenses $ 869,676 $ 831,102 Total revenue $ 933,337 $ 698,479 Less: Transaction costs (Non-GAAP) (478,138) (413,352) Revenue less transaction costs (Non-GAAP) $ 455,199 $ 285,127 Operating income (loss) $ 63,661 $ (132,623) Add: Depreciation and amortization 65,328 46,715 Add: Stock-based compensation included in operating expenses 85,853 94,233 Add: Enterprise warrant and share-based expense 49,033 121,519 Add: Restructuring and other 1 — (255) Adjusted operating income (Non-GAAP) $ 263,875 $ 129,589 Divided by: Total revenue, net $ 933,337 $ 698,479 Adjusted operating margin (Non-GAAP) 28.3 % 18.6 % General and administrative expense $ 144,941 $ 138,482 Less: Depreciation and amortization included in general and administrative expense (550) (605) Less: Stock-based compensation included in general and administrative expense (55,773) (62,804) Non-GAAP General and administrative expense $ 88,618 $ 75,073 Technology and data analytics expense $ 168,106 $ 134,290 Less: Depreciation and amortization included in technology and data analytics expense (64,631) (45,392) Less: Stock-based compensation included in technology and data analytics expense (24,764) (25,972) Non-GAAP Technology and data analytics expense $ 78,711 $ 62,926 Sales and marketing expense $ 78,491 $ 145,233 Less: Depreciation and amortization included in sales and marketing expense (117) (686) Less: Stock-based compensation included in sales and marketing expense (5,076) (5,195) Less: Enterprise warrant and share-based included in sales and marketing expense (49,033) (121,519) Non-GAAP Sales and marketing expense $ 24,265 $ 17,833 September 30, 2025 June 30, 2025 September 30, 2024 (in thousands) Loans held for investment $ 7,235,177 $ 7,025,534 $ 6,310,834 Add: Loans held for sale 12 — — Less: Funding debt (1,777,906) (1,622,808) (1,744,040) Less: Notes issued by securitization trusts (4,830,819) (4,833,855) (3,985,484) Equity capital required (Non-GAAP) $ 626,464 $ 568,871 $ 581,310 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbers 25 Affirm FQ1’26 Shareholder LetterSUPPLEMENTAL DELINQUENCY INFORMATION Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan 26 Affirm FQ1’26 Shareholder Letter6 Nov 2025
DEFA14ADefinitive additional materials24 Oct 2025
ARSAnnual report to security holders24 Oct 2025

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Form 4Watson Noel Bertram04:00PM
SC 13G/AAffirm Holdings, Inc.01:51PM
Form 144Watson Noel Bertram10 Nov
SC 13G/AAffirm Holdings, Inc.5 Nov
Form 4Jiyane Siphelele3 Nov
Form 4O'Hare Robert14 Oct
Form 144O'Hare Robert9 Oct
Form 4Adkins Katherine18 Sep
Form 4Michalek Libor18 Sep
Form 4Linford Michael18 Sep
Form 4O'Hare Robert18 Sep
Form 4Jiyane Siphelele16 Sep
Form 144Jiyane Siphelele14 Sep
Form 4Jiyane Siphelele9 Sep
Form 144Jiyane Siphelele4 Sep
Form 4Adkins Katherine3 Sep
Form 144Adkins Katherine3 Sep
Form 4O'Hare Robert3 Sep
Form 4Michalek Libor3 Sep
Form 4Linford Michael3 Sep

Non-Ownership Filings(136)

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10-QQ1ended 30 Sept 20265 Nov
8-KFirst Fiscal Quarter 2027We opened fiscal ‘27 with another set of stellar results, from the top line to the bottom. Fellow Affirm shareholders, 2 Affirm FQ1’27 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. It feels great to print another no-apologies quarter. Taking a wider view, we are especially proud of the reliability of the results we’ve been able to deliver throughout the years. Keeping consistent, yet staying uncorrelated to the conventional wisdom, has been Affirm’s way since the beginning. Affirm is a counterintuitive success story in the world of consumer finance. Our original product bet can be restated as “asking the consumer to do more work (than the most successful alternative) when borrowing money will result in more purchases and happier buyers.” We deliberately introduced what looked like checkout friction: don’t just tap! – apply for a loan, review terms, agree to pay us back over time, etc., etc. – positing that this will improve conversion. This did turn out to be highly accretive, driving 20% conversion lift, flying in the face of the received wisdom. Early on, der expertes wrote this off as simply the work one will do when no easier sources of credit are available. But the data tells a different story: about half of our borrowers are prime or super-prime, and approximately 85% have a credit card with an open line of credit. Greater awareness of the true cost of credit offers our consumers a sense of certainty and control, even with a few extra steps. All comparisons on a year-over-year basis unless otherwise indicated $617M$14.4B Revenue Less Transaction Costs (“RLTC”)1 12th consecutive quarter of >30% growth +34% Accelerating sequentially from FQ4’26 4.3% of GMV Growing to $380 millionGrowing to $187 million 8 consecutive quarters of GAAP profitability +36% $1.3B Revenue +35% Gross Merchandise Volume (“GMV”) Net Income +$83M 30% Adjusted Operating Income1 As a percent of Revenue +2 pp 15% Operating Income As a percent of Revenue +8 pp $164M3 The results of this work are nothing short of a leap in our underwriting performance. The first version of the transformer-based model delivered an incremental 3.4% of end-to-end conversion via significantly higher credit approvals, while keeping credit losses flat. In other words, we are able to lend profitably to a greater pool of responsible borrowers, helping our merchants sell more, and delivering more high-quality assets to our capital partners. All this, while continuing to ensure that all decisions are deterministic, transparent, and explainable to consumers. This conscious consumer engagement at the point of sale generates the very data we learn from to improve our ability to approve more borrowers on better terms. Which brings us back to the point about the false tradeoff between intentionality and value creation. There is a nice symmetry between the work our consumers do to get smarter about credit, and the work we do every day within our AI/ML teams to get smarter about credit underwriting. Fifteen years ago, when we chose to eschew late penalties and compounding interest, we knew we set our risk management bar very high, perhaps fatuously so. Without the extra margin of these hidden fees to pay for credit decisioning slop, we had to become very good at underwriting. In fact, we had to reinvent major parts of the discipline to stay ahead. We did that again recently. For years, we carefully selected model features (data that helps predict credit outcomes, such as repayment consistency) entirely by hand. This can work really well if the hands (and the brains) doing the selecting are exceptional, but there are only so many brains you can throw at the problem. Fortunately, we’ve been working for several years to combine everything we’ve learned during the decade of manual feature refinement with an entirely new approach for automatically learning subtle patterns in relevant data. Powered by a transformer-based architecture, this intelligent system is directly inspired by, and is quite similar to, the ones behind some of today’s most popular LLMs. Affirm FQ1’27 Shareholder LetterAs we integrate Affirm into agentic commerce experiences, we can already see that agents will indeed free shoppers from the drudgery of filling out forms and clicking buttons. But the interaction and context awareness required to maximize the value of a personal shopping agent is a feature, not a temporary shortcoming before the models get even smarter. Humans will have more time to enjoy shopping, and with Affirm, a real sense of control over their finances. Our merchant- and brand-sponsored offers will be easier to find than ever, too. Your favorite agent will delight you with the perfect gift idea for this holiday’s shopping list… and it most certainly won’t let you miss out on the sweet 0% APR offer from Affirm. “We take risk” was the first line of an early draft of our S-1. This, understandably, didn’t survive the final cut, but it remains the very throughline of how Affirm goes about conducting our business. We take on and manage various forms of uncertainty for all members of our broad ecosystem… and meanwhile, look at the bottom line! While the news of agentic breakthroughs, inflation fears, interest rate speculation, etc. bombards us daily, we at Affirm are moving with deliberate aggression, quarter after quarter, in a single-minded pursuit of our mission. Instead of running from it, we embrace uncertainty as a key dimension to manage, as we plot our path to scaling our network to $100 billion and beyond. Thank you to all Affirmers working in shifts to prepare for BFCM for another great quarter filled with many wins, and just as importantly, with many risks, well-managed. Here’s to a great holiday season and a strong rest of FY’27. Onward, 4 Affirm FQ1’27 Shareholder Letter • New merchants and expansions: Launched with AliExpress and Antom. We also signed or recently announced partnerships with Farfetch, J. Crew (including their J. Crew Factory and Madewell brands), Sam’s Club, and Sur La Table. We renewed our partnership with Seatgeek and expanded the partnership to include Canada. • Affirm Card and Affirm Edge: Active cardholders increased 112% to 6 million while Card GMV grew 117%. Card generated more GMV in FQ1’27 than Affirm’s entire business did in the same quarter five years ago. We continue to expect the first Affirm Edge pilots to go live in the first calendar half of 2027. • Shared AI platform and LLM gateway: A double-digit (and growing) share of our AI inference traffic now runs through an Affirm- developed gateway, allowing us to route between leading frontier and open-weight models behind a single interface, improving speed of adoption and token cost management. • Purchasing power: We rolled out the latest iteration of our Card-specific risk model, enabling us to reward Affirm's more responsible users with more purchasing power, unlocking more Card GMV without sacrificing unit economics. • Bank accounts for down payments: Affirm borrowers with connected bank accounts can now make down payments that way instead of using their debit card, reducing an important operating cost. • Quick personal update: A meaningful chunk of my Affirm time is now spent working with the zt1 team (when not prepping for earnings), greatly improving this CEO's job satisfaction. Other achievementsGross Merchandise Volume (GMV) grew 34% to $14.4 billion, marking the twelfth consecutive quarter of GMV growth sustained above 30%.2 The mix of GMV derived from top five partners declined to 40% compared to 44% during the same period in the prior year, as a result of the continued diversification of GMV across merchants and platform partners and the growth of our direct to consumer products such as Affirm Card, with Card alone accounting for 23% of GMV during the quarter. All categories grew during the quarter, with notable strength in the services, home/lifestyle, and the "other" category that includes GMV from long-tail merchants and wallet partners. Independent Software Vendor ("ISV") partners continued to drive the strong growth of the services category, while a home improvement retailer and e-commerce marketplace specializing in home furnishings accounted for the strength of the home/lifestyle category. Growth was consistent across loan product types with GMV from each of our loan products growing at least 30%. FQ1’27 Operating Highlights Direct-to-Consumer GMV (D2C GMV) grew 55% to $5.1 billion driven almost entirely by Affirm Card GMV, which grew 117% to $3.3 billion. Active cardholders again more than doubled year over year to 6.0 million as card attach rate increased to approximately 21%, up about two points sequentially versus the prior quarter and up nine points year over year.4 Total transactions during the quarter increased to 56 million, growing 34%, in line with overall GMV growth, while Average Order Value (AOV) declined by 1%, to $258. The increase in transaction count and slight decline in AOV is largely attributable to continued efforts to lower cart floors to address a wider range of transactions. Active consumers increased 19% to 28.7 million as of September 30, 2026, while transactions per active consumer also increased 19% to 7.3 over the trailing twelve month period ending September 30, 2026. Active merchant count increased 48% to 621 thousand as of September 30, 2026. The increase in merchant count was diversified across several drivers, with the largest being the ongoing scaling of a wallet partnership, continued success serving long-tail merchants via ISV partners, and the ramping of our partnership with a large digital invoicing platform. Additionally, our ongoing international expansion into Canada and the UK accounted for approximately 20% of the quarter-over-quarter increase in active merchant count. 2 All growth rate references are on a year-over-year basis unless otherwise indicated. 3 International defined as growth from outside of North America. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period. Affirm FQ1’27 Shareholder Letter5 FQ1'27 Year-over-Year GMV Growth Drivers 18% 15% 1% 34% D2C and wallets Merchant POS International FQ1'27 growth 0% 5% 10% 15% 20% 25% 30% 35% 3Total revenue grew 35% to $1,262 million. Revenue as a percentage of GMV was 8.79%, above the high end of our 7.5% to 8.5% medium term range, and an increase of 11 basis points compared to FQ1’26. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 23%, slower than overall GMV growth, in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 24 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 45%, slightly above the 38% increase in average net loans held for investment and above overall GMV growth. The average APR on interest-bearing loans increased by approximately 40 basis points year over year and 10 basis points quarter over quarter as the mix of D2C GMV increased compared to prior periods; interest-bearing D2C products generally have a higher APR than our overall average. • Gain on sales of loans grew 36%, slightly more than overall GMV growth, and increased by 2 basis points as a percent of GMV. The increase in gain on sales of loans was driven in part by a 27% growth in loans sold. Additionally, gain on sale as a percentage of loans sold increased by 17 basis points due to more favorable loan sale pricing. • Servicing income grew 22% or generally in line with the growth of the average off-balance sheet platform portfolio. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ1’27 Financial Highlights 6 Affirm FQ1’27 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.8% RLTC as a % of GMV 4.3% +7 bps Operating Income $187M +194% All comparisons on a year-over-year basis +11 bps Adj. Operating Income $380M 4% Year-over-Year Change in Revenue as a % of GMV 8.68% (0.24%) 0.36% 0.02% (0.03%) 8.79% FQ1'26 Total network revenue Interest income Gain on sales of loans Servicing income FQ1'27 0% 2% 4% 6% 8% 10%7 Affirm FQ1'27 Shareholder Letter On a loan product basis, GMV mix shifted slightly to interest-bearing loans, which increased 34%. Affirm Card GMV, which grew 117% in the quarter, continues to skew heavily towards interest-bearing loans and therefore contributed to the slight overall mix shift towards interest- bearing loans. Loan Product Mix On a year-over-year basis, funding costs remained a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 69 basis points to 6.0%. However, funding costs increased 27 basis points sequentially due the increase in benchmark interest rates during FQ1. Our fixed-cost funding helped mitigate the impact of higher interest rates and, as of quarter end, represented more than 70% of our outstanding, on-balance sheet funding. Average Annualized Cost of Funds 6.7% 6.0% FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 FQ4'26 FQ1'27 0% 2% 4% 6% 8% RLTC grew 36% to $617 million. RLTC as a percentage of GMV increased 7 basis points to 4.30%, above the high end of our 3.75 to 4% medium-term target range. The approximate 7 basis point increase was attributable to an 11 basis point increase in revenue, 9 basis point improvement in loss on loan purchase commitment, 9 basis point improvement in funding costs, and a 7 basis point improvement in processing and servicing expenses. These tailwinds were mostly offset by a 29 basis point increase in provision for loan losses. Year-over-Year Change in RLTC as a % of GMV 4.23% 0.11% 0.09% 0.09% 0.07% (0.29%) 4.30% FQ1'26 Revenue Loss on loan purchase commitment Funding costs Processing and servicing Provision for credit losses FQ1'27 0% 1% 2% 3% 4% 5% 33% YoY growth 34% YoY growth 32% YoY growth 72% 13% 15%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $380 million, a $116 million improvement and 44% increase from the $264 million of Adjusted Operating Income in FQ1’26. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 30% during the period, compared to 28% during FQ1’26. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $116 million increase in Adjusted Operating Income consisted of a $162 million increase in RLTC, which was partially offset by a $46 million increase, or 24% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $22 million, or 28%. Almost all of this increase was attributable to infrastructure expenses, which increased $19 million, or 41%, primarily due to a 34% increase in transaction count. • Non-GAAP Sales and marketing increased $9 million, or 37%, primarily due to higher comarketing expenses. • Non-GAAP General and administrative increased $15 million, or 17% driven by higher customer service, software and subscription, and professional service expenses. 8 Affirm FQ1’27 Shareholder Letter Operating Income Operating Income was $187 million, a $123 million improvement compared to the $64 million in FQ1’26. Operating Income as a percentage of revenue, or Operating Margin, was approximately 14.8% in the period, compared to 6.8% during FQ1’26. The $187 million of Operating Income is inclusive of $51 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $123 million improvement in Operating Income was driven by a $162 million increase in RLTC and partially offset by a $39 million increase in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $35 million, or 21%. The increase was primarily driven by a $21 million, or 33%, increase in amortization of internally- developed software expense. Infrastructure expenses also increased $19 million, or 41%; these expenses are closely linked with transaction count, which increased 34%. • Sales and marketing increased $8 million, or 11%, due to a $6 million increase in loss on loan origination for certain self-originated 0% APR loans as well as a $6 million increase in comarketing expense. • General and administrative decreased $4 million, or 3%, as increases in customer service, software and subscription, and professional service expenses were more than offset by a $19 million decrease in stock- based compensation expense.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ1’27 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 9 basis points year over year and increased 35 basis points quarter over quarter to 2.9%. FY’23 FY’24 FY’25 FY’26 FY'27 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ3’23 through FQ3’26 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ1’25 through May 2026 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.Capital and Funding Update Funding Capacity increased to $31.7 billion at the end of FQ1’27, up from $26.6 billion at the end of FQ1’26, and $30.0 billion at the end of FQ4’26. We estimate this capacity can support more than $70 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ1’27. The main highlights across the funding channels as of the end of FQ1’27 were: ABS: capacity increased by approximately $1.3 billion year over year and $600 million compared to FQ4’26. During the quarter, we closed the 2026-3, 2026-4, and 2026-5 ABS transactions, issuing approximately $1.7 billion of notes in aggregate. In addition to increasing ABS capacity, our ABS program had two other notable achievements: first, we added a second major rating agency. Second, the 2026-5 notes marked our inaugural issuance of five-year notes. We believe the addition of another major rating agency and the issuance of longer-dated notes broadened investor demand. Insurance investors, which typically seek longer- dated assets, were particularly active in the 2026-5 transaction. Forward flow: capacity increased by approximately $1.6 billion year over year and approximately $900 million compared to FQ4’26. Most of the year-over-year increase came from insurance and major asset management partners. 10 Affirm FQ1’27 Shareholder Letter Warehouse and other funding debt: capacity increased by approximately $2.0 billion year over year and approximately $250 million compared to FQ4’26. The substantial majority of the year-over-year increase came from increases in warehouse facility capacity at several multinational banks. Capital Allocation and Liquidity At the end of September, we had approximately $3.0 billion in total liquidity split between cash and equivalents and securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.9 billion increased by $761 million year over year as cash and securities available for sale increased by $764 million, while convertible debt outstanding increased by $3 million. Quarter over quarter, net cash increased by $402 million as cash and securities available for sale increased by $403 million. On December 17, 2025, the Affirm board of directors authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026. There were no repurchases under this authorization during FQ1'27.11 Affirm FQ1’27 Shareholder Letter Assumptions and other considerations embedded within the outlook Enterprise warrant expense Enterprise warrant expense is expected to be seasonally higher in FQ2 compared to other quarters in the fiscal year. The launch of Affirm at a large enterprise partner in the UK in late FQ1 is also expected to accelerate the rate at which enterprise warrants are earned in FQ2'27 and beyond. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to increase during FY'27 compared to FY'26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain at or below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’27. Fiscal Q2 2027 Fiscal 2027 GMV $17.9 to $18.2 billion More than $65.25 billion Revenue $1,435 to $1,465 million Similar to FY'26 as a % of GMV (~8.49%) Revenue Less Transaction Costs $705 to $720 million Similar to FY'26 as a % of GMV (~4.16%) Operating Margin 11.50 to 13.50% More than 14.75% Adjusted Operating Margin5 29.50 to 31.50% More than 30.75% Weighted Avg. Basic Shares Outstanding 343 million 345 million Weighted Avg. Diluted Shares Outstanding 354 million 355 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ1’27 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss first fiscal quarter 2027 financial results on November 5, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin (Founder and Chief Executive Officer), Michael Linford (President), and Rob O’Hare (Chief Financial Officer). The conference call will be webcast live from the Company's investor relations website at https://investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Citi FinTech Conference November 9, 2026 New York, NY UBS Global Technology and AI Conference December 1-2, 2026 Scottsdale, AZ13 Affirm FQ1’27 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended September 30, 2026 2025 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 14.4 $ 10.8 Total Transactions (count) 55.6 41.4 Total Revenue, net $ 1,262.2 $ 933.3 Total Revenue as a % of GMV 8.8 % 8.7 % Transaction Costs (Non-GAAP) $ 645.1 $ 478.1 Transaction Costs as a % of GMV 4.5 % 4.4 % Revenue Less Transaction Costs (Non-GAAP) $ 617.1 $ 455.2 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.3 % 4.2 % Operating Income (Loss) $ 187.1 $ 63.7 Operating Margin 14.8 % 6.8 % Adjusted Operating Income (Non-GAAP) $ 379.7 $ 263.9 Adjusted Operating Margin (Non-GAAP) 30.1 % 28.3 % Net Income $ 164.2 $ 80.7 September 30, 2026 June 30, 2026 September 30, 2025 (unaudited) Active Consumers (in millions) 28.7 27.8 24.1 Transactions per Active Consumer 7.3 7.0 6.1 Active Merchants (in thousands) 620.8 570.8 418.9 Total Platform Portfolio (Non-GAAP) (in billions) $ 21.6 $ 20.2 $ 16.1 Equity Capital Required (Non-GAAP) (in millions) $ 988.9 $ 896.3 $ 626.5 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.6 % 4.4 % 3.9 % Allowance for Credit Losses as a % of Loans Held for Investment 6.3 % 5.9 % 5.9 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income (Loss) - The Company defines adjusted operating income (loss) as its GAAP operating income (loss), excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating income (loss); and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Adjusted operating income (loss) is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ1’27 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating income (loss); (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating income (loss) included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. Incremental Margin - The Company defines incremental margin as the year-over-year change in either Operating Income (Loss) or Adjusted Operating Income (Loss) divided by the year-over-year change in Revenue Less Transaction Costs (RLTC). Incremental margin is presented because the Company believes that it is a useful financial measure to both the Company and investors as it reflects the rate at which additional RLTC converts into operating income (or adjusted operating income, as applicable) from one period to the next. 15 Affirm FQ1’27 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. Dollar-Based Net Expansion - The Company defines dollar-based net expansion as the quarterly GMV generated by merchants who were active during the same quarter in the prior fiscal year, divided by the GMV generated by that same group of merchants during the same quarter in the prior fiscal year. This calculation excludes GMV from outside the U.S., as well as GMV from Returnly, and direct-to-consumer products such as Affirm Card and virtual cards. The Company believes dollar-based net expansion is a useful performance indicator to both the Company and investors as it reflects the ability to retain and grow GMV from its existing merchant base over time. 16 Affirm FQ1’27 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ1’27 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s promotions and products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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 merchant partners, commerce platforms and consumers and retain and grow its relationships with existing merchant partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of persistent inflation, ongoing recessionary concerns, international conflicts, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to sustain profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ1’27 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ1’27 Shareholder Letter September 30, 2026 June 30, 2026 Assets Cash and cash equivalents $ 2,072,399 $ 1,630,038 Restricted cash 498,631 803,005 Securities available for sale at fair value 932,808 972,642 Loans held for sale — 1 Loans held for investment 10,114,596 9,560,742 Allowance for credit losses (636,124) (563,295) Loans held for investment, net 9,478,472 8,997,447 Accounts receivable, net 356,915 284,350 Property, equipment and software, net 691,350 685,834 Goodwill 525,343 524,452 Intangible assets 25,456 26,416 Commercial agreement assets 35,241 38,326 Deferred tax assets 1,433,080 1,467,036 Other assets 431,644 360,601 Total assets $ 16,481,340 $ 15,790,148 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 83,247 $ 84,647 Payable to third-party loan owners 164,847 199,557 Accrued interest payable 33,417 28,568 Accrued expenses and other liabilities 192,305 199,493 Convertible senior notes, net 1,130,556 1,129,581 Notes issued by securitization trusts 6,221,183 5,331,229 Funding debt 2,904,541 3,333,248 Total liabilities 10,730,096 10,306,324 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 298,389,237 shares issued and outstanding as of September 30, 2026; 3,030,000,000 shares authorized, 296,636,147 shares issued and outstanding as of June 30, 2026 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,530,194 shares issued and outstanding as of September 30, 2026; 140,000,000 shares authorized, 40,539,552 shares issued and outstanding as of June 30, 2026 1 1 Additional paid in capital 6,745,341 6,647,214 Accumulated deficit (962,859) (1,127,025) Accumulated other comprehensive loss (31,241) (36,368) Total stockholders’ equity 5,751,244 5,483,824 Total liabilities and stockholders’ equity $ 16,481,340 $ 15,790,148 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Revenue Merchant network revenue $ 296,928 $ 251,147 Card network revenue 96,490 69,330 Total network revenue 393,418 320,477 Interest income 658,128 454,122 Gain on sales of loans 162,172 119,049 Servicing income 48,498 39,689 Total revenue, net 1,262,216 933,337 Operating expenses Loss on loan purchase commitment 82,573 71,552 Provision for credit losses 259,357 162,752 Funding costs 134,373 110,027 Processing and servicing 168,808 133,807 Technology and data analytics 202,652 168,106 Sales and marketing 86,841 78,491 General and administrative 140,560 144,941 Total operating expenses 1,075,164 869,676 Operating income $ 187,052 $ 63,661 Other income, net 18,000 19,358 Income before income taxes $ 205,052 $ 83,019 Income tax expense 40,886 2,326 Net income $ 164,166 $ 80,694 Other comprehensive income (loss) Foreign currency translation adjustments $ 1,268 $ (10,003) Unrealized gain (loss) on securities available for sale, net (2,797) 812 Gain (loss) on cash flow hedges 6,656 (129) Net other comprehensive income (loss) 5,127 (9,320) Comprehensive income $ 169,294 $ 71,373 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.48 $ 0.24 Diluted $ 0.47 $ 0.23 Weighted average common shares outstanding Basic 341,335,987 330,238,205 Diluted 351,783,888 348,278,403 Three Months Ended September 30, 2026 2025 General and administrative $ 36,542 $ 55,773 Technology and data analytics 16,449 24,764 Sales and marketing 2,548 5,076 Processing and servicing 162 240 Total stock-based compensation in operating expenses $ 55,702 $ 85,853 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Cash flows from operating activities Net income $ 164,166 $ 80,694 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for losses 259,357 162,752 Amortization of premiums and discounts on loans (86,858) (65,072) Gain on sales of loans (162,172) (119,049) Gain on extinguishment of debt — (1,495) Changes in fair value of assets and liabilities 404 (110) Amortization of commercial agreement assets 3,085 8,056 Amortization of debt issuance costs 8,058 6,828 Accrued interest on securities available for sale (9,874) (9,959) Commercial agreement warrant expense 48,040 40,977 Stock-based compensation 55,702 85,853 Depreciation and amortization 86,810 65,329 Deferred income tax expense 33,968 1,990 Other (7,974) (4,930) Change in operating assets and liabilities: Purchases and origination of loans held for sale (578,231) (749,202) Proceeds from the sale of loans held for sale 577,776 748,761 Accounts receivable, net (74,791) 138,862 Other assets (61,764) 28,965 Accounts payable (1,401) (24,801) Payable to third-party loan owners (34,710) (17,910) Accrued interest payable 4,927 1,621 Accrued expenses and other liabilities (17,442) (3,586) Net cash provided by operating activities 207,077 374,572 Cash flows from investing activities Purchases and origination of loans held for investment (13,792,617) (9,797,362) Proceeds from the sale of loans held for investment 5,834,184 4,282,839 Principal repayments and other loan servicing activity 7,486,203 5,359,253 Additions to property, equipment and software (62,509) (54,365) Purchases of securities available for sale (159,951) (146,462) Proceeds from maturities and repayments of securities available for sale 207,086 216,425 Other investing inflows 55 61 Other investing outflows (1,548) — Net cash used in investing activities (489,098) (139,611) Cash flows from financing activities Proceeds from the issuance of funding debt 13,626,316 7,980,435 Proceeds from issuance of notes and certificates by securitization trust 1,650,000 1,100,000 Principal repayments of funding debt (14,058,843) (7,818,589) Principal repayments of notes issued by securitization trust (750,000) (1,100,000) Payment of debt issuance costs (15,666) (9,466) Extinguishment of convertible debt — (24,814) Proceeds from exercise of common stock options and warrants and contributions to ESPP 12,075 94,828 Taxes paid related to net share settlement of equity awards (44,704) (112,307) Net cash provided by financing activities 419,179 110,086 Effect of exchange rate changes on cash, cash equivalents and restricted cash 829 (3,861) Net increase in cash, cash equivalents and restricted cash 137,987 341,187 Cash, cash equivalents and restricted cash, beginning of period 2,433,043 1,756,423 Cash, cash equivalents and restricted cash, end of period $ 2,571,030 $ 2,097,610 1 Prior period deferred tax amounts have been reclassified out of other assets to conform to the current period presentation as a separate line item on the condensed consolidated statements of cash flowsAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ1’27 Shareholder Letter Three Months Ended September 30, 2026 2025 Supplemental disclosures of cash flow information Cash payments for interest expense $ 122,401 $ 103,252 Cash paid for operating leases 1,529 4,253 Cash paid for income taxes 14,160 1,749 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 29,414 52,885 Right of use assets obtained in exchange for operating lease liabilities 1,982 — Three Months Ended September 30, 2026 2025 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 2,072,399 $ 1,428,848 Restricted cash 498,631 668,762 Total cash, cash equivalents and restricted cash $ 2,571,030 $ 2,097,610RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ1’27 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended September 30, 2026 2025 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 82,573 $ 71,552 Provision for credit losses 259,357 162,752 Funding costs 134,373 110,027 Processing and servicing 168,808 133,807 Transaction costs (Non-GAAP) $ 645,111 $ 478,138 Technology and data analytics 202,652 168,106 Sales and marketing 86,841 78,491 General and administrative 140,560 144,941 Total operating expenses $ 1,075,164 $ 869,676 Total revenue $ 1,262,216 $ 933,337 Less: Transaction costs (Non-GAAP) (645,111) (478,138) Revenue less transaction costs (Non-GAAP) $ 617,105 $ 455,199 Operating income (loss) $ 187,052 $ 63,661 Add: Depreciation and amortization 85,833 65,328 Add: Stock-based compensation included in operating expenses 55,702 85,853 Add: Enterprise warrant and share-based expense 51,125 49,033 Adjusted operating income (Non-GAAP) $ 379,712 $ 263,875 Divided by: Total revenue, net $ 1,262,216 $ 933,337 Adjusted operating margin (Non-GAAP) 30.1 % 28.3 % General and administrative expense $ 140,560 $ 144,941 Less: Depreciation and amortization included in general and administrative expense (464) (550) Less: Stock-based compensation included in general and administrative expense (36,542) (55,773) Non-GAAP General and administrative expense $ 103,554 $ 88,618 Technology and data analytics expense $ 202,652 $ 168,106 Less: Depreciation and amortization included in technology and data analytics expense (85,302) (64,631) Less: Stock-based compensation included in technology and data analytics expense (16,449) (24,764) Non-GAAP Technology and data analytics expense $ 100,901 $ 78,711 Sales and marketing expense $ 86,841 $ 78,491 Less: Depreciation and amortization included in sales and marketing expense (46) (117) Less: Stock-based compensation included in sales and marketing expense (2,548) (5,076) Less: Enterprise warrant and share-based included in sales and marketing expense (51,125) (49,033) Non-GAAP Sales and marketing expense $ 33,122 $ 24,265 September 30, 2026 June 30, 2026 September 30, 2025 (in thousands) Loans held for investment $ 10,114,596 $ 9,560,742 $ 7,235,177 Add: Loans held for sale — 1 12 Less: Funding debt (2,904,541) (3,333,248) (1,777,906) Less: Notes issued by securitization trusts (6,221,183) (5,331,229) (4,830,819) Equity capital required (Non-GAAP) $ 988,872 $ 896,266 $ 626,464 1 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ1’27 Shareholder Letter Monthly Installment Loan (ex-Peloton) Monthly Installment Loan Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 2.8% 2.5% FY 2027 2.9% 60+ Day Delinquencies FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.6% 1.5% FY 2027 1.7% 90+ Day Delinquencies FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% 0.7% 0.6% FY 2027 0.8% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 2.8% 2.5% FY 2027 2.9% 60+ Day Delinquencies FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.7% 1.5% FY 2027 1.7% 90+ Day Delinquencies FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% 0.7% 0.6% FY 2027 0.8%5 Nov
DEFA14ADefinitive additional materials23 Oct
DEF 14ADefinitive proxy statement23 Oct
ARSAnnual report to security holders23 Oct
S-8Registration statement (employee benefit plan)27 Aug
10-KFY 2026ended 30 Jun 202627 Aug
8-KResults of Operations and Financial Condition27 Aug
8-KEntry into a Material Definitive Agreement25 Jun
10-QQ3ended 31 Mar 20267 May
8-KThird Fiscal Quarter 2026We delivered another outstanding set of results this quarter, especially in the broader context of global economic uncertainty: Fellow Affirm shareholders, 2 Affirm FQ3’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. $498M Revenue Less Transaction Costs (“RLTC”)1 +41% $1,039M Revenue +33% $11.6B Gross Merchandise Volume (“GMV”) +35% Net Income +$100M 27.0% Adjusted Operating Income1 As a percent of Revenue +5 pp 8.5% Operating Income As a percent of Revenue +10 pp $103M Given our Investor Forum scheduled for next week, I’ll keep to the whole brevity thing. We delivered 35% GMV growth, our 10th consecutive quarter of over-30% growth – without compromising unit economic discipline. Revenue grew 33% and RLTC 41%. While top-line growth continues at a very brisk pace, Affirm is maturing like fine wine further down the P&L. Our Operating Margin increased 10 percentage points, to 9% of Revenue. Adjusted Operating Margin was 27%, up 5 points year over year. Our Incremental Margins were similarly very strong: over 70% of RLTC dollar growth flowed to Adjusted Operating Income. All comparisons on a year-over-year basis unless otherwise indicated This is what happens when you find a genuine product market fit: your growth is natural, your credit and capital market results are excellent and harmonious, and your team is getting more and more productive every day. Developer productivity There is a tremendous amount of ink being spilled about amazing feats of productivity achieved in software engineering by AI-first startups. But what can a dev team firmly in its second decade and with millions of human- made lines of code do, measurably, to benefit from AI? Turns out, a lot, you just have to be disciplined about it.3 Affirm FQ3’26 Shareholder Letter Consumer health The Affirm consumer remains financially healthy. We see neither a change in demand nor in our consumers’ ability to repay. Delinquencies were up in line with expectations, with roughly half of the increase coming from a reduced denominator primarily due to stronger tax refund seasonality. Additionally, very strong unit economics (RLTC over 4.3% of GMV), gave us room to capture demand that delivered great returns – credit continues to be a setting we choose for our business. Zesty capital markets demand was a resounding vote of confidence in our approach to credit. We grew capacity despite the lower seasonal volume of our third fiscal quarter. We also priced our third consecutive revolving ABS transaction under a 5% blended yield in March, and our average annualized cost of funds reached the lowest level in three and a half years. Earlier this quarter we took a full week as a development team to re-tool Affirm software engineering to be truly AI- first. You can see the difference below, with agentically- written code dominating non-agentic essentially overnight after this effort. The chart shows pull requests per week (each pull request is a product feature, a major bug fix, etc) as a function of time. We think an order of magnitude gain in software development productivity is entirely plausible, yet we expect to modestly grow our development team – the limiting factor for Affirm has always been engineering cycles, not ideas for what to do with them. Pull requests (PRs) merged per week4 Affirm FQ3’26 Shareholder Letter When asked at an all-hands Q&A a few weeks ago whether I thought Affirm was still a startup, I responded with an emphatic affirmative. There are plenty of risks and even more opportunities. We have all sorts of plans for very ambitious new initiatives (some of which will surely not work out), cutting-edge AI/ML research profoundly accretive to all parts of our business, and exciting upcoming partnerships. …and yet for all our compounding growth we are but a very small fraction of global commerce. Nearly 15 years in, we are still a tightly-knit crew of idealist pirates on a mission, trying to improve lives and having a lot of fun doing it. Thank you to all Affirmers for another great quarter, watching you execute is the great privilege of captaining this ship. I’ll see many of you in person next week. Onward, 2 ‘All Forms of Credit Are Not Created Equal’. Published by Affirm in June 2025. Lotta ins, lotta outs • We announced the next Big Nothing event, May 13-15. Stay tuned for great 0% APR offers from thousands of our merchant partners! • Truly excited to add Nordstrom and URBN to our merchant roster in the US. • Sleep Number is also a new addition, with 0% APR offers up to 12 months at launch. • We are ramping our partnerships with Lowe’s and Intuit, and are pleased with the early reads. • The Card continues to scale nicely, now with 4.4 million active Cardholders and $2.1 billion in Card GMV. • Let me go find a cash machine – we don’t brag enough about the cash flow Affirm is already generating. We added approximately $230 million to our net cash (now at $1.35 billion) since December, and $370 million in the last year.Gross Merchandise Volume (GMV) grew 35% to $11.6 billion.3 Approximately 40% of growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to- consumer business and wallet partnerships. The mix of GMV derived from top five partners declined to 42% compared to 45% during the same period in the prior year. All categories grew during the quarter, with notable strength in categories such as services, home/lifestyle, and the "other" category that includes GMV from long-tail merchants and wallet partners. From a product perspective, GMV from 0% APR products inclusive of Pay in X grew 41% and continued to outpace our overall growth rate. Pay in X growth of 52% represents the fourth consecutive quarter with a growth rate greater than 50%. Direct-to-Consumer GMV (D2C GMV) grew 48% to $3.7 billion driven primarily by Affirm Card GMV, which grew 146% to $2.1 billion. In-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 4.4 million as card attach rate increased to approximately 17%, up about two points sequentially versus the prior quarter and up eight points year over year.4 FQ3’26 Operating Highlights 5 Affirm FQ3’26 Shareholder Letter Total transactions during the quarter increased to 45 million, growing 45% and outpacing overall GMV growth, as Average Order Values declined by 7% due to the strong growth in Pay in X across several merchants and partners. Transaction count increased in part due to the growth of Pay-in-X GMV, which increased 52%. Active consumers, increased 22% to 26.8 million as of March 31, 2026 while transactions per active consumer increased 20% to 6.7 during the same time period. Active merchant count increased 44% to 515 thousand as of March 31, 2026 with the year-over-year growth rate accelerating 2 percentage points from the prior quarter. The majority of the increase in merchant count was driven by two wallet partnerships, as well as the scaling of several independent software vendor (ISV) partnerships. 3 All growth rate references are on a year-over-year basis unless otherwise indicated. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period.Total revenue grew 33% to $1,039 million. Revenue as a percentage of GMV was 8.98%, a decrease of 17 basis points compared to FQ3’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 23%, or slightly below overall GMV growth in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 29 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 32%, driven primarily by a 29% increase in average net loans held for investment. As a percent of GMV, interest income declined 10 basis points as the GMV mix evolved towards 0% APR products. Including Pay in X loans, 0% APR products collectively increased from 28% of GMV in FQ3’25 to 29% in FQ3’26, leading to a lower average interest yield on loans than if the product mix had remained constant. • Gain on sales of loans grew 68% and increased by 21 basis points as a percent of GMV. The increase in gain on sales of loans was driven primarily by a 40% growth in loans sold, which slightly outpaced overall GMV growth. Gain on sale as a percentage of loans sold increased by 42 basis points due to more favorable loan sale pricing. • Servicing income grew 39% and increased by 1 basis point as a percent of GMV. Servicing income is primarily driven by the size of the average off-balance sheet platform portfolio, which grew by 39% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ3’26 Financial Highlights 6 Affirm FQ3’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 9.0% RLTC as a % of GMV 4.3% +19 bps Operating Income as a % of Revenue 8.5% +10 pp All comparisons on a year-over-year basis (17) bps Adj. Operating Income as a % of Revenue .0% 5 Year-over-Year Change in Revenue as a % of GMV 9.15% (0.29%) (0.10%) 0.21% 0.01% 8.98% FQ3'25 Total network revenue Interest income Gain on sales of loans Servicing income FQ3'26 0% 2% 4% 6% 8% 10%7 Affirm FQ3'26 Shareholder Letter We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 30% while Pay-in-X volume increased 52%. Loan Product Mix *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 126 basis points year over year and 34 basis points sequentially to 5.8%. Average funding costs declined as we continue to execute well in the ABS market and benefit from favorable repricing across all funding channels. Average Annualized Cost of Funds 5.8% FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 FQ3'26 0% 2% 4% 6% 8% RLTC grew 41% to $498 million. RLTC as a percentage of GMV increased 19 basis points to 4.31%, above the high end of our 3 to 4% long-term target range. The approximate 19 basis point increase was primarily attributable to a 27 basis point improvement in funding costs, which was partially offset by a (17) basis point decline in revenue. Year-over-Year Change in RLTC as a % of GMV 4.12% (0.17%) 0.02% 0.27% 0.06% 4.31% FQ3'25 Revenue Provision for credit losses Funding costs Other txn costs* FQ3'26 0% 1% 2% 3% 4% 5% 52% YoY growth 33% YoY growth 30% YoY growth 71% 13% 16%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $281 million, a $107 million improvement and 62% increase from the $174 million of Adjusted Operating Income in FQ3’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 27% during the period compared to 22% during FQ3’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $107 million increase in Adjusted Operating Income consisted of a $146 million increase in RLTC, which was partially offset by a $39 million increase, or 22% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $21 million, or 29%. Of this increase, infrastructure expenses grew by $13 million, or 34%, primarily due to the 45% growth in transaction count. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Non-GAAP Sales and marketing increased $2 million, or 9%, primarily due to higher comarketing expenses. • Non-GAAP General and administrative increased $15 million, or 18%. The increase was primarily due to growth in payroll and personnel and software and subscription expenses. 8 Affirm FQ3’26 Shareholder Letter Operating Income Operating Income was $88 million, a $97 million improvement compared to the $8 million loss in FQ3’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 8.5% in the period, compared to (1.1)% during FQ3’25. The $88 million of Operating Income is inclusive of $44 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $97 million improvement in Operating Income was driven by a $146 million increase in RLTC and partially offset by a $49 million increase in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $39 million, or 26%. The increase was primarily driven by a $16 million, or 27%, increase in amortization of internally- developed software. Infrastructure expenses also increased $13 million, or 34%, primarily due to a 45% increase in transaction count. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Sales and marketing declined $1 million, or 2%, primarily due to a $3 million decline in enterprise warrant expense. Excluding enterprise warrant expense, sales and marketing expense increased $2 million, or 8%, primarily due to higher comarketing expenses. • General and administrative increased $11 million, or 8%. The increase was primarily due to growth in payroll and personnel, excluding stock-based compensation, and software and subscription expenses.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ3’26 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 29 basis points year over year and increased 7 basis points quarter over quarter to 2.8%. Allowance for credit losses as a percent of loans held for investment was 6.0%, up from 5.7% in FQ3’25 and 5.4% in FQ2'26. FY’22 FY’23 FY’24 FY’25 FY’26 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ1’23 through FQ1’26 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ3’23 through Nov 2025 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.Capital and Funding Update Funding Capacity increased to $28.2 billion at the end of FQ3’26, up from $23.3 billion at the end of FQ3’25, and $28.0 billion at the end of FQ2’26. We estimate this capacity can support more than $65.0 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ3’26. The main highlights across the funding channels as of the end of FQ3’26 were: • ABS: capacity increased by $1.4 billion year over year and $100.0 million compared to FQ2’26 as we priced and closed our 2026-2 revolving ABS transaction. Despite macroeconomic uncertainty, the transaction was successfully upsized from $500 to $750 million and remained more than 2x oversubscribed following the upsize. The transaction also had a three year term, which is one year longer than most of our previous ABS transactions. Compared to a similar three-year ABS transaction that we priced in September, credit spreads tightened slightly despite funding market volatility. 10 Affirm FQ3’26 Shareholder Letter • Forward flow: capacity increased by $1.8 billion year over year and declined approximately $300 million compared to FQ2’26. The $300 million decline is largely attributable to the planned maturity of a single fund with a single funding partner. We pre-emptively replaced that maturing facility with a new facility during 2025, resulting in minimal net change in overall forward flow capacity with this partner. Our forward flow partnerships are diversified across approximately 20 institutional loan buyers, including insurers, pensions, asset managers, and global banks. • Warehouse and other funding debt: capacity increased by $1.3 billion year over year and approximately $400.0 million compared to FQ2’26. This capacity increase included the upsizing, favorable repricing, and two-year extension of a $1.9 billion facility, as well as the launch of our inaugural UK warehouse partnership. Our warehouse facilities are diversified across approximately 15 lenders, primarily major US and international banks. Capital Allocation and Liquidity At the end of March, we had approximately $2.5 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.4 billion increased by $373 million year over year as cash and securities available for sale increased by $350 million, while convertible debt outstanding decreased by $23 million. Quarter over quarter, net cash increased by $229 million as cash and securities available for sale increased by $230 million. On December 17, 2025, the Affirm board of directors authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026. There were no repurchases under this authorization during FQ3'26.11 Affirm FQ3’26 Shareholder Letter Assumptions embedded within the outlook Product mix The mix of 0% APR GMV inclusive of Pay-in-X products in FQ4'26 is expected to remain stable on a year-over-year basis. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to remain stable during FQ4'26 compared to FQ3'26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Deferred tax asset valuation allowance If our earnings trajectory continues, the Company expects that there may be sufficient positive evidence to support the release of a significant portion of the U.S. deferred tax valuation allowance by the end of fiscal year 2026. Fiscal Q4 2026 Fiscal 2026 GMV $13.15 to $13.45 billion $49.265 to $49.565 billion Revenue $1,080 to $1,110 million $4,175 to $4,205 million Revenue Less Transaction Costs $535 to $550 million $2,031 to $2,046 million Operating Margin 9.5 to 11.5% 8.9 to 9.4% Adjusted Operating Margin5 27.5 to 29.5% 28.2 to 28.8% Weighted Avg. Basic Shares Outstanding 341 million 336 million Weighted Avg. Diluted Shares Outstanding 352 million 349 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ3’26 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss third fiscal quarter 2026 financial results on May 7, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company's investor relations website at https:// investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Evercore TMT Global Conference June 3, 2026 San Francisco, CA Affirm 2026 Investor Forum Affirm will host an Investor Forum on Tuesday, May 12, 2026 at 2:00 pm ET in New York. Affirm’s management team will provide an update on Affirm’s vision, commercial and product initiatives, and medium-term financial framework. The event will also be webcast live from Affirm’s investor relations website. A replay of the webcast will be available for a limited period of time following the event. William Blair Growth Stock Conference June 4, 2026 Chicago, IL13 Affirm FQ3’26 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended March 31, 2026 2025 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 11.6 $ 8.6 Total Transactions (count) 45.3 31.3 Total Revenue, net $ 1,038.8 $ 783.1 Total Revenue as a % of GMV 9.0 % 9.2 % Transaction Costs (Non-GAAP) $ 540.6 $ 430.6 Transaction Costs as a % of GMV 4.7 % 5.0 % Revenue Less Transaction Costs (Non-GAAP) $ 498.2 $ 352.6 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.3 % 4.1 % Operating Income (Loss) $ 88.4 $ (8.4) Operating Margin 8.5 % (1.1) % Adjusted Operating Income (Non-GAAP) $ 280.8 $ 173.7 Adjusted Operating Margin (Non-GAAP) 27.0 % 22.2 % Net Income $ 102.9 $ 2.8 March 31, 2026 June 30, 2025 March 31, 2025 (unaudited) Active Consumers (in millions) 26.8 23.0 21.9 Transactions per Active Consumer 6.7 5.8 5.6 Active Merchants (in thousands) 515.2 376.8 358.4 Total Platform Portfolio (Non-GAAP) (in billions) $ 18.4 $ 15.1 $ 13.7 Equity Capital Required (Non-GAAP) (in millions) $ 827.7 $ 568.9 $ 636.8 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.5 % 3.8 % 4.6 % Allowance for Credit Losses as a % of Loans Held for Investment 6.0 % 5.6 % 5.7 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ3’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. Incremental Margin - The Company defines incremental margin as the year-over-year change in either Operating Income or Adjusted Operating Income divided by the year-over-year change in Revenue Less Transaction Costs (RLTC). Incremental margin is presented because the Company believes that it is a useful financial measure to both the Company and investors as it reflects the rate at which additional RLTC converts into operating income (or adjusted operating income, as applicable) from one period to the next. 15 Affirm FQ3’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 16 Affirm FQ3’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ3’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of persistent inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ3’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ3’26 Shareholder Letter March 31, 2026 June 30, 2025 Assets Cash and cash equivalents $ 1,723,413 $ 1,354,455 Restricted cash 750,892 401,968 Securities available for sale at fair value 757,597 871,425 Loans held for sale — — Loans held for investment 8,572,972 7,025,534 Allowance for credit losses (512,314) (396,929) Loans held for investment, net 8,060,659 6,628,606 Accounts receivable, net 230,703 426,177 Property, equipment and software, net 668,292 572,637 Goodwill 529,284 534,156 Intangible assets 27,436 12,935 Commercial agreement assets 41,377 57,210 Other assets 351,927 295,360 Total assets $ 13,141,580 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 59,590 $ 82,820 Payable to third-party loan owners 178,275 211,700 Accrued interest payable 28,456 24,465 Accrued expenses and other liabilities 217,938 157,272 Convertible senior notes, net 1,128,617 1,153,000 Notes issued by securitization trusts 5,327,589 4,833,855 Funding debt 2,417,705 1,622,808 Total liabilities 9,358,170 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 294,229,690 shares issued and outstanding as of March 31, 2026; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,616,641 shares issued and outstanding as of March 31, 2026; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,550,639 6,140,893 Accumulated deficit (2,743,638) (3,056,818) Accumulated other comprehensive loss (23,594) (15,069) Total stockholders’ equity 3,783,410 3,069,009 Total liabilities and stockholders’ equity $ 13,141,580 $ 11,154,929 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Revenue Merchant network revenue $ 268,027 $ 213,973 Card network revenue 66,467 58,572 Total network revenue 334,494 272,545 Interest income 532,449 402,701 Gain on sales of loans 127,200 75,838 Servicing income 44,622 32,050 Total revenue, net 1,038,765 783,135 Operating expenses Loss on loan purchase commitment 67,964 57,290 Provision for credit losses 196,543 147,252 Funding costs 113,762 107,631 Processing and servicing 162,291 118,398 Technology and data analytics 191,619 152,620 Sales and marketing 72,854 74,022 General and administrative 145,304 134,303 Restructuring and other — 12 Total operating expenses 950,337 791,527 Operating income (loss) $ 88,429 $ (8,393) Other income, net 18,948 13,738 Income (loss) before income taxes $ 107,376 $ 5,345 Income tax expense 4,476 2,541 Net income $ 102,900 $ 2,804 Other comprehensive income (loss) Foreign currency translation adjustments $ (10,665) $ 3,550 Gain (loss) on cash flow hedges 5,100 (1,279) Unrealized gain (loss) on securities available for sale, net (1,090) 778 Net other comprehensive income (loss) (6,655) 3,049 Comprehensive income $ 96,245 $ 5,853 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.31 $ 0.01 Diluted $ 0.30 $ 0.01 Weighted average common shares outstanding Basic 337,142,686 324,053,967 Diluted 348,096,861 344,224,332 Three Months Ended March 31, 2026 2025 General and administrative $ 46,105 $ 50,344 Technology and data analytics 23,615 21,309 Sales and marketing 3,897 3,749 Processing and servicing 219 205 Total stock-based compensation in operating expenses $ 73,837 $ 75,607 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Cash flows from operating activities Net income $ 102,900 $ 2,804 Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 196,543 147,252 Amortization of premiums and discounts on loans (81,467) (60,531) Gain on sales of loans (127,200) (75,838) Gain on extinguishment of debt — — Changes in fair value of assets and liabilities (1,024) 834 Amortization of commercial agreement assets 3,018 10,913 Amortization of debt issuance costs 6,732 10,308 Accrued interest on securities available for sale (7,798) (7,564) Commercial agreement warrant expense 40,497 36,063 Stock-based compensation 73,837 75,607 Depreciation and amortization 75,063 59,467 Other (12,995) 12,131 Change in operating assets and liabilities: Purchases and origination of loans held for sale (612,118) (789,323) Proceeds from the sale of loans held for sale 611,864 789,362 Accounts receivable, net 35,554 (19,884) Other assets 3,850 9,429 Accounts payable 2,362 (9,568) Payable to third-party loan buyers 47,947 19,751 Accrued interest payable (128) (2,277) Accrued expenses and other liabilities 29,065 1,453 Net cash provided by operating activities 386,501 210,389 Cash flows from investing activities Purchases and origination of loans held for investment (10,935,508) (7,676,063) Proceeds from the sale of loans held for investment 4,497,409 2,858,471 Principal repayments and other loan servicing activity 6,676,040 4,988,174 Additions to property, equipment and software (61,405) (53,012) Purchases of securities available for sale (330,490) (368,710) Proceeds from maturities and repayments of securities available for sale 303,515 263,817 Other investing inflows 158 64,841 Other investing outflows (279) (42,000) Net cash provided by investing activities 149,440 35,518 Cash flows from financing activities Proceeds from the issuance of convertible notes — — Proceeds from the issuance of funding debt 10,058,005 6,130,641 Proceeds from issuance of notes and certificates by securitization trust 1,750,000 1,000,000 Principal repayments of funding debt (10,671,063) (6,383,990) Principal repayments of notes issued by securitization trust (1,250,000) (900,000) Payment of debt issuance costs (20,178) (19,689) Extinguishment of convertible debt — — Proceeds from exercise of common stock options and warrants and contributions to ESPP 38,582 10,527 Repurchase of common stock — — Taxes paid related to net share settlement of equity awards (57,974) (83,043) Net cash used in financing activities (152,626) (245,554) Effect of exchange rate changes on cash, cash equivalents and restricted cash (3,582) (1,548) Net increase (decrease) in cash, cash equivalents and restricted cash 379,733 (1,198) Cash, cash equivalents and restricted cash, beginning of period 2,094,572 1,737,157 Cash, cash equivalents and restricted cash, end of period $ 2,474,305 $ 1,735,959AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ3’26 Shareholder Letter Three Months Ended March 31, 2026 2025 Supplemental disclosures of cash flow information Cash payments for interest expense $ 108,438 $ 101,662 Cash paid for operating leases 4,341 4,179 Cash paid for income taxes 1,552 1,322 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 41,648 44,369 Securities retained under unconsolidated securitization transactions — — Right of use assets obtained in exchange for operating lease liabilities — 7,418 Three Months Ended March 31, 2026 2025 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,723,413 $ 1,351,148 Restricted cash 750,892 384,811 Total cash, cash equivalents and restricted cash $ 2,474,305 $ 1,735,959RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ3’26 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended March 31, 2026 2025 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 67,964 $ 57,290 Provision for credit losses 196,543 147,252 Funding costs 113,762 107,631 Processing and servicing 162,291 118,398 Transaction costs (Non-GAAP) $ 540,560 $ 430,571 Technology and data analytics 191,619 152,620 Sales and marketing 72,854 74,022 General and administrative 145,304 134,303 Restructuring and other — 12 Total operating expenses $ 950,337 $ 791,527 Total revenue $ 1,038,765 $ 783,135 Less: Transaction costs (Non-GAAP) (540,560) (430,571) Revenue less transaction costs (Non-GAAP) $ 498,205 $ 352,564 Operating income (loss) $ 88,429 $ (8,393) Add: Depreciation and amortization 74,994 59,476 Add: Stock-based compensation included in operating expenses 73,837 75,607 Add: Enterprise warrant and share-based expense 43,515 46,975 Add: Restructuring and other 1 — 12 Adjusted operating income (Non-GAAP) $ 280,775 $ 173,677 Divided by: Total revenue, net $ 1,038,765 $ 783,135 Adjusted operating margin (Non-GAAP) 27.0 % 22.2 % General and administrative expense $ 145,304 $ 134,303 Less: Depreciation and amortization included in general and administrative expense (492) (571) Less: Stock-based compensation included in general and administrative expense (46,105) (50,344) Non-GAAP General and administrative expense $ 98,706 $ 83,388 Technology and data analytics expense $ 191,619 $ 152,620 Less: Depreciation and amortization included in technology and data analytics expense (74,408) (58,757) Less: Stock-based compensation included in technology and data analytics expense (23,615) (21,309) Non-GAAP Technology and data analytics expense $ 93,596 $ 72,554 Sales and marketing expense $ 72,854 $ 74,022 Less: Depreciation and amortization included in sales and marketing expense (64) (117) Less: Stock-based compensation included in sales and marketing expense (3,897) (3,749) Less: Enterprise warrant and share-based included in sales and marketing expense (43,515) (46,975) Non-GAAP Sales and marketing expense $ 25,377 $ 23,181 March 31, 2026 June 30, 2025 March 31, 2025 (in thousands) Loans held for investment $ 8,572,972 $ 7,025,534 $ 6,630,446 Add: Loans held for sale — — 1 Less: Funding debt (2,417,705) (1,622,808) (1,908,693) Less: Notes issued by securitization trusts (5,327,589) (4,833,855) (4,084,934) Equity capital required (Non-GAAP) $ 827,678 $ 568,871 $ 636,820 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ3’26 Shareholder Letter Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 2.8% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% 0.7% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 2.8% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 1.7% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% 0.7% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan7 May
CORRESPFiling review correspondence19 Mar
10-QQ2ended 31 Dec 20255 Feb
8-KSecond Fiscal Quarter 2026We delivered another round of excellent results in Affirm’s second quarter of FY’26. Fellow Affirm Shareholders, 2 Affirm FQ2’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. $543M Revenue Less Transaction Costs (“RLTC”)1 +29% $1,123M Revenue +30% $13.8B Gross Merchandise Volume (“GMV”) +36% Net Income +$49M 30.0% Adjusted Operating Income1 As a percent of Revenue +3 pp 10.5% Operating Income As a percent of Revenue +11 pp $130M We Believe In Nossing We started the quarter with the inaugural Big Nothing, our 0% APR event. Collaborating with hundreds of our merchant partners, we curated a huge selection of unbeatable consumer deals, Affirm-style: no fees, no gotchas, and for three days in October, no interest at all, for nearly every consumer shopping at participating retailers with Affirm. As the merchants lit up their 0% deals, they saw a solid 5% GMV lift, with that number rising to a robust 27% as we highlighted them on Affirm surfaces. Affirm truly shines when the transaction really matters, and for higher AOV baskets we saw a progressively greater lift. All comparisons on a year-over-year basis unless otherwise indicated Big Nothing GMV uplift from 0% APR offers Transaction Size3 Affirm FQ2’26 Shareholder Letter AdaptAI and BoostAI Affirm AdaptAI and BoostAI, a pair of our internally- developed yield optimization technologies, played an outsized role in achieving these results. AdaptAI automatically selects optimal financing offers for each transaction to maximize sales conversion and minimize risk. AdaptAI is now deployed on nearly all Affirm surfaces, including digital wallets, and contributed to an approximately 10% year-over-year improvement in end-to- end checkout conversion. The more recently developed BoostAI takes this idea a step further: this new model optimizes offers of financing by running automatic A/B-test programs at participating merchants and other surfaces, which includes introducing new financing programs and deploying incremental MDR- funded incentives. BoostAI demonstrates consistent performance lift, with merchants seeing an average 5–15% increase in GMV, driven by higher conversion and consumer take-up. Merchants set the conversion-boosting budget if desired, but neither AdaptAI nor BoostAI require any technical or integration work on their part. Since its launch a few months ago, BoostAI has been deployed at 47 enterprise merchants (and hundreds of SMBs). We are excited to continue rolling BoostAI across our entire merchant network. The Big Nothing accounted for approximately 15% of all GMV in October, and delivered durable second-order effects across the ecosystem – e.g., daily Affirm cardholder signups increased 21% during the event. We achieved these results with merchant funding and without sacrificing unit economics. We saw a significant increase in both top-of-funnel and conversion metrics at merchants participating in the Big Nothing, and yet did not observe a corresponding drop in the days and weeks after – suggesting that these purchases would not have occurred without Affirm’s unique value proposition. We are already hard at work planning the next Big Nothings, of course. BFCM and Affirm Card With the success of the Big Nothing we rolled our way into the semis of Black Friday / Cyber Monday. Armed with some fresh learnings from Big Nothing, we delivered our largest BFCM ever with excellent stability and availability metrics. The scale and intensity of both the run-up to, and the by-the-second monitoring and management of the biggest shopping days of the year are hard to overstate, and I am especially grateful to the massive cross-functional team effort across Engineering, Product, Operations, Analytics, and Marketing who put on an amazing set of events this quarter. Our merchant partners were excited to step up once again with some very compelling 0% offers, and US 0% APR monthly installment GMV within the Affirm marketplace grew 62% year over year during BFCM. Affirm Card signups during the shopping weekend grew 130% year over year, with approximately 65% of new activations coming from near-prime or better credit borrowers. Affirm Card also had a banner quarter, growing GMV 159%, and active cardholders rose 121%. Connecting with the deal-focused quarter, Card 0% APR GMV increased 190% year over year, now representing almost 20% of the total Card GMV mix, a 4 percentage point increase sequentially, a nearly threefold increase in mix over two years. Overall, over 65% of approved U.S. loan applications were presented with a 0% APR offer, and 39% of all transactions during the quarter were 0% APR (Pay in X or monthly installments).4 Affirm FQ2’26 Shareholder Letter Commercial Highlights On Affordability This holiday shopping season was also, inevitably, a referendum on affordability, something we care about greatly at Affirm. Our model – no late fees, no deferred interest, no revolving debt – works because it aligns our interests with our borrowers’. With Affirm, consumers receive clear upfront pricing where they always know the total cost, including interest, if any. The fixed term, closed-end structure of our loans provides choice and flexibility at a lower cost than many revolving credit cards. We estimate that U.S. households in 2024 could have saved up to $18 billion using Affirm instead of revolving on a credit card, with some households saving up to 30% annually on their total borrowing costs.2 What we learned this holiday season is that consumers are smart and, when it comes to finding alternatives to credit cards or other offerings with junk fees, they are getting smarter. While they do not seem to be cutting back on buying holiday gifts, they are certainly allotting more thoughtful consideration to how they are spending. Indeed, consumers are increasingly choosing Affirm at scale. We estimate that Affirm grew more than 5x the growth rate of overall U.S. credit card spend in 2025 and 4x the rate of e- commerce growth. Consumers aren't avoiding credit. They’re avoiding credit that profits from their confusion. My sincere gratitude to all Affirmers for another great quarter – in the age of AI, it’s the humans that make this company such a privilege (and so much fun) to lead. I invite all our fans to join us at our next Investor Forum event, on May 12th. Onward, 2 ‘All Forms of Credit Are Not Created Equal’. Published by Affirm in June 2025. Our Revenue team went out and achieved. In recent months, we: • Entered into a multi-year partnership with Intuit to become the exclusive pay-over-time solution built into QuickBooks Payments, enabling more small and mid-market businesses to offer Affirm when invoicing customers. • Renewed and expanded our exclusive partnership with Expedia in the US and Canada. • Signed Virgin Media O2 in the UK to provide financing for devices and other hardware for one of the country's largest telecommunications providers. • Expanded the relationship with our long-time partner Wayfair to Canada and the UK. • Continued to broaden our reach in the US by partnering with Fanatics and a leading US-based department store.Gross Merchandise Volume (GMV) grew 36% to $13.8 billion, accelerating from a 35% growth rate in the same period in the prior year.3 Over 40% of growth came from direct merchant point-of-sale integrations, with the remainder split roughly evenly between the direct-to- consumer business led by Affirm Card, and wallet partnerships. All categories grew during the quarter and, from a product perspective, GMV from 0% APR products inclusive of Pay in X grew 60% and continued to outpace our overall growth rate. GMV from our top five merchants and platform partners collectively grew 23%, and the concentration of GMV derived from top five partners declined to 46% compared to 51% during the same period in the prior year. Merchants increasingly utilized 0% APR offers as a demand-generation tool. Approximately 60 thousand merchants funded these offers during the quarter — nearly quadrupling year over year. Partner commitment remained high, with over 95% of 0% APR monthly installment GMV at integrated merchants being merchant funded, resulting in robust economics for the Affirm network. Consumer adoption was equally robust. More than 60% of new Affirm customers chose a 0% APR product for their first transaction. Strategic initiatives to increase visibility of such offers – including our inaugural Big Nothing event in October – contributed to a 190% surge in 0% APR GMV on the Affirm Card. FQ2’26 Operating Highlights 5 Affirm FQ2’26 Shareholder Letter Direct-to-Consumer GMV (D2C GMV) grew 52% to $4.3 billion driven primarily by Affirm Card GMV, which grew 159% to $2.2 billion. In-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 3.7 million as card attach rate increased to approximately 14%, up about three points sequentially versus the prior quarter.4 Active consumers, increased 23% to 25.8 million as of December 31, 2025 while transactions per active consumer increased 20% to 6.4 during the same time period. Active merchant count increased 42% to 478 thousand as of December 31, 2025 with the year-over-year growth rate accelerating 12 percentage points from the prior quarter. The majority of the increase in merchant count was driven by two wallet partnerships, as well as the scaling of several independent software vendor (ISV) partnerships. 3 All growth rate references are on a year-over-year basis unless otherwise indicated. 4 Card attach rate defined as active cardholders divided by total active consumers during a given period.Total revenue grew 30% to $1,123 million. Revenue as a percentage of GMV was 8.14%, a decrease of 40 basis points compared to FQ2’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: • Network revenue grew 32%, or slightly below overall GMV growth in part due to a mix shift towards direct-to- consumer (D2C) GMV, which typically comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 8 basis points due to the aforementioned growth in D2C GMV. • Interest income grew 21%, driven primarily by a 22% increase in average net loans held for investment. As a percent of GMV, interest income declined 46 basis points as the GMV mix evolved towards 0% APR products. Including Pay in X loans, 0% APR products collectively increased from 28% of GMV in FQ2’25 to 32% in FQ2’26, leading to a lower average interest yield on loans than if the product mix had remained constant. • Gain on sales of loans grew 48% and increased by 11 basis points as a percent of GMV. This increase was driven by both an increase in loans sold, which grew 29%, as well as more favorable loan sale pricing. Gain on sale as a percentage of loans sold increased by 39 basis points due to consistent execution by our Capital team and favorable funding market conditions. • Servicing income grew 49% and increased by 3 basis points as a percent of GMV. Servicing income is primarily driven by the size of the average off-balance sheet platform portfolio, which grew by 50% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off- balance sheet platform portfolio on an annualized basis. FQ2’26 Financial Highlights 6 Affirm FQ2’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.14% RLTC as a % of GMV 3.93% (20) bps Operating Income as a % of Revenue 10.5% +11 pp All comparisons on a year-over-year basis (40) bps Adj. Operating Income as a % of Revenue 30.0% 3 Year-over-Year Change in Revenue as a % of GMV 8.54% (0.08%) (0.46%) 0.11% 0.03% 8.14% FQ2'25 Total network revenue Interest income Gain on sales of loans Servicing income FQ2'26 0% 2% 4% 6% 8% 10%7 Affirm FQ2'26 Shareholder Letter We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 65% while Pay-in-X volume increased 55%. Network revenue as a percentage of GMV for 0% APR monthly installment loans remained stable after adjusting for variations in loan duration. Loan Product Mix *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 109 basis points year over year and 57 basis points sequentially to 6.2%. Average funding costs declined as we continue to execute well in the ABS market and benefit from favorable repricing across all funding channels. Average Annualized Cost of Funds 6.2% FQ2'24 FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FQ1'26 FQ2'26 0% 2% 4% 6% 8% RLTC grew 29% to $543 million. RLTC as a percentage of GMV decreased (20) basis points to 3.93%, at the high end of our 3 to 4% long-term target range. The approximate (20) basis point decrease was primarily attributable to a (40) basis point decline in revenue. This decline was partially offset by a 25 basis point improvement in funding costs. Year-over-Year Change in RLTC as a % of GMV 4.13% (0.40%) (0.04%) 0.25% (0.01%) 3.93% FQ2'25 Revenue Provision for credit losses Funding costs Other txn costs* FQ2'26 0% 1% 2% 3% 4% 5% 55% YoY growth 27% YoY growth 65% YoY growth 67% 16% 17%Interest-bearing 0% APR monthly Pay-in-X (Short-term 0% APR)Adjusted Operating Income Adjusted Operating Income was $337 million, a $99 million improvement and 42% increase from the $238 million of Adjusted Operating Income in FQ2’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 30% during the period compared to 27% during FQ2’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $99 million increase in Adjusted Operating Income consisted of a $123 million increase in RLTC, which was partially offset by a $24 million increase, or 13% increase, in non-GAAP operating expenses excluding transaction costs. Within these operating expenses: • Non-GAAP Technology and data analytics increased $16 million, or 23%, driven by a $12 million, or 31%, increase in infrastructure expenses which primarily increased due to the 44% growth in transactions. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Non-GAAP Sales and marketing declined $1 million, or 4%, with the majority of the decline due to decreases in profit share expenses. • Non-GAAP General and administrative increased $9 million, or 11%, with the increase primarily due to increases in software and subscriptions. 8 Affirm FQ2’26 Shareholder Letter Operating Income Operating Income was $118 million, a $122 million improvement compared to the $4 million loss in FQ2’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 10.5% in the period, compared to (0.5)% during FQ2’25. The $118 million of Operating Income is inclusive of $66 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $122 million improvement in Operating Income was driven by a $123 million increase in RLTC and $1 million decrease in operating expenses excluding transaction costs. Within these operating expenses: • Technology and data analytics increased $37 million, or 25%, as transaction count increased 44% and led to higher infrastructure expenses. Additionally, we continued to invest in products such as Card, wallet and PSP partnerships, and international expansion, including investments made into incremental headcount associated with these projects. • Sales and marketing declined $37 million, or 27%, due to a $35 million decline in enterprise warrant expense. Certain tranches of enterprise warrants completed their amortization period during FQ1’25 and therefore no longer contributed to sales and marketing expenses in subsequent periods. Excluding enterprise warrant expense, sales and marketing expense decreased $2 million, or 6%, due to a decreases in profit share expense. • General and administrative increased $2 million, or 1%, with the increase primarily due to increases in software and subscriptions.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 9 Affirm FQ2’26 Shareholder Letter Credit quality 30+ day delinquencies excluding Peloton and Pay in X loans increased 18 basis points year over year and decreased 7 basis points quarter over quarter to 2.7%. Allowance for credit losses as a percent of loans held for investment was 5.4%, consistent with FQ2’25 and down from 5.9% in FQ1'26. FY’22 FY’23 FY’24 FY’25 FY’26 Jul Sep Nov Jan Mar May 0% 1% 2% 3% 4% Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ4’22 through FQ4’25 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is in-line with expectations and consistent with the performance of historic loan cohorts. Net charge-off performance Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. Pay in 4 Loans from FQ3’24 through Aug 2025 All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV.10 Affirm FQ2’26 Shareholder Letter Capital and Funding Update Funding Capacity increased to $28.0 billion at the end of FQ2’26, from $26.6 billion at the end of FQ1’26. We believe this capacity can support more than $65 billion in annual GMV based upon our weighted-average loan duration of approximately 5 months at the end of FQ2’26. The main highlights across the funding channels were: • Forward flow: we added approximately $600 million in capacity compared to FQ1’26, which was primarily driven by onboarding AB CarVal, a global alternative investment manager. • Warehouse and other funding debt: we added approximately $100 million in warehouse funding capacity in the US as we upsized an expansionary facility with a multinational bank. • ABS: in November, we priced 2025-X2, our largest static securitization to date and our 26th ABS bond offering overall, bringing our lifetime issuance to over $14.1 billion. The transaction executed at an all-in cost of funds of 5.96% including the residual yield. This is more than a 100 basis point improvement over our last static transaction 2025-X1 which priced in FQ4’24. There was robust investor demand for the notes which led to the issuance being approximately six times oversubscribed. The residual order book was particularly deep, which contributed to the residual pricing at the lowest yield since we began conducting static securitizations. Capital Allocation and Liquidity At the end of December, we had approximately $2.3 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.1 billion increased by $408 million year over year as cash and securities available for sale increased by $384 million, while convertible debt outstanding decreased by $23 million. Quarter over quarter, net cash increased by $10 million as cash and securities available for sale increased by $10 million. The Affirm board of directors has authorized the repurchase of up to $176 million, out of $221 million outstanding, in aggregate principal amount of our outstanding 2026 convertible notes during the period from January 1, 2026 through November 13, 2026.11 Affirm FQ2’26 Shareholder Letter Assumptions embedded within the outlook Product mix On a year-over-year basis, the mix of 0% APR GMV inclusive of Pay-in-X products is expected to increase. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to decline modestly during FY’26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Deferred tax asset valuation allowance If our earnings trajectory continues, the Company expects that there may be sufficient positive evidence to support the release of a significant portion of the U.S. deferred tax valuation allowance by the end of fiscal year 2026. Fiscal Q3 2026 Fiscal Q4 2026 Fiscal 2026 GMV $11.00 to $11.25 billion $12.75 to $13.05 billion $48.30 to $48.85 billion Revenue $970 to $1,000 million $1,060 to $1,090 million $4,086 to $4,146 million Revenue Less Transaction Costs $450 to $465 million $510 to $525 million $1,958 to $1,988 million Operating Margin 4.5 to 6.0% 8.5 to 10.5% 7.7 to 8.6% Adjusted Operating Margin5 24.5 to 25.5% 26.5 to 28.5% 27.4 to 28.1% Weighted Avg. Basic Shares Outstanding 338 million 341 million 336 million Weighted Avg. Diluted Shares Outstanding 352 million 353 million 351 million Financial Outlook 5 A reconciliation of adjusted operating margin 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.12 Affirm FQ2’26 Shareholder Letter Conference Call Affirm will host a conference call and webcast to discuss second fiscal quarter 2026 financial results on February 5, 2026, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company's investor relations website at https:// investors.affirm.com/. A replay will be available on the investor relations website following the call. Upcoming Investment Conferences Affirm will be attending the following upcoming investment conferences: About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Morgan Stanley Technology, Media, and Telecom March 3-4, 2026 San Francisco, CA Affirm 2026 Investor Forum Affirm will host an Investor Forum on Tuesday, May 12, 2026. Affirm’s management team will provide an update on the Company’s vision, commercial and product initiatives, and financial framework. The event will be webcast live from the Company's investor relations website. More details about the event, including registration information, will be shared closer to the event. Wolfe FinTech Forum March 11, 2026 New York, NY13 Affirm FQ2’26 Shareholder Letter Key Operating Measures, Non-GAAP Financial Measures and Supplemental Performance Indicators Three Months Ended December 31, 2025 2024 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 13.8 $ 10.1 Total Transactions (count) 54.9 38.1 Total Revenue, net $ 1,123.0 $ 866.4 Total Revenue as a % of GMV 8.1 % 8.5 % Transaction Costs (Non-GAAP) $ 580.5 $ 447.0 Transaction Costs as a % of GMV 4.2 % 4.4 % Revenue Less Transaction Costs (Non-GAAP) $ 542.5 $ 419.4 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 3.9 % 4.1 % Operating Income (Loss) $ 117.6 $ (4.3) Operating Margin 10.5 % (0.5) % Adjusted Operating Income (Non-GAAP) $ 337.0 $ 237.8 Adjusted Operating Margin (Non-GAAP) 30.0 % 27.4 % Net Income $ 129.6 $ 80.4 December 31, 2025 June 30, 2025 December 31, 2024 (unaudited) Active Consumers (in millions) 25.8 23.0 21.0 Transactions per Active Consumer 6.4 5.8 5.3 Active Merchants (in thousands) 478.3 376.8 337.2 Total Platform Portfolio (Non-GAAP) (in billions) $ 19.0 $ 15.1 $ 14.0 Equity Capital Required (Non-GAAP) (in millions) $ 892.0 $ 568.9 $ 640.5 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 4.7 % 3.8 % 4.6 % Allowance for Credit Losses as a % of Loans Held for Investment 5.4 % 5.6 % 5.4 %Key Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 14 Affirm FQ2’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. 15 Affirm FQ2’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a relationship with Affirm, or a platform or wallet partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 16 Affirm FQ2’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non- GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: • Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; • Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and • Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 17 Affirm FQ2’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of consumers and financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment, including governmental actions to cap interest rates; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 18 Affirm FQ2’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 19 Affirm FQ2’26 Shareholder Letter December 31, 2025 June 30, 2025 Assets Cash and cash equivalents $ 1,527,880 $ 1,354,455 Restricted cash 566,692 401,968 Securities available for sale at fair value 723,375 871,425 Loans held for sale 6 — Loans held for investment 8,773,542 7,025,534 Allowance for credit losses (478,103) (396,929) Loans held for investment, net 8,295,439 6,628,606 Accounts receivable, net 268,177 426,177 Property, equipment and software, net 639,891 572,637 Goodwill 533,441 534,156 Intangible assets 12,619 12,935 Commercial agreement assets 44,395 57,210 Other assets 344,986 295,360 Total assets $ 12,956,899 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 57,228 $ 82,820 Payable to third-party loan owners 130,327 211,700 Accrued interest payable 28,784 24,465 Accrued expenses and other liabilities 184,459 157,272 Convertible senior notes, net 1,127,658 1,153,000 Notes issued by securitization trusts 4,834,736 4,833,855 Funding debt 3,046,846 1,622,808 Total liabilities 9,410,038 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 291,506,324 shares issued and outstanding as of December 31, 2025; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,700,781 shares issued and outstanding as of December 31, 2025; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,410,335 6,140,893 Accumulated deficit (2,846,538) (3,056,818) Accumulated other comprehensive loss (16,939) (15,069) Total stockholders’ equity 3,546,861 3,069,009 Total liabilities and stockholders’ equity $ 12,956,899 $ 11,154,929 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (in thousands, except share and per share amounts) 20 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Revenue Merchant network revenue $ 328,380 $ 244,895 Card network revenue 73,035 58,142 Total network revenue 401,415 303,037 Interest income 493,626 409,367 Gain on sales of loans 185,231 125,287 Servicing income 42,748 28,690 Total revenue, net 1,123,019 866,381 Operating expenses Loss on loan purchase commitment 96,065 70,278 Provision for credit losses 214,153 152,980 Funding costs 111,717 107,762 Processing and servicing 158,582 115,960 Technology and data analytics 184,871 148,213 Sales and marketing 98,782 136,038 General and administrative 141,223 139,412 Restructuring and other — 60 Total operating expenses 1,005,393 870,703 Operating income (loss) $ 117,626 $ (4,322) Other income, net 15,612 87,181 Income (loss) before income taxes $ 133,238 $ 82,859 Income tax expense 3,652 2,499 Net income $ 129,586 $ 80,360 Other comprehensive income (loss) Foreign currency translation adjustments $ 7,836 $ (35,469) Loss on cash flow hedges (305) (89) Unrealized gain (loss) on securities available for sale, net (81) (2,873) Net other comprehensive income (loss) 7,450 (38,431) Comprehensive income $ 137,037 $ 41,929 Per share data: Net income per share attributable to common stockholders for Class A and Class B Basic $ 0.39 $ 0.25 Diluted $ 0.37 $ 0.23 Weighted average common shares outstanding Basic 334,270,750 322,282,334 Diluted 349,365,762 345,196,568 Three Months Ended December 31, 2025 2024 General and administrative $ 50,588 $ 57,719 Technology and data analytics 23,012 23,677 Sales and marketing 3,984 4,482 Processing and servicing 215 220 Total stock-based compensation in operating expenses $ 77,800 $ 86,098 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbersAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) 21 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Cash flows from operating activities Net income $ 129,586 $ 80,360 Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 214,153 152,980 Amortization of premiums and discounts on loans (78,927) (59,233) Gain on sales of loans (185,231) (125,287) Gain on extinguishment of debt (42) (62,794) Changes in fair value of assets and liabilities 2,015 2,954 Amortization of commercial agreement assets 4,759 14,255 Amortization of debt issuance costs 7,244 6,907 Accrued interest on securities available for sale (8,313) (10,821) Commercial agreement warrant expense 61,207 86,776 Stock-based compensation 77,800 86,098 Depreciation and amortization 75,593 54,894 Other (14,165) 58 Change in operating assets and liabilities: Purchases and origination of loans held for sale (728,196) (1,043,397) Proceeds from the sale of loans held for sale 727,912 1,043,380 Accounts receivable, net 11,054 102,664 Other assets (69,985) (20,588) Accounts payable (791) (6,936) Payable to third-party loan buyers (63,462) 5,210 Accrued interest payable 3,433 1,048 Accrued expenses and other liabilities 8,091 3,489 Net cash provided by operating activities 173,735 312,017 Cash flows from investing activities Purchases and origination of loans held for investment (12,665,105) (8,663,556) Proceeds from the sale of loans held for investment 5,323,088 3,633,664 Principal repayments and other loan servicing activity 5,890,329 4,528,811 Additions to property, equipment and software (55,704) (43,905) Purchases of securities available for sale (67,935) (48,158) Proceeds from maturities and repayments of securities available for sale 210,251 504,890 Other investing inflows 80 186 Other investing outflows — (1,000) Net cash used in investing activities (1,364,996) (89,068) Cash flows from financing activities Proceeds from the issuance of convertible notes — 920,000 Proceeds from the issuance of funding debt 9,292,589 4,704,356 Principal repayments of funding debt (8,032,176) (4,259,168) Payment of debt issuance costs (1,230) (18,749) Extinguishment of convertible debt (944) (892,800) Proceeds from exercise of common stock options and warrants and contributions to ESPP 9,270 35,792 Repurchase of common stock — (250,000) Taxes paid related to net share settlement of equity awards (80,929) (95,335) Net cash provided by financing activities 1,186,580 144,096 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,641 (14,510) Net increase (decrease) in cash, cash equivalents and restricted cash (3,038) 352,535 Cash, cash equivalents and restricted cash, beginning of period 2,097,610 1,384,622 Cash, cash equivalents and restricted cash, end of period $ 2,094,572 $ 1,737,157AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) 22 Affirm FQ2’26 Shareholder Letter Three Months Ended December 31, 2025 2024 Supplemental disclosures of cash flow information Cash payments for interest expense $ 102,537 $ 101,623 Cash paid for operating leases 484 656 Cash paid for income taxes 4,190 4,163 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 46,636 44,708 Securities retained under unconsolidated securitization transactions 44,608 41,940 Right of use assets obtained in exchange for operating lease liabilities 11,513 — Three Months Ended December 31, 2025 2024 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,527,880 $ 1,200,381 Restricted cash 566,692 536,776 Total cash, cash equivalents and restricted cash $ 2,094,572 $ 1,737,157RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 23 Affirm FQ2’26 Shareholder Letter The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended December 31, 2025 2024 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 96,065 $ 70,278 Provision for credit losses 214,153 152,980 Funding costs 111,717 107,762 Processing and servicing 158,582 115,960 Transaction costs (Non-GAAP) $ 580,517 $ 446,980 Technology and data analytics 184,871 148,213 Sales and marketing 98,782 136,038 General and administrative 141,223 139,412 Restructuring and other — 60 Total operating expenses $ 1,005,393 $ 870,703 Total revenue $ 1,123,019 $ 866,381 Less: Transaction costs (Non-GAAP) (580,517) (446,980) Revenue less transaction costs (Non-GAAP) $ 542,502 $ 419,401 Operating income (loss) $ 117,626 $ (4,322) Add: Depreciation and amortization 75,587 54,950 Add: Stock-based compensation included in operating expenses 77,800 86,098 Add: Enterprise warrant and share-based expense 65,966 101,032 Add: Restructuring and other 1 — 60 Adjusted operating income (Non-GAAP) $ 336,979 $ 237,818 Divided by: Total revenue, net $ 1,123,019 $ 866,381 Adjusted operating margin (Non-GAAP) 30.0 % 27.4 % General and administrative expense $ 141,223 $ 139,412 Less: Depreciation and amortization included in general and administrative expense (563) (573) Less: Stock-based compensation included in general and administrative expense (50,588) (57,719) Non-GAAP General and administrative expense $ 90,072 $ 81,120 Technology and data analytics expense $ 184,871 $ 148,213 Less: Depreciation and amortization included in technology and data analytics expense (74,876) (53,683) Less: Stock-based compensation included in technology and data analytics expense (23,012) (23,677) Non-GAAP Technology and data analytics expense $ 86,982 $ 70,853 Sales and marketing expense $ 98,782 $ 136,038 Less: Depreciation and amortization included in sales and marketing expense (117) (664) Less: Stock-based compensation included in sales and marketing expense (3,984) (4,482) Less: Enterprise warrant and share-based included in sales and marketing expense (65,966) (101,032) Non-GAAP Sales and marketing expense $ 28,715 $ 29,860 December 31, 2025 June 30, 2025 December 31, 2024 (in thousands) Loans held for investment $ 8,773,542 $ 7,025,534 $ 6,796,167 Add: Loans held for sale 6 — — Less: Funding debt (3,046,846) (1,622,808) (2,166,806) Less: Notes issued by securitization trusts (4,834,736) (4,833,855) (3,988,887) Equity capital required (Non-GAAP) $ 891,966 $ 568,871 $ 640,474 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbersSUPPLEMENTAL DELINQUENCY INFORMATION 24 Affirm FQ2’26 Shareholder Letter Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 2.7% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% 0.8% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 2.7% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 1.6% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% 0.8% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan5 Feb
8-KDeparture of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers16 Jan
8-KSubmission of Matters to a Vote of Security Holders18 Dec 2025
10-QQ1ended 30 Sept 20256 Nov 2025
8-KFirst Fiscal Quarter 2026We delivered another set of stellar results to get fiscal 2026 started, in both growth and profitability rubrics. Fellow Affirm Shareholders, 2 Affirm FQ1’26 Shareholder Letter 1 Information about Affirm's use of non-GAAP financial measures is provided under “Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators” and “Use of Non-GAAP Financial Measures” below, and reconciliations of GAAP results to non-GAAP results are provided in the tables at the end of this letter. Network effects of data Affirm is a payment network, a multi-sided one: we connect consumers, merchants, payment processors, capital partners, etc. Although we are primarily thought of as a payments provider, a better mental model is a message router: we are shuttling packets of information, which happen to encode in some detail who paid whom, for what, and the risk-based prices of credit for such transactions. The network effects of the payment industry are well understood, but the incremental value gained with each new connection varies. Because most legacy payment methods route data-light messages devoid of, for example, purchasing or credit details, their value curves flatten with scale. Each additional seller or buyer does not enhance the underlying network’s product, only its revenue base. Setting another highest-ever GMV record in a quarter with relatively few shopping holidays showcases the consistency of Team Affirm, once again executing to beat the band. Results like these are never an accidental success, and the last several quarters really felt like the team has accelerated from strength to strength. The quote attributed to the American cycling great Greg LeMond – “it doesn’t get any easier, you just get faster” – finds its way into a fair number of internal communications here at Affirm, both as a rallying cry and a reminder to never rest on our successes. However, given the nature of our business, I propose that some aspects should, in fact, become easier with scale. $455M Revenue Less Transaction Costs (“RLTC”)1 +60% $933M Revenue +34% $10.8B Gross Merchandise Volume (“GMV”) +42% Net Income +$181M 28% Adjusted Operating Income1 As a percent of Revenue +10 pp 7% Operating Income As a percent of Revenue +26 pp $81M All comparisons on a year-over-year basis unless otherwise indicated3 Affirm FQ1’26 Shareholder Letter We are different. From day one, Affirm was designed to build towards network effects of data. Routing information-rich messages allows us to rapidly improve the products we offer, ensuring the value curve keeps rising and creating a moat around our business. The rich data we gather during each transaction’s lifetime improves our many models: credit and fraud, AdaptAI (personalized incentives to maximize sales conversion), BoostAI (program selection for merchants), etc. As we refine these models using data other lenders can’t access, we improve credit approvals and consumer take-up at the point of sale, which improves merchant value, as well as credit outcomes. Better approvals bring more new consumers into our network, strengthening the case for Affirm as a required payment mark at more merchants, which naturally increases overall network frequency, and therefore, the rate of data acquisition. The growth of the data asset we’re able to put to work is accelerating. So perhaps the most interesting question one can ask is neither ‘when will this get easier?’ nor ‘how fast can we go?’ (answer to that, by the way, is governed by our unwavering attention to our credit metrics and unit economics) but ‘what other kinds of messages might we route on Network Affirm?’ The trust asset Credit comes to us from credere, Latin for trust. Last quarter we made approximately 40 million data-informed decisions to trust consumers to repay us as we funded their purchases. That’s only one half of it. A myriad of decisions to trust Affirm take place every day. Consumers trust us to secure the information they share with us in the underwriting process, to debit their connected bank account for repayment, and to honor our upfront pricing and never charge hidden fees (an unrepentant betrayal of trust so common elsewhere in our industry). Our merchant partners trust us to maximize the value we deliver to them in exchange for the margin and signal-rich data they share with us: more sales, higher conversion, a buyer experience that more than stands up to their own standards. Our capital partners trust us to be accurate and timely with our reporting, and to deliver consistent credit outcomes. While we firmly believe that the depth of our network’s moat is proportional to the petabytes of data we collect (fun fact: since inception, we’ve processed about 6 billion live model decisions over nearly 15 years, with a data footprint of about 6 petabytes), our most important asset is trust.We don’t take that lightly. We keep earning it by doing the fundamentally honest thing by all our partners, customers, consumers, and indeed, shareholders, with integrity and transparency. Staying with the cycling metaphor, if building Affirm is a grand tour, we are still racing its earliest stages; but we are getting more efficient and intelligent as a team. My continued gratitude to all Affirmers – here’s to more top podium steps in fiscal 2026. Onward, 44 Affirm FQ1’26 Shareholder Letter ● Earlier this week, we extended our US agreement with Amazon for an additional five years through January 2031, and we look forward to continuing to serve these customers going forward. Notable achievements ● More than 7 million consumers began a transaction on Affirm owned-and-operated surfaces over the past twelve months. ● The Card continued to shine this quarter. Card GMV was up 135% year over year, and active cardholders grew another 500 thousand from last quarter to reach 2.8 million. ● While still experimental, we are very excited to see first successful efforts in cash flow underwriting specific to Affirm Card. ● Affirm and Shopify have expanded our global partnership with the UK launch of Shop Pay Instalments. The Affirm App is also now available in the UK. ● Announced partnerships with ServiceTitan, Vagaro, and launched Ace Hardware in-store, as we continue to bring honest financial products to new merchants, platforms, and categories. ● Signed Worldpay for Platforms, enabling us to serve their more than one thousand ISVs. ● Launched Affirm Connected Accounts (which we designed to power Shop Pay Installments) at key enterprise partners, enabling a much faster and more intuitive checkout. ● Credit outcomes remained steady and well within our targets, but does not change the fact that credit is always job #1 at Affirm.Gross Merchandise Volume (GMV) grew 42% to $10.8 billion with about half of growth coming from direct merchant point-of-sale integrations, a third from the direct-to-consumer business led by Affirm Card, and the remainder from wallet partnerships. From a product perspective, GMV from 0% APR products inclusive of Pay in X grew 64% and significantly outpaced our overall growth rate. GMV from our top five merchants and platform partners collectively grew 33%, and the concentration of GMV derived from top five partners declined slightly to 44% compared to 47% during the same period in the prior year.2 GMV from 0% APR monthly installment loans grew 74% as the number of merchants funding 0% APR offers more than tripled to over 40 thousand merchants. These merchants showed strong willingness to pay for such offers, with approximately 95% of GMV from 0% APR monthly installments at integrated merchants being funded by the merchant. We also increased the prominence and availability of 0% APR offers on Affirm Card, which led to 0% APR GMV on Card growing 158%. All categories except sporting goods and outdoors grew during the quarter, with notable strength in services and travel and ticketing. The fashion and beauty category also accelerated to its highest growth rate in three years. FQ1’26 Operating Highlights 5 Affirm FQ1’26 Shareholder Letter Direct-to-Consumer GMV (D2C GMV) grew 53% to $3.2 billion and Affirm Card GMV within this grew 135% to $1.4 billion. GMV derived from in-store usage of Card grew 170%, and the mix of in-store GMV on Card continues to be more than an order of magnitude higher than in-store spend on Affirm non-Card surfaces. Active cardholders again more than doubled year over year to 2.8 million as card attach rate increased to approximately 12%, up about two points sequentially versus the prior quarter.3 Active consumers increased 24% to 24.1 million as of September 30, 2025, marking the seventh consecutive quarter that the year-over-year growth rate of active consumers accelerated. Active merchant count increased 30% to 419 thousand as of September 30, 2025 with the year-over-year growth rate accelerating 6 percentage points from the prior quarter. The increase in merchant count was driven by two wallet partnerships, as well as the launch of several independent software vendor (ISV) partnerships. 2 All growth rate references are on a year-over-year basis unless otherwise indicated. 3 Card attach rate defined as active cardholders divided by total active consumers during a given period.Within the PSP channel, ISVs have become essential partners to serve long-tail merchants, particularly those with in-store use cases. These ISV partners serve a variety of end industries – from auto repair shops, to elective medical, and professional services such as legal advice – that historically have been underserved by legacy payment methods. Given the diversity of end markets and use cases, ISVs particularly value the range and simplicity of financial products that we offer: from 14 days to 60 months, and $35 to $30,000, with no late fees or gimmicks ever. During FQ1’26, GMV from ISVs grew 68% year over year. ISVs accounted for approximately 27 thousand active merchants, with Affirm being presented as a default payment option and chosen by consumers at more than half of these merchants. Capitalizing on distribution partnerships Wallets and payment service providers (PSPs) have become important channels for consumers to transact with Affirm. These partners allow us to address long-tail merchants, simplify merchant onboarding, and deliver a consistent user experience across channels. Wallets play an important role because they allow us to serve both integrated and non-integrated merchants. Today we are partnered with four of the top wallets. For the twelve month period ending September 30, 2025, these wallets collectively accounted for more than $7 billion of GMV, and grew nearly 70% year over year in FQ1’26. Payment Service Provider U.S. TPV $1 E-comm status In-store status Default payment status Partner A $2.6T Partner B $2T Partner C $1.9T Partner D $600B Partner E $300B 1 Source: TSG eReport 2025 = Live = Currently being built or on commercial roadmap = In discussions Logos indicate ISV partners that are either live with Affirm or have signed and are in the process of being integrated 6 Affirm FQ1’26 Shareholder Letter PSPs are also a crucial distribution channel. In 2024, our top five PSP partners processed an immense $7 trillion in volume. More directly, they contributed over $4 billion to our GMV across more than 50 thousand merchants in the twelve months ending September 30, 2025. Our current focus is enhancing these integrations: we are already a default payment option with a top PSP, transacting at approximately 20 thousand merchants through this motion in FQ1’26, and are in discussions to become a default payment option at four of our top five PSPs. We are also expanding into physical retail by supporting in-store transactions with three of these partners already, with more to follow. Independent software vendors (ISVs)Total revenue grew 34% to $933 million. Revenue as a percentage of GMV was 8.7%, a decrease of 52 basis points compared to FQ1’25. The following factors contributed to revenue growth and the year-over-year change in revenue as a percentage of GMV: ● Network revenue grew 38%, or slightly below overall GMV growth in part due to a mix shift towards direct-to-consumer (D2C) GMV, which comes with lower network revenue as a percentage of GMV relative to integrated POS volume. As a percent of GMV, network revenue declined 7 basis points due to the aforementioned growth in DTC GMV and an approximately 6% decline in the average term length of 0% APR monthly installment loans on a year-over-year basis. On average, network revenue as a percent of GMV for 0% APR products scales directly with the duration of the underlying loan, and shorter-duration 0% APR products have a lower network revenue as a percent of GMV than longer-duration products. ● Interest income grew 20%, driven primarily by a 19% increase in average loans held for investment. As a percent of GMV, interest income declined 74 basis points as we sold more loans as a percent of GMV and therefore retained less loans on the balance sheet. Additionally, the mix of 0% APR loans, including Pay in X loans, increased from 25% in FQ1’25 to 28% in FQ1’26, leading to a lower average interest yield on loans than if the product mix had remained constant. ● Gain on sales of loans grew 87% and increased by 27 basis points as a percent of GMV. This increase was driven primarily by an increase in loans sold, which grew approximately 76%. The mix of loans sold as a percent of GMV continued to be higher compared to some prior periods due to the ramping of the Sixth Street and other forward flow partnerships. Additionally, we saw an increase in loan sale pricing, with gain on sale as a percentage of loans sold increasing by 14 basis points. ● Servicing income grew 53% and increased by 3 basis points as a percent of GMV. Servicing income is primarily driven by the size of the off-balance sheet platform portfolio, which grew by approximately 60% as we sold more loans in recent quarters. Servicing income remained stable at approximately 2% of the average off-balance sheet platform portfolio on an annualized basis. FQ1’26 Financial Highlights 7 Affirm FQ1’26 Shareholder Letter Total Revenue Adj. Operating Income as a % of Revenue 27% +4 pp Total Revenue as a % of GMV 8.7% RLTC as a % of GMV 4.2% +48 bps Operating Income as a % of Revenue 7% +26 pp All comparisons on a year-over-year basis (52) bps j i I f 8 10 pp Year-over-Year Change in Revenue as a % of GMV8 Affirm FQ1’26 Shareholder Letter Mix-stabilized network revenue as a % of 0% APR Monthly Installment GMV Loan Product Mix We continued to observe strong uptake of 0% APR offers, with GMV from 0% APR monthly installment products increasing 74% while Pay-in-X volume increased 55%. Network revenue as a percentage of GMV for 0% APR monthly installment loans remained stable after adjusting for variations in loan duration. *Other transaction costs include changes in processing and servicing expense and loss on loan purchase commitment Year-over-year Change in RLTC as a % of GMV RLTC grew 60% to $455 million. RLTC as a percentage of GMV increased 48 basis points to 4.2% and exceeded our 3 to 4% long-term target range. The approximate 48 basis point increase was primarily attributable to a 59 basis point improvement in provision for credit losses and 35 basis point improvement in funding costs, partially offset by a 52 basis point decline in revenue. Average Funding Costs Funding costs were a tailwind to RLTC as a percent of GMV with average funding costs declining approximately 98 basis points year over year and 7 basis points sequentially to 6.7%. Average funding costs declined as we continue to execute well in the ABS market and benefit from the repricing of both ABS and warehouse facilities. 15% Pay in X (Short-term 0% APR) 72% Interest- bearing 13% 0% APR monthly 15% Pay in X (Short-term 0% APR) 72% Interest- bearing 13% 0% APR monthly 68% YoY growth 35% YoY growth 55% YoY growth 55% YoY growth 35% YoY growth 74% YoY growthAdjusted Operating Income Adjusted Operating Income was $264 million, a $134 million improvement and 104% increase from the $130 million of Adjusted Operating Income in FQ1’25. Adjusted Operating Income as a percentage of Revenue, or Adjusted Operating Margin, was 28% during the period compared to 19% during FQ1’25. Adjusted Operating Income excludes the impact of enterprise warrant and share-based expenses, stock-based compensation expense, depreciation and amortization, and other items. The $134 million increase in Adjusted Operating Income consisted of a $170 million increase in RLTC, which was partially offset by a $36 million increase, or 23% increase, in operating expenses excluding transaction costs. Within these operating expenses: ● Technology and data analytics increased $16 million, or 25%, driven by an $11 million, or 34%, increase in infrastructure expenses which primarily increased due to the 52% growth in transactions. ● Sales and marketing increased $6 million, or 36%, with the majority of the increase attributable to increases in comarketing and profit share expenses. ● General and administrative increased $14 million, or 18%, primarily driven by payroll, professional services related to consulting and legal fees, and software and subscription expenses. 9 Affirm FQ1’26 Shareholder Letter Operating Income Operating Income was $64 million, a $196 million improvement compared to the ($133) million loss in FQ1’25. Operating Income as a percentage of revenue, or Operating Margin, was approximately 7% in the period, compared to (19%) during FQ1’25. The $64 million of Operating Income is inclusive of $49 million in enterprise warrant and share-based expenses associated with warrants granted to two enterprise partners. The $196 million improvement in Operating Income was driven by a $170 million increase in RLTC and $26 million decrease, or 6% decline, in operating expenses excluding transaction costs. Within these operating expenses: ● Technology and data analytics increased $34 million, or 25%, as transaction count increased 52% and led to higher infrastructure expenses. Additionally, we continued to invest in products such as Card, wallet partnerships, and international expansion, including investments made into incremental headcount associated with these projects. ● Sales and marketing declined $67 million, or 46%, due to a $72 million decline in enterprise warrant expense. Certain tranches of enterprise warrants completed their amortization period during FQ2’25 and therefore no longer contributed to sales and marketing expenses in subsequent periods. Excluding enterprise warrant expense, sales and marketing expense increased $6 million, or 24%, due to increases in comarketing and profit share expenses. ● General and administrative increased $6 million, or 5%, with the increase split primarily between professional services related to consulting and legal fees and software and subscription expenses.Year-over-Year Comparison: Monthly Installment Loan Ex-Peloton 30+ Day Delinquency Rate 10 Affirm FQ1’26 Shareholder Letter Credit Quality 30+ day delinquencies excluding Peloton and Pay in X loans declined 4 basis points year over year and increased 45 basis points quarter over quarter. The slight decline year over year is attributable in part to a mix shift towards 0% APR products, as well as a decline in the average loan term for these products. 0% APR products tend to have a lower credit risk profile than comparable interest-bearing products. The increase relative to FQ4’25 is primarily driven by seasonality and is consistent with prior years.Cumulative Net Charge-offs by Origination Vintage: Monthly Installment Loans U.S. Monthly Installment Loans from FQ3’22 through FQ3’25 Recent cohorts of monthly installment loans are tracking towards approximately 3.5% ultimate net charge-offs as a percent of cohort GMV, which is consistent with the performance of historic loan cohorts. 11 Affirm FQ1’26 Shareholder Letter Cumulative Net Charge-offs by Origination Vintage: Pay in 4 Loans U.S. loans only All recent vintages of Pay in 4 loans are continuing to track to loss rates of less than 1% of GMV. Net Charge-off Performance12 Affirm FQ1’26 Shareholder Letter Capital and Funding Update Funding Capacity increased to up to $26.6 billion at the end of FQ1’26, from $26.1 billion at the end of FQ4’25. We believe this capacity can support more than $60 billion in annual GMV based upon our weighted-average loan duration of 5 months at the end of FQ1’26. The main highlights across the funding channels were: ● ABS: in September we closed AFFRM 2025-3, which was the third issuance out of our Master Trust. The transaction was our largest ABS issuance to date at $1.1 billion and had the lowest weighted-average yield since FY’22. It was also our first ABS issuance with a three year revolving period, which provides greater stability through market cycles by reducing refinancing pressure and increasing total available ABS debt funding. Offsetting this issuance was the ongoing amortization of previously-issued static ABS deals. ● Forward flow: we added approximately $500 million in capacity compared to FQ4’25 as we expanded our partnerships with several large insurers and onboarded a new asset management partner. ● Warehouse and other funding debt: we added $300 million in funding capacity in the US as we upsized our agreement with two existing bank partners. Efficiency also improved as we benefited from a higher advance rate in one of those facilities resulting from favorable and predictable credit performance across a multi-year relationship with the bank partner. In Canada, we also improved efficiency through the addition of a mezzanine note to one of our facilities. Capital Allocation and Liquidity At the end of September, we had approximately $2.2 billion in total liquidity split between cash and equivalents plus securities available for sale, against which we had approximately $1.1 billion in convertible debt. Our net cash position of $1.1 billion increased by $196 million year over year as cash and securities available for sale increased by $121 million, while convertible debt outstanding decreased by $75 million. Quarter over quarter, net cash increased by $41 million as cash and securities available for sale increased by $15 million, while convertible debt outstanding decreased by $25 million. The Affirm board of directors has authorized the repurchase of up to $200 million in aggregate principal amount of our outstanding 2026 convertible notes during the period from July 1, 2025 through December 31, 2025. As of September 30, $174 million of this authorization remains available.1313 Affirm FQ1’26 Shareholder Letter Product mix On a year-over-year basis, the mix of 0% APR GMV inclusive of Pay-in-X products is expected to increase. 0% APR products generally have a lower RLTC as a percentage of GMV than equivalent interest-bearing products. Enterprise partnerships An enterprise merchant that has previously expressed an intent to switch its Pay Later volumes to its own wallet solution substantially completed this transition during FQ1’26. Enterprise warrant expense Enterprise warrant expense in FQ2’26 is expected to decrease approximately 25% compared to FQ2’25, and FY’26 enterprise warrant expense is expected to decrease at least 30% from FY’25. Assumptions Embedded Within the Outlook Interest rate environment Based upon the forward curve embedded within the outlook, short-term benchmark interest rates are expected to decline modestly during FY’26. Funding Equity Capital Required (“ECR”) as a percent of Total Platform Portfolio (“ECR Ratio”) is expected to remain below 5%. Product and go-to-market initiatives Our outlook includes the expected financial impact of our expansion outside of North America, which is not expected to be a material growth contributor during FY’26. Fiscal Q2 2026 Fiscal 2026 GMV $13.00 - 13.30 billion More than $47.5 billion Revenue $1,030 - 1,060 million ~8.4% of GMV Revenue Less Transaction Costs $510 - 525 million ~4% of GMV Operating Margin 6.5 - 8.5% More than 7.5% Adjusted Operating Margin4 28 - 30% More than 27.1% Weighted Avg. Basic Shares Outstanding 335 million 336 million Weighted Avg. Diluted Shares Outstanding 354 million 353 million Financial Outlook 4 A reconciliation of adjusted operating margin 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.14 Affirm FQ1’26 Shareholder Letter About Affirm Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, and never charge any late or hidden fees. Contacts Investor Relations: [email protected] Media: [email protected] Conference Call Affirm will host a conference call and webcast to discuss first fiscal quarter 2026 financial results on November 6, 2025, at 2:00 pm PT. Hosting the call will be Max Levchin, Founder and Chief Executive Officer, Michael Linford, Chief Operating Officer, and Rob O’Hare, Chief Financial Officer. The conference call will be webcast live from the Company’s investor relations website at https://investors.affirm.com/. A replay will be available on the investor relations website following the call. UBS Global Technology and AI Conference December 2, 2025 Scottsdale, AZ Upcoming Investment Conferences Affirm will be attending the following upcoming investment conference: never harge any late or hidden f es.Three Months Ended September 30, 2025 2024 (in millions, except GMV and percent data) (unaudited) GMV (in billions) $ 10.8 $ 7.6 Total Transactions (count) 41.4 27.2 Total Revenue, net $ 933.3 $ 698.5 Total Revenue as a % of GMV 8.7 % 9.2 % Transaction Costs (Non-GAAP) $ 478.1 $ 413.4 Transaction Costs as a % of GMV 4.4 % 5.4 % Revenue Less Transaction Costs (Non-GAAP) $ 455.2 $ 285.1 Revenue Less Transaction Costs as a % of GMV (Non-GAAP) 4.2 % 3.8 % Operating Income (Loss) $ 63.7 $ (132.6) Operating Margin 6.8 % (19.0) % Adjusted Operating Income (Non-GAAP) $ 263.9 $ 129.6 Adjusted Operating Margin (Non-GAAP) 28.3 % 18.6 % Net Income (Loss) $ 80.7 $ (100.2) Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators September 30, 2025 June 30, 2025 September 30, 2024 (unaudited) Active Consumers (in millions) 24.1 23.0 19.5 Transactions per Active Consumer 6.1 5.8 5.1 Active Merchants (in thousands) 418.9 376.8 323.0 Total Platform Portfolio (Non-GAAP) (in billions) $ 16.1 $ 15.1 $ 11.8 Equity Capital Required (Non-GAAP) (in millions) $ 626.5 $ 568.9 $ 581.3 Equity Capital Required as a % of Total Platform Portfolio (Non-GAAP) 3.9 % 3.8 % 4.9 % Allowance for Credit Losses as a % of Loans Held for Investment 5.9 % 5.6 % 5.6 % 15 Affirm FQ1’26 Shareholder LetterKey Operating Metrics Gross Merchandise Volume (“GMV”) - The Company defines GMV as the total dollar amount of all transactions on the Affirm platform during the applicable period, net of refunds. GMV does not represent revenue earned by the Company. However, the Company believes that GMV is a useful operating metric to both the Company and investors in assessing the volume of transactions that take place on the Company's platform, which is an indicator of the success of the Company's merchants and the strength of that platform. Active Consumers - The Company defines an active consumer as a consumer who completes at least one transaction on its platform during the twelve months prior to the measurement date. The Company believes that active consumers is a useful operating metric to both the Company and investors in assessing consumer adoption and engagement and measuring the size of the Company's network. Transactions per Active Consumer - Transactions per active consumer is defined as the average number of transactions that an active consumer has conducted on its platform during the twelve months prior to the measurement date. The Company believes that transactions per active consumer is a useful operating metric to both the Company and investors in assessing consumer engagement and repeat usage, which is an indicator of the value of the Company's network. Non-GAAP Financial Measures Transaction Costs - The Company defines transaction costs as the sum of loss on loan purchase commitment, provision for credit losses, funding costs, and processing and servicing expense. The Company believes that transaction costs is a useful financial measure to both the Company and investors of those costs, which vary with the volume of transactions processed on the Company's platform. Transaction Costs as a Percentage of GMV - The Company defines transaction costs as a Percentage of GMV as transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors as it approximates the variable cost efficiency of transactions processed on the Company's platform. Revenue Less Transaction Costs (“RLTC”) - The Company defines revenue less transaction costs as GAAP total revenue less transaction costs, as defined above. The Company believes that revenue less transaction costs is a useful financial measure to both the Company and investors of the economic value generated by transactions processed on the Company's platform. Revenue Less Transaction Costs as a Percentage of GMV - The Company defines revenue less transaction costs as a percentage of GMV as revenue less transaction costs, as defined above, as a percentage of GMV, as defined above. The Company believes that revenue less transaction costs as a percentage of GMV is a useful financial measure to both the Company and investors of the unit economics of transactions processed on the Company's platform. Adjusted Operating Income - The Company defines adjusted operating income as its GAAP operating loss, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; (d) restructuring costs included in GAAP operating loss; and (e) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Adjusted operating income is presented because the Company believes that it is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. 16 Affirm FQ1’26 Shareholder LetterAdjusted Operating Margin - The Company defines adjusted operating margin as its adjusted operating income (loss), as defined above, as a percentage of its GAAP total revenue. Similar to adjusted operating income (loss), the Company believes that adjusted operating margin is a useful financial measure to both the Company and investors for evaluating its operating performance and that it facilitates period to period comparisons of the Company's results of operations as the items excluded generally are not a function of the Company's operating performance. Total Platform Portfolio - The Company defines total platform portfolio as the unpaid principal balance outstanding of all loans facilitated through its platform as of the balance sheet date, including loans held for investment, loans held for sale, and loans owned by third-parties. The Company believes that total platform portfolio is a useful financial measure to both the Company and investors in assessing the scale of funding requirements for the Company's network. Equity Capital Required (“ECR”) - The Company defines equity capital required as 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. The Company believes that equity capital required is a useful financial measure to both the Company and investors in assessing the amount of the Company's total platform portfolio that the Company funds with its own equity capital. Equity Capital Required as a Percentage of Total Platform Portfolio (“ECR Ratio”) - The Company defines equity capital required as a percentage of total platform portfolio as equity capital required, as defined above, as a percentage of total platform portfolio, as defined above. The Company believes that equity capital required as a percentage of total platform portfolio is a useful financial measure to both the Company and investors in assessing the proportion of outstanding loans on the Company's platform that are funded by the Company's own equity capital. Non-GAAP Sales and Marketing Expense - The Company defines non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP sales and marketing expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its sales and marketing activities and that it facilitates period to period comparisons of the Company's sales and marketing as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Technology and Data Analytics Expense - The Company defines non-GAAP technology and data analytics expense as GAAP technology and data analytics expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP technology and data analytics expense is presented because the Company believes that it is a useful financial measure to both the Company and investors of its technology and data analytics activities and that it facilitates period to period comparisons of the Company's technology and data analytics as the items excluded generally are not a function of the Company's operating performance. Non-GAAP General and Administrative Expense - The Company defines non-GAAP general and administrative expense as GAAP general and administrative expense, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; and (c) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP general and administrative expense is presented because the Company believes that it is a useful financial measure to both the Company and investors as it facilitates period to period comparisons of the Company's general and administrative costs as the items excluded generally are not a function of the Company's operating performance. Non-GAAP Other Operating Expenses - The Company defines non-GAAP operating expenses as the aggregate of non-GAAP sales and marketing expense, non-GAAP technology and data analytics expense, and non-GAAP general and administrative expense. Each of these components is calculated as the corresponding GAAP expense category, excluding: (a) depreciation and amortization; (b) stock-based compensation included in GAAP operating loss; (c) the expense related to warrants and share-based payments granted to enterprise partners; and (d) certain other costs as set forth in the reconciliation of adjusted operating income (loss) to GAAP operating loss included in the tables at the end of this letter. Non-GAAP operating expenses are presented because the Company believes that they are useful financial measures to both the Company and investors, facilitating period-to-period comparisons of the Company’s core operating expenses, as the items excluded generally do not reflect the underlying performance of the Company's ongoing operations. 17 Affirm FQ1’26 Shareholder LetterSupplemental Performance Indicators Active Merchants - The Company defines an active merchant as a merchant which has a contractual point-of-sale relationship with Affirm or a platform partner, and engages in at least one Affirm transaction during the twelve months prior to the measurement date. The Company believes that active merchants is a useful performance indicator to both the Company and investors because it measures the reach of the Company's network. Total Transactions - The Company defines total transactions as the total number of unique transactions on the Affirm platform during the applicable period. The Company believes that total transactions is a useful performance indicator to both the Company and investors because it measures the frequency of consumer engagement, as demonstrated by the total number of unique transactions. Total Revenue as a Percentage of GMV - The Company defines total revenue as a percentage of GMV as GAAP total revenue as a percentage of GMV, as defined above. The Company believes that total revenue as a percentage of GMV is a useful performance indicator to both the Company and investors of the revenue generated on a transaction processed on the Company's platform. Allowance for Credit Losses as a Percentage of Loans Held for Investment - The Company defines allowance for credit losses as a percentage of loans held for investment as GAAP allowance for credit losses as a percentage of GAAP loans held for investment. The Company believes that allowance for credit losses as a percentage of loans held for investment is a useful performance indicator to both the Company and investors of the future estimated credit losses on the Company's outstanding loans held for investment. Funding Capacity - The Company defines funding capacity as the total amount of committed funding provided by warehouse credit facilities, securitizations, and forward flow loan sale agreements available for the purchase or financing of loans. For certain committed forward flow loan sale agreements, the stated funding capacity reflects the maximum outstanding unpaid principal balance at a point in time for loans sold under the agreement, subject to meeting certain conditions which may not have yet been satisfied as of the measurement date. Funding capacity also includes the utilized portion of uncommitted forward flow loan sale agreements as of the measurement date. The Company believes that funding capacity is a useful performance indicator to both the Company and investors of its ability to fund loan transactions on the Affirm platform. Delinquencies - The Company defines delinquency as when a payment on a loan becomes more than 4 days past due. The Company generally views delinquency in groupings of more than 30 days past due, more than 60 days past due, and more than 90 days past due. A loan is charged off after a payment on a loan becomes 120 days past due. The Company believes that delinquencies are a useful performance indicator to both the Company and investors of the credit quality and performance of the loan portfolio. Repeat Consumer - The Company defines repeat consumer as a consumer who has transacted with Affirm at least twice. The Company believes that repeat consumer rates on a cohortized basis are a useful indicator of consumer retention and engagement. Average Annualized Cost of Funds - The Company defines average annualized cost of funds as annualized funding costs divided by the average of funding debt and notes issued by securitization trusts during the period. The Company believes that this is a useful indicator of the average cost of third-party financing of loans held for investment. Cumulative Net Charge-Offs - The Company defines cumulative net charge-offs as the total dollar amount of loans charged off over time from a specific cohort of transaction, less any recoveries. The Company believes that cumulative net charge-offs is a useful performance indicator to both the Company and Investors of the credit quality and performance of the loan portfolio. Net Cash - The Company defines net cash as cash and cash equivalents plus securities available for sale, minus convertible senior notes. The Company believes that net cash is a useful performance indicator to both the Company and investors as it provides an alternative perspective of the Company's liquidity. 18 Affirm FQ1’26 Shareholder LetterCard Attach Rate - The Company defines card attach rate as active cardholders divided by total active consumers at the end of a given period. The Company believes card attach rate is a useful performance indicator to both the Company and investors because it reflects the rate of our card product adoption among our active consumer base. Use of Non-GAAP Financial Measures To supplement the Company's condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents the following non-GAAP financial measures: transaction costs, transaction costs as a percentage of GMV, revenue less transaction costs, revenue less transaction costs as a percentage of GMV, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, adjusted operating income (loss), adjusted operating margin, total platform portfolio, equity capital required, and equity capital required as a percentage of total platform portfolio. Definitions of these non-GAAP financial measures are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above, and reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures are included in the tables below. Summaries of the reasons why the Company believes that the presentation of each of these non-GAAP financial measures provides useful information to the Company and investors are included under "Key Operating Metrics, Non-GAAP Financial Measures and Supplemental Performance Indicators" above. In addition, the Company uses these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of its annual operating budget, and for evaluating the effectiveness of its business strategy. However, these non-GAAP financial measures are presented for supplemental informational purposes only, and these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are as follows: ● Revenue less transaction costs and revenue less transaction costs as a percentage of GMV are not intended to be measures of operating profit or loss as they exclude key operating expenses such as technology and data analytics, sales and marketing, and general and administrative expenses; ● Adjusted operating income (loss) and adjusted operating margin exclude certain recurring, non-cash charges such as depreciation and amortization, the expense related to warrants and share-based payments granted to enterprise partners, and share-based compensation expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses; and ● Other companies, including companies in the same industry, may calculate these non-GAAP financial measures differently from how the Company calculates them or not at all, which reduces its usefulness as a comparative measure. Accordingly, investors should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of the Company's 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 the business. 19 Affirm FQ1’26 Shareholder LetterCautionary 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 merchant partners and commerce platforms as well as its engagement with existing and prospective originating bank partners and card issuing bank partners; the development, innovation, introduction and performance of, and demand for, the Company’s products, including Affirm Card; the Company’s use and provision of AI-powered solutions; the Company’s ability to execute on its initiatives; the Company’s ability to maintain funding sources to support its business; acquisition and retention of merchant partners, commerce platforms and consumers; the Company’s future growth, investments, network expansion, product mix, brand awareness, financial position, gross merchandise volume, 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, commerce platforms and consumers and retain and grow its relationships with existing merchants partners, commerce platforms and consumers; the highly competitive and evolving nature of its industry; its need to maintain a consistently high level of consumer satisfaction and trust in its brand; the concentration of a large percentage of its revenue and GMV with a small number of merchant partners and commerce platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to successfully maintain its relationship with existing originating bank partners and card issuing bank partners and engage additional originating bank partners and card issuing bank partners; its ability to maintain, renew or replace its existing funding arrangements and build and grow new funding relationships; the impact of any of its existing funding sources becoming 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; its ability to effectively use and provide AI-powered solutions; the impact of elevated market interest rates and corresponding higher negotiated interest rate spreads on its business; the terms of its securitizations, warehouse credit facilities and forward flow agreements; the impact on its business of general economic conditions, including the impact of inflation, ongoing recessionary concerns, uncertainty relating to the magnitude, duration and impact of tariffs on global trade, the potential for more instability of financial institutions, the financial performance of its merchant partners and commerce platforms, and fluctuations in the U.S. consumer credit market; its ability to achieve sustained profitability in the future; its ability to grow effectively through acquisitions or other strategic investments or alliances; its ability to successfully expand into new international geographies; seasonal or other fluctuations in its revenue and GMV as a result of consumer spending patterns; pending and future litigation, regulatory actions and/or compliance issues; developments in its regulatory environment; its ability to continue to attract and retain highly skilled employees; and other risks that are described in its most recent Annual Report on Form 10-K and in its other filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements. 20 Affirm FQ1’26 Shareholder LetterSeptember 30, 2025 June 30, 2025 Assets Cash and cash equivalents $ 1,428,848 $ 1,354,455 Restricted cash 668,762 401,968 Securities available for sale at fair value 812,442 871,425 Loans held for sale 12 — Loans held for investment 7,235,177 7,025,534 Allowance for credit losses (425,801) (396,929) Loans held for investment, net 6,809,376 6,628,606 Accounts receivable, net 283,726 426,177 Property, equipment and software, net 613,938 572,637 Goodwill 529,910 534,156 Intangible assets 12,685 12,935 Commercial agreement assets 49,154 57,210 Other assets 269,713 295,360 Total assets $ 11,478,567 $ 11,154,929 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 58,019 $ 82,820 Payable to third-party loan owners 193,790 211,700 Accrued interest payable 25,649 24,465 Accrued expenses and other liabilities 165,830 157,272 Convertible senior notes, net 1,127,668 1,153,000 Notes issued by securitization trusts 4,830,819 4,833,855 Funding debt 1,777,906 1,622,808 Total liabilities 8,179,682 8,085,919 Stockholders’ equity: Class A common stock, par value $0.00001 per share: 3,030,000,000 shares authorized, 289,324,958 shares issued and outstanding as of September 30, 2025; 3,030,000,000 shares authorized, 284,378,565 shares issued and outstanding as of June 30, 2025 2 2 Class B common stock, par value $0.00001 per share: 140,000,000 shares authorized, 40,723,546 shares issued and outstanding as of September 30, 2025; 140,000,000 shares authorized, 40,734,234 shares issued and outstanding as of June 30, 2025 1 1 Additional paid in capital 6,299,395 6,140,893 Accumulated deficit (2,976,124) (3,056,818) Accumulated other comprehensive loss (24,389) (15,069) Total stockholders’ equity 3,298,885 3,069,009 Total liabilities and stockholders’ equity $ 11,478,567 $ 11,154,929 AFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) 1 Within the table presented certain columns may not sum due to the use of rounded numbers 21 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, 2025 2024 Revenue Merchant network revenue $ 251,147 $ 184,339 Card network revenue 69,330 47,480 Total network revenue 320,477 231,819 Interest income 454,122 377,064 Gain on sales of loans 119,049 63,613 Servicing income 39,689 25,983 Total revenue, net 933,337 698,479 Operating expenses Loss on loan purchase commitment 71,552 54,237 Provision for credit losses 162,752 159,824 Funding costs 110,027 104,145 Processing and servicing 133,807 95,146 Technology and data analytics 168,106 134,290 Sales and marketing 78,491 145,233 General and administrative 144,941 138,482 Restructuring and other — (255) Total operating expenses 869,676 831,102 Operating income (loss) $ 63,661 $ (132,623) Other income, net 19,358 34,303 Income (loss) before income taxes $ 83,019 $ (98,320) Income tax expense 2,326 1,902 Net income (loss) $ 80,694 $ (100,222) Other comprehensive income (loss) Foreign currency translation adjustments $ (10,003) $ 8,346 Loss on cash flow hedges (129) (1,492) Unrealized gain on securities available for sale, net 812 5,589 Net other comprehensive income (loss) (9,320) 12,443 Comprehensive income (loss) $ 71,373 $ (87,779) Per share data: Net income (loss) per share attributable to common stockholders for Class A and Class B Basic $ 0.24 $ (0.31) Diluted $ 0.23 $ (0.31) Weighted average common shares outstanding Basic 330,238,205 318,234,555 Diluted 348,278,403 318,234,555 Three Months Ended September 30, 2025 2024 General and administrative $ 55,773 $ 62,804 Technology and data analytics 24,764 25,972 Sales and marketing 5,076 5,195 Processing and servicing 240 262 Total stock-based compensation in operating expenses $ 85,853 $ 94,233 The following table presents the components and classification of stock-based compensation (in thousands): 1 Within the table presented certain columns may not sum due to the use of rounded numbers 22 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended September 30, 2025 2024 Cash flows from operating activities Net income (loss) $ 80,694 $ (100,222) Adjustments to reconcile net income (loss) to net cash used in operating activities: Provision for losses 162,752 159,824 Amortization of premiums and discounts on loans (65,072) (52,064) Gain on sales of loans (119,049) (63,613) Gain on extinguishment of debt (1,495) (19,624) Changes in fair value of assets and liabilities (110) 1,668 Amortization of commercial agreement assets 8,056 14,256 Amortization of debt issuance costs 6,828 6,083 Accrued interest on securities available for sale (9,959) (15,797) Commercial agreement warrant expense 40,977 107,263 Stock-based compensation 85,853 94,233 Depreciation and amortization 65,329 46,720 Other (4,930) (2,209) Change in operating assets and liabilities: Purchases and origination of loans held for sale (749,202) (1,219,022) Proceeds from the sale of loans held for sale 748,761 1,219,061 Accounts receivable, net 138,862 41,117 Other assets 30,955 (6,833) Accounts payable (24,801) 16,543 Payable to third-party loan buyers (17,910) (7,608) Accrued interest payable 1,621 846 Accrued expenses and other liabilities (3,586) (23,755) Net cash provided by operating activities 374,572 196,867 Cash flows from investing activities Purchases and origination of loans held for investment (9,797,362) (6,388,350) Proceeds from the sale of loans held for investment 4,282,839 1,630,671 Principal repayments and other loan servicing activity 5,359,253 4,132,682 Additions to property, equipment and software (54,365) (44,152) Purchases of securities available for sale (146,462) (136,727) Proceeds from maturities and repayments of securities available for sale 216,425 215,680 Other investing inflows 61 36,197 Other investing outflows — (21,000) Net cash used in investing activities (139,611) (574,999) Cash flows from financing activities Proceeds from the issuance of funding debt 7,980,435 3,188,998 Proceeds from issuance of notes and certificates by securitization trust 1,100,000 750,000 Principal repayments of funding debt (7,818,589) (3,289,384) Principal repayments of notes issued by securitization trust (1,100,000) — Payment of debt issuance costs (9,466) (4,321) Extinguishment of convertible debt (24,814) (120,056) Proceeds from exercise of common stock options and warrants and contributions to ESPP 94,828 3,596 Taxes paid related to net share settlement of equity awards (112,307) (63,208) Net cash provided by financing activities 110,086 465,625 Effect of exchange rate changes on cash, cash equivalents and restricted cash (3,861) 1,730 Net increase in cash, cash equivalents and restricted cash 341,187 89,223 Cash, cash equivalents and restricted cash, beginning of period 1,756,423 1,295,399 Cash, cash equivalents and restricted cash, end of period $ 2,097,610 $ 1,384,622 1 Within the table presented certain columns may not sum due to the use of rounded numbers 23 Affirm FQ1’26 Shareholder LetterAFFIRM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONT. (Unaudited) (in thousands) Three Months Ended September 30, 2025 2024 Supplemental disclosures of cash flow information Cash payments for interest expense $ 103,252 $ 99,506 Cash paid for operating leases 4,253 4,159 Cash paid for income taxes 1,749 454 Supplemental disclosures of non-cash investing and financing activities Stock-based compensation included in capitalized internal-use software 52,885 49,478 Three Months Ended September 30, 2025 2024 Reconciliation to amounts on consolidated balance sheets (as of period end) Cash and cash equivalents $ 1,428,848 $ 1,046,160 Restricted cash 668,762 338,462 Total cash, cash equivalents and restricted cash $ 2,097,610 $ 1,384,622 24 Affirm FQ1’26 Shareholder LetterRECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following tables present a reconciliation of transaction costs, revenue less transaction costs, adjusted operating income, adjusted operating margin, non-GAAP general and administrative expense, non-GAAP technology and data analytics expense, non-GAAP sales and marketing expense, and equity capital required to their most directly comparable financial measures prepared in accordance with GAAP for each of the periods indicated. Three Months Ended September 30, 2025 2024 (in thousands, except percent data) Operating expenses Loss on loan purchase commitment $ 71,552 $ 54,237 Provision for credit losses 162,752 159,824 Funding costs 110,027 104,145 Processing and servicing 133,807 95,146 Transaction costs (Non-GAAP) $ 478,138 $ 413,352 Technology and data analytics 168,106 134,290 Sales and marketing 78,491 145,233 General and administrative 144,941 138,482 Restructuring and other — (255) Total operating expenses $ 869,676 $ 831,102 Total revenue $ 933,337 $ 698,479 Less: Transaction costs (Non-GAAP) (478,138) (413,352) Revenue less transaction costs (Non-GAAP) $ 455,199 $ 285,127 Operating income (loss) $ 63,661 $ (132,623) Add: Depreciation and amortization 65,328 46,715 Add: Stock-based compensation included in operating expenses 85,853 94,233 Add: Enterprise warrant and share-based expense 49,033 121,519 Add: Restructuring and other 1 — (255) Adjusted operating income (Non-GAAP) $ 263,875 $ 129,589 Divided by: Total revenue, net $ 933,337 $ 698,479 Adjusted operating margin (Non-GAAP) 28.3 % 18.6 % General and administrative expense $ 144,941 $ 138,482 Less: Depreciation and amortization included in general and administrative expense (550) (605) Less: Stock-based compensation included in general and administrative expense (55,773) (62,804) Non-GAAP General and administrative expense $ 88,618 $ 75,073 Technology and data analytics expense $ 168,106 $ 134,290 Less: Depreciation and amortization included in technology and data analytics expense (64,631) (45,392) Less: Stock-based compensation included in technology and data analytics expense (24,764) (25,972) Non-GAAP Technology and data analytics expense $ 78,711 $ 62,926 Sales and marketing expense $ 78,491 $ 145,233 Less: Depreciation and amortization included in sales and marketing expense (117) (686) Less: Stock-based compensation included in sales and marketing expense (5,076) (5,195) Less: Enterprise warrant and share-based included in sales and marketing expense (49,033) (121,519) Non-GAAP Sales and marketing expense $ 24,265 $ 17,833 September 30, 2025 June 30, 2025 September 30, 2024 (in thousands) Loans held for investment $ 7,235,177 $ 7,025,534 $ 6,310,834 Add: Loans held for sale 12 — — Less: Funding debt (1,777,906) (1,622,808) (1,744,040) Less: Notes issued by securitization trusts (4,830,819) (4,833,855) (3,985,484) Equity capital required (Non-GAAP) $ 626,464 $ 568,871 $ 581,310 1 Restructuring and other costs includes expenses incurred in the period associated with the Company's restructurings and other exit and disposal activities. 2 Within the table presented certain columns may not sum due to the use of rounded numbers 25 Affirm FQ1’26 Shareholder LetterSUPPLEMENTAL DELINQUENCY INFORMATION Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 2.5% 2.1% 1.9% 1.1% FY 2021 0.8% 0.8% 0.7% 0.9% FY 2022 1.5% 1.6% 2.1% 2.1% FY 2023 2.7% 2.4% 2.3% 2.1% FY 2024 2.4% 2.4% 2.3% 2.4% FY 2025 2.8% 2.5% 2.4% 2.3% FY 2026 2.8% 60+ Day Delinquencies FY 2020 1.4% 1.2% 1.1% 0.8% FY 2021 0.5% 0.4% 0.4% 0.5% FY 2022 0.9% 0.9% 1.2% 1.2% FY 2023 1.6% 1.5% 1.4% 1.2% FY 2024 1.4% 1.4% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 90+ Day Delinquencies FY 2020 0.6% 0.6% 0.5% 0.4% FY 2021 0.2% 0.2% 0.2% 0.2% FY 2022 0.4% 0.4% 0.5% 0.5% FY 2023 0.7% 0.7% 0.6% 0.5% FY 2024 0.7% 0.7% 0.6% 0.6% FY 2025 0.8% 0.7% 0.6% 0.6% FY 2026 0.7% Three Months Ending September 30 December 31 March 31 June 30 30+ Day Delinquencies FY 2020 3.2% 2.9% 2.8% 1.8% FY 2021 1.4% 1.3% 1.2% 1.3% FY 2022 2.1% 2.1% 2.7% 2.5% FY 2023 3.2% 2.7% 2.5% 2.3% FY 2024 2.5% 2.5% 2.4% 2.5% FY 2025 2.8% 2.5% 2.5% 2.3% FY 2026 2.8% 60+ Day Delinquencies FY 2020 1.8% 1.7% 1.6% 1.3% FY 2021 0.8% 0.7% 0.7% 0.7% FY 2022 1.2% 1.2% 1.6% 1.4% FY 2023 1.9% 1.6% 1.5% 1.3% FY 2024 1.5% 1.5% 1.4% 1.5% FY 2025 1.7% 1.5% 1.5% 1.4% FY 2026 1.6% 90+ Day Delinquencies FY 2020 0.8% 0.8% 0.7% 0.6% FY 2021 0.4% 0.3% 0.3% 0.3% FY 2022 0.6% 0.6% 0.6% 0.6% FY 2023 0.9% 0.8% 0.7% 0.6% FY 2024 0.7% 0.7% 0.7% 0.6% FY 2025 0.8% 0.7% 0.7% 0.6% FY 2026 0.7% Monthly Installment Loan (ex-Peloton) Monthly Installment Loan 26 Affirm FQ1’26 Shareholder Letter6 Nov 2025
DEFA14ADefinitive additional materials24 Oct 2025
ARSAnnual report to security holders24 Oct 2025

Ownership Filings(595)

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Form 4Watson Noel Bertram04:00PM
SC 13G/AAffirm Holdings, Inc.01:51PM
Form 144Watson Noel Bertram10 Nov
SC 13G/AAffirm Holdings, Inc.5 Nov
Form 4Jiyane Siphelele3 Nov
Form 4O'Hare Robert14 Oct
Form 144O'Hare Robert9 Oct
Form 4Adkins Katherine18 Sep
Form 4Michalek Libor18 Sep
Form 4Linford Michael18 Sep
Form 4O'Hare Robert18 Sep
Form 4Jiyane Siphelele16 Sep
Form 144Jiyane Siphelele14 Sep
Form 4Jiyane Siphelele9 Sep
Form 144Jiyane Siphelele4 Sep
Form 4Adkins Katherine3 Sep
Form 144Adkins Katherine3 Sep
Form 4O'Hare Robert3 Sep
Form 4Michalek Libor3 Sep
Form 4Linford Michael3 Sep