Affirm (AFRM) investor relations material

Funding and Capital Strategy

• Funding is diversified across warehouse, ABS, and forward flow channels, with about 200 unique partners and no overreliance on any single source.

• ABS program has raised over $7 billion in notes in two years, with strong investor demand and 3.4x oversubscription since 2022.

• Forward flow is the largest channel, with $13 billion in capacity and two-year commitments from 20 institutional investors.

• Funding mix is balanced between on- and off-balance sheet, with plans to add deposit funding via Affirm Bank.

• Affirm Bank aims for 40-50% of loans originated and 5% funded by deposits by FY'30, with incremental cost to build the bank estimated at $20M and net financial benefit projected by end of de novo period.

Affirm Bank Initiative

• Affirm Bank will provide direct-to-consumer savings deposits and originate buy now, pay later loans, increasing platform resiliency.

• The bank will be a Nevada-chartered, FDIC-insured industrial bank, allowing Affirm to innovate without bank holding company restrictions.

• By the end of the De Novo period, Affirm Bank aims to originate 40%-50% of loan volume, holding about 10% to maturity.

• Initial capital contribution is $350 million, targeting 20% ROE and profitability by year two.

Strategic Growth Drivers and Structural Advantages

• Five core growth drivers: merchant point of sale, Affirm Card and digital wallets, agentic commerce, Affirm Edge, and international expansion.

• Structural advantages include network effects, transaction-level underwriting, proprietary data assets, continuous model improvement, and enterprise commerce infrastructure.

• Over 71M all-time underwritten consumers and 515K active merchants as of March 31, 2026.

• AI accelerates data-driven flywheels, improving credit outcomes and conversion rates.

• Consistent credit outcomes validated by capital markets and strong repeat consumer engagement.