Affirm (AFRM) investor relations material

Vision and Strategy Update

• Emphasizes building a closed-loop network with real network effects, integrating credit issuance, risk management, and data-driven decisioning.

• Focus on honest, transparent financial products that improve lives, with strong consumer preference and minimal brand advertising.

• AI and machine learning are core to underwriting and product personalization, with new transformer-based models enhancing performance.

• Growth priorities include expanding channel partnerships, direct-to-consumer offerings, and leveraging AI as a competitive advantage.

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

Structural Advantages and Flywheels

• Two reinforcing flywheels: merchant-consumer network and vertically integrated risk management.

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

• Transaction-level underwriting enables more accurate risk evaluation and higher approvals at target delinquency rates.

• Proprietary data asset and advanced models drive improved outcomes and continuous model enhancement.

• Infrastructure scale supports large e-commerce partners and high reliability during peak periods.

Growth Drivers and Product Innovation

• Merchant point of sale remains foundational, growing at 32% annually, with 157,000 new merchants added in the past year.

• Affirm Card surpassed 4.4M active cardholders, with cardholder spend growing 130% YoY and 3x higher than non-cardholders.

• Digital wallets saw $1.7B GMV and 2.3M users in the trailing twelve months, with 155% YoY GMV growth.

• Agentic commerce leverages AI to personalize affordability and shopping experiences, with partnerships (Google, Stripe, Shopify) to shape standards and protocols.

• Affirm Edge enables banks and credit unions to offer BNPL within their own apps, targeting a $140 billion annual addressable volume and 130M US debit-first consumers.