Affirm (AFRM) Status update summary

Vision and Strategy Update

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

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

• Stressed the importance of real-time, transaction-level underwriting and advanced AI/ML models, including transformer-based architectures, to optimize offers and risk.

• Reinforced the goal to become as important to merchants as major payment networks, leveraging network effects and expanding consumer and merchant engagement.

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

Structural Advantages and Growth Drivers

• Identified five key structural advantages: network effects, transaction-level underwriting, unmatched data assets, advanced model operations, and infrastructure scale.

• 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.

Merchant Point of Sale and Distribution Expansion

• Merchant POS remains the core growth engine, with 76% of transactions and 32% annual GMV growth over three years.

• Active merchant count reached 515K, with significant expansion in enterprise and adjacent verticals.

• Share of cart among US enterprise merchants increased, with each basis point equating to over $120M in annual GMV.

• Distribution accelerated through partnerships with eCommerce platforms, PSPs, ISVs, and wallets.

• PSP and ISV partnerships drive rapid GMV growth and access to SMBs and new verticals.