Risk Factors Update Summary

• We incurred net losses of approximately $517.8 million, $985.3 million, and $707.4 million for fiscal years 2024, 2023, and 2022, respectively.
• Regulatory agencies may change personal information collection requirements, potentially reducing consumer purchases and impacting revenue and GMV.
• Our accumulated deficit was approximately $3.1 billion and $2.6 billion as of June 30, 2024, and 2023, respectively.
• Max Levchin's voting control increased from 35% to 43%, enhancing his influence over company decisions.
• We expect to achieve operating income profitability on a GAAP basis in our fourth quarter of fiscal 2025.
• The company cannot assure effectiveness in compliance with anti-money laundering and anti-terrorism financing laws, raising regulatory risk.
• Elevated interest rates have had, and may continue to have, a material adverse effect on our financial condition and future prospects.
• Changes in commercial partner relationships, including with Amazon, could significantly affect business operations and revenue.
• Expansion into new international geographies, including the U.K., presents a variety of challenges and risks, including compliance with new regulatory frameworks.