PMI computes its net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share (“ASC Topic 260”). Under ASC Topic 260, basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities.

PMI’s net income (loss) per share is calculated using the two-class method in accordance with ASC Topic 260. The two-class method allocates earnings that otherwise would have been available to common shareholders to holders of participating securities. Management considers all series of our Convertible Preferred Stock to be participating securities due to their rights to participate in dividends with Common Stock. As such, earnings allocated to these participating securities, which include participation rights in undistributed earnings, are subtracted from net income to determine total undistributed earnings to be allocated to common stockholders.

All participating securities are excluded from basic weighted-average common shares outstanding. Prior to any conversion to common shares, each series of Prosper’s Convertible Preferred Stock is entitled to participate on an if-converted basis in distributions of earnings, when and if declared by the Board of Directors (the “Board”), that are made to common stockholders and consequently, these shares were considered participating securities. During the six months ended June 30, 2026 and 2025, certain shares issued as a result of the early exercise of stock options which are subject to a repurchase right by PMI were entitled to receive non-forfeitable dividends during the vesting period and consequently, are considered participating securities.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net Income (Loss)	$	6,381	(57,727)		$	71,032	$	(7,352)
Plus: Return on Share Purchase and Forfeiture	355		—		355		—
Less: Net Income Allocated to Participating Securities	(5,356)		—		(54,653)		—
Net Income (Loss) Attributable to Common Stockholders	$	1,380	$	(57,727)	$	16,734	$	(7,352)
Denominator:
Weighted average shares used in computing basic net income (loss) per share	78,924,011		77,698,227		78,589,166		77,603,124
Effect of dilutive securities:
Stock options	49,917,681		—		52,542,572		—
Common stock warrants	111,765		—		284,572		—
Convertible preferred stock warrants	56,230,169		—		105,875,709		—
Weighted-average shares used in computing diluted net income (loss) per share	185,183,626		77,698,227		237,292,019		77,603,124
Net Income (Loss) Per Share – Basic	$	0.02	$	(0.74)	$	0.21	$	(0.09)
Net Income (Loss) Per Share – Diluted	$	0.01	$	(0.74)	$	0.07	$	(0.09)

The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(shares)	(shares)	(shares)	(shares)
Excluded securities:
Convertible preferred stock issued and outstanding, excluding shares held by consolidated VIE	315,222,140	158,365,655	265,665,203	158,365,655
Stock options issued and outstanding	27,484,623	80,099,705	24,462,457	79,467,722
Common stock warrants issued and outstanding	89,763	330,163	167,475	330,163
Series E-1 convertible preferred stock warrants	—	35,544,141	—	35,544,141
Series F convertible preferred stock warrants	—	177,720,704	—	177,720,704
Total common stock equivalents excluded from diluted net income (loss) per common share computation	342,796,526	452,060,368	290,295,135	451,428,385