Financial Data and Key Metrics Changes - Capital generation reached $222 million, up 63% year over year [6][21] - C and I adjusted earnings were $1.45 per share, up 42% [6][21] - Total revenue grew 10% year over year [6][24] - Receivables grew 7% year over year, surpassing $25 billion for the first time [6][21] Business Line Data and Key Metrics Changes - Originations increased by 9%, driven by enhanced data analytics and product innovations [7][23] - Credit card receivables reached $752 million, up 61% year over year [12][21] - Auto finance receivables grew to over $2.6 billion, with quarterly originations up 29% [14][21] Market Data and Key Metrics Changes - 30 plus delinquency rate was 5.07%, down 29 basis points year over year [7][27] - C and I net charge offs were 7.6%, down 88 basis points year over year [29] - Consumer loan net charge offs were 7.2%, down 110 basis points year over year [29] Company Strategy and Development Direction - The company focuses on responsible credit access and disciplined credit management [5][17] - Strategic initiatives include enhancing product offerings and improving customer experience [11][12] - The company aims to grow its credit card business conservatively while maintaining a strong balance sheet [13][17] Management Comments on Operating Environment and Future Outlook - The macroeconomic environment remains stable, with a resilient non-prime consumer supported by a solid labor market [15][16] - Management expressed confidence in the business model and strategic initiatives, anticipating significant capital generation growth in 2025 [40][38] - The company expects a more normalized mid-single-digit growth in originations for the second half of the year [23][68] Other Important Information - The company raised $1.8 billion in the quarter through ABS and unsecured markets, enhancing liquidity [20][36] - Operating expenses were $415 million, up 11% year over year, aligned with receivables growth [33][34] - The company repurchased 460,000 shares at an average price below $46 per share [18][21] Q&A Session Summary Question: Can you discuss the competitive dynamics driving your origination growth? - Management noted a constructive competitive environment with strong origination growth despite a tight credit box, emphasizing their ability to maintain competitive pricing [44][46] Question: How do you plan to deploy stronger capital generation in the next 6-12 months? - The company prioritizes building a great business, paying dividends, and considering share repurchases or strategic investments based on capital generation [49][51] Question: What is the expected timing for the credit card portfolio to reach similar returns as personal loans? - Management indicated that while they are not providing specific guidance, they expect card yields to remain above 30% and are focused on perfecting the product before accelerating growth [55][59] Question: How is the macroeconomic environment affecting your consumer base? - Management stated that the non-prime consumer has remained stable, with improved net disposable income compared to previous periods [82][85] Question: Are there signs of increased price competition in the market? - Management acknowledged the presence of competition but emphasized their disciplined approach to maintaining credit quality and customer value [90][92]

Financial Data and Key Metrics Changes - Q4 gross originations grew 11.3% year over year to $75.2 million, with a two-year stack growth of 25.7% [37] - Q4 revenue increased by 9.4% to $63 million, marking the seventh consecutive quarter of year-over-year growth [41] - Full year 2024 gross profit was approximately $45.8 million, up about 10% compared to 2023, with a gross margin of 18.5% [43][44] Business Line Data and Key Metrics Changes - For Q4, gross originations from the top 25 merchants grew 10%, while excluding home furnishings and mattress categories, gross originations grew over 50% year over year [40][38] - Approximately 68% of total gross originations in 2024 came from direct and waterfall merchants [27] Market Data and Key Metrics Changes - Approximately $127 million of gross originations in 2024 began in the Catapult app, with K Pay enabling nearly $77 million of those originations [12] - Total app originations grew by 32% year over year in Q4, with K Pay originations up approximately 52% year over year [18] Company Strategy and Development Direction - The company has transformed from a single input-driven business to a multi-dimensional growth engine, focusing on consumer and merchant engagement [7][16] - Plans for 2025 include driving additional top-of-funnel activity, enhancing consumer engagement, and improving unit economics [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite a challenging macro environment, particularly in the home furnishings and mattress category [51][52] - The company anticipates gross originations growth of at least 20% and revenue growth of at least 20% for 2025 [53] Other Important Information - The company reported a Q4 adjusted EBITDA loss of $1.1 million, which was below expectations due to strong top-line growth and lease depreciation costs [47] - As of December 31, 2024, total cash and cash equivalents were $16.6 million, with $82.8 million in outstanding debt on the revolving credit facility [49] Q&A Session Summary Question: Outlook for margin in 2025 - Management expects gross profit to remain in the 18% to 20% range for 2025, consistent with previous years [56] Question: Changes in consumer behavior due to tariffs - Management has not observed significant changes in consumer behavior related to tariffs, with delinquencies remaining stable [58][59] Question: Drivers for improved EBITDA margin - The improvement in EBITDA margin is primarily due to diligent expense management and investments in technology and marketing [67] Question: Growth in Wayfair originations - Wayfair's gross origination growth continues to be down, but the business outside of Wayfair remains strong, growing at 50% [68][69] Question: Merchant acquisition in uncertain macro environments - Management believes that uncertainty can accelerate merchant acquisition as they seek growth opportunities [74][75]