Company Overview - Katapult Holdings, Inc. is an e-commerce focused financial technology company that operates a technology-driven lease-to-own platform [3] - The company integrates with omni-channel retailers and e-commerce platforms to provide purchasing solutions for underserved U.S. non-prime consumers [3] - Katapult's services include point-of-sale integrations and a mobile app featuring Katapult Pay, allowing consumers access to a growing network of merchant partners [3] Upcoming Events - Orlando Zayas, CEO, and Nancy Walsh, CFO, will participate in the H.C. Wainwright 27th Annual Global Investment Conference from September 8 to 10, 2025 [1] - A presentation by Orlando Zayas will provide an overview of the Katapult business [1] - The presentation will be available via on-demand webcast starting at 7:00 AM ET on September 5, 2025 [2]

Business Overview - Katapult operates a lease-to-own solution connecting consumers and merchants for omnichannel transactions[6] - The company's mission is to enable consumers to acquire durable goods and connect retailers with engaged consumers[11] - Katapult estimates a total US addressable market of $50-60 billion for underserved consumers[26] Financial Performance - Gross originations grew by 30.4% year-over-year in Q2 2025[20] - Revenue increased by 22.1% year-over-year in Q2 2025[20] - Adjusted EBITDA was $0.3 million in Q2 2025, exceeding the breakeven outlook[20] - Total app originations have reached $300.3 million since the launch of the app marketplace in Q1 2023[35] - KPay originations grew 81% year-over-year in Q2 2025, representing approximately 39% of total gross originations[20, 36] Customer Base and Engagement - Approximately 990,000 applications were approved in the last twelve months[10] - Repeat customers accounted for 58.4% of gross originations in Q2 2025[14, 20, 44] - Total application volume grew by over 91% year-over-year in Q2 2025[17, 20] Marketplace and Merchant Partnerships - The platform includes over 200 merchants[10, 42] - Approximately 60% of Q2 2025 gross originations started in the app marketplace[20, 31, 33, 35]

Core Insights - Katapult Holdings, Inc. reported strong financial performance in Q2 2025, with a 30% increase in gross originations and a 22% rise in revenue year-over-year, indicating robust growth momentum [2][4][6] - The company is raising its full-year 2025 gross originations outlook, expecting growth between 20% and 25%, driven by a strong customer base and expanding merchant partnerships [7][10] Financial Performance - Gross originations for Q2 2025 reached $72.1 million, a 30.4% increase compared to Q2 2024, with KPay gross originations growing by approximately 81% year-over-year [4][10] - Total revenue for Q2 2025 was $71.9 million, reflecting a 22.1% increase from the previous year [4][39] - Adjusted EBITDA improved to $0.3 million in Q2 2025, compared to a loss of $0.4 million in Q2 2024 [9][37] Customer Metrics - The unique new customer base grew by approximately 40% year-over-year, with a repeat customer rate of 58.4% for Q2 2025 [2][4] - Customer satisfaction remained high, with a Net Promoter Score (NPS) of 63 as of June 30, 2025 [4] Operational Highlights - Approximately 60% of gross originations in Q2 2025 originated from the Katapult app marketplace, which saw a 56% year-over-year growth in gross originations [4][6] - KPay's unique customer count grew nearly 87% year-over-year, with 39% of total gross originations transacted using KPay [4][6] Refinancing and Capital Structure - Katapult entered a new Refinancing Agreement with Blue Owl Capital, increasing its revolving line of credit to $110 million and extending the maturity date to December 4, 2026 [5][11] - The interest rate on the revolving line of credit was reduced by approximately 150 basis points, enhancing the company's liquidity position [5][11] Market Outlook - The company anticipates continued growth in 2025, supported by a large addressable market of underserved, non-prime consumers, particularly as lease-to-own solutions become more attractive in a tightening credit environment [6][7] - The outlook for the home furnishings and mattress category remains cautious, with expectations that performance will not improve materially from 2024 [8]

Core Insights - Katapult Holdings, Inc. reported strong financial results for Q1 2025, with gross originations of $64.2 million, representing a year-over-year increase of 15.4% [5][40] - The company achieved a total revenue of $71.9 million, up 10.6% from the previous year [5][39] - CEO Orlando Zayas expressed confidence in the company's growth trajectory, highlighting a 57% increase in KPay originations and strong engagement within the Katapult app marketplace [3][5] Financial Performance - Gross originations for Q1 2025 were $64.2 million, a 15.4% increase compared to Q1 2024 [5][40] - Total revenue reached $71.9 million, marking a 10.6% increase year-over-year [5][39] - Operating expenses rose by 17.3%, leading to a net loss of $5.7 million for Q1 2025, compared to a net loss of $0.6 million in Q1 2024 [5][12] Customer Engagement and Market Position - Approximately 59% of gross originations in Q1 2025 originated from the Katapult app marketplace, which is the largest customer referral source [5] - The repeat customer rate was 57.4%, indicating strong customer loyalty [5] - KPay gross originations grew by approximately 57% year-over-year, with 35% of total gross originations transacted using KPay [5] Business Outlook - Katapult expects gross originations to grow at least 20% for the full year 2025, reiterating its guidance despite challenges in the home furnishings category [8][7] - The company plans to introduce new merchants to the Katapult App Marketplace throughout 2025, aiming to capture a larger share of the underserved non-prime consumer market [7][8] - The outlook assumes no significant changes in the macroeconomic environment and does not account for potential impacts from prime creditors [8][9]

Business Overview - Katapult operates a lease-to-own solution connecting consumers and merchants for omnichannel transactions[6] - The company's mission is to enable consumers to acquire durable goods and connect retailers with a growing consumer base[11] - Katapult estimates a total US addressable market of $50-60 billion for underserved consumers[25] Financial Performance and Growth - In Q1 2025, gross originations grew by 15.4% year-over-year[20, 122], and revenue increased by 10.6% year-over-year[20, 122] - Approximately 59% of Q1 2025 gross originations started in the app marketplace[20, 30, 32, 34] - KPay gross originations grew 57% year-over-year in Q1 2025, reaching approximately $23 million, representing approximately 35% of total gross originations[20] - Total app originations since the launch of the app marketplace in Q1 2023 reached $257.2 million[34] - Total KPay originations since the feature launch in Q1 2023 reached $141.4 million[35] Customer Base and Engagement - Approximately 57.4% of Q1 2025 gross originations were from repeat customers[14, 20, 44] - Total application volume grew approximately 59% year-over-year in Q1 2025[17, 20] Financial Metrics - Adjusted EBITDA for Q1 2025 was $2.2 million[20, 122] - Fixed cash operating expenses increased by 10.8% year-over-year in Q1 2025[122, 127]

Core Insights - Katapult Holdings, Inc. reported strong financial results for Q1 2025, with double-digit growth in gross originations and revenue, driven by increased engagement in its app marketplace [3][5][9] - The company is optimistic about achieving its full-year targets for 2025, expecting gross originations to grow at least 20% [9][11] Financial Performance - Gross originations for Q1 2025 reached $64.2 million, a 15.4% increase year-over-year, with total revenue at $71.9 million, up 10.6% [5][31] - The company experienced a net loss of $5.7 million in Q1 2025, compared to a net loss of $0.6 million in Q1 2024, primarily due to higher costs [5][31] - Adjusted EBITDA for Q1 2025 was $2.2 million, down from $5.6 million in Q1 2024, impacted by increased costs associated with rapid growth [5][36] Market Engagement - Approximately 59% of gross originations in Q1 2025 originated from the Katapult app marketplace, marking it as the largest customer referral source [5] - KPay gross originations grew approximately 57% year-over-year, with a unique customer count increase of over 65% [5][11] Business Outlook - The company plans to introduce new merchants to its app marketplace in 2025, aiming to leverage its strategic marketing and strong consumer offerings to drive growth [8][9] - Katapult expects to maintain strong credit quality in its portfolio, supported by enhancements to risk modeling and onboarding high-quality merchants [15] Key Metrics - Customer satisfaction remains high, with a Net Promoter Score of 66 as of March 31, 2025 [5] - Write-offs as a percentage of revenue were 9.0% in Q1 2025, within the company's long-term target range of 8% to 10% [13]