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Here are two brief analogies for Katapult (KPLT):

• A digital Rent-A-Center or Aaron's for online shopping.
• Affirm for consumers with no or bad credit, using a lease-to-own model.

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• Lease-to-Own Consumer Financing: Provides a flexible lease-to-own payment option for non-prime consumers to acquire durable goods like furniture, electronics, and appliances from participating retail partners.
• Retailer Integration Platform: Offers retailers a technology platform to seamlessly integrate Katapult's lease-to-own solution into their e-commerce and in-store checkout processes, enabling them to serve a broader customer base.

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Major Customers of Katapult (KPLT)

Katapult (KPLT) primarily operates as a business-to-business (B2B) service provider. It offers a lease-to-own platform that integrates with e-commerce and omnichannel retailers to provide flexible payment options for their customers. Therefore, Katapult's major customers are the retail companies that adopt and integrate its platform.

Based on company disclosures and investor materials, key retail partners include:

• Wayfair Inc. (W)
• Beyond, Inc. (BYON) (formerly Overstock.com)
• Qurate Retail Group (QRTEA) (which includes brands such as QVC and HSN)

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Orlando Zayas, Chief Executive Officer

Orlando Zayas has been the Chief Executive Officer of Katapult since September 2017. Prior to his tenure at Katapult, he served as the Chief Executive Officer of DRB Capital and as President of TEMPOE, LLC. His career also includes significant leadership roles at GE Capital, Safe-Guard Products International, and GE/Wachovia/Wells Fargo Bank. Zayas successfully led Katabat, a fintech company, to its acquisition by Encore Capital Group. He is also the founder and CEO of Cloud-Analytics. Zayas brings over three decades of experience in the financial services industry.

Nancy Walsh, Chief Financial Officer

Nancy Walsh has served as the Chief Financial Officer of Katapult since December 2022. Before joining Katapult, she was the Chief Financial Officer and Executive Vice President of LL Flooring from September 2019 to December 2022. Her previous experience includes roles as Chief Financial Officer and Executive Vice President at Pier 1 and The Bon-Ton Stores, Inc. Additionally, Walsh held multiple positions at Coach, including Senior Vice President of Finance, Chief Risk Officer, and Treasurer. She also chairs the audit committee and is a board member for Sportsman's Warehouse (NASDAQ: SPWH).

Derek Medlin, President and Chief Growth Officer

Derek Medlin has been the President and Chief Growth Officer of Katapult since August 2024. Before this, he held the roles of Chief Operating Officer for Katapult from July 2018 to August 2024 and Executive Vice President of Operations from July 2017 to July 2018. Prior to his time at Katapult, Medlin served as an Executive Director at JPMorgan Chase, a Vice President at Elavon (U.S. Bank), and a Senior Analyst at Pyramid Research.

Chandan Chopra, Chief Technology Officer

Chandan Chopra holds the position of Chief Technology Officer at Katapult.

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The key risks to Katapult's business are as follows:

1. Significant Financial Distress and Going Concern Uncertainty: Katapult has a history of operating losses, including net losses of $25.9 million in 2024 and $36.7 million in 2023. The company also carries substantial indebtedness, with $114.5 million outstanding as of December 31, 2024. A critical concern is the maturity of this debt in June 2025; the failure to refinance could have a material adverse effect on the business and raises substantial doubt about its ability to continue as a going concern. Katapult has not yet achieved GAAP net profit, and its balance sheet shows weaknesses such as a low current ratio of 0.61, indicating potential near-term liquidity issues.
2. High Concentration Risk with Wayfair: A significant portion of Katapult's gross originations is concentrated with a single merchant, Wayfair. In 2024, Wayfair accounted for 36% of gross originations, and in 2023, this figure was 49%. Any deterioration in this crucial relationship or with other key merchants could materially and adversely affect Katapult's business.
3. Inherent Credit Risk and Exposure to Economic Downturns: Katapult's lease-to-own business model, which serves non-prime consumers, is inherently exposed to credit risk, leading to a high rate of non-payments. Write-offs represented 9.9% of revenue in Q3 2025, indicating a significant operational cost. The company's core customer base is particularly vulnerable to inflation and economic slowdowns, making Katapult highly susceptible to fluctuations in consumer spending patterns and broader economic conditions.

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The increasing expansion of Buy Now, Pay Later (BNPL) services into the near-prime and subprime credit segments poses an emerging threat. While many BNPL platforms initially focused on prime borrowers, there is a clear trend towards these providers enhancing their underwriting models to serve a broader range of credit profiles, directly encroaching on Katapult's target market of consumers with less-than-perfect credit. This expansion offers an alternative point-of-sale financing option that could divert both customers and merchant partnerships from Katapult's lease-to-own model.

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1. Expansion and Adoption of the Katapult App Marketplace and KPay Feature: Katapult is focusing on its proprietary app and KPay feature to drive organic traffic and originations. The Katapult app enhances consumer and merchant engagement, streamlining transactions and significantly increasing self-generated traffic. In Q4 2024, 54% of originations were driven by Katapult's own efforts, and total app originations grew by 32%, with KPay originations increasing by 52% year-over-year, accounting for 41% of total originations. For Q2 2025, total app marketplace gross originations grew 56% year-over-year, and KPay gross originations saw an 81% increase, making up 39% of total gross originations. The company projects at least 20% growth in gross originations and revenue for the full year 2025, with an updated outlook raising gross originations growth to between 20% and 25%.
2. Broadening the Merchant Network: Katapult is actively expanding its marketplace by adding new pay-enabled merchants, which broadens consumer choice and enhances the shopping experience. The company has successfully diversified its gross originations base by integrating new direct and waterfall merchants. Notable additions in 2024 included brands like Metro by T-Mobile, Zales, and Rooms to Go, expanding its ecosystem to 33 merchants. This strategy aims to create a larger marketplace and provide more opportunities for gross originations.
3. Increased Consumer Engagement and Retention: The company is focused on initiatives to boost top-of-the-funnel activity, leading to more applications, higher customer engagement, and ultimately, improved customer retention. Katapult reported a strong repeat customer rate of 61.5% of gross originations in Q4 2024. Application volume grew 50% year-over-year in Q4 2024, and total app marketplace applications increased by approximately 39% year-over-year in Q2 2025. Additionally, Katapult successfully grew its unique new customer base by approximately 40% year-over-year in Q2 2025 while maintaining a high repeat customer rate.
4. Strategic Marketing and Product Feature Enhancements: Katapult is investing in various marketing strategies and introducing new app features to drive demand and improve conversion rates. This includes rolling out multiple marketing efforts to bolster consumer engagement, such as increased communication and new digital advertising channels. The company plans to introduce more features and merchants in 2025 to enhance the shopping experience and encourage repeat customer interactions. These ongoing efforts, combined with testing new pricing and promotional strategies with merchant partners, are designed to drive conversion and engagement, especially during key sales periods.

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1. Share Issuance
   • On November 3, 2025, Katapult completed a private placement of convertible preferred stock, issuing 35,000 shares of Series A Convertible Preferred Stock and 30,000 shares of Series B Convertible Preferred Stock for aggregate gross proceeds of $65.0 million.
   • In connection with a new Refinancing Agreement on June 12, 2025, Katapult issued warrants to Blue Owl Capital, granting them the option to purchase up to 486,264 shares of common stock.
   • On June 10, 2024, a prospectus was filed for the offer and sale by selling shareholders of up to 3,377,164 shares of Common Stock, which included 673,300 common shares issuable upon the exercise of warrants.
2. Inbound Investments
   • On November 3, 2025, Katapult entered into agreements for a $65 million private placement of convertible preferred stock with HHCF Series 21 Sub, LLC, a subsidiary of Hawthorn Horizon Credit Fund, LLC.
   • Net proceeds from the Series A issuance ($35 million) were used to fully repay Katapult's term loan, and proceeds from the Series B issuance ($30 million) are earmarked for partial repayment of the revolving loan, transaction expenses, and other corporate purposes.
3. Capital Expenditures
   • In the last 12 months (prior to November 2025), Katapult reported capital expenditures of -$53,000.