Here are a few analogies to describe Katapult:

• Rent-A-Center for online shopping.
• Like Affirm or Klarna, but for shoppers with lower credit scores.

• Lease-Purchase Financing: This service offers nonprime consumers a point-of-sale lease-purchase option to acquire durable goods from e-commerce merchants.

Major Customers of Katapult (KPLT)

Katapult primarily serves individual consumers by providing e-commerce point-of-sale lease-purchase options.

Customer Categories:

• Nonprime consumers in the United States who utilize Katapult's lease-purchase option to acquire durable goods from its network of e-commerce merchants.

• Amazon.com, Inc. (AMZN) - for Amazon Web Services (AWS) cloud infrastructure

Orlando Zayas, Chief Executive Officer and Director

Mr. Zayas has served as the Chief Executive Officer of Katapult Holdings, Inc. since June 2021, and as CEO of Legacy Katapult since September 2017. His previous leadership experience includes serving as CEO of DRB Capital from January to September 2017 and as President of TEMPOE, LLC. Mr. Zayas has also held various leadership roles at GE Capital and Safe-Guard Products International. He is recognized for his innovative strategies and leadership in the e-commerce and retail sectors.

Nancy A. Walsh, Chief Financial Officer

Ms. Walsh was appointed Chief Financial Officer of Katapult in December 2022. Before joining Katapult, she held the position of Chief Financial Officer and Executive Vice President at LL Flooring from September 2019 to December 2022. Her extensive background also includes serving as Chief Financial Officer and Executive Vice President at Pier 1 and The Bon-Ton Stores, Inc. Additionally, Ms. Walsh held several senior finance and risk management roles at Coach, including Senior Vice President of Finance, Chief Risk Officer, and Treasurer.

Derek Medlin, Director, President and Chief Growth Officer

Mr. Medlin was appointed President and Chief Growth Officer of Katapult in August 2024. Prior to this role, he served as Chief Operating Officer for Katapult from July 2018 to August 2024 and as Executive Vice President of Operations from July 2017 to July 2018. Before his tenure at Katapult, Mr. Medlin was an Executive Director at JPMorgan Chase from 2014 to 2017, a Vice President at Elavon (U.S. Bank) from 2009 to 2014, and a Senior Analyst at Pyramid Research from 2006 to 2009.

Here are the key risks to Katapult Holdings, Inc. (KPLT):

1. Financial Health, Profitability, and Debt Challenges: Katapult faces significant challenges regarding its financial health, marked by weak business operations, ongoing profitability issues, and a lack of GAAP net profit to date. The company exhibits poor financial strength, with a low current ratio and high debt-to-equity ratio, indicating substantial leverage and potential liquidity concerns. Katapult has encountered instances of missing loan covenants, necessitating waivers, which raises the risk of debt conversion into equity and subsequent dilution for existing shareholders. A breach or default on its loan agreements could accelerate obligations and severely impact its financial condition and operational viability.
2. Vulnerability to Macroeconomic Conditions and Nonprime Consumer Base: The company's business model is highly susceptible to broader macroeconomic conditions, including inflation, rising interest rates, and fluctuations in consumer spending. Katapult's customer base primarily consists of financially vulnerable or coping nonprime consumers, making it particularly exposed to adverse changes in consumer behavior and economic downturns. This vulnerability can lead to increased charge-offs if the company's decisioning tools cannot accurately adapt to changing consumer financial situations.
3. Risks Associated with Pending Strategic Mergers: Katapult is currently engaged in pending strategic mergers with CCFI and Aaron's. The completion of these mergers introduces significant risks, including potential operational disruptions and uncertainties that could adversely affect the company's financial results and business continuity. Furthermore, these mergers are expected to lead to a substantial shift in ownership, with existing Katapult shareholders anticipated to hold approximately 6% of the combined entity, which could result in significant shareholder dilution and a change in corporate control.

Increased regulatory scrutiny and potential for new regulations impacting the buy-now-pay-later (BNPL) and lease-purchase industry, particularly for nonprime consumers. Regulatory bodies, such as the Consumer Financial Protection Bureau (CFPB), have actively expressed concerns regarding consumer protection, disclosures, and potential debt accumulation associated with these products. New legislation or regulatory changes could significantly impact Katapult's business model, operational costs, and profitability by imposing stricter requirements, limiting product offerings, or reclassifying lease-purchase options as loans subject to different regulations.

The addressable market for Katapult Holdings, Inc. (KPLT), which provides e-commerce point-of-sale lease-purchase options for nonprime consumers, is the U.S. rent-to-own (lease-purchase) market for durable goods.

This market was valued at approximately USD 11.95 billion in 2023 and is projected to grow to approximately USD 18.17 billion by 2029, with a compound annual growth rate (CAGR) of 7.32% from 2024 to 2029. Another estimate places the U.S. market at USD 12.31 billion in 2023, expected to reach USD 19.39 billion by 2031, growing at a CAGR of approximately 6.77% from 2024 to 2031.

The market for rent-to-own services caters to consumers with lower credit scores (nonprime/subprime), generally defined as those with FICO scores below 620, a segment that constitutes around 15% of U.S. borrowers. These consumers often utilize subprime credit for retail purchases, including durable goods.

Expected Drivers of Future Revenue Growth for Katapult (KPLT)

Over the next 2-3 years, Katapult (KPLT) is expected to drive revenue growth through several key initiatives:

1. Continued Growth in Gross Originations: Katapult's ability to increase gross originations, which grew 17% in 2025, is a primary driver of revenue. The company anticipates at least 20% growth in gross originations for the full year 2026. This growth is supported by an increase in lease applications and originations, demonstrating consumer affinity for its lease-to-own (LTO) offering.
2. Strategic Merger with Aaron's and CCF Holdings: A pending all-stock merger transaction with Aaron's and CCF Holdings is highlighted as a significant strategic move. This merger is expected to enhance Katapult's capabilities, create a company with over $4 billion in pro forma revenue, and provide substantial synergy potential, fundamentally altering Katapult's scale and market position.
3. Expansion of KPay and the Katapult App Marketplace: Katapult is experiencing strong growth in its proprietary payment solution, KPay, with gross originations growing 51.2% in 2025 and representing nearly half of total gross originations in Q4 2025. The company is also seeing robust engagement and growth in Monthly Active Users (MAU) within its Katapult app marketplace, which continues to add new merchants such as Kay Jewelers.
4. Increased Merchant Partnerships: Expanding its network of e-commerce merchant-partners is a crucial growth strategy. Katapult focuses on the value it brings to these partners through its LTO platform. The company is actively launching and ramping up partnerships, including with PayTomorrow, Adorama, and Meineke, to broaden its reach and product offerings.
5. Innovation and Focus on the Nonprime Consumer Market: Katapult continues to develop and refine its innovative lease-to-own platform for nonprime consumers. Despite economic headwinds and consumer financial stress, the company remains confident in the necessity of its offerings and is launching new initiatives specifically designed to address these challenges and serve its core market.

Share Repurchases

Share Issuance

• In November 2025, Katapult executed a $65 million private placement of convertible preferred stock with HHCF Series 21 Sub, LLC, issuing 35,000 shares of Series A and 30,000 shares of Series B Convertible Preferred Stock.
• The private placement, if fully converted, would result in the investor owning 54.5% of Katapult's common stock, subject to a 19.99% ownership limitation until shareholder approval is obtained.
• An all-stock merger transaction with The Aaron's Company, Inc. and CCF Holdings LLC, announced in December 2025 and anticipated to close in the first half of 2026, will result in current Katapult stockholders owning 6% of the combined company on a fully diluted basis.

Inbound Investments

• Katapult received a $65 million capital investment from Hawthorn Horizon Credit Fund in the third quarter of 2025.
• The proceeds from this investment were primarily used to repay Katapult's term loan and to invest in growth opportunities.

Outbound Investments

Capital Expenditures

• Katapult Holdings Inc. invested $4K in capital expenditures in the third quarter of 2025.
• In Q3 2025, capital expenditures of $54K consumed most of the -$32.6M operating cash flow.
• Capital expenditures and strategic investments indicate a focus on sustainable growth while managing existing liabilities.