Katapult Holdings, Inc. (NASDAQ: KPLT)

Katapult Holdings, Inc. operates as a technology-driven lease-to-own (LTO) platform, facilitating the purchase of everyday durable goods for underserved U.S. nonprime customers. The company integrates with omnichannel retailers and e-commerce platforms, primarily operating within the virtual LTO market, which is estimated to have a total addressable market opportunity of $50 - $60 billion. Katapult was founded and incorporated in Delaware in 2012 and operates exclusively in the U.S., with its platform available for use by consumers in 46 states and the District of Columbia.

Katapult generates revenue from recurring payment streams related to its contracted lease payments with consumers. The company's primary costs, outside of the retail price of a lease purchased item, include interest costs associated with its asset-backed revolver and total servicing costs inclusive of collection activities. Katapult's platform offers consumers, particularly those with nonprime credit, an alternative path to ownership compared with traditional financing, which may not be accessible to them due to credit or other financial constraints. Many durable goods are eligible for LTO, including home furnishings, automotive goods, computers, electronics, and appliances, among others.

• Direct Integration: This segment involves integrating with a merchant's digital point of sale (POS) system to facilitate online transactions via Application Programming Interfaces or through third-party plug-ins such as Shopify, BigCommerce, WooCommerce, and Magento, among others. This option allows consumers to select a Katapult lease transaction as their method of payment at checkout.

• Waterfall Integration: This product allows Katapult to partner with waterfall financing platforms. In a waterfall transaction, the potential customer completes a credit application, which then flows from the prime lender to other financing and lease-purchase options automatically. If Katapult's lease offer is the best match for the potential customer's credit profile, it will be presented to the consumer at the point of sale.

• Mobile App: Katapult launched its mobile app, which includes a feature called KPay, allowing consumers to leverage virtual credit card technology to shop with a variety of durable goods merchants featured in the app marketplace. This option does not require integration support from merchants, and the consumer interaction begins and ends in the Katapult App.

• Text-to-Checkout: This in-store POS integration option simplifies the in-store leasing experience for consumers while allowing Katapult to retain control of the customer journey and ensure adherence to regulatory requirements.

Katapult competes with national, regional, and local operators of LTO stores, virtual LTO companies, traditional and e-commerce retailers, and various types of consumer finance companies. The company's competitive advantages include its advanced underwriting technology, market-leading customer experience and service, proprietary technology that powers its scalable platform, and marketing focused on enhancing the lifetime value of its customer base. Katapult's largest merchant partner is Wayfair, Inc., which represented 25% and 36% of its gross originations for the years ended December 31, 2025 and 2024, respectively. The company has contractual arrangements with many other e-commerce partners, including Shopify, BigCommerce, WooCommerce, and Magneto, among others.

Katapult's customer base consists of underserved, nonprime consumers seeking access to durable goods and related financial solutions. The company's platform is designed to provide these consumers with a simple, quick, transparent, and fair pathway to acquiring the durable goods they need when they need them. Katapult's mission is to enable consumers to get the durable goods they need when they need them and connect retailers with a growing base of engaged and loyal consumers.