Katapult Holdings, Inc. (NASDAQ: KPLTW)

Katapult Holdings, Inc. is a technology driven lease to own platform that integrates with omnichannel retailers and ecommerce platforms to enable the purchase of everyday durable goods by underserved U. S. nonprime customers. The company operates primarily in the virtual lease to own market, which it estimates has a total addressable market of $50 billion to $60 billion. It serves consumers in 46 states and the District of Columbia and reported gross originations that represent less than 1% of that market as of 2025. Katapult’s model allows customers to lease goods with weekly, biweekly, semimonthly, or monthly payments and to purchase or return items at any time without long term obligation.

Katapult generates revenue from recurring payment streams related to its contracted lease to own payments with consumers. The company’s primary costs, aside from the retail price of leased items, include interest expenses on its asset backed revolver and total servicing costs covering collection activities. Revenue is driven by the volume of lease to own originations and the average lease multiple, which reflects the total cost a customer may pay relative to the cash price of the leased good.

The company operates through the following segments:

• Operating Segment: The company's primary operations consist of its technology driven lease to own platform that integrates with omnichannel retailers and ecommerce platforms to enable nonprime consumers to acquire durable goods through flexible lease to own agreements.

Katapult positions itself as a differentiated player in the lease to own industry by offering a fully digital technology driven platform that provides instant underwriting decisions in five seconds or less on average. It competes with national, regional and local lease to own stores, virtual lease to own providers, traditional and ecommerce retailers offering installment or layaway options, and various consumer finance companies. Competitive advantages include its proprietary machine learning underwriting model, absence of late or non sufficient funds fees, transparent pricing, and a seamless customer experience that supports high net promoter scores and repeat purchase rates.

Katapult serves underserved nonprime consumers seeking access to durable goods such as home furnishings, automotive equipment, computers, electronics, and appliances. Its merchant network includes major partners like Wayfair, which accounted for 25% of gross originations in 2025, as well as integrations with platforms such as Shopify, BigCommerce, WooCommerce, and Magento. Through its Katapult App and KPay virtual card, the company enables checkout with more than 250 merchants, of which approximately 40 are directly accessible via the app marketplace.