Katapult Holdings, Inc.

Katapult Holdings, Inc. operates a technology-driven lease-to-own platform that helps underserved U.S. non-prime consumers buy everyday durable goods through merchant checkout and its mobile app. The company connects with omnichannel retailers and e-commerce platforms, using proprietary underwriting and virtual card technology to approve transactions in real time and fund lease purchases.

56,1 %

17,7 %

0,5 %

+18,0 %

0.89

— Katapult Holdings, Inc.
	%
Lease-to-own platform	85% Core consumer lease-purchase transactions that generate recurring rental revenue over the lease term.
Merchant integration channels	10% Direct, waterfall, app-based, and in-store checkout tools that originate lease transactions.
Other revenue and fees	5% Ancillary revenue tied to servicing, performance obligations, and related platform activity.

Katapult serves U.S. non-prime consumers who need an alternative to traditional financing to purchase durable goods...

Non-prime consumersprimary
Buy durable goods through lease-to-own because traditional credit is unavailable or less accessible.
Omnichannel merchantsprimary
Retailers and e-commerce sellers integrate Katapult to convert more checkout traffic into completed sales.
Waterfall financing partnerssecondary
Platforms that route applicants to Katapult when its lease offer best fits the consumer's credit profile.
Repeat customersprimary
Existing users who return through the app or merchant channels and drive a large share of originations.

Katapult operates exclusively in the United States and its platform is available in 46 states plus the District of...

•Business operates exclusively in the United States
•Platform available in 46 states and the District of Columbia
•No international operating footprint disclosed
•U.S. consumer credit and state leasing rules drive exposure
•Domestic concentration links performance to U.S. retail demand

Katapult is focused on expanding transaction volume through more merchant integrations, broader app usage, and higher...

Grow merchant distributionshort-term

More integrations expand checkout access and increase originations.

Increase app and repeat usageshort-term

Higher repeat activity improves customer lifetime value and lowers acquisition dependence.

Maintain disciplined underwritingmedium-term

Credit and fraud controls are central to protecting portfolio performance in non-prime lending.

Complete strategic mergershort-term

The proposed transaction could materially expand scale, distribution, and merchant reach.

Katapult’s business is exposed to consumer credit deterioration, fraud, and collection risk because it serves non-prime...

high

Credit and portfolio loss risk

The company lends to non-prime consumers and relies on underwriting to predict repayment behavior.

Scope: Delinquencies, charge-offs, and lower lease profitability
Materiality: high

high

Merchant concentration

A meaningful share of originations comes through a limited number of merchant channels.

Scope: Wayfair and Katapult Pay were disclosed as large originations channels
Materiality: high

high

Merger execution risk

The company has a pending strategic merger that may not close or may not create expected value.

Scope: Deal timing, integration, dilution, and market reaction
Materiality: high

medium

Competitive pressure

Alternative financing and lease-to-own markets are crowded and price-sensitive.

Scope: Customer acquisition, merchant retention, and take rates
Materiality: medium

medium

Cybersecurity and third-party dependency

The platform depends on digital checkout, partners, and data systems that can be attacked or disrupted.

Scope: Operational downtime, data loss, reputational harm
Materiality: medium

Revenue recognition timing

Can create timing gaps between transaction growth and reported revenue

Seasonality

Quarterly results may not be directly comparable

Lease asset impairment and credit estimates

Can materially affect earnings and asset carrying values

Fair value and non-cash adjustments

May distort period-to-period net income

Katapult Holdings, Inc.

Credit and portfolio loss risk

Merchant concentration

Merger execution risk

Competitive pressure

Cybersecurity and third-party dependency

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