Katapult (KPLT) investor relations material

Market opportunity and product differentiation

• Less than 1% of the $60 billion U.S. lease-to-own market has been captured, indicating significant growth potential.

• The lease-to-own (LTO) product targets non-prime consumers, offering a flexible payment option for durable goods.

• High NPS scores and repeat purchase rates highlight strong consumer preference and loyalty.

• Asset-light marketplace model enables accelerated top-line growth without substantial incremental costs.

• Transparent, interest-free, and penalty-free terms distinguish the offering from competitors.

Consumer and merchant value proposition

• LTO provides access to essential goods for consumers lacking traditional credit or cash upfront.

• Customers benefit from clear ownership costs, flexible return options, and no late fees.

• Compassionate customer service and an innovative app support payment management and retention.

• Merchants gain access to a new customer base and incremental sales with no risk from defaults or returns.

• Quick integration and multiple growth channels enhance merchant partnerships.

Marketplace evolution and technology

• The app marketplace, launched two years ago, shifted originations from merchant-driven to self-generated traffic.

• Katapult Pay (K-Pay) enables seamless checkout via virtual credit card technology, expanding merchant reach.

• Nearly 40 K-Pay-enabled merchants and over 200 direct/waterfall merchants are now in the ecosystem.

• In 2024, $127 million in gross originations began in the app, with $77 million enabled by K-Pay.

• 60% of Q2 originations started in the app marketplace, supporting sustained growth.