Katapult (KPLT) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Business overview and mission

• Focuses on providing lease-to-own financing for non-prime consumers, enabling access to durable goods at fair, transparent prices.

• Achieved nearly $250 million in gross originations in the past 12 months, with improved profitability and Adjusted EBITDA.

• Operates in a large addressable market estimated at $50–$60 billion, with sustained year-over-year growth.

• Value proposition resonates with both merchants and customers, as shown by high repeat purchase rates.

• Technology and a dynamic financial model drive operational and financial progress.

Recent performance and growth drivers

• Q2 marked the seventh consecutive quarter of gross originations growth.

• Delivered nearly 10% revenue growth and significant Adjusted EBITDA improvement in Q2.

• New waterfall integration partnerships and platform enhancements contributed to success.

• KPay app feature now represents 28% of gross originations, with over 100% year-over-year growth in Q2.

• Expanded marketplace to include major retailers like Lowe's, Costco, and Newegg.

Product features and customer impact

• Serves non-prime consumers who lack access to traditional credit or buy now, pay later options.

• Underwriting considers factors beyond credit score, offering flexible payment and early payoff options.

• No late fees, clear payment schedules, and the ability to return items without penalty.

• Never marks up the price of goods; customers benefit from sale prices and no hidden fees.

• Application process is fast and user-friendly, requiring minimal information and no checking account.