Katapult Holdings, Inc. · NASDAQ:KPLT
Katapult — Q1 2025 Earnings Presentation
45 slides from Katapult's earnings presentation, May 15, 2025
Slide 1: Investor Presentation
Investor Presentation May 15, 2025 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements included in this presentation, on our quarterly earnings call and in our related press release (collectively, this “presentation”) that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under th
Slide 3: Who We Are
Our innovative lease-to-own Who We Are solution powers a two-sided marketplace that connects consumers to merchants and enables omnichannel Speed & convenience Growing consumer base transactions at the point of sale $ Decisioning in 5 ~750,000 approved seconds or less on applications LTM average E-c
Slide 4: Mission Statement
Mission Statement 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 | 4
Slide 5: Key Investment Highlights
Key Investment Highlights Large Addressable Market 2-Sided, App-Powered Marketplace Opportunity to expand <1% market share of a Our AI-powered marketplace is a virtuous, $50-60 Billion total addressable market1 that trusted ecosystem that empowers and engages includes e-commerce and in-store consume
Slide 6: 10 Consecutive Quarters of Gross Originations Growth
10 Consecutive Quarters of Gross Originations Growth Acceleration Expected in 2025 (in Thousands) Gross Originations $ (with YOY growth rates) Gross origination trends are a leading indicator of future revenue streams We have grown gross originations yoy for 10 consecutive quarters More than 4 milli
Slide 7: Operating Progress: Recent Highlights
Operating Progress: Recent Highlights Marketplace Activity Continues to Grow Increasing velocity in our 2-sided marketplace • ~59% of Q1 gross originations started in our app • 57.4% of Q1 gross originations were from repeat customers • Total application volume grew ~59% y/y in Q1 Driving consumer e
Slide 8: Underserved consumers: 37% of US Adults, 43% of US Households, $50-$60 Billion
Katapult provides underserved nonprime consumers the purchasing Underserved consumers power they need Affordable access to durable goods 1 37% of US Adults Expanding our could not cover $400 of emergency consumer base expenses without assistance with targeted marketing, high 2 repeat rates and 43% o
Slide 9: What Is Lease-to-Own (LTO)?
What Is Lease-to-Own (LTO)? Katapult offers a Scalable Omnichannel LTO solution For consumers who have no/nonprime credit, Katapult LTO enables new paths to obtain durable goods With Katapult's LTO product, customer understands full cost of ownership, up-front • No late fees or penalties. Ever • Can
Slide 10: ~59% of our Q1 Gross Originations started in our app marketplace
~59% of our Q1 Gross Originations started in our app marketplace | 10
Slide 11: App Marketplace Gross Originations Growing Rapidly
App Marketplace Gross Originations Growing Rapidly ~59% of Q1 Gross Originations started in app marketplace Total App Originations (in Millions) 38% growth from 2023 to 2024 Total App Originations are all gross originations that start in our app Total App Originations since the launch of our app mar
Slide 12: Clear and Compelling Merchant Value Proposition
Clear and Compelling Merchant Value Proposition | 12
Slide 13: Clear and Compelling Value to Direct and Waterfall Merchants
Clear and Compelling Value to Katapult offers multiple growth channels and makes integration with merchants easy Direct and Waterfall Merchants DIRECT INTEGRATION • Access to new shoppers drives incremental sales for merchants Direct off-the-shelf and tech-enabled integration • Onboard new merchants
Slide 14: Marketplace featuring KPay
Our marketplace also features KPay, a transformational feature that facilitates featuring ® in-app lease originations and Full Service Marketplace Capabilities accelerates merchant onboarding Katapult Pay or KPay, a feature in our mobile app, is a 1-time use virtual credit card that consumers can us
Slide 15: 35 KPay-Enabled Merchants
featuring Select KPay-Enabled Marketplace Merchants KPay lets us onboard merchants without integration support, creating another growth channel for retailers and more choice for consumers Discover Search Shop Checkout 35 KPay-Enabled Merchants National merchants on our marketplace Durable good produ
Slide 16: What merchants say about partnering with Katapult
What merchants say about partnering with “SimpleTire provides easy, affordable access to one of “With Katapult’s help, more people, particularly those life’s necessities for millions of people. By partnering who may not have been able to shop with us before, “Katapult has been instrumental in drivin
Slide 17: Opportunities to Grow Our Loyal and Engaged Customer Base
Opportunities to Grow Our Loyal and Engaged Customer Base | 17
Slide 18: We Meet the Needs of Nonprime Consumers
We Meet the Needs of Nonprime Consumers Millions of Americans Consider Themselves Financially Vulnerable Many Americans are struggling According to a 2024 report from Financial Health Network, ~70% of Americans are Financially Vulnerable or Financially Coping(1) That's 180 million people Income is n
Slide 19: Overlooked consumers. Outsized opportunity.
mobile device centric lifestyle Overlooked consumers. Outsized opportunity. Source: Experian, Katapult Consumer Source: 2022 Experian ConsumerView Report Data | 19
Slide 20: Katapult opens doors to the millions of shoppers overlooked by traditional financing
Katapult opens doors to the millions of shoppers overlooked by traditional financing No Established Credit Credit Challenged Good Credit Easy Application Process Katapult provides this Katapult positions this Katapult provides No bank account info consumer with tools to consumer to rebuild this cons
Slide 21: A Positive Consumer Experience
“ A Positive Consumer Experience "The payment options were clearly defined (no hidden fees or anything). The process to choose this financing was super fast (pretty much immediate). Payment options make this an affordable option. Highly recommend.“ - GF "I had a very gratifying experience applying w
Slide 22: Customers Can Shop How They Want
Customers Can Shop How They Want | 22
Slide 23: No late fees. Ever.
Flexible & Transparent Payment Options Drive Customer Loyalty FIRST 90 DAYS Options available to exercise buyout for the cash price plus 5% fee during the first 90 days POST 90 DAYS Early buyout options also available anytime after the initial 90 days; consumers can purchase for significantly less t
Slide 24: Katapult's Pricing Advantage
Katapult's Pricing Advantage The more affordable path to ownership Analysis of ~800 data points shows Katapult consistently has the lowest prices vs. its two key competitors and financing alternatives commonly available to non-prime consumers. This means a consumer can save $300+ on a ~$1000 lease R
Slide 25: A Better Overall Product for Consumers
A Better Overall Product for Consumers Competitor A Competitor B Initial Payment $45 $55 $60* Turn 2.1x** 2.7x** 2.4x** No Bank Account Required No Late Fees No Prepayment Penalties No Cash Price Mark-up No Minimum Income Requirements Early Buyout 90 Days 90 Days 90 Days Options +5% fee + $25 fee +1
Slide 26: Multiple Opportunities to Grow Our Customer Base
Multiple Opportunities to Grow Our Customer Base • Data-driven approach to drive customer growth • New marketing platform to enhance customer targeting • Will allow us to be more responsive to consumer behavior • Can leverage insights to create even better platform experiences and Building full spec
Slide 27: Proprietary Technology Platform
Proprietary Technology Platform | 27
Slide 28: Our proprietary technology powers our two-sided marketplace
Our proprietary technology MERCHANT INTEGRATION powers our two-sided marketplace delivering benefits to customers and merchants alike Our integration process is simple and easy for merchants, waterfall platforms and other partners. We can complete a direct integration in as few as 2 days. We leverag
Slide 29: AI- and machine learning-driven underwriting
Katapult’s AI- and machine Select Attributes learning-driven technology powers our market-leading Lease History underwriting, translating to Payment higher approval rates... Behavior Sophisticated Underwriting Process Mobile Device Advanced behavioral learning mitigates credit and fraud risks Produc
Slide 30: …and low write-off rates
…and low write-off rates Key Insights • Our long-term target for write-offs as a % of revenue Write-offs as Percent of Revenue is 8% to 10% Long-Term Goal: 8-10% Range • In 2022, there were lower write-offs and impairment charges related to 2021 gross originations due to 9.6% 9.5% 9.5% 9.6% 9.3% 9.0
Slide 31: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights | 31
Slide 32: Strategic Financial Priorities
Strategic Financial Priorities Execute Path to Drive Revenue Growth Profitability Optimize Balance Sheet • Disciplined growth with strict • Leverage our technology to • Ongoing benefit from low underwriting and risk accelerate top-line growth capital expenditure e- controls • Create operational effi
Slide 33: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Key Insights Revenue Gross Originations Gross Originations $71.9 • Gross originations grew 15.4% y/y; excluding the home $64.2 $65.1 furnishings and mattress category, gross originations grew 51% year-over-year $55.6 10.6% Revenue 15.4% • Revenue increased 10.6% y/y and
Slide 34: Executive team from industry-leading firms
Executive team from industry-leading firms Orlando Zayas Nancy Walsh Derek Medlin CEO CFO President & CGO Chandan Chopra Eric Harmon Jorge Diaz CTO Strategy CPO | 34
Slide 35: Marketplace Growth: Strategic Pillars
Marketplace Growth: Strategic Pillars Grow Merchant Base Expand Customer Base Sustain High Repeat Rates Innovate Technology Continue to deepen and grow Leverage ROI-positive Sustain high customer and Develop innovative products that relationships with merchant- marketing strategies, merchant satisfa
Slide 36: Appendix
Appendix | 36
Slide 37: Q1 2025 Financial Results
Q1 2025 Financial Results $ in millions (unaudited) Q1 2025 Q1 2024 YoY Variance ($) YoY Variance (%) Gross Originations $64.2 $55.6 $8.6 15.4% Total Revenue $71.9 $65.1 $6.9 10.6% Gross Profit $14.3 $16.5 $(2.1) (13.0%) OpEx $14.9 $12.7 $2.2 17.3% Net Loss $(5.7) $(0.6) $(5.1) 897.9% Non-GAAP1 Fixe
Slide 38: Fixed Cash Operating Expense Trends
Fixed Cash Operating Expense Trends Fixed Cash Operating Expenses1 Fixed Cash Operating Expenses (in Thousands) (2023 - As restated/revised) Fixed cash operating expenses represent ongoing expenses within our control We are optimizing previous investments as well as the expense savings initiatives w
Slide 39: Historical Results (As Restated/Revised)
Historical Results (As Restated/Revised) Key Insights Gross Margin Percentage We achieved Gross Profit of $14.3 million in Q125, down ~13% y/y; Gross Margin was ~19.9% 25.3% Gross Margin in Q125 was impacted by front-loaded lease depreciation, driven by our rapid gross 19.9% originations growth in l
Slide 40: How Gross Originations Become Revenue: Balance Sheet and P+L Impact
How Gross Originations Become Revenue: Balance Sheet and P+L Impact Write-offs Balance Sheet Revenue as a % of Revenue Our credit agreement requires KPLT to maintain a minimum Cost of revenue is primarily composed of inventory Reduce Property Held for Lease on Balance Sheet level of cash amortizatio
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations | 41
Slide 42: Disclaimer: Non-GAAP Financial Measures
Disclaimer Non-GAAP Financial Measures Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less depreciation and amortization on property, equipment and capitalized software, stock-based compensation expense, litigation settlement and other related expenses, deb
Slide 43: Non-GAAP Reconciliations: Fixed Cash Operating Expenses
Non-GAAP Reconciliations Fixed Cash Operating Expenses (in thousands) Three Months Ended March 31, 2025 2024 Operating Expenses $ 14,885 $ 12,688 Less: Depreciation and amortization on property and equipment and capitalized software 330 266 Stock-based compensation expense 1,066 1,391 Servicing cost
Slide 44: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) Three Months Ended March 31, 2025 2024 Net loss $ (5,688) $ (570) Add back: Interest expense and other fees 5,144 4,527 Interest income (57) (324) Change in fair value of warrants 36 162 Provision for income taxes 29 5 Depreciation and amortiza
Slide 45: Non-GAAP Reconciliations: Adjusted Net Loss
Non-GAAP Reconciliations Adjusted Net Loss (in thousands) Three Months Ended March 31, 2025 2024 Net loss $ (5,688) $ (570) Add back: Change in fair value of warrants 36 162 Stock-based compensation expense 1,066 1,391 Litigation settlement and other related expenses 259 — Debt refinancing costs 971