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About Katapult Holdings Inc.
Katapult Holdings Inc. (NASDAQ: KPLTW) is a leading technology-driven lease-to-own (LTO) platform that empowers underserved U.S. non-prime consumers to access essential durable goods. Operating at the intersection of FinTech and e-commerce, Katapult partners with hundreds of omnichannel retailers and e-commerce platforms to provide an innovative point-of-sale (POS) financing solution. The company’s mission is to humanize the purchasing process for non-prime consumers, offering transparent, flexible, and dignified payment options for those who may not qualify for traditional credit.
Core Business Model
Katapult’s primary business revolves around its lease-to-own solution, which integrates seamlessly with merchant POS systems and e-commerce platforms. Through its proprietary technology, including the Katapult Pay™ mobile app, the company enables consumers to lease durable goods such as furniture, electronics, and appliances. Customers can acquire ownership over time through predictable payments, with no late fees or penalties. This model not only addresses the financial needs of non-prime consumers but also helps merchants expand their customer base by tapping into an underserved market segment.
Market Position and Differentiation
Katapult stands out in the competitive landscape of consumer financing by focusing exclusively on non-prime consumers—a demographic often overlooked by traditional lenders and Buy Now, Pay Later (BNPL) providers. The company’s commitment to transparency, fairness, and simplicity differentiates it from competitors. Unlike traditional credit options, Katapult’s lease-to-own model ensures that customers understand the total cost of ownership upfront, fostering trust and long-term customer relationships.
Technology and Innovation
At its core, Katapult is a FinTech company leveraging advanced technology to streamline the lease-to-own process. Its POS integrations and mobile app provide a seamless shopping experience for consumers, while its scalable, omnichannel solutions enable merchants to offer flexible payment options both online and in-store. The Katapult Cartridge for B2C Commerce, integrated with platforms like Salesforce, further showcases the company’s commitment to innovation and adaptability in a dynamic market environment.
Merchant and Consumer Benefits
- For Consumers: Katapult offers a simple, fast, and transparent leasing process, allowing non-prime consumers to access durable goods without the barriers of traditional credit. The absence of late fees and the clarity of terms enhance customer satisfaction.
- For Merchants: Partnering with Katapult enables retailers to reach a broader audience, increase conversion rates, and drive incremental sales. The platform’s integration capabilities and omnichannel approach make it a valuable tool for merchants aiming to serve diverse consumer segments.
Industry Context
Katapult operates within the broader FinTech ecosystem, specifically targeting the lease-to-own segment—a niche that bridges the gap between traditional credit and BNPL. The company’s focus on durable goods positions it uniquely in a market often dominated by short-term, high-interest financing options. By addressing the needs of non-prime consumers, Katapult not only fills a critical gap but also contributes to financial inclusivity in the U.S. economy.
Challenges and Opportunities
While Katapult faces competition from traditional lenders, BNPL providers, and other lease-to-own platforms, its emphasis on transparency and fairness offers a significant competitive advantage. The company’s ability to scale its operations through strategic partnerships with major retailers and its focus on technological innovation position it well to navigate industry challenges and capitalize on growth opportunities.
Conclusion
Katapult Holdings Inc. exemplifies the transformative potential of FinTech in addressing financial inequities. By providing underserved consumers with access to essential goods through a transparent and dignified lease-to-own model, the company not only drives merchant success but also fosters financial empowerment for its customers. With a robust technology platform, a growing network of merchant partners, and a commitment to fairness, Katapult is redefining the lease-to-own experience in the U.S. market.
Katapult Holdings, Inc. (NASDAQ: KPLT) has announced it will release its first quarter 2023 financial results on May 11, 2023, before the market opens. A conference call and webcast will be conducted at 8:00 AM ET to discuss these results. Investors can access a live audio webcast on the Katapult Investor Relations website and a replay will be made available afterward.
Katapult is focused on providing a technology-driven lease-to-own platform that aids underserved U.S. non-prime consumers in purchasing durable goods through e-commerce and retailers. Their service includes POS integrations and a mobile app, Katapult Pay™, which offers transparent financing solutions.
Katapult Holdings reported its Q4 2022 financial results, highlighting a 1.5% year-over-year growth in gross originations, totaling $59.8 million. However, total revenue decreased by 33.4% to $48.8 million, primarily due to the adoption of ASC 842. The company recorded a net loss of $14.4 million, with a significant adjusted EBITDA loss of $5.0 million. Despite a challenging macro environment, Katapult added 21 new direct merchants in Q4 and aims to reduce operating expenses by over 10% in 2023. It expects continued growth in gross originations and improved credit quality. A conference call was scheduled for March 9, 2023, to discuss these results further.
Katapult Holdings (NASDAQ: KPLT) will announce its Q4 2022 financial results on March 9, 2023, prior to market opening. A conference call is scheduled for the same day at 8:00 AM ET to discuss these results. Interested parties can access presentation materials on the Investor Relations page and listen to the call live via webcast. Katapult focuses on providing lease-to-own solutions for underserved U.S. consumers, integrating with retailers and e-commerce platforms for seamless financing options. For more information, visit the company's website.
Katapult Holdings (NASDAQ: KPLT) has partnered with iBUYPOWER, a leading custom gaming PC manufacturer, to enhance access to gaming equipment for consumers with limited credit options. This collaboration aims to offer flexible payment solutions for gaming PCs and accessories amid rising costs affecting consumers this holiday season. A study reveals that 78% of consumers with nonprime credit scores are open to using such options for holiday purchases. The deal underscores Katapult's commitment to integrating lease-purchase solutions across various retail sectors.
Katapult Holdings has appointed Nancy Walsh as the new Chief Financial Officer, effective December 12, 2022. She succeeds Karissa Cupito, who transitions to a senior advisory role after five years. Walsh, previously CFO at LL Flooring Holdings, brings extensive experience in finance and leadership within publicly traded retail companies. CEO Orlando Zayas highlighted the timing as crucial for the lease-to-own sector, noting Walsh's expertise aligns with the company's growth trajectory. Cupito expressed pride in her tenure and confidence in Walsh's ability to advance Katapult's objectives.
Katapult reported a third quarter 2022 revenue of $50.3 million, down $21.4 million from last year, attributed largely to the adoption of ASC 842. Despite challenges, the company announced an exclusive partnership with Sears and launched the Katapult Mobile App and Katapult Pay™, generating over $2 million in gross originations. The net loss was $8.2 million, with adjusted EBITDA of $(2.3) million. Customer satisfaction remains high with a Net Promoter Score of 58.
Katapult Holdings will participate in the Stephens Annual Investment Conference on November 15, 2022, at 1:00 PM ET.
CEO Orlando Zayas and CFO Karissa Cupito will engage in a fireside chat, with a live audio webcast available on Katapult's Investor Relations website.
The company focuses on revolutionizing lease-to-own solutions using advanced AI and ML technology, providing access to ownership for those underserved by traditional credit.
For more information, visit www.katapult.com.
Katapult Holdings, Inc. (NASDAQ: KPLT) will announce its third quarter financial results for the period ending September 30, 2022, on November 9, 2022, before the market opens. The company operates a lease-to-own platform that assists non-prime customers with online shopping. A conference call is scheduled for 8:00 AM ET on the same day to discuss the results, which will be available via live audio webcast. Investors can access the call through the Katapult Investor Relations website.
Katapult partners with furniture supplier 1StopBedrooms to provide lease-to-own options, improving access for nonprime consumers seeking quality home furnishings. The partnership allows customers to enjoy flexible purchasing despite limited credit options, enhancing their shopping experience with transparent lease-purchase plans.
Katapult's technology streamlines online integration for merchants, driving higher transaction volumes and customer loyalty. This collaboration reflects Katapult's commitment to expanding consumer access in the furniture market while promoting financial inclusivity.
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