Katapult Holdings, Inc. (KPLT): History, Ownership, Mission, How It Works & Makes Money

Do you defintely know how an e-commerce-focused financial technology company like Katapult Holdings, Inc. (KPLT) can grow its revenue by 22.8% to $74.0 million in Q3 2025 while still serving the non-prime consumer market? This company has carved out a distinct niche by using its lease-to-own platform to power the purchase of everyday durable goods, a segment often overlooked by traditional credit providers, and delivered $4.4 million in positive Adjusted EBITDA for the quarter. The recent $65 million capital investment from Hawthorn Horizon Credit Fund shows that smart money is betting on their model, but the question remains: is this growth sustainable, or is the market underpricing the inherent risk in their customer base? Stick with me, and we'll break down exactly how Katapult works, makes money, and what their $8 million to $9 million full-year 2025 Adjusted EBITDA guidance means for your investment thesis.

Katapult Holdings, Inc. (KPLT) History

Katapult Holdings, Inc. has a fascinating history rooted in solving a core problem: providing non-prime consumers with access to durable goods through a transparent lease-to-own (LTO) solution. The company's journey from a Cornell University-born concept to a publicly-traded FinTech platform is a clear example of how technology can defintely disrupt traditional credit markets.

Given Company's Founding Timeline

Year established

The operating business, originally named Cognical, Inc., was incorporated in 2012. The Katapult brand and 'Legacy Katapult' entity were formally incorporated in 2016, representing the evolution of the core lease-to-own platform.

Original location

The company was founded based on work done at Cornell University and was initially headquartered in New York, New York, where it secured its early funding.

Founding team members

The original co-founders of the precursor company, Cognical, Inc., who built the proprietary machine learning underwriting platform, were Brandon Wright (Co-founder and CEO in 2014), Chinedu Eleanya, and Andrew Hancox.

Initial capital/funding

The original entity, Cognical, raised more than $10 million in equity and debt financing in a November 2014 round, with equity jointly led by Tribeca Venture Partners and Blumberg Capital. By the time of its public listing in 2021, the company had raised a total of approximately $286 million in known venture capital investments.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by two critical shifts: the move from a general FinTech concept to a focused e-commerce LTO platform, and the decision to go public via a Special Purpose Acquisition Company (SPAC).

• The Pivot to E-commerce-First LTO: The core business evolved from the initial Zibby product to the Katapult platform, which focused heavily on seamless integration with omni-channel retailers. This move was crucial, positioning the company to capitalize on the rapid growth of e-commerce, especially for durable goods.
• The 2021 Public Listing: Merging with FinServ Acquisition Corp. in June 2021 was a massive inflection point. It gave the company a public profile and access to capital markets, which is essential for a high-growth FinTech firm. This also put the company's stock, KPLT, on the Nasdaq.
• The 2025 Capital Structure Optimization: The recent $65 million investment from Hawthorn Horizon Credit Fund in November 2025 is a critical moment, allowing the company to fully repay its term loan and improve its capital structure. This is a clear action to reduce financial risk and accelerate growth, especially given the challenging macroeconomic environment for non-prime consumers.

The current strategy, led by CEO Orlando Zayas, is centered on expanding the Katapult app marketplace, which accounted for 61% of third-quarter 2025 gross originations. That's a huge concentration of business, so the app's performance is defintely the near-term focus. You can read more about the strategic direction here: Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).

Katapult Holdings, Inc. (KPLT) Ownership Structure

Katapult Holdings, Inc. is a publicly traded company on the NASDAQ exchange, but its ownership structure is a blend of institutional, insider, and strategic holdings, which means a few key players have significant sway over its direction.

The company's capital structure shifted recently with a significant $65.0 million investment from Hawthorn Horizon Credit Fund, LLC in November 2025, which came in the form of convertible preferred stock. This kind of strategic capital infusion is a clear signal of confidence in the lease-to-own model, but it also introduces a new, powerful stakeholder whose interests are tied to the conversion of that preferred stock into common stock, though initial voting power is capped to comply with Nasdaq rules.

Katapult Holdings, Inc.'s Current Status

Katapult Holdings, Inc. trades under the ticker KPLT on the NASDAQ Stock Market. This public status subjects the company to rigorous SEC reporting and transparency requirements, which is why we have clear data on its ownership and recent financial performance, like the reported Q3 2025 revenue of $74.0 million. The market capitalization is around $29.77 million as of mid-November 2025, placing it firmly in the small-cap technology sector.

The company is defintely navigating a challenging economic environment, but its full-year 2025 Adjusted EBITDA is still forecasted to be between $8 million and $9 million. That's a tight margin, so who controls the board matters a lot right now.

Katapult Holdings, Inc.'s Ownership Breakdown

The table below breaks down the common stock ownership. Notice the substantial stake held by CURO Group Holdings Corp., which is a major, pre-existing strategic investor in the fintech space. The remaining public float gives retail and passive investors a majority of the shares, but the institutional and insider blocks are large enough to influence proxy votes and strategic decisions.

For a deeper dive into the funds and institutions buying and selling, you should check out Exploring Katapult Holdings, Inc. (KPLT) Investor Profile: Who's Buying and Why?

Katapult Holdings, Inc.'s Leadership

The leadership team is a mix of long-time company veterans and seasoned financial operators, which is what you want to see when a company is focused on both growth and capital efficiency.

• Orlando Zayas, Chief Executive Officer (CEO): Leading the company since September 2017, Zayas drives the overall strategy, particularly the focus on the e-commerce lease-to-own platform.
• Nancy Walsh, Chief Financial Officer (CFO): Appointed in December 2022, Walsh brings deep financial experience from previous roles at companies like LL Flooring and Pier 1, which is critical for managing the company's liquidity and capital structure.
• Derek Medlin, President and Chief Growth Officer: Medlin focuses on operational execution and market expansion, having served as COO before taking on the President role in August 2024.

The recent $65.0 million investment from Hawthorn Horizon Credit Fund also resulted in the appointment of two new directors to the board, Philip K. Bartow III and Jeffrey Rubin, alongside Derek Medlin. This move demonstrates that the new strategic capital partner has a direct seat at the table, ensuring their interests are aligned with the company's path to sustained profitability.

Katapult Holdings, Inc. (KPLT) Mission and Values

Katapult Holdings, Inc. is fundamentally driven by a mission of financial inclusion, aiming to empower underserved shoppers who are often excluded from traditional credit markets with a transparent path to product ownership. This purpose is directly reflected in its 2025 financial performance, which saw a significant increase in customer reach and application volume.

Given Company's Core Purpose

You need to see past the lease-to-own (LTO) transaction to understand the core purpose: it's about providing access to durable goods-like furniture and appliances-for non-prime consumers, which is a massive, often overlooked market. Katapult believes in 'seeing the good in people' and humanizing the process, which is why they focus on transparency and dignity in their payment solutions.

• Financial Inclusion: Providing a technology-driven lease-purchase solution to the underserved U.S. non-prime consumer.
• Customer Growth: The focus on this segment drove a 76% growth in total applications and a 35% increase in unique new customers during the first nine months of 2025.
• Ethical Framework: The LTO model offers clear payment terms and avoids compounding interest, which is a key differentiator from high-interest loans.

For a deeper dive into how this purpose translates into operational results, you should look at Breaking Down Katapult Holdings, Inc. (KPLT) Financial Health: Key Insights for Investors.

Official mission statement

The mission statement is precise and action-oriented, targeting both the customer and the solution.

• To empower underserved shoppers with innovative lease-purchase solutions that provide a path to ownership.

This isn't just a feel-good statement; it's the engine for growth. The company's Q3 2025 revenue of $74.0 million and gross originations of $64.2 million directly correlate with successfully executing this mission in the e-commerce space.

Vision statement

Katapult's vision is to be the leading digital marketplace for this consumer base, seamlessly connecting them with a growing network of merchants. It's a two-sided marketplace vision.

• Build a successful two-sided marketplace shopping destination for lease-to-own consumers.
• Be the e-commerce-focused FinTech company enabling essential transactions at the merchant point of sale.

The marketplace strategy is working: the company is forecasting full-year 2025 Adjusted EBITDA between $8 million and $9 million, showing that their vision for scale is driving toward sustainable profitability.

Given Company slogan/tagline

While a formal, marketing-driven slogan isn't always public, the company consistently emphasizes the core attributes of its customer experience, which acts as a de facto tagline.

• Our process is simple, fast, and transparent.

Honesty, that kind of clarity is what matters most to a non-prime consumer. What this estimate hides, of course, is the complexity of the proprietary artificial intelligence (AI) and machine learning models they use to underwrite risk in seconds.

Katapult Holdings, Inc. (KPLT) How It Works

Katapult Holdings, Inc. operates as an e-commerce-focused financial technology company, providing a technology-driven lease-to-own platform that enables underserved U.S. non-prime consumers to purchase durable goods from integrated omni-channel retailers.

In simple terms, Katapult buys the product from the retailer and then leases it to the consumer, offering a clear path to ownership-it's a crucial financing bridge for people who might not qualify for traditional credit.

Katapult Holdings, Inc.'s Product/Service Portfolio

Katapult Holdings, Inc.'s Operational Framework

The company's model centers on a two-sided marketplace, connecting a large, high-intent consumer base with a growing network of merchant partners. This framework drives value by efficiently underwriting and servicing leases for durable goods.

• Customer Acquisition Funnel: Total applications grew by approximately 80% year-over-year in Q3 2025, showing strong top-of-funnel health. The Katapult app marketplace is the single largest customer referral source, initiating 61% of Q3 gross originations.
• Underwriting and Risk Management: Katapult uses a proprietary, technology-driven risk model that relies on real-time, Katapult-specific data points, not just traditional credit scores. This allows them to quickly assess the non-prime consumer segment. Write-offs as a percentage of revenue were 9.9% in Q3 2025, which is within their 8% to 10% long-term target range.
• Revenue Generation: The primary revenue stream is rental revenue from the lease-to-own agreements, which accounted for $72.78 million of the Q3 2025 total revenue of $74.04 million. For the full year 2025, total revenue is expected to be between $290 million and $300 million.

Honestly, the ability to turn application growth into revenue while keeping write-offs in check is the whole game here.

Katapult Holdings, Inc.'s Strategic Advantages

Katapult's success comes from deeply understanding the non-prime consumer, a market segment that often gets overlooked by traditional lenders, plus a commitment to tech-driven efficiency.

• Non-Prime Market Specialization: The lease-to-own model is counter-cyclical, meaning it historically benefits when prime credit options become less available to the core consumer base. This focus gives them a large addressable market of underserved consumers.
• High Customer Retention: Approximately 55% of gross originations in Q3 2025 came from repeat customers. This strong loyalty, supported by a high Net Promoter Score of 64, lowers customer acquisition costs.
• Balance Sheet Strength: A recent $65.0 million investment from Hawthorn Horizon Credit Fund, LLC in Q3 2025 has strengthened the balance sheet and is intended to accelerate growth initiatives. This capital infusion provides a more stable foundation for future expansion.
• Full Year 2025 Financial Momentum: The company forecasts full-year 2025 Adjusted EBITDA between $8 million and $9 million, representing significant year-over-year growth and a clear path toward sustained profitability.

What this estimate hides, still, is the ongoing macroeconomic pressure on their core consumer, but the company's internal data-driven underwriting helps them react quickly to market shifts. You can read more about the company's core principles here: Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).

Katapult Holdings, Inc. (KPLT) How It Makes Money

Katapult Holdings, Inc. generates nearly all its revenue by purchasing durable goods, like electronics and furniture, and then leasing them to consumers who do not qualify for traditional prime credit, essentially operating a lease-to-own (LTO) platform. The company profits from the difference between the cost of the merchandise and the total lease payments collected over the term, which includes a significant yield for the risk assumed.

Katapult Holdings, Inc.'s Revenue Breakdown

In the third quarter of 2025, Katapult's revenue was $74.0 million, representing a strong 22.8% year-over-year growth, with the vast majority coming from the core rental business. This breakdown shows a highly concentrated revenue model, which is typical for a specialized fintech platform focused on a single financial product.

Business Economics

Katapult's economic engine is built on the lease-to-own model, which targets the underserved U.S. non-prime consumer market, a segment that often faces limited credit options. The core value proposition is instant approval for essential durable goods purchases, which is facilitated by a data-driven underwriting model that approves a lease in seconds.

The pricing structure is designed to compensate for the higher credit risk. A customer typically pays about double the original cash price of the item over a standard 12-month lease term, which translates to a high effective yield on the principal for Katapult. This high-yield structure is necessary because the company bears the risk of customer non-payment and merchandise returns, which are factored into the cost of revenue.

• Primary Revenue Driver: Lease payments from the lease-to-own contracts.
• Gross Origination Focus: The Katapult app marketplace is now a key growth engine, accounting for 61% of gross originations in Q3 2025.
• Risk Management: Write-offs as a percentage of revenue were 9.9% in Q3 2025, which is within the company's long-term target range of 8% to 10%. That's the quick math on their risk appetite.
• Customer Retention: Approximately 55% of gross originations in Q3 2025 came from repeat customers, demonstrating strong customer loyalty and lifetime value.

The company continues to expand its merchant partnerships, notably adding Apple to its app marketplace, which enhances the quality and breadth of goods available to its customer base. For a deeper dive into who is betting on this model, you might want to check out Exploring Katapult Holdings, Inc. (KPLT) Investor Profile: Who's Buying and Why?

Katapult Holdings, Inc.'s Financial Performance

The company has shown a clear trend of top-line growth and operational efficiency improvements through Q3 2025, although it is still navigating the path to consistent GAAP profitability. Management is focused on creating a more efficient capital structure, evidenced by a $65 million convertible preferred investment from Hawthorn Horizon Credit Fund in Q3 2025.

• Q3 2025 Total Revenue: $74.0 million, an increase of 22.8% year-over-year.
• Q3 2025 Gross Originations: $64.2 million, marking a 25.3% year-over-year increase and the third consecutive year of growth.
• Q3 2025 Adjusted EBITDA: $4.4 million, a significant improvement from $0.6 million in Q3 2024, showing better operational leverage.
• Full-Year 2025 Guidance: Management projects full-year revenue growth between 18% and 20%, with Adjusted EBITDA expected to be between $8 million and $9 million.
• Profitability Challenge: Despite the positive Adjusted EBITDA, the company still reported a GAAP net loss of $4.9 million in Q3 2025, though this is a substantial improvement from the $8.9 million net loss in Q3 2024.

What this estimate hides is the ongoing pressure on gross margin, which was 19.7% in Q3 2025, and the need to defintely maintain strong credit quality amidst macroeconomic uncertainty. The full-year forecast for Adjusted EBITDA growth is robust, but investors need to watch the conversion of that operational profit into sustained GAAP net income.

Katapult Holdings, Inc. (KPLT) Market Position & Future Outlook

Katapult Holdings is positioned as a high-growth, technology-driven lease-to-own (LTO) platform focused on the underserved U.S. non-prime consumer, projecting strong top-line expansion with FY 2025 revenue growth expected between 18% and 20%. The company is nearing operational profitability, with full-year 2025 Adjusted EBITDA guided to be between $8 million and $9 million, but must navigate significant macroeconomic headwinds and balance sheet constraints to achieve sustained GAAP net profit. The market for non-prime e-commerce financing is defintely growing.

Competitive Landscape

In the lease-to-own space, Katapult Holdings competes primarily against larger, more established players and a host of emerging Buy Now, Pay Later (BNPL) platforms that are increasingly targeting the near-prime and sub-prime segments. Katapult's strength lies in its pure-play, app-centric e-commerce focus, which drives high customer engagement. Here's the quick math: the company's market capitalization of approximately $30.47 million is dwarfed by its largest competitors, indicating a small but highly specialized market share.

Opportunities & Challenges

You're seeing strong internal momentum, but still face external pressure, so the focus must be on flawless execution. The company's strategic initiatives center on deepening its merchant and customer relationships, especially through its app marketplace, which accounted for 61% of third-quarter gross originations. Still, the capital structure remains a key risk that requires constant management.

Industry Position

Katapult Holdings operates in the financial technology sector, specifically within the lease-to-own niche of non-prime consumer finance. The company's market position is defined by its digital-first approach, which contrasts with the traditional brick-and-mortar presence of larger LTO competitors. This specialized focus has driven significant top-of-funnel growth, with total applications increasing 76% during the first nine months of 2025.

The recent capital transaction, which included a $65 million investment, allowed the company to fully repay its term loan and reduce the advance rate on its revolving credit line from 99% to 90%. This is a critical step toward optimizing the balance sheet, but the company must maintain its credit quality, with Q3 2025 write-offs at 9.9% of revenue, which is at the high end of its long-term target range. You can review the strategic alignment in their Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).

• Maintain strong credit quality: Write-offs must stay within the 8% to 10% target range.
• Accelerate KPay adoption: This product drove 41% of Q3 gross originations, showing its importance to the ecosystem.
• Continue operational efficiency: Adjusted EBITDA is expected to grow 60% to 80% YoY for the full year 2025.