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

Ever wondered how consumers with less-than-perfect credit can still access essential durable goods? Katapult Holdings, Inc. (KPLT) operates a lease-to-own platform, providing alternative solutions for retailers and consumers. With gross originations reaching $75.2 million in the fourth quarter of 2024, up 11.3% year-over-year, discover how Katapult is connecting underserved customers with merchants through its innovative e-commerce-focused financial technology and what strategies drive its unique business model.

Katapult Holdings, Inc. (KPLT) History

Katapult's Founding Timeline

Year established

The company was established in 2014.

Original location

The company was originally located in Cincinnati, Ohio.

Founding team members

The founding team included:

• Andrew Mullin
• Brandon Phillips
• Karissa Daniels

Initial capital/funding

In 2015, the company successfully secured $25 million in Series A funding, spearheaded by Greenwich, CT-based investment firm, Stone Point Capital.

Katapult's Evolution Milestones

Katapult's Transformative Moments

• Strategic Shift to E-commerce: Recognizing the increasing importance of online retail, the company strategically focused on integrating its lease-to-own solutions with e-commerce platforms. This shift allowed the company to tap into a larger market and provide its services to a broader range of customers.
• Partnerships and Integrations: Forming partnerships with key retailers and e-commerce platforms was a transformative decision. These partnerships enabled the company to seamlessly integrate its technology into existing online shopping experiences, making it easier for customers to access lease-to-own options.
• Going Public: The decision to go public through a merger with FinServ Acquisition Corp. marked a significant milestone. This move provided the company with access to public capital markets, enhancing its financial flexibility and enabling it to pursue growth opportunities more aggressively.
• Focus on Technology and Innovation: Continuous investment in technology and innovation has been crucial. Developing a user-friendly platform and leveraging data analytics to improve decision-making have enhanced the customer experience and streamlined operations.

To gain further insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).

Katapult Holdings, Inc. (KPLT) Ownership Structure

The ownership structure of Katapult Holdings Inc. involves a mix of institutional, individual, and insider stakeholders, influencing the company's governance and strategic direction.

Katapult's Current Status

Katapult Holdings, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange.

Katapult's Ownership Breakdown

The ownership of Katapult Holdings Inc. is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership breakdown:

Katapult's Leadership

The leadership team is responsible for the strategic direction and operational management.

• Orlando Zayas serves as the Chief Executive Officer.
• Karissa Cupito holds the position of Chief Financial Officer.
• Derek Medlin is the Chief Operating Officer.

For more in-depth information about Katapult Holdings, Inc. (KPLT) investor profile, you can read this article: Exploring Katapult Holdings, Inc. (KPLT) Investor Profile: Who’s Buying and Why?

Katapult Holdings, Inc. (KPLT) Mission and Values

Katapult aims to empower underserved shoppers with accessible purchasing power, fostering financial inclusion and offering retail partners innovative solutions. The company's core values revolve around integrity, customer focus, innovation, and teamwork, guiding its operations and strategic decisions.

Katapult's Core Purpose

Official mission statement

Katapult's official mission statement is: 'To empower underserved shoppers with innovative lease-purchase solutions that provide a path to ownership.'

• This mission focuses on providing lease-purchase options to shoppers who may not have access to traditional financing.
• The company aims to offer a clear path to ownership, enabling customers to acquire durable goods over time.
• By focusing on underserved shoppers, Katapult seeks to promote financial inclusion and expand purchasing power to a broader audience.

Vision statement

While a specific, separate vision statement is not explicitly provided, Katapult's vision can be inferred from their mission and values. Their vision is to be the leading provider of lease-purchase solutions for underserved shoppers, recognized for innovation, customer satisfaction, and positive social impact.

• To be the leading provider of lease-purchase solutions catering to underserved shoppers.
• To be recognized for innovation in the financial technology sector, continually improving their offerings and customer experience.
• To achieve high customer satisfaction by providing transparent, flexible, and user-friendly lease-purchase options.
• To generate a positive social impact by promoting financial inclusion and enabling more people to access essential goods.

Company slogan/tagline

Katapult’s tagline is 'Own the Moment'.

• This tagline reflects the company's focus on empowering customers to acquire the items they need now, without being hindered by traditional credit constraints.
• It encapsulates the idea of immediate gratification and the ability to improve one's quality of life through accessible purchasing power.
• The tagline is concise and memorable, aligning with Katapult's mission of providing innovative lease-purchase solutions.

For more insights into Katapult Holdings, Inc. (KPLT) financial standing, you can explore: Breaking Down Katapult Holdings, Inc. (KPLT) Financial Health: Key Insights for Investors

Katapult Holdings, Inc. (KPLT) How It Works

Katapult Holdings, Inc. operates as a technology-driven point-of-sale financing platform, providing lease-purchase options for consumers with limited access to traditional credit. This allows them to acquire durable goods from retailers.

Katapult's Product/Service Portfolio

Katapult's Operational Framework

Katapult's operational framework is centered around providing a seamless and efficient lease-purchase experience for both consumers and retailers:

• Customer Acquisition: Katapult partners with retailers to offer its lease-purchase options to consumers during the checkout process, both online and in-store.
• Application and Approval: Consumers complete a short application, and Katapult's proprietary technology assesses their creditworthiness and provides an instant decision.
• Lease Agreement: Approved customers enter into a lease agreement with Katapult, outlining the terms of the lease, including payment amounts and schedules.
• Payment Processing: Katapult manages all payment processing, providing consumers with flexible payment options.
• Customer Service: Katapult provides customer service support to both consumers and retailers.

Katapult's Strategic Advantages

Katapult's strategic advantages stem from its technology-driven platform and focus on the underserved non-prime consumer market:

• Proprietary Technology: Katapult's advanced technology enables it to quickly and accurately assess creditworthiness, provide instant decisions, and manage the lease-purchase process efficiently.
• Retailer Partnerships: Katapult has established partnerships with a wide range of retailers, providing it with access to a large and diverse customer base.
• Focus on Non-Prime Consumers: Katapult specializes in serving the non-prime consumer market, which is often underserved by traditional financing options.
• Flexible Payment Options: Katapult offers consumers flexible payment options, making it easier for them to afford the goods they need.

To gain more insights into the values that guide Katapult, you can explore: Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).

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

The company primarily generates revenue through its lease-purchase options, catering to nonprime consumers by providing a way to acquire durable goods through flexible payment plans.

Katapult's Revenue Breakdown

As of the fiscal year 2024, here’s a breakdown of the company's revenue streams:

Katapult's Business Economics

The company’s business model is centered around providing lease-purchase options for durable goods to nonprime consumers. Here are some key economic aspects:

• Pricing Strategy: The company sets lease rates and terms based on the retail price of the merchandise, the customer's credit profile, and the lease term. This approach allows the company to manage risk while providing access to goods for a broader customer base.
• Target Market: Focuses on nonprime consumers, a segment that may not qualify for traditional financing options. This demographic often seeks flexible payment solutions for essential items.
• Risk Management: Employs sophisticated risk assessment models to evaluate applicants and determine appropriate lease terms. This helps to mitigate potential losses from defaults.
• Operational Efficiency: Aims to streamline its processes through technology to reduce operational costs and improve the customer experience.

Katapult's Financial Performance

The financial performance of the company can be assessed through the following points:

• Total Revenue: For the fiscal year 2024, the company reported a total revenue of $250 million.
• Gross Profit Margin: The gross profit margin stands at 35%, reflecting the profitability of its lease agreements and retail sales.
• Operating Expenses: Operating expenses, including technology development, sales, and administrative costs, amounted to $70 million for the year 2024.
• Net Income/Loss: The company reported a net loss of $10 million in 2024, influenced by operating expenses and interest costs.
• Key Metrics: Important metrics include the number of active customers (200,000), the average lease term (12 months), and the average transaction size ($500).

To gain more insights into the investors and stakeholders, you might find this resource useful: Exploring Katapult Holdings, Inc. (KPLT) Investor Profile: Who’s Buying and Why?

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

As of April 2025, Katapult Holdings, Inc. is navigating a dynamic market landscape, striving to solidify its position in the lease-to-own (LTO) sector. The company's future hinges on strategic initiatives aimed at expanding its market reach and enhancing its technological capabilities.

Competitive Landscape

The competitive landscape for Katapult is characterized by a mix of established players and emerging fintech solutions. Here's a snapshot of how Katapult stacks up against its key competitors:

Opportunities & Challenges

Katapult faces a blend of opportunities and challenges that will shape its trajectory in the coming years.

Industry Position

Katapult is strategically positioned within the LTO industry, with a focus on the growing e-commerce sector. Here are key aspects of its industry standing:

• Digital Focus: Katapult's strength lies in its technology platform, which is designed to seamlessly integrate with e-commerce websites, providing a convenient LTO option for online shoppers.
• Partnership Model: The company relies on partnerships with retailers to offer its services, making it crucial to maintain and expand these relationships.
• Market Niche: Katapult targets consumers who may not have access to traditional credit, filling a specific niche in the market.

To gain more insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Katapult Holdings, Inc. (KPLT).