If You Invested in Katapult Holdings Inc (KPLT)

Katapult Holdings, Inc. (NASDAQ: KPLT) is a technology-driven, e-commerce-focused financial technology company that offers a lease-to-own platform for underserved U.S. non-prime consumers. The company integrates its solution with omni-channel retailers and e-commerce platforms to power the purchase of everyday durable goods when traditional financing may not be available. Katapult states that its process is simple, fast, and transparent, and is designed to humanize access to essential products with payment options based on fairness and dignity.

Business model and lease-to-own platform

According to Katapult’s public disclosures, the company provides a lease-purchase solution at the merchant point of sale. Through point-of-sale (POS) integrations and its mobile app, Katapult enables non-prime consumers to initiate lease-to-own transactions with a growing network of merchant partners. The company describes itself as an e-commerce-focused FinTech business, with its platform associated with hundreds of retailers across the United States.

Katapult operates exclusively in the U.S., and its platform is available for use by consumers in 46 states and the District of Columbia. The company highlights that it serves non-prime consumers whose needs are often not met by traditional financial offerings, positioning its lease-to-own model as an alternative way to obtain durable goods.

Katapult app marketplace and Katapult Pay

A central part of Katapult’s strategy is the Katapult app marketplace, which the company describes as a shopping destination for lease-to-own consumers across the U.S. Public statements indicate that a significant portion of the company’s gross originations begins in this app marketplace, making it a major referral source for customer activity.

The mobile app features Katapult Pay® / Katapult Pay™ (KPay), which Katapult identifies as a key component of its offering. KPay is presented as a payment experience within the app that consumers use to transact with merchant partners. Company communications repeatedly reference growth in KPay originations, increased KPay conversion rates, and rising counts of unique KPay customers, underscoring the role of KPay in driving engagement and transaction volume on the platform.

Merchant relationships and omni-channel reach

Katapult reports that it works with a growing network of merchant partners, including direct integrations and participation in third-party financing waterfalls. The company notes that its solution is integrated with omnichannel retailers and e-commerce platforms, and that it has continued to expand relationships with merchant-partners through new waterfall integrations, monetization strategies, and co-promoted marketing campaigns.

Disclosures also describe Katapult’s efforts to build a two-sided marketplace, where both consumers and merchants benefit from the platform. On the consumer side, the app marketplace and KPay provide access to lease-to-own purchasing options. On the merchant side, Katapult positions its platform as a growth engine that can generate incremental sales, particularly during key retail periods such as the holiday season.

Customer base and engagement

Katapult emphasizes several indicators of customer engagement in its public updates, including application growth, repeat customer rates, and Net Promoter Scores. The company has stated that a meaningful share of its gross originations comes from repeat customers and that it maintains Net Promoter Scores within a range that it characterizes as high. These metrics are presented by Katapult as hallmarks of a healthy marketplace and as evidence of ongoing consumer engagement with the app and merchant network.

The company also highlights that its target market consists of underserved, non-prime consumers who may be unable to access traditional credit products. Katapult’s communications frequently reference the size of this addressable market and the historical role of lease-to-own solutions when prime credit options become less available, although specific market size figures are not provided in the materials summarized here.

Capital structure, financing arrangements, and preferred stock

Katapult’s SEC filings describe a series of financing and capital structure developments. In June 2025, the company entered into an Amended and Restated Loan and Security Agreement with lenders, which included a revolving credit facility and a term loan. Subsequent filings detail multiple limited waivers related to financial covenants, particularly around Minimum Trailing Three-Month Originations, and note that these waivers allowed lenders to retain certain conversion rights tied to the term loan.

On November 3, 2025, Katapult reported that it entered into Series A and Series B Investment Agreements with HHCF Series 21 Sub, LLC, a subsidiary of Hawthorn Horizon Credit Fund, LLC. Under these agreements, Katapult issued Series A and Series B Convertible Preferred Stock for aggregate gross proceeds of $65 million. The company used the proceeds to repay its term loan and partially repay its revolving loan, as well as for other corporate purposes subject to board approval. The preferred stock carries dividend rights and is convertible into common stock, subject to Nasdaq ownership limitations and stockholder approval, with the potential for Hawthorn to beneficially own a majority of Katapult’s common stock upon full conversion, as described in the filing.

Katapult’s filings also reference registration rights granted to the preferred stock investor and outline the ranking of the preferred shares relative to common stock in terms of dividends and liquidation preferences.

Planned business combination with Aaron’s and CCF Holdings

On December 11, 2025, Katapult entered into an Agreement and Plan of Merger with The Aaron’s Company, Inc. (through Aaron’s Intermediate Holdco, Inc.) and CCF Holdings LLC. According to the related press release and Form 8-K, the transaction is structured as an all-stock business combination involving two merger subsidiaries of Katapult, which will merge with Aaron’s and CCF Holdings, respectively.

The companies describe the proposed combination as creating a premier omni-channel platform that provides non-prime consumers access to durable goods and a suite of financial solutions. The combined business is expected to have a nationwide physical footprint through Aaron’s and CCF Holdings, alongside Katapult’s digital and mobile capabilities. The press release notes that, immediately following the mergers, existing Katapult stockholders, CCF Holdings unitholders, and Aaron’s stockholders are expected to hold specified percentages of the combined company’s common stock on a fully diluted basis, as set forth in the Merger Agreement.

The transaction is subject to customary closing conditions, including regulatory approvals, stockholder approvals for each party, effectiveness of a registration statement on Form S-4 containing a joint proxy statement/prospectus, and Nasdaq listing approval for the shares to be issued. The parties indicate that the transaction is expected to close in the first half of 2026, but also list multiple risk factors and conditions that could affect timing or completion.

Combined company structure and headquarters

Following the close of the proposed transaction, Katapult, Aaron’s, and CCF Holdings are expected to continue operating under their existing brand names. The combined company will be called Katapult Holdings, Inc. and, according to the press release, will be headquartered in Atlanta, Georgia. Katapult’s communications state that the combined company is expected to continue trading on Nasdaq under the ticker symbol KPLT, subject to completion of the transaction and applicable approvals.

The press release also outlines anticipated governance arrangements, including the expected composition of the combined company’s board of directors and certain leadership roles, though specific individual names and roles are subject to change over time and are not central to understanding the structural aspects of the combination.

Regulatory filings and investor communications

Katapult regularly files Current Reports on Form 8-K to disclose material events, including financing transactions, loan agreement amendments, board changes, and quarterly earnings releases. The company also references its periodic reports, such as Forms 10-K and 10-Q, for detailed risk factors and financial information.

In connection with both the preferred stock transactions and the proposed business combination, Katapult has indicated that it will file proxy statements and, in the case of the mergers, a registration statement on Form S-4 that will include a joint proxy statement/prospectus. These documents are intended to provide stockholders with detailed information before they vote on the relevant transactions.

Stock exchange listing and sector classification

Katapult’s common stock and redeemable warrants are listed on The Nasdaq Stock Market LLC under the symbols KPLT and KPLTW, respectively, as disclosed in multiple SEC filings. Based on the provided classification, the company is associated with the Real Estate and Rental and Leasing sector and the Other Commercial and Industrial Machinery and Equipment Rental and Leasing industry, while its own descriptions emphasize its role as an e-commerce-focused financial technology and lease-to-own platform serving non-prime consumers.