Slides
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1 Investor Presentation August 13, 2025
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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 the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this presentation statements regarding our third quarter of 2025 and full year 2025 business outlook; the success of our anticipated marketing efforts; our market opportunity, our ability acquire and retain new and existing merchants and customers; and customer adoption and continued growth of our mobile app featuring Katapult Pay. These statements are based on various assumptions, whether or not identified in this presentation, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; potential impact of the conversion of our term loan, the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring Katapult Pay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber- attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Undue reliance should not be placed on the forward-looking statements in this presentation. All forward-looking statements contained in this presentation are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. | 2
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Who We AreOur innovative lease-to-own solution powers a two-sided marketplace that connects consumers to merchants and enables omnichannel transactions at the point of sale Customer satisfaction Net Promoter Score of 63 Speed & convenience Decisioning in 5 seconds or less on average Growing consumer base ~990,000 approved applications LTM E-commerce leader Over 200 merchants on platform | 3Note: LTM refers to the last 12 months as of 6/30/25/25 In Approved LTM Lease Limit $ $2.0 billion $263 million In LTM Gross Originations
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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
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Key Investment Highlights | 5 could not cover $400 of emergence expenses without assistance Differentiated Financial Profile Asset light marketplace model can deliver top-line growth without requiring substantial incremental expenses 2-Sided, App-Powered Marketplace Our AI-powered marketplace is a virtuous, trusted ecosystem that empowers and engages consumers and delivers incremental sales to merchants Clear And Compelling Merchant Value Proposition We offer merchants a pipeline of new, engaged and loyal consumers Experienced Management Team Leadership team with over 100 combined total years in the financial services and retail sectors Opportunities to Grow Our Loyal and Engaged Consumer Base Low customer acquisition costs and high repeat purchase rates (58.4% in Q2 2025) Large Addressable Market Opportunity to expand <1% market share of a $50-60 Billion total addressable market1 that includes e-commerce and in-store merchants 1For more details on addressable market, see slide 8
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Gross Originations $ (with YOY growth rates) Gross origination trends are a leading indicator of future revenue streams We have grown gross originations yoy for 11 consecutive quarters More than 4 million unique applicants approved to date Applications grew 91%+ yoy in Q225 Lifetime value continues to grow | 6 (in Thousands) 11 Consecutive Quarters of Gross Originations Growth
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Marketplace Activity Continues to Grow Operating Progress: Recent Highlights Increasing velocity in our 2-sided marketplace • ~60% of Q2 gross originations started in our app • 58.4% of Q2 gross originations were from repeat customers • Total application volume grew 91%+ y/y in Q2 Driving consumer engagement with targeted marketing & new app functionality • Q2 Katapult Pay® (KPay) gross originations grew 81% y/y to ~$28M; ~39% of total • KPay unique customer count grew nearly 87% year-over-year • Launched Guitar Center, Pottery Barn and Sam's Club as KPay-enabled merchants Strong progress against merchant engagement initiatives • Direct/waterfall gross originations volume was 61% of Q2 originations; up ~56% y/y excluding home furnishings and mattress category • Tested new pricing and promotional strategies to drive conversion and consumer engagement during key sales moments | 71Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation to nearest GAAP measure Delivered growth across key Q2 financial metrics • Gross originations grew 30.4% in Q2 y/y • Revenue grew 22.1% in Q2 y/y • Adjusted EBITDA1 of $0.3 million; above breakeven outlook
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1 May 2023 Federal Reserve System Board of Governors Report on the Economic Well-Being of U.S. Households in 2018 2 Financial Health Network US Pulse Report – 2023 Trends 3 Calculated by multiplying ~$180 billion market for online retail across electronics, furniture, appliances and other durables (Wall Street research, June 2020) by 30%, which represents the US subprime consumers (Experian Research, 2021) E-commerce merchants Underserved consumers Affordable access to durable goods Expanding our consumer base with targeted marketing, high repeat rates and partnerships Katapult provides underserved nonprime consumers the purchasing power they need 37% of US Adults1 could not cover $400 of emergency expenses without assistance 43% of US Households2 had insufficient savings to cover at least three months of living expenses $50-$60 Billion3 Katapult's estimated total US addressable market | 8
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Katapult offers a Scalable Omnichannel LTO solution For consumers who have no/nonprime credit, Katapult LTO enables new paths to obtain durable goods What Is Lease-to-Own (LTO)? With Katapult's LTO product, customer understands full cost of ownership, up-front • No late fees or penalties. Ever • Can repay early with options like a 90-day buyout price • Makes purchases more affordable Customer makes recurring payments toward owning goods outright • No long-term obligation to continue leasing; goods are returnable at any time Customer has several options to acquire ownership of the product they are leasing • Katapult offers flexibility that can make it more attractive and accessible than traditional financing • With each payment, customer has the option to continue leasing, buyout or return the item Katapult LTO provides merchant partners access to new consumer base • 30%+ of US adults don’t qualify for traditional financing1 | 9 1source: https://www.pymnts.com/consumer-finance/2022/millennial-minute-25-of-millennials-familiar-with-lease-to-own-wont-shop-if-it-isnt-on-offer/
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| 10 ~60% of our Q2 Gross Originations started in our app marketplace
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Total App Originations (and y/y growth) KPay Originations (and y/y growth) | 11 (in Millions) (in Millions) App Marketplace Gross Originations Growing Rapidly Total App Originations are all gross originations that start in our app Total App Originations since the launch of our app marketplace in Q123 $300.3 million 60% of our Q2 Gross Originations started in our app marketplace Total App Originations grew 56% in Q225 KPay Originations are gross originations that are transacted using Katapult Pay within our app, and are a subset of Total App Originations Total KPay originations since feature launch in Q123 $169.7 million KPay Originations were 39% of total Gross Originations in Q225 KPay Originations grew 81% in Q225 ~60% of Q2 Gross Originations started in app marketplace
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Clear and Compelling Merchant Value Proposition | 12
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Select direct and waterfall merchant-partners 200+ total merchants Clear and Compelling Value to Direct and Waterfall Merchants Direct off-the-shelf and tech-enabled integration options | 13 • Access to new shoppers drives incremental sales for merchants • Onboard new merchants within days • High repeat purchase rates (58.4% in Q2 2025) • Higher conversion rates reduce abandoned carts • No recourse or risk from consumer defaults or returns • Merchants pay NO interchange costs related to transaction Katapult offers multiple growth channels and makes integration with merchants easy DIRECT INTEGRATION Katapult LTO option available to consumers directly on the merchant's checkout page Integration in as fast as 2 days WATERFALL INTEGRATION Prime lenders refer consumers who may be interested in the Katapult LTO Katapult is the only LTO provider for many merchant waterfalls Highly successful integration experience with numerous payment waterfall platforms
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More data, more insight Expands our ability to meaningfully engage with customers, increasing repeat rates, and customer ratings Smarter transactions, fast approval Our unique AI- and machine learning-powered technology evaluates carts and shopping behavior to determine if a good is leasable and provide lease pre-approval amounts. Allows customers to seamlessly transact Full Service Marketplace Capabilities Katapult Pay or KPay, a feature in our mobile app, is a 1-time use virtual credit card that consumers can use to check out within the Katapult marketplace. This means transactions can start and end in our marketplace Underserved consumers National merchants Our marketplace also features KPay, a transformational feature that facilitates in-app lease originations and accelerates merchant onboarding | 14 featuring ® Our 2-sided Marketplace, a shopping destination With full service marketplace capabilities, Katapult can retain customer loyalty and refer traffic to our merchant partners, creating a virtuous ecosystem that supports growth New merchants, no integration required KPay allows Katapult to onboard new marketplace merchants without requiring merchant support
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| 15 Discover National merchants on our marketplace Search Durable good product categories Shop Merchant websites using our in-app browser Checkout Friction-free with our 1- time use virtual card featuring 39 KPay-Enabled Merchants Select KPay-Enabled Marketplace Merchants KPay lets us onboard merchants without integration support, creating another growth channel for retailers and more choice for consumers
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What merchants say about partnering with | 16 “SimpleTire provides easy, affordable access to one of life’s necessities for millions of people. By partnering with Katapult, we can now offer our customers another flexible way to purchase from our huge catalog of quality tires.” Kenny Pratt, Co-founder and CTO, SimpleTire “With Katapult’s help, more people, particularly those who may not have been able to shop with us before, will have the flexibility and options they need to obtain the furniture they want.” Jeffrey Gadel, President, 1StopBedrooms “Katapult has been instrumental in driving sales and expanding our customer base because we can offer their transparent LTO payment option at checkout." Tyler Reilly, Owner of Extreme Customs “We wouldn’t have gotten to where we are at this point without Katapult’s commitment.” Shannon Murray, Director of Business Optimization and Site Stability, Lenovo “We are excited to partner with Katapult to further enable our customers to more readily attain the technology that comes with purchasing a new PC.” Jeffrey Cheng, Senior Director of Marketing and Sales, iBUYPOWER “We are excited to collaborate with Katapult because of the alignment our brands share when it comes to transparency and the high level of customer service that we both provide.” Dov Coleman, CEO, Poly & Bark “Our strategic partnership with Katapult ultimately contributed to our growth and reputation as a customer-friendly and environmentally conscious e- commerce platform.” Michelle Pena CEO, Maxandfix “Casper partnered with Katapult so that customers who may not have been able to shop with us before will have the financial power to obtain our innovative sleep solutions. We are excited about the potential to provide access to our high-quality bedding products to even more customers across the United States.” Rachel Pedicini, Vice President, Casper
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Opportunities to Grow Our Loyal and Engaged Customer Base | 17
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Millions of Americans Consider Themselves Financially Vulnerable We Meet the Needs of Nonprime Consumers Katapult's fair and transparent LTO provides a large, underserved community of consumers with options to acquire durable goods at fair and transparent terms | 18 1source: https://finhealthnetwork.org/wp-content/uploads/2024/09/2024-U.S.-Trends-Report_-Diverging-Financial-Health-Indicators.pdf 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 not keeping pace with expenses 53% report their spending is higher than their income(1) Savings have been depleted 56% say they don't have enough savings to cover more than 3 months of living expenses(1) And they don't have access 71% say they don't have a prime credit score(1)
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Overlooked consumers. Outsized opportunity. Source: Experian, Katapult Consumer Data mobile device centric lifestyle | 19 Source: 2022 Experian ConsumerView Report
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No Established Credit Katapult provides this consumer with tools to build their credit profile Credit Challenged Katapult positions this consumer to rebuild their financial standing Good Credit Katapult provides this consumer with buying power Katapult opens doors to the millions of shoppers overlooked by traditional financing | 20 Easy Application Process No bank account info required; average decision in ≤5 seconds; multiple leases allowed
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4.4 "It was an easy and quick experience. Everything was spelled out up front and simple to understand. Customer service was great in answering all my questions and very professional. I'd recommend Katapult. Five stars!" - Elisa "Huge help getting my car on the road, thank you!" - Casey “ "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 with Katapult. I was very satisfied with the application process. After completing the application form, I was notified immediately of the qualified amount of money I was approved for. The repayment process was clearly outlined!! I'm now a satisfied customer!!" - Desiree “ A Positive Consumer Experience | 21Note: Figures as of Q4 2024 63
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Customers Can Shop How They Want | 22
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FIRST 90 DAYS Options available to exercise buyout for the cash price plus as low as 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 than the full-term cost to own FULL TERM Payments made over the maximum length of the lease renewal periods equal ~2x the lease origination amount on average No late fees. Ever. Flexible & Transparent Payment Options Drive Customer Loyalty | 23
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a Assumes 2.05x multiple on $1099 price and $45 origination fee; Katapult allows customers to pay cash price unlike competitors b Assumes interest rate of 29.99% and consumer pays minimum monthly payment of 3% until balance paid off c Competitor increases the cash price of an item before adding the cost of financing $1099a +$45a Retail Price + Initial Fee Maximum Cost to Own $1099b $1099 +$122c Legacy, branch-based LTO $2,637 $2.827 Other LTO competitor Retailer Price: $1099 | 24 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 $1099 +$65 Illustrative Example
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Building a more inclusive and customer-centric business that empowers the non-prime consumer shopping experience $45 2.1x** 4.4 90 Days +5% fee 4.8 A Better Overall Product for Consumers $55 $60* 2.4x**2.7x** 3.7 4.7 90 Days + $25 fee 90 Days +10% fee 4.6 4.7 Competitor A Competitor B | 25 *In some states, the initial payment is part of the lease **On average Data based on information obtained from competitors' sites for similar lease-to-own transactions Initial Payment Turn No Bank Account Required No Late Fees Early Buyout Options No Prepayment Penalties No Cash Price Mark-up No Minimum Income Requirements
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| 26 • 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 drive consumer engagement even higher • Expect to see benefits for both customer growth and customer repeat rates Multiple Opportunities to Grow Our Customer Base Building full spectrum lifecycle marketing capabilities
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Proprietary Technology Platform | 27
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Our proprietary technology 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 leverage AI and machine learning to create a friction-free customer journey that drives engagement, conversion and repeat purchases. We are transforming how nonprime consumers shop and how merchants access this underserved segment. CONSUMER CHECKOUT MERCHANT INTEGRATION Off-the-shelf solutions Platform plugins | 28
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Sophisticated Underwriting Process Advanced behavioral learning mitigates credit and fraud risks Utilizes behavioral biometrics, device and location recognition Approval decision using AI inspired machine- learning in 5 seconds or less on average Lease History Shopping Behavior Mobile Device Product Attributes Select Attributes Behavioral Biometrics Payment Behavior Katapult’s AI- and machine learning-driven technology powers our market-leading underwriting, translating to higher approval rates... | 29
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| 30 Write-offs as Percent of Revenue Long-Term Goal: 8-10% Range …and low write-off rates Key Insights • Our long-term target for write-offs as a % of revenue is 8% to 10% • Write-offs are calculated based on the estimated performance of current quarter leases compared with the actual performance of historical seasoned lease vintages; calculated as a percent of revenue 8.8% 9.6% 9.5% 8.7% 8.4% 9.3% 9.5% 9.6% 9.0% 9.8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2023 2024 2025
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Q2 2025 Financial Highlights | 31
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| 32 Drive Revenue Growth • Disciplined growth with strict underwriting and risk controls • Merchants and other partners offer consistent funnel of new customers with minimal acquisition costs • With KPay functionality, our two-sided marketplace is designed to be a reliable and scalable source of growth • Deploying efficient marketing spend to drive B2C volumes Execute Path to Profitability • Leverage our technology to accelerate top-line growth • Create operational efficiencies and leverage reduced operating expenses to expand margins • Invest in growth opportunities that generate ROI Optimize Balance Sheet • Ongoing benefit from low capital expenditure e- commerce model • Exploring opportunities to optimize liquidity and reduce borrowing costs over time Strategic Financial Priorities
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Q2 2025 Financial Highlights Gross Originations Revenue Adjusted EBITDA2Fixed Cash Operating Expenses1 | 33 Key Insights Gross Originations • Gross originations grew 30.4% y/y; excluding the home furnishings and mattress category, gross originations grew 62% year-over-year Revenue • Revenue increased 22.1% y/y and reflects strong volume performance during LTM as well as continued strong collection efforts and underwriting performance • Gross origination trends are a leading indicator of future revenue streams. A percentage of revenue is recognized in the quarter in which the origination occurs and increases cumulatively over following quarters, reaching approximately 70-75% of revenue realized within two quarters from when the origination occurred. Fixed Cash Operating Expenses1 • Total operating expenses were relatively flat y/y, reflecting our ongoing commitment to fiscal discipline • Fixed cash operating expenses increased 0.6% y/y (this excludes underwriting fees and servicing costs, which are variable, and noncash stock-based compensation expense) Adjusted EBITDA2 • Q2 Adjusted EBITDA increased to $0.3 million y/y ahead of our breakeven outlook 30.4% 22.1% 0.6% $0.7M 1 Fixed Cash Operating Expenses is a non-GAAP measure. See appendix for a reconciliation to the nearest GAAP measure 2 Adjusted EBITDA is a non-GAAP measure. See appendix for a reconciliation to the nearest GAAP measure $9.1 $9.2 Q2 2024 Q2 2025 $(0.4) $0.3 Q2 2024 Q2 2025 $55.3 $72.1 Q2 2024 Q2 2025 $58.9 $71.9 Q2 2024 Q2 2025
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Executive team from industry-leading firms Orlando Zayas CEO Nancy Walsh CFO Derek Medlin President & CGO Chandan Chopra CTO Eric Harmon Strategy Jorge Diaz CPO | 34
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Grow Merchant Base Expand Customer Base Sustain High Repeat Rates Innovate Technology Continue to deepen and grow relationships with merchant- and waterfall partners and onboard new KPay-enabled merchants to the Katapult marketplace Leverage ROI-positive marketing strategies, partnerships and product enhancements to attract and retain customers Sustain high customer and merchant satisfaction by offering a best-in-class product that drives conversion rates and customer counts higher over time Develop innovative products that disrupt the industry and create a best-in-class user experience for nonprime consumers Marketplace Growth: Strategic Pillars | 35 No late fees. Transparency. Fair pricing.
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Appendix | 36
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Q2 2025 Financial Results 37 $ in millions (unaudited) Q2 2025 Q2 2024 YoY Variance ($) YoY Variance (%) Gross Originations $72.1 $55.3 $16.8 30.4% Total Revenue $71.9 $58.9 $13.0 22.1% Gross Profit $11.2 $9.9 $1.2 12.5% OpEx $12.6 $12.5 $— 0.2% Net Loss $(7.8) $(6.9) $(0.9) 13.7% Non-GAAP1 Fixed Cash OpEx1 $9.2 $9.1 $0.1 0.6% Adj. EBITDA1 $0.3 $(0.4) $0.7 (185.4%) Adj. Net Loss1 $(5.7) $(5.4) $(0.2) 3.9% 1 See appendix for reconciliation of these non-GAAP measures to nearest GAAP measure.
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Fixed Cash Operating Expenses1 (2023 - As restated/revised) Fixed Cash Operating Expenses Fixed cash operating expenses represent ongoing expenses within our control We are optimizing previous investments as well as the expense savings initiatives we put in place in the beginning of 2023 We believe we can leverage these actions to deliver operating leverage and profitability over time | 38 (in Thousands) Fixed Cash Operating Expense Trends 1 Fixed Cash Operating Expenses is a non-GAAP measure. See appendix for a reconciliation to the nearest GAAP measure
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| 39 Gross Margin Percentage Historical Results (As Restated/Revised) Key Insights We achieved Gross Profit of $11.2 million in Q225, up ~12.5% y / y ; G r o s s M a r g i n w a s ~15.5% Gross Margin in Q225 was impacted by front-loaded lease depreciation, driven by the rapid gross originations growth we've delivered since Q424 We recognize estimated accelerated lease depreciation and impairment within our cost of revenue. Total depreciation expense is front-loaded over the portfolio's asset life based on the historical actual results of buyout timing, and at origination for expected lease impairment. As a result, depending on the timing of the origination in the quarter, this can have a temporary, but disproportionate, impact on Gross Profit during times of rapid growth. We also recognize all estimated costs related to impairment of property held for lease based on historical trends at the time of the origination. Our target Gross Margin range remains 18-20% Gross Margin is calculated as Gross Profit as a percent of total revenue
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How Gross Originations Become Revenue: Balance Sheet and P+L Impact | 40 100% of lease value added to Property Held for Lease Lease value amortized based on historical depreciation curves Lender funds 95% of lease value; Katapult funds 5%. Funded value is added to debt Lease is originatedLease is originated Lease value validated by 3P vendor and sent to Lender for funding Percent of lease value is realized as revenue in the quarter in which the lease is originated Remainder of lease value recognized as revenue over life of lease as customer makes payments We “true-up” reserve estimate based on actual performance of the matured vintages and disclose as write-offs as a % of revenue Ongoing customer payments become restricted cash until they are collected & settled and moved to cash & cash equivalents Lease is originated Reduce Property Held for Lease on Balance Sheet and increase Cost of Revenue on P+L Write-offs as a % of Revenue Revenue Cost of revenue is primarily composed of inventory amortization expenses and lease servicing costs Our credit agreement requires KPLT to maintain a minimum level of cash Balance Sheet Post-origination, the amount of a write-off is based on substantially matured vintages
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Non-GAAP Reconciliations | 41
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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, debt refinancing costs, and variable lease costs such as servicing costs and underwriting fees. Management believes that fixed cash operating expenses provides a meaningful understanding of controllable ongoing expenses. Adjusted EBITDA is a non-GAAP measure that is defined as net loss before interest expense and other fees, interest income, change in fair value of warrants and loss on issuance of shares, provision for income taxes, depreciation and amortization on property and equipment and capitalized software, impairment of leased assets, stock- based compensation expense, and litigation settlement and other related expenses, and debt refinancing costs and loss on extinguishment of debt. Adjusted EBITDA is useful in evaluating the Company’s performance because this measure: • Is widely used to measure a company’s operating performance; • Is a financial measurement used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and • Is used by the Company’s management for various purposes, including as a measure of performance and as a basis for strategic planning and forecasting. Adjusted net loss is a non-GAAP measure that is defined as net loss before change in fair value of warrants, stock-based compensation expense, litigation settlement and other related expenses, and debt refinancing costs. Management believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies. | 42
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Non-GAAP Reconciliations Fixed Cash Operating Expenses (in thousands) Three Months Ended June 30, 2025 2024 Operating Expenses $ 12,578 $ 12,549 Less: Depreciation and amortization on property and equipment and capitalized software 315 263 Stock-based compensation expense 864 1,552 Servicing costs 1,127 1,141 Underwriting fees 830 491 Litigation settlement and other related expenses 178 — Debt refinancing costs 105 — Fixed cash operating expenses $ 9,159 $ 9,102 | 43
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Non-GAAP Reconciliations Adjusted EBITDA (in thousands) Three Months Ended June 30, 2025 2024 Net loss $ (7,835) $ (6,888) Add back: Interest expense and other fees 5,361 4,674 Interest income (26) (359) Change in fair value of warrants (11) (109) Provision for income taxes 61 61 Depreciation and amortization on property and equipment and capitalized software 315 263 Provision for impairment of leased assets 270 429 Debt refinancing costs and loss on extinguishment of debt 1,145 — Stock-based compensation expense 864 1,552 Litigation settlement and other related expenses 178 — Adjusted EBITDA $ 322 $ (377) | 44
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Non-GAAP Reconciliations Adjusted Net Loss (in thousands) Three Months Ended June 30, 2025 2024 Net loss $ (7,835) $ (6,888) Add back: Change in fair value of warrants (11) (109) Stock-based compensation expense 864 1,552 Litigation settlement and other related expenses 178 — Debt refinancing costs and loss on extinguishment of debt 1,145 — Adjusted net loss $ (5,659) $ (5,445) | 45