Katapult(KPLT) Newsfilter·2025-03-28 10:00Core Insights - Katapult Holdings, Inc. reported strong performance in Q4 2024, with significant growth in gross originations and application volume, indicating a successful holiday season and positive momentum heading into 2025 [2][4][6] - The company is transitioning to a two-sided marketplace model, which has resulted in increased customer engagement and repeat business, with 61% of gross originations originating from the Katapult app marketplace [2][4][11] - For 2025, Katapult expects gross originations to grow at least 20%, driven by strategic marketing and the introduction of new merchants to its platform [6][7][11] Financial Performance - In Q4 2024, gross originations reached 63.0 million, up 9.4% [8][37] - The company achieved a net loss of 14.6 million in Q4 2023 [8][30] - For the full year 2024, total revenue was $247 million, reflecting an 11.6% increase compared to 2023 [8][37] Customer Engagement and Market Strategy - The company reported a 50% year-over-year increase in lease applications during Q4 2024, driven by both new and existing customers [4][8] - Katapult's KPay platform contributed to approximately 52% year-over-year growth in gross originations, with 41% of total gross originations transacted using KPay [4][8] - The company launched new partnerships with merchants, expanding its ecosystem to 33 merchants, and executed co-branded marketing campaigns that significantly boosted originations during the Cyber 5 period [4][8] Outlook and Market Position - Katapult is well-positioned to continue growth in 2025, targeting underserved non-prime consumers, particularly as traditional credit options may become less available [6][11] - The company anticipates maintaining strong credit quality in its portfolio through enhanced risk modeling and onboarding high-quality merchants [15] - The strategic focus on a two-sided marketplace model is expected to allow for scalable revenue growth without a proportional increase in expenses, enhancing profitability [11][15]