(DD) : Katapult Holdings : $KPLT – THE NEXT BIG WINNER OR A SLOW DEATH

**$KPLT – Never heard of them? Here's what they do.**

this company is a tiny fintech company giving customers lease-to-own options at checkout such as consumer goods, appliances, furniture, electronics and etc. It is a lease-purchase agreement where you make recurring payments and can buy the product at any time. They offer a 90-day early purchase option to buy out the lease early or overtime and best part you can return if choose to not complete the payment for whatever reason.

**Revenue and Demand**

2025 Revenue $292M – YoY Growth 17.0%

2024 Revenue $247M – YoY Growth 11.3%

2023 Revenue $222M – YoY Growth 6.2%

company just become profitable this year by almost $20M compared to 2024 -$25.9M loss and was much worse before that. This tells me CEO and team knows what they're doing by reducing operating costs. They have a moat by same repeat customers 60% range and growing throughout other stores. Competitors are also in the horizon but only one has my eyes and that is Snap Finance, which a bigger company that offers higher approval amount (up to $5,000) and you can utilize the 100-day payoff option.

**Here is the true 50/50 gamble**

They recently announced a merge with The Aaron's Company and CCF Holdings to combine all-stock transition. Here's what that means KPLT will still be publicly listed in exchanges but with a new CEO, Cory Miller. However Orlando, (old KPLT CEO) will still be in the board in the future if it comes to agreement in the near future. The bad ; more dilution, shareholders will only get 6% of the combined company, macro pressure on core customers. The good ; they expected pro forma $4B+ revenue, $450M EBITA, opens them up to 3,000 stores and +7M customers. That right there ladies and gents, makes them number 1 (LTO) lease-to-own company and expansion for insane growth by more originations and lower acquisition cost. So $KPLT has a pattern with past winners, such as $DAVE & $ROOT whereas economics and rates were their side, and Growth is scaling tremendously but its losing side with other losing stocks is dependent on macro and credit exposure. So lets say the economy is horrible, its a good chance people are going fb marketplace to buy used instead of new things and trying them out.

**Why I'm Watching this stock**

To get realistic path to $200s range is very difficult but possible with great execution only. 4.85M current shares + 9M shares outstanding dilution would maybe be -> $32M market cap would mean roughly 15-25B market cap with that 6% shareholders ownership.

My Question is, are they trustworthy?

Hopefully they share more information in upcoming Q1 and Only have 1 share as it is in my watchlist and to have the urge to seek and learn more.

**Thoughts?** this might be so regarded that it works or get Fk with untrustworthy people…