DEF: Katapult Holdings Sets Date for 2025 Annual Meeting, Highlights Strategic Progress

Katapult Holdings will hold its 2025 Annual Meeting of Stockholders virtually on June 4, 2025, to vote on director election, auditor ratification, executive compensation, and other business matters.

Summary

• Katapult Holdings, Inc. will hold its 2025 Annual Meeting of Stockholders on June 4, 2025, in a virtual format.
• Stockholders will vote on the election of a Class I director, ratification of the appointment of Grant Thornton LLP as the independent accounting firm, an advisory resolution on executive compensation, and the frequency of advisory votes on executive compensation.
• The board recommends voting 'FOR' the election of Chris Masto as Class I director, 'FOR' the ratification of Grant Thornton LLP, 'FOR' the executive compensation, and 'ONE YEAR' for the frequency of advisory votes.
• The record date for determining stockholders eligible to vote is April 10, 2025.
• In 2024, Katapult saw strong gross originations and revenue growth in Q4, improved profitability, and demonstrated the value of the Katapult App Marketplace.
• Approximately $127 million in gross originations began in the Katapult App Marketplace during 2024, with nearly $77 million transacted through KPay.
• More than 50% of 2024 gross originations started within Katapult's own ecosystem.
• Key initiatives for 2025 include increasing consumer engagement, merchant engagement, and referral partnerships.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong growth metrics and strategic initiatives. The CEO's letter expresses confidence in the company's future, contributing to a high sentiment score.

Positives

• Katapult exited 2024 with strong gross originations and revenue growth in the fourth quarter.
• The company demonstrated the strategic and financial value of the Katapult App Marketplace.
• Katapult has created a differentiated lease-to-own (LTO) offering.
• The launch of the Katapult App Marketplace has been transformational.
• The company has consistently high repeat purchase rates and positive customer feedback.
• Katapult is well-positioned to continue to grow its top line and profitability measures.

Risks

• The document mentions forward-looking statements that are subject to risks and uncertainties detailed in the company's SEC filings.
• The company's ability to achieve its 2025 goals depends on successful execution of its key operating initiatives.

Future Outlook

Katapult will focus on unlocking more of its marketplace potential in 2025 by focusing on consumer engagement, merchant engagement, and referral partnerships.

Management Comments

• 'We had a great 2024,' stated Orlando J. Zayas, Chief Executive Officer.
• Management believes they have created a differentiated lease-to-own (LTO) offering that positions Katapult for future success.
• Management is very excited about their progress and grateful for the tremendous efforts from the Katapult team.
• Management believes they are well-positioned to continue to grow their top line and profitability measures.

Industry Context

The document highlights Katapult's shift from relying on merchants for consumer traffic to creating its own ecosystem, which is a strategic move to gain more control over the customer journey and expand its market reach in the competitive lease-to-own industry.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards or competitors.
• However, the focus on app marketplace development and KPay functionality suggests an effort to emulate successful e-commerce platforms like Affirm or Klarna, but tailored for the non-prime consumer segment.
• Without specific benchmarks, it's difficult to assess Katapult's performance relative to industry leaders in terms of customer acquisition cost, transaction volume, or profitability.

Management Changes

Corporate Governance

Related Party Transactions

• The document mentions an Amended and Restated Registration Rights Agreement with certain directors, executive officers, and holders of more than 5% of capital stock.
• The document mentions indemnification agreements with directors and officers.
• The document mentions Board Nomination Rights pursuant to the terms of the Merger Agreement.
• The document mentions a Sponsor Agreement concurrent with the execution of the Merger Agreement.

Stakeholder Impact

• Shareholders are provided with information to make informed decisions regarding director elections, executive compensation, and other corporate governance matters.
• Employees are impacted by the company's compensation policies and benefit plans.
• Merchants and consumers are impacted by the company's strategic initiatives to enhance the Katapult App Marketplace.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• Katapult will focus on increasing consumer engagement, merchant engagement, and referral partnerships in 2025.
• The company will continue to look for ways to position Katapult as a partner of choice for all merchants and waterfall finance platforms.

Key Dates

Keywords

Annual Meeting, Proxy Statement, Katapult, Stockholders, Director Election, Executive Compensation, Grant Thornton, KPay, LTO, App Marketplace, Gross Originations