Katapult Holdings, Inc.

Thank you for standing by. My name is Eric and I will be your conference operator today. At this time, I would like to welcome everyone to the Catapult Holdings second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the call over to Jennifer Cohn-Cole, Head of Investor Relations. Please go ahead.

Welcome to Catapult's second quarter 2025 conference call. On the call with me today are Orlando Zayas, Chief Executive Officer, Nancy Walsh, Chief Financial Officer, and Derek Medlin, President and Chief Growth Officer. For your reference, we have posted materials related to today's call on the Investor Relations section of the Catapult website, which can be found at ir.catapultholdings.com. Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business, and our operating results, as noted in the earnings release and slide deck posted to our website for your reference. Our actual results may differ materially. Forward-looking statements involve risks and uncertainties, some of which are described in today's earnings release in our most recent Form 10-Q. and which will be updated in future periodic reports that we file with the SEC. Any forward-looking statements that we make on this call are based on the beliefs and assumptions today, and we disclaim any obligation to update them. Also during the call, we'll present both GAAP and non-GAAP financial measures. Non-GAAP financial measures should be considered supplemental to and not replacements for or superior to our GAAP results. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included with today's earnings release and is available on the investor relations section of the company's website. Finally, all comparisons are year-over-year unless stated otherwise. With that, I will turn the call over to Orlando.

Thank you, Jennifer, and welcome to everyone joining us this morning. We had a terrific second quarter across the board, and we're excited to dive into the details of this progress. I'll start with a brief overview of our results and then turn it over to Derek, who will walk you through a more detailed summary of our operating momentum. Nancy will then provide you an update on our strong financial results, discuss the highlights of the debt refinancing, which we completed in June, and provide you with an outlook for Q3. We'll then open it up for your questions. During the second quarter, we exceeded our expectations for gross originations, revenue, and adjusted EBITDA. Q2 gross originations grew 30.4% year over year, beating our outlook for 25 to 30% growth. Second quarter revenue grew 22.1%, also exceeding our outlook for 17 to 20% growth. And while we anticipated delivering about break even adjusted EBITDA, we reported slightly more than $300,000 in positive adjusted EBITDA. These strong results coupled with our Q1 success have led to an incredible first half performance. Year to date, we have grown gross originations by nearly 23% and revenue by approximately 16%, putting us on track to exceed our original gross originations outlook despite tough comps in the second half of the year. Our exciting vision of building a successful two-sided marketplace shopping destination for lease-to-own consumers has become a reality. Perhaps this is best illustrated by our continued growth we're seeing in both total app originations and KPAY originations. During Q2, total app originations, which are originations that started in our app and may be consummated elsewhere grew 56% to $43.1 million. This means that approximately 60% of our gross originations started in our app marketplace. KPA originations, which are a subset of total app originations, were $28.3 million, and growth accelerated to approximately 81% year over year. This means that the remaining $14.8 million in gross originations were traffic and sales that we delivered to our merchants, solidifying our role as a growth partner. Our growth continues to be supported by strong customer affinity for our marketplace offerings. During the second quarter, our MPS score was 63, up year over year. And 58.4% of our gross originations came from repeat customers. While a lot of our business is being driven by existing customers, we are also continuing to grow new customers. During Q2, for Catapult overall, we grew unique new customers by approximately 40%. And this was the third quarter of accelerating year over year growth. We are very excited to bring new customers to our marketplace ecosystem through our expanded marketing efforts and new merchant and waterfall relationships. And encouragingly, even with our new customer growth and our continued focus on converting customers interested in lower lease values, lifetime value, or LTV, remained relatively flat year over year. We are taking a holistic approach to growing the business, and we believe we are extending our runway for growth by creating a marketplace that appeals to a variety of consumers with a wide range of shopping needs and credit backgrounds. In doing so, we are leveraging our marketplace to connect consumers and merchants seamlessly, enabling commerce whenever and however the consumer wants to shop. We believe our results for the first half of 2025 illustrate the strength of our marketplace offering. As we navigate the ebbs and flows of the macro economy in the second half of the year, we will remain focused on our top initiatives, which are one, consumer engagement, two, merchant engagement, three, referral partnerships, and four, improving our unit economics and capital structure over time that we can improve profitability and sustainably generate cash. With that, I'll turn the call over to Derek to discuss our operating progress and more depth. Derek.