Katapult Holdings, Inc.

Thank you for standing by. At this time, I'd like to welcome everyone to Catapult Holdings' third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Jennifer Cole, Vice President, Head of Investor Relations. You may begin.

Welcome to Catapult's third 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 our 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 everyone joining us this morning. Before I jump into reviewing our Q3 progress, I want to take a few moments to discuss some of the highlights from our recently announced capital investment from Hawthorne Horizon Credit Fund. We filed an 8K last week that detailed the $65 million investment that Hawthorne has made in our business. This investment allowed us to pay off our term loan in full, repay a portion of the amounts outstanding under our revolving line of credit, and will also allow us to invest in growth opportunities. We're very excited about this transaction. We believe this investment will create a more efficient capital structure and provide more stable foundation for us to grow successfully executing on our operating strategy. We're also excited to welcome our new directors, including Derek, to our board and look forward to their input as we continue on our journey to create value for all our stakeholders. Please refer to the 8K we filed with the SEC on November 3rd for more details on the transaction. Now let's move on to Q3 results. When we entered 2025, we had three near-term priorities. increase top of the funnel activity, two, find new ways to interact with our loyal and engaged customer base and enhance their user experience, and three, evolve our balance sheet and capital structure to create a strong foundation for growth. While we have an important holiday season ahead of us, I'm very pleased with the progress we've made against these objectives. Derek will review our operating progress in greater detail, but let me walk you through a few proof points that will show how well we've executed year to date. Regarding top of the funnel activity, one very important marker of our progress is our application growth. For the first three quarters of 2025, we grew applications by 76%. This growth has positively impacted our business in several ways. Let me highlight two. First, this application growth is a direct contributor to our ability to expand our customer base. During the first three quarters of 2025, we've grown unique new customers by 35% compared with 2024, and this includes nearly 47% growth in the third quarter. This is the fourth quarter of accelerating growth for this metric. Given our track record of high repeat rates, bringing new customers into the catapult marketplace can create significant downstream value. This influx of new customers coupled with our strong repeat rate allowed us to grow our total customer base a little more than 30% during the third quarter. Second, in addition to attracting applicants, we are also growing Catapult App engagement. In the third quarter, monthly active users, or MAUs, grew nearly 49% when compared with activity in the third quarter of 2024. As we look down our engagement funnel, We believe that application growth and increasing engagement are two leading indicators for future conversion rate expansion and gross originations growth. As we've extended our consumer reach, our team has also done a terrific job of providing best-in-class experience to our existing customers. As a result, we've sustained very strong NPS and repeat customer rates. During Q3, our NPS was 64. which was up year over year, and 55.3% of our gross originations came from repeat customers. And our repeat customers are becoming increasingly valuable to the Catapult ecosystem. During the third quarter, LTV for this cohort of customers increased by about 5%. Our financial model gains even more power as it scales. And our success this year has established that we have the right product market fit to attract new consumers and the right offering to retain their loyalties. With this evidence in hand, we are confidently turning our focus to optimizing this top of funnel growth and pursuing strategies that should allow us to make our growth more profitable. The next 12 months will be a critical time for Catapult as we focus on our goals of growth and profitability. We believe we have laid the foundation, cracking the code on accelerating top of funnel activity, streamlining our cost structure to reach a key inflection point. Nancy will speak in greater detail about how our evolving operating strategy is creating opportunities to both sustain growth while driving toward a higher margin profile. Before I turn the call over to Derek to review how we are approaching our next phase of growth, priorities, and execution strategies, let me hit a few more highlights from our Q3 results. During the third quarter, we grew gross originations 25.3% and revenue 22.8%. Both of these results were within our outlook range. We also delivered 4.4 million in positive adjusted EBITDA, which was above our $3 to $3.5 million range. With this quarter's performance, we now have delivered three consecutive years of gross origination growth and 10 consecutive quarters of revenue growth. We're so excited about the track record we've built and believe it's a testament to the strength of our product offering and our team's strong execution. The Catapult marketplace is thriving. We continue to generate new gross originations for our merchants and are allowing more and more customers to access the durable goods they need. During the third quarter, we saw strong growth for both total app originations and K-Pay originations. During Q3, total app originations, which are originations that start in our app but may be consummated elsewhere, grew 44% to $39.3 million. This means that approximately 61% of our gross originations started in our app marketplace. K-Pay originations, which are a subset of total app originations, were 26.4 million and grew 66% year over year. We have grown quarterly K-Pay originations by more than 50% each quarter since we launched the feature in late 2022. Our marketplace performance is fueled in equal parts by the value we bring to our merchants and to customers. Merchants love Catapult because we help them capture incremental market share as well as wallet share. In the third quarter alone, we sent nearly $13 million of gross originations to our merchants, further solidifying our role as a unique growth partner. Customers love us because we're obsessed with providing best-in-class customer service, and we offer fair, transparent pricing they need to make their budgets work. Recently, we enhanced our user experience with new features, including access to higher lease lines for certain customers, a new auto pay feature, and a PayPal payment option. We want to deliver a wonderful holiday season for our customers, and we believe we are well positioned to do so. With that, I'll turn the call over to Derek to discuss our operating progress in more detail. Derek?