KPLTW

• Capital investment: Hawthorn Horizon Credit Fund made a $65 million investment, allowing payoff of term loan, repayment of revolving line of credit portion, and investment in growth. New directors, including Derek, welcomed.
• Q3 progress: Achieved growth in top-of-funnel activity, customer engagement, and balance sheet. Application growth 76% in first 3 quarters of 2025, unique new customers up 35%, MAUs up 49% in Q3. NPS 64, repeat customers 55.3% of gross originations, LTV up 5% for repeat customers.
• App marketplace and KPay: Total app originations grew 44% to $39.3 million, KPay originations grew 66% to $26.4 million. Added 46 new direct or waterfall merchants/merchant pathways in Q3.
• Underwriting and marketing: Tightened underwriting in targeted areas, conversion rates increasing. Cross-shopping customers up 64% year-over-year, representing 13% of gross originations.

• Q4 2025: Gross originations expected to grow 15%-20% (including 1% headwind from tightening), excluding home furnishings and mattress, growth faster. Revenue expected 21%-23%, adjusted EBITDA ~$2 million.
• 2025 outlook: Gross originations expected 20%-23%, revenue 18%-20%, adjusted EBITDA $8-$9 million (60%-80% year-over-year growth).
• 2026 projection: Projected at least 20% gross origination growth.

In the third quarter, gross originations grew 25.3% to $64.2 million, which was within the outlook range. Revenue increased 22.8% to $74 million. Adjusted EBITDA was $4.4 million, above the $3 million to $3.5 million range. Total app originations grew 44% to $39.3 million, and KPay originations were $26.4 million, growing 66% year-over-year. Gross originations from the top 25 merchants grew 25% in Q3. Application growth through the first 3 quarters of 2025 was 76%, unique new customers grew 35% compared with 2024, and monthly active users (MAUs) in Q3 grew nearly 49% year-over-year.

• Macroeconomic trends: Looming inflation and market delinquency data suggesting non-prime U.S. consumers face challenges in meeting financial commitments. Impact of government shutdown on core consumers.