It is my pleasure to welcome Orlando Zayas, Chief Executive Officer of Katapult Holdings, Inc., a leading financial technology company in the lease-to-own space. Orlando, welcome.
Hi, thanks, Scott, and thanks to everyone for joining today. My name is Orlando Zayas, as he said, the CEO of Katapult. Before we get started today, just wanna make sure my screen is sharing still. Before we get started, I'd like to quickly point out our page regarding forward-looking statements. So let's dive into our story. Katapult is a fintech company that offers an innovative lease-to-own product that offers non-prime consumer access to the financing power they need to obtain durable goods. We were founded in 2014 and went public in 2021 . Since going public, we have focused on scaling our business and unlocking the power of a financial model, and over the past several quarters, we have delivered industry-leading results.
In the past 12 months alone, we've achieved nearly $250 million in gross originations while meaningfully improving our profitability metrics, including Adjusted EBITDA. We believe our focused execution, track record, and path to sustained growth are underappreciated by the market, and I'm excited to tell you more about our story today. So let's begin. Let's start with our mission. Everything we stand for as a company, everything we do, is tied to our mission of serving customers and our merchants. For customers, we want to be the trusted resource that they can leverage to get the products they need in their everyday lives at a fair and transparent price. For merchants, we're opening up growth opportunities by connecting them with a growing base of underserved, non-prime consumers who are engaged and loyal.
Our mission keeps us focused, and this focus has led to sustained year-over-year growth over the past several quarters. Beyond our mission, there are six key areas that speak to our growth opportunities and position us to create value for our stakeholders. We have a very large addressable market that we estimate to be $50 billion-$60 billion. In short, we have a lot of blue-sky opportunity to grow, which we believe we're taking full advantage of. Our value propositions for merchants and customers are the key to our success, and we believe that nearly two years of gross originations growth, as well as our continued high customer repeat purchase rates, show that our value proposition is resonating.
All that we are able to deliver, from our easily integrated direct and waterfall LTO solutions to our proprietary Katapult Pay app, to our dynamic underwriting capabilities, is powered by our leading-edge technology. We believe our technology is a core asset that gives us a sustainable advantage within our competitive landscape. We have also built a dynamic financial model that is delivering top and bottom-line growth in lockstep with our operational progress.
We believe we continue to scale the business, we will unlock the power of our financial model. Finally, we have an amazing team, from our executive leadership to our experienced team in customer service, and each and every one of us is focusing on delivering on Katapult's potential. With that backdrop, let me give you a few highlights from our second quarter. Q2 marked the 7th consecutive quarter of gross originations growth.
Within this as a base, we were also able to deliver nearly 10% revenue growth and meaningful improvement in Adjusted EBITDA, and we believe we can continue to build on these successes in the coming quarters. There are several drivers of our success this quarter, including new, exciting waterfall integration partnerships and platform enhancements. In addition, our Katapult feature in our app, or K Pay, as we call it, has become a key driver in our success. KP ay has allowed us to build a marketplace that includes merchants where we might not be able to have a direct or waterfall relationship. This means that customers can now use Katapult to lease products from these merchants, even when they don't have an integrated solution. We look at this as an opportunity to control our own destiny, and the results have been amazing.
Recently, we added Lowe's, Costco, and Newegg to our marketplace, which means that customers can now shop at more than 25 merchants through this channel. And in less than two years since we've launched the feature, it has grown to represent around 28% of our gross originations, and in the second quarter alone, with year-over-year growth of more than 100% in the quarter. Finally, we've also continued to make progress scaling our marketing strategy. This is allowing us to supplement our customer acquisition, which has been historically driven by merchant partnerships, with growing direct-to-consumer effort. We are executing on a very controllable ramp with stringent ROI gates, and it's beginning to deliver results across key consumer engagement and gross origination metrics. We're very proud of the progress during the second quarter.
One of the key inputs in our story and our opportunity lies with the struggles that our non-prime consumers face every day. There are a number of data points that we look to, to support the need for our product, but today I'm gonna highlight just one that you may have heard. According to federal data, nearly 40% of U.S. adults could not cover an emergency expense of $400. Practically speaking, this means that if someone's refrigerator dies or they blow out a tire, or if their washer and dryer stops working, they won't be able to replace it if they don't have help, and these are just necessities. This doesn't contemplate a non-prime consumer who wants a new couch, a mattress, or a kitchen table because their old ones and they've seen better days.
These consumers often don't have access to other financial products, like credit cards or buy now, pay later options, and as a result, their needs are often unmet, and they're left out in the cold. This is where Katapult comes in. In case you're not familiar, let me introduce you to what lease-to-own product is. Our core market is primarily comprised of consumers that are considered to be non-prime. They have no credit, or credit that is not great, or have none, and in general, they cannot access prime or even near-prime financing. In fact, about 30% of adults don't qualify for traditional financing. Our solution allows them to get financing even without strong or established credit history.
We look at factors beyond the credit score that allow us to underwrite a lease and get them on the path to owning the products that they need. We are transparent about our terms. We give them several options for paying off the lease. We actually encourage them to do so as quickly as they can because the sooner they do, the more money they'll save. We never charge late fees, and their payment schedule is clear, and if they change their mind, they can return the item with no penalties, no repercussions at any time. At the end of their lease, they own their product outright, and we allow them to have multiple leases at any given time. While the majority of our business is focused on e-commerce, we also offer LTO in-store as well, so we can meet the customers wherever they wanna shop.
Here's a quick snapshot of the various options that our customers have to complete a lease with us. Our best solution is our early payoff option. In the first 90 days after delivery of their merchandise, the customer can pay off for the cash price and a small 5% fee. During the lease, which is typically 12 months, the customer can pay off the lease at any time and receive a substantial discount on the remaining payments. They can also return the merchandise, as I mentioned, at any time and discharge the remaining balance. We can tailor payment options to fit the needs, their needs, and we work with them if their circumstances change, creating a relationship that has built loyalty and engagement with consumers across the U.S.
One other advantage to our product versus other LTOs is that we never mark up the price of a durable good, but others in our industry do. If a customer finds an item on sale, that sale price is the lease, which creates inherent savings. This, and our policy of no hidden fees, drives significant savings for our customers versus other LTO and subprime credit cards. Our mission-powered LTO means that we can help millions of shoppers across the U.S. get the items that they need when they need them, and one of the best parts of our product is that we can provide access to our LTO with a simple application process that takes five seconds or less and only requires the information that most people have top of mind. Our underwriting does not need checking account information, like many others do, making the process customer-friendly and easy.
Completing this lease on their smartphone or computer takes less than ninety seconds, all the while being clear and transparent on the terms of their lease. Our focus on delivering best-in-class LTO that meets the needs of a wide variety of consumers is paying off. Not only do we have a high customer repeat rate, but we also have consistently high Net Promoter Score, Trustpilot, and app ratings, all of which demonstrate the value that customers place on being treated fairly and transparently with Katapult. We believe our value proposition is equally compelling to our merchant partners. Currently, we are integrated as a direct or waterfall financing option with more than 200 leading merchants across the U.S. In the waterfall integration, for example, customers apply with the retailer's financing option, and the application is first sent to the prime lender.
If the prime lender declines the app, the customer's information is automatically sent to us, and we return a decision in less than five seconds. It helps improve the overall penetration of finance-driven customers and helps build loyalty, since the retailer has found them a way to get their merchandise. We believe that merchants choose to partner with us because we are bringing them incremental, non-prime consumers that have not had the resources to shop with the merchants without a financing option. There is also no risk to the merchant, and a positive customer satisfaction brings a loyal customer that shops again and again. Direct and waterfall channels are just one way we reach customers.
A few years ago, we saw an opportunity to build our own marketplace that could be powered by some merchants that we had already integrated relationship with, but also with other merchants whom we had not yet integrated. We believe that in doing so, we could meet the consumers wherever they're shopping and more quickly expand the durable goods categories that we could offer. So late in 2022, we launched our app and a feature that has become known as KPay. We wanted to create a way for customers to enter into a lease agreement with Katapult to purchase durable goods, even if we didn't have a direct integration with that merchant. KPay allows us to seamlessly create a one-time use virtual credit card that customers can use to shop through our online marketplace and pay for that item.
The true secret sauce here is our AI and machine learning technology helps the customer determine what is leasable and what is not, and ensures that the transaction is strictly a leasable durable good. After the transaction is complete, the lease follows the same path as any other transaction. This means that customers now have an access to a wide variety of goods, and we can use the data from these transactions to show the incremental value Katapult brings to merchants, and that we don't yet have a direct integration relationship with. In less than two years, we've grown this channel significantly, and we believe we have significant runway for continued growth.
We have more than 25 merchants available on KPay, and have planned to steadily increase the number based on feedback from our customers, where they're shopping, and the retailers that they love. We are continuing to test and learn into a scaled marketing strategy. Within consumer marketing, we have found a majority of our resources on driving potential customers to our app. We are doing a lot of testing and learning, and can complement the customer flow we receive from our merchant partners with our own marketing efforts, while keeping customer acquisition costs low. We are seeing the early results are very encouraging. Looking ahead, we can build a robust marketing plan that will help us increase customer lifetime value over time.
Finally, on technology, in addition to powering our ability to launch innovative new products like KPay, we are leveraging our technology to get better outcomes in underwriting, customer experience, and conversion. Our technology powers our dynamic underwriting model that helps us drive higher approval rates while managing risk. And it allows us to launch products that make it easier for consumers to engage with merchants, while allowing Katapult to ensure that the lease transaction remains transparent and aligns with our values, rules, and strategy. In closing, we've made a lot of progress over the past few years, and we believe that we will continue to deliver on our goals and our progress will be recognized. We have a clear roadmap to grow our business, focused on expanding our relationship with merchants, growing our customer base, and leveraging our technology to build a competitive moat.
We believe that our operating progress will unlock the power of our financial model and help us create sustainable value for all of our stakeholders. Thanks for your time today. We look forward to updating you on our progress in the future. Back to you, Scott.
Orlando, I wanna thank you for taking part in this presentation today and your participation in the HCW conference. I hope you and everybody else enjoy the rest of the conference. Thank you.
Thank you.