mTOR functions as a catalytic enzyme by phosphorylating specific substrates involved in cell growth and metabolism. In mTORC1, it phosphorylates proteins such as S6 kinase 1 (S6K1) and 4E-binding protein 1 (4E-BP1), which are critical for protein synthesis and cell growth. mTORC2, on the other hand, phosphorylates and activates Akt, a key player in cell survival pathways.