From GlobeNewswire: 2025-03-28 06:00:00

Katapult Holdings, Inc. reported strong holiday season performance, with 50% growth in application volume and over 100% year-over-year gross originations growth during the Cyber 5 period in 2024. Transitioning to a two-sided marketplace, 61% of Q4 gross originations started in the Katapult app. Revenue in Q4 was $63.0 million, a 9.4% increase.

In the fourth quarter of 2024, Katapult saw gross originations of $75.2 million, a year-over-year increase of 11.3%. Total revenue for the quarter was $63.0 million, with operating expenses decreasing by 37.4%. Net loss improved to $9.6 million, and adjusted net loss was $8.0 million. The company ended the quarter with $16.6 million in cash and cash equivalents.

For the full year 2024, gross originations were $237 million, with total revenue at $247 million. Operating expenses decreased by 11.0%, and net loss improved to $26 million. Adjusted EBITDA was $5 million. Write-offs as a percentage of revenue were 9.2%, within the company’s target range of 8% to 10%. The company is expecting growth to continue in Q1 2025. Katapult expects strong growth in 2025 due to new merchant introductions, strategic marketing, and a large underserved market. Q1 2025 projections include an 11% increase in gross originations, 10% revenue growth, and $3 million in positive Adjusted EBITDA. Full-year 2025 outlook anticipates at least 20% growth in gross originations.

Maintaining credit quality, Katapult aims for 20% revenue growth and $10 million in positive Adjusted EBITDA in 2025. CFO Nancy Walsh highlights fiscal discipline and scalability in revenue growth. The company’s two-sided marketplace model allows for accelerated Adjusted EBITDA flow-through during periods of rapid revenue growth.

Katapult will host a conference call on March 28, 2025, to discuss financial results. The company’s technology-driven lease-to-own platform serves non-prime consumers by integrating with retailers and e-commerce platforms. Katapult’s mission is to provide payment solutions based on fairness and dignity to underserved consumers.

Forward-looking statements include projections for Q1 and full-year 2025, expectations for the home furnishings category, the impact of KPay on customer acquisition, and relationships with merchant-partners. Actual events are unpredictable, and circumstances may differ from assumptions. Management’s expectations are not definitive guarantees of performance. Katapult faces risks and uncertainties related to debt refinance, business execution, and market opportunities. Factors include economic conditions, competition, data security, and regulatory compliance. Key metrics like gross originations, total revenue, and gross profit are used to evaluate performance. Non-GAAP financial measures like adjusted gross profit and EBITDA are also considered to assess core performance. Katapult Holdings, Inc. released financial results, encouraging investors to consider non-GAAP measures alongside GAAP financials. Adjusted gross profit, EBITDA, and net loss showed a loss of $9,569 for the quarter. Revenue increased to $62,963, with gross profit at $7,406. Operating expenses totaled $12,239, resulting in a loss from operations of $4,833. Total assets are $93,171, with a stockholders’ deficit of $46,794. 1. The stock market experienced a sharp decline today, with the S&P 500 falling by 2.5% and the Dow Jones losing 800 points. This drop was attributed to concerns over rising inflation and interest rates, causing investors to sell off their stocks.

2. In international news, tensions between Russia and Ukraine continue to escalate as Russian troops gather near the border. The United States and other Western countries have expressed concern over a potential invasion, with Ukraine declaring a state of emergency in response.

3. A new study has found that the number of children living in poverty in the United States has increased by 5% since the start of the COVID-19 pandemic. This rise in child poverty highlights the ongoing economic challenges facing many families in America.

4. The World Health Organization has declared a new COVID-19 variant, named Omicron, as a “variant of concern.” This variant has been detected in multiple countries and is believed to be more transmissible than previous strains, raising concerns about its potential impact on global efforts to control the pandemic.



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