Katapult sees double-digit growth in gross originations and revenue, reiterating 2025 guidance
From GlobeNewswire: 2025-05-15 06:00:00
Katapult Holdings, Inc. expects growth to accelerate in the second quarter of 2025 and has reiterated its 2025 guidance. The company reported double-digit gross originations and revenue growth in the first quarter, driven by increasing engagement with the Katapult app marketplace. They are confident in their ability to create value for stakeholders.
Key highlights include a 59% increase in activity within the Katapult app marketplace, 57.4% of gross originations coming from repeat customers, and a Net Promoter Score of 66. The company also launched new partnerships and marketing campaigns that delivered significant growth in gross originations.
Financially, Katapult reported $64.2 million in gross originations, a 15.4% increase, and $71.9 million in total revenue, a 10.6% increase. Net loss was $5.7 million, mainly due to higher cost of sales and operating expenses. Adjusted EBITDA was $2.2 million, impacted by rapid growth in originations.
Looking ahead, Katapult expects a 25-30% increase in gross originations and a 17-20% increase in revenue for the second quarter of 2025. The company is reiterating its full-year 2025 expectations of at least 20% growth in gross originations. They believe their large addressable market and lease-to-own solutions will benefit from the current macro environment. Katapult expects revenue growth of at least 20% driven by risk modeling enhancements and onboarding new merchants. They aim to deliver over $10 million in positive Adjusted EBITDA. CFO Nancy Walsh is optimistic about the second quarter and 2025 outlook. A conference call will discuss financial results on May 15, 2025. Katapult is a lease-to-own platform for non-prime consumers, offering fair payment solutions. Forward-looking statements highlight business outlook and financial performance expectations. Various risks and uncertainties, including economic conditions and competition, are also addressed. The company faces risks related to federal income tax laws, internal control weaknesses, litigation, regulatory matters, adverse events, and Nasdaq listing requirements. Forward-looking statements warn of potential material differences. Key performance metrics include gross originations, total revenue, gross profit, adjusted gross profit, and adjusted EBITDA. Non-GAAP financial measures such as adjusted gross profit and adjusted EBITDA exclude certain expenses for better comparison. Katapult Holdings, Inc. reported $71,946 in total revenue for the first quarter of 2025, up from $65,061 in the same period in 2024. The company’s net loss for the quarter was $5,688, compared to a net loss of $570 in the previous year. Adjusted EBITDA for the quarter was $2,240.
The company’s current assets as of March 31, 2025, totaled $85,669, with cash and cash equivalents at $5,965 and restricted cash at $8,346. Total assets amounted to $88,535. Katapult Holdings, Inc. reported a stockholders’ deficit of $51,687 as of March 31, 2025.
For the first quarter of 2025, Katapult Holdings, Inc. had cash flows from operating activities of $3,438, while cash flows from investing activities were a net cash used of $401. In financing activities, the company had a net cash used of $5,278. The company ended the quarter with $14,311 in cash and cash equivalents and restricted cash.
Adjusted net income (loss) for the first quarter of 2025 was $(3,356), down from $983 in the same period in 2024. Fixed cash operating expenses for the quarter totaled $10,402. Adjusted gross profit was $12,492, compared to $14,847 in the first quarter of 2024.
Read more at GlobeNewswire:: Katapult Delivers 15.4% Gross Originations and 10.6%