Katapult Holdings, Inc. reported a significant turnaround in its financial performance for the first quarter of 2026, posting a net income of $5.7 million compared to a net loss of $5.7 million in the same period of 2025. Total revenue increased by 9.8% to $79.0 million, driven primarily by a rise in rental revenue, which grew by 8.9% to $77.4 million. The company attributed this growth to a larger base of active leases and improved collection efforts, alongside increased buyout activity. Gross profit also saw a notable increase, rising 26.8% to $18.2 million, reflecting a gross profit margin of 23.0%, up from 19.9% in the prior year.
In terms of operational metrics, Katapult's gross originations remained stable at approximately $64.2 million, with 42% of these transactions facilitated through its mobile app, KPay. The company reported a slight increase in write-offs as a percentage of total revenue, maintaining a target range of 8% to 10%. The total number of shares outstanding as of March 31, 2026, was 4,765,058, reflecting a modest increase from the previous quarter.
Strategically, Katapult is in the process of merging with CCFI and Aaron’s, which is expected to close in the third quarter of 2026, pending regulatory approvals and other customary conditions. The merger aims to create a comprehensive omni-channel platform for non-prime consumers, enhancing access to durable goods and financial solutions. The company incurred $1.7 million in transaction-related costs during the quarter, primarily for professional and consulting fees associated with the merger.
Despite the positive financial results, Katapult faces challenges related to its debt obligations. As of March 31, 2026, the company had $71.6 million outstanding under its New Revolving Facility, which matures in December 2026. The company has been granted temporary waivers for certain financial covenants, raising concerns about its ability to maintain compliance in the future. Management is actively seeking to refinance or extend its debt to ensure liquidity and operational continuity.
Looking ahead, Katapult's management remains cautiously optimistic about the future, emphasizing the importance of the upcoming merger and its potential to reshape the company's capital structure. However, they acknowledge the risks associated with market conditions, regulatory changes, and the need for continued innovation in their product offerings to sustain growth and profitability.
About Katapult Holdings, Inc.
Katapult Holdings, Inc. operates a technology-driven lease-to-own platform serving underserved nonprime consumers in the U.S. by enabling flexible, transparent purchase options for durable goods through omnichannel retail and e-commerce partnerships. Its proprietary platform offers quick approvals, fair terms, and no late fees, targeting retail merchants and consumers with alternative financing solutions that promote inclusion and customer loyalty.
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