Katapult Holdings, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $74.0 million, a 22.8% increase from $60.3 million in the same period last year. The growth was primarily driven by a rise in rental revenue, which reached $72.8 million, up from $59.6 million, and a significant increase in other revenue, which rose to $1.3 million from $0.7 million. Despite the revenue growth, the company reported a net loss of $4.9 million for the quarter, an improvement from a net loss of $8.9 million in the prior year, reflecting a 44.3% reduction in losses.
For the nine months ending September 30, 2025, Katapult's total revenue was $217.9 million, compared to $184.2 million in the same period of 2024, marking an 18.3% increase. The company’s gross profit for the nine-month period was $40.1 million, up from $38.4 million, although the gross profit margin decreased to 18.4% from 20.8% due to rising costs associated with increased gross originations and depreciation expenses. Operating expenses decreased by 5.0% to $39.6 million, primarily due to lower litigation settlement expenses.
In terms of operational metrics, Katapult reported a significant increase in gross originations, which reached $64.2 million for the third quarter, a 25.3% increase from $51.2 million in the same quarter of 2024. The company attributed this growth to the success of its mobile app, Katapult Pay, which accounted for 41% of gross originations in the quarter. The company also noted that its largest merchant, Wayfair, represented 25% of gross originations, down from 48% in the previous year, indicating a diversification of its merchant base.
Strategically, Katapult has undergone significant changes, including a refinancing agreement that has resulted in a new revolving credit facility of $110 million and a new term loan of $32.7 million. This refinancing aims to improve liquidity and support growth initiatives. However, the company has faced challenges in meeting certain financial covenants, leading to multiple waivers from its lenders. As of September 30, 2025, Katapult had a total debt of approximately $114.1 million, raising concerns about its ability to continue as a going concern without additional capital or operational improvements.
Looking ahead, Katapult's management expressed optimism about future growth driven by its technology and partnerships, but acknowledged the risks associated with market conditions, consumer behavior, and regulatory changes. The company is focused on enhancing its product offerings and expanding its merchant relationships to drive further growth. However, the ongoing challenges related to its debt obligations and the need for compliance with financial covenants remain critical factors that could impact its operational stability and financial performance in the near term.
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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