Katapult Holdings Reports 4% Revenue Growth and Plans Merger with CCFI and Aaron's

Katapult Holdings, Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $74.8 million, a 4% increase from $71.9 million in the same period last year. The growth was primarily driven by a rise in rental revenue, which reached $73.5 million, up from $70.7 million. However, the company recorded a net loss of $4.4 million, an improvement compared to a net loss of $7.8 million in the prior year. The loss attributable to common stockholders was $7.7 million, slightly lower than the $7.8 million reported in the same quarter of 2025.

In the first half of 2026, Katapult's total revenue increased by 6.9% to $153.8 million, compared to $143.8 million in the first half of 2025. The company achieved a gross profit of $29.7 million, a significant increase from $25.5 million in the previous year, reflecting a gross profit margin of 19.3%. Operating expenses remained relatively stable at $27.3 million, down slightly from $27.5 million. The company’s improved financial performance was attributed to growth in its lease portfolio and effective collection efforts, despite ongoing challenges in the market.

Strategically, Katapult is in the process of merging with CCFI and Aaron’s, which is expected to close in August 2026, pending regulatory and stockholder approvals. This merger aims to create a comprehensive omni-channel platform for non-prime consumers, enhancing access to durable goods and financial solutions. The company incurred approximately $2.7 million in transaction-related costs during the first half of 2026, primarily for professional and consulting services related to the merger.

Operationally, Katapult reported a gross originations figure of $75.5 million for the second quarter, a 4.7% increase from the previous year. The company’s mobile app, featuring Katapult Pay (KPay), accounted for 40% of gross originations, indicating strong customer engagement. The company also noted that its top merchant, Wayfair, represented 17% of gross originations, down from 27% in the previous year, highlighting a diversification in its merchant relationships.

Looking ahead, Katapult's management expressed confidence in the company's ability to navigate its financial challenges, particularly regarding its New Revolving Facility, which matures in December 2026. The company does not currently have sufficient liquidity to repay the outstanding balance at maturity but anticipates that the completion of the merger will enhance its financial position and liquidity. Management has indicated plans to refinance or extend the facility before its maturity, alleviating concerns about the company's ability to continue as a going concern.