UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39116 Katapult Holdings, Inc. (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification No.) (State ...

Expects Growth to Accelerate In Second QuarterReiterates 2025 Guidance PLANO, Texas, May 15, 2025 (GLOBE NEWSWIRE) -- In the press release issued by Katapult Holdings, Inc. on May 15, 2025, in the gross originations by quarter table, Q4 in FY 2024 should be $75.2 million instead of $64.2 million. The updated release reads: Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended ...

Katapult (KPLT) Q1 2025 Earnings Call May 15, 2025 08:00 AM ET Speaker0 Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Catapult Holdings First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Jennifer C ...

Ex. 99.1 Katapult Delivers 15.4% Gross Originations and 10.6% Revenue Growth in the First Quarter, Above Outlook Expects Growth to Accelerate In Second Quarter Reiterates 2025 Guidance PLANO, Texas, May 15, 2025 -- Katapult Holdings, Inc. ("Katapult" or the "Company") (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended March 31, 2025. "2025 is off to a strong start and we are well positioned to achieve our full year targets," s ...

Disclaimer Forward-Looking Statements Certain statements included in this presentation, on our quarterly earnings call and in our related press release (collectively, this "presentation") that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as "anticipate," "assume," "believe," "continue," "could," "design," "es ...

PLANO, Texas, May 08, 2025 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ: KPLT), an e-commerce-focused financial technology company, today announced it will release its first quarter 2025 financial results before the market opens on Thursday, May 15, 2025. The company will host a conference call and webcast to discuss these results at 8:00 AM ET that same day. A live audio webcast of the conference call will be available on the Katapult Investor Relations website at http://ir.katapultholdings.com/. A ...

Financial Data and Key Metrics Changes - Gross originations grew 11.3% to $75.2 million in Q4 2024, marking nine consecutive quarters of growth [65][66] - Revenue for Q4 was $63 million, reflecting a 9.4% increase, and for the full year, revenue grew approximately 12% [72] - Gross profit for Q4 was approximately $7.4 million, down from $8.9 million in the previous year, while full-year gross profit was $45.8 million, up about 10% [73][74] - Adjusted EBITDA for Q4 was a loss of $1.1 million, while for the full year, it was approximately $4.8 million, a $6.7 million improvement compared to the previous year [81][82] Business Line Data and Key Metrics Changes - Total app originations grew by 32% year-over-year in Q4, with $46 million in gross originations starting in the app [31][32] - KPay originations were approximately $31 million, up 52% year-over-year, representing 41% of total originations [32][33] - Direct and waterfall gross originations grew approximately 44% year-over-year in Q4, excluding home furnishings and mattress categories [48] Market Data and Key Metrics Changes - Approximately 68% of total gross originations in 2024 came from direct and waterfall merchants [47] - The largest merchant, Wayfair, represented 27% of total gross originations in Q4, down from 43% in the previous year [68] Company Strategy and Development Direction - The company aims to enhance consumer engagement through app functionality and marketing campaigns, focusing on driving application growth and repeat leases [26][35] - Plans to introduce new merchants to the Katapult app marketplace throughout 2025 to expand offerings [86] - The strategy includes leveraging partnerships to broaden the application pool and enhance customer engagement [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential despite a challenging macro environment, particularly in the home furnishings sector [86] - The company anticipates gross originations growth of at least 20% and revenue growth of at least 20% for 2025 [90] Other Important Information - The company has a disciplined approach to expense management, with total operating expenses decreasing by 37% in Q4 [78] - Cash used in operations for the full year was $32.6 million, compared to $17.4 million in 2023, largely due to growth-related costs [85] Q&A Session Summary Question: Outlook for margin in 2025 given strong growth expectations - Management expects gross profit to remain in the 18% to 20% range for 2025, consistent with previous years [96] Question: Changes in consumer behavior due to tariffs - Management has not observed significant changes in consumer behavior related to tariffs, with stability in delinquencies and consumer sentiment [98][100] Question: Drivers for improved EBITDA margin despite revenue growth - The improvement in EBITDA margin is primarily driven by diligent expense management while investing in growth initiatives [110] Question: Growth in Wayfair originations in Q4 - Wayfair's gross origination growth was not disclosed, but overall business outside of Wayfair grew at 50% [114] Question: Impact of macro uncertainty on merchant acquisition - Management noted that uncertainty can accelerate merchant acquisition as they seek growth opportunities [120]

Katapult (KPLT) Q4 2024 Earnings Call March 28, 2025 08:00 AM ET Company Participants Jennifer Kull - VP & Head - IROrlando Zayas - CEODerek Medlin - President & Chief Growth OfficerNancy Walsh - Chief Financial OfficerKyle Joseph - Managing DirectorAnthony Chukumba - Managing Director Conference Call Participants Scott Buck - Managing Director & Senior Technology Analyst Operator Thank you for standing by, and welcome to the Catapult Holdings Fourth Quarter and Full Year twenty twenty four Earnings Confere ...

Financial Performance - The company incurred a net loss of $25.9 million and $36.7 million for the fiscal years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of approximately $148.5 million[105]. - The company received a going concern opinion from auditors, indicating substantial doubt about its ability to continue operations without refinancing its indebtedness[163]. - The company has previously fallen out of compliance with Nasdaq's listing requirements, which could lead to delisting and adversely affect stock liquidity and price[179]. - The company may face reputational risks and potential litigation due to the restatement of financial statements[175]. - Legal proceedings could materially affect financial condition and require significant settlement amounts[185]. Debt and Financing - As of December 31, 2024, the total aggregate indebtedness was approximately $114.5 million, with $82.8 million under the RLOC and $31.8 million under the Term Loan[95][103]. - The company may face challenges in refinancing its indebtedness, which matures on June 4, 2025, potentially impacting its financial condition and operations[98]. - The Credit Agreement includes restrictive covenants that could limit the company's ability to pursue growth strategies, including mergers and acquisitions[99]. - The interest rate on the revolving line of credit (RLOC) increased to 13.1% as of December 31, 2024, following the 15th amendment to the Credit Agreement[288]. - The interest rate on the Term Loan was 18.6% as of December 31, 2024, which includes a 6.0% PIK interest[289]. Market and Competition - The company faces significant competition from various businesses, including e-commerce retailers and virtual lease-to-own companies[86]. - Economic downturns may impact the company's ability to comply with covenants and make payments on its indebtedness[95]. - Inflation has negatively impacted consumer spending and sales of key merchants, but it has not had a material effect on the company's results of operations or financial condition[291]. Technology and Data Security - The company utilizes AI/ML for fraud analysis, credit risk analysis, and product personalization, but faces significant risks related to the performance and ethical implications of these technologies[113]. - Cybersecurity threats, including ransomware and supply-chain attacks, pose significant risks that could disrupt operations and harm reputation[139]. - The company bears the risk of customer fraud in lease-to-own transactions, which could adversely affect financial performance[149]. - The performance and reliability of the company's technology infrastructure are crucial for attracting and retaining merchants and customers[131]. - The company has implemented security measures, but there is no assurance they will be effective against evolving cyber threats[143]. Regulatory and Compliance Risks - The company is subject to extensive federal, state, and local laws and regulations, which may lead to significant compliance costs and potential litigation risks[156]. - In July 2023, the Consumer Financial Protection Bureau filed a case against Snap Finance, indicating increased regulatory scrutiny in the lease-to-own industry[160]. - The company is subject to various data privacy laws, including the TCPA, which can impose significant financial penalties for violations[123]. - Noncompliance with the Payment Card Industry Data Security Standard (PCI DSS) could result in penalties, litigation, and damage to the company's reputation[124]. - Regulatory scrutiny on AI/ML is increasing, with various jurisdictions considering new laws that could impact the company's operations and compliance costs[115]. Operational Challenges - The company must continuously innovate to remain competitive, requiring significant financial and personnel resources[90]. - The company may not be able to effectively manage its growth, which could adversely affect revenue generation and expense control[94]. - The company relies on third-party vendors for critical operations, posing risks as any service interruptions could adversely affect its business[131]. - The company relies on merchant partners to effectively present and integrate its platform, and any failure in this regard could materially affect its business[118]. - The company has identified control deficiencies that constituted material weaknesses, which were remediated, but future weaknesses may still arise[167]. Human Resources and Management - Loss of leadership team members could materially affect business operations and financial condition[191]. - Difficulty in attracting and retaining skilled employees may adversely impact business performance[192]. - Significant costs associated with compliance as a public company could impact financial position[195]. Shareholder Considerations - No plans to pay cash dividends in the foreseeable future, limiting return on investment for shareholders[198]. - The company had outstanding warrants to purchase an aggregate of 673,300 shares of common stock as of December 31, 2024, which could result in dilution for existing stockholders[204]. - The company may issue additional securities in connection with investments or acquisitions, which could lead to dilution for stockholders[203]. - Anti-takeover provisions in the company's organizational documents may delay or prevent a change of control, limiting stockholders' ability to obtain a premium for their shares[207].

Financial Performance - Total revenue for Q4 2024 was $63.0 million, reflecting a 9.4% year-over-year increase[5]. - Total revenue for the year ended December 31, 2024, was $247.194 million, an increase from $221.588 million in 2023, representing a growth of approximately 11.5%[37]. - Gross profit for the year ended December 31, 2024, was $45.771 million, compared to $41.707 million in 2023, reflecting an increase of about 9.9%[37]. - Total revenue for Q4 2024 was $62,963,000, representing a 9.5% increase from $57,558,000 in Q4 2023[46]. - Gross profit for the year ended December 31, 2024, was $45,771,000, up from $41,707,000 in 2023, indicating a growth of 9.9%[46]. Growth Metrics - Gross originations for Q4 2024 were $75.2 million, an increase of 11.3% year-over-year, with a 50% growth excluding the home furnishings and mattress category[5]. - The company achieved a 50% growth in application volume during Q4 2024, driven by new and existing customers[2]. - KPay gross originations grew approximately 52% year-over-year in Q4 2024, accounting for 41% of total gross originations[4]. - The company expects gross originations to grow at least 20% in Q1 2025 and throughout the year[9]. - Gross originations in Q4 2024 reached $75.2 million, an increase from $67.5 million in Q4 2023, marking a growth of 11.6%[48]. Customer Metrics - Approximately 61% of Q4 2024 gross originations started in the Katapult app marketplace, making it the largest customer referral source[3]. - The repeat customer rate was 61.5% for Q4 2024, indicating strong customer retention[3]. Operating Expenses - Total operating expenses in Q4 2024 decreased by 37.4%, with fixed cash operating expenses down approximately 7.1%[5]. - Total operating expenses for the year ended December 31, 2024, were $53.872 million, down from $60.499 million in 2023, showing a reduction of about 11%[37]. - Total operating expenses for the year ended December 31, 2024, were $53,872,000, down from $60,499,000 in 2023, a decrease of 11.9%[44]. Net Loss and Adjusted Metrics - Net loss for Q4 2024 was $9.6 million, an improvement from a net loss of $14.6 million in Q4 2023[5]. - The net loss for the year ended December 31, 2024, was $25.915 million, a decrease from a net loss of $36.666 million in 2023, indicating an improvement of approximately 29.4%[37]. - Adjusted EBITDA for Q4 2024 was $(1,068,000), an improvement from $(327,000) in Q4 2023[43]. - The adjusted net loss for Q4 2024 was $(8,007,000), compared to $(6,309,000) in Q4 2023, indicating a worsening of 26.9%[43]. Balance Sheet Highlights - Cash and cash equivalents at the end of the period were $3.465 million, a significant decrease from $21.408 million at the end of 2023[39]. - The company reported a total of $90.368 million in current assets as of December 31, 2024, down from $97.637 million in 2023[39]. - The total liabilities increased to $139.965 million as of December 31, 2024, compared to $128.854 million in 2023, representing an increase of approximately 8.7%[39]. - The company’s accumulated deficit as of December 31, 2024, was $148.451 million, up from $122.536 million in 2023[39]. - The weighted average common shares outstanding increased to 4.518 million in 2024 from 4.130 million in 2023[37]. Interest and Compensation Expenses - Interest expense and other fees for the year ended December 31, 2024, totaled $18,851,000, compared to $17,822,000 in 2023, an increase of 5.8%[43]. - Stock-based compensation expense for the year ended December 31, 2024, was $5,759,000, down from $7,034,000 in 2023, a decrease of 18.1%[43]. Write-offs - Write-offs as a percentage of revenue were 9.6% in Q4 2024, within the company's long-term target range of 8% to 10%[5].