Katapult (NASDAQ: KPLT) narrows Q2 loss and targets August merger close
Rhea-AI Filing Summary
Katapult Holdings reported Q2 2026 results showing modest growth and improving profitability. Gross originations were $75.5 million, up 4.7% year over year, or 31.0% excluding home furnishings and mattress. Total revenue was $74.8 million, up 4.0%.
Loss from operations was $(1.9) million versus $(1.4) million a year earlier, but net loss narrowed to $(4.4) million from $(7.8) million, a 44.0% improvement, mainly from $2.2 million lower interest expense after extinguishing its term loan in November 2025. Adjusted net loss improved to $(3.0) million, while Adjusted EBITDA rose to $1.2 million from $0.3 million. Write-offs were 9.7% of revenue, within the 8% to 10% long-term target range.
For the first half of 2026, cash provided by operations was $6.1 million compared with $(3.2) million used a year earlier. At June 30, 2026 Katapult held $24.1 million in cash and equivalents, including $6.0 million restricted, against $74.1 million outstanding on its revolving credit facility and a stockholders’ deficit of $36.0 million. Katapult expects its pending all-stock mergers with The Aaron’s Company and CCF Holdings LLC to close in August 2026, subject to stockholder approval and other customary conditions, and is not providing a business outlook or hosting an earnings call while the transaction is pending.
Positive
- Profitability and cash flow improved: Q2 2026 net loss narrowed to $4.4 million, a 44.0% improvement year over year, Adjusted EBITDA increased to $1.2 million from $0.3 million, and operating cash flow for the first half of 2026 turned positive at $6.1 million versus a $3.2 million outflow.
- Solid originations growth despite category headwinds: Q2 2026 gross originations reached $75.5 million, up 4.7% year over year, and grew 31.0% when excluding the home furnishings and mattress category.
Negative
- Continuing GAAP losses and deficit: Katapult remained unprofitable with a Q2 2026 net loss of $4.4 million and reported a stockholders’ deficit of $36.0 million as of June 30, 2026.
- Leverage remains high: As of June 30, 2026, the company had $74.1 million outstanding on its revolving credit facility versus $24.1 million of cash and equivalents, including restricted cash.
Filing Explained
By June 30, common shares had risen to 4,792,405 while two preferred series remained outstanding with stated liquidation preferences.
As of
The filing also reports Series A and Series B Convertible Preferred Stock as issued and outstanding, with stated liquidation preferences of
For the quarter, net loss attributable to common stockholders was
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Gross originations Q2 2026: $75.5 million
Total revenue Q2 2026: $74.8 million
Net loss Q2 2026: $4.4 million
+5 more
8 metrics
Gross originations Q2 2026
$75.5 million
Gross originations for the three months ended June 30, 2026, up 4.7% year over year
Total revenue Q2 2026
$74.8 million
Total revenue for the three months ended June 30, 2026, a 4.0% year-over-year increase
Net loss Q2 2026
$4.4 million
Net loss for the three months ended June 30, 2026, improved from $7.8 million in Q2 2025
Adjusted EBITDA Q2 2026
$1.2 million
Adjusted EBITDA for the three months ended June 30, 2026, compared with $0.3 million in Q2 2025
Operating cash flow H1 2026
$6.1 million
Cash provided by operations for the six months ended June 30, 2026, versus $3.2 million used in H1 2025
Cash and equivalents 6/30/2026
$24.1 million
Total cash and cash equivalents at June 30, 2026, including $6.0 million of restricted cash
Revolving credit facility debt
$74.1 million
Outstanding balance on the revolving credit facility at June 30, 2026
Write-offs as % of revenue Q2 2026
9.7%
Write-offs as a percentage of revenue in Q2 2026, within the 8% to 10% target range
Key Terms
gross originations, Adjusted EBITDA, mezzanine equity, lease-to-own, +1 more
5 terms
gross originations financial
"Gross originations are defined as the retail price of the merchandise associated with lease-purchase"
Gross originations are the total value of new loans, leases or credit agreements a lender or finance company has issued during a period before subtracting cancellations, buybacks or early payoffs. Think of it as the company’s new sales receipts for loans — a measure of how much new business it brought in — and investors watch it to gauge growth, market demand and the health of a lender’s origination pipeline.
Adjusted EBITDA financial
"Adjusted EBITDA1 was $1.2 million for the second quarter of 2026 an improvement compared"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
mezzanine equity financial
"MEZZANINE EQUITY Series A Convertible Preferred Stock, $0.001 par value; 35,000 shares authorized"
Mezzanine equity is a layer of financing that sits between bank loans and full ownership, combining elements of borrowed money and equity. It often gives lenders higher potential returns in exchange for taking more risk, sometimes with the option to convert into ownership or receive extra payments; think of it as a middle seat that pays more because it’s less secure than front-row debt. Investors watch it because it affects a company’s debt risk, potential dilution of ownership, and expected returns.
lease-to-own financial
"Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers"
A lease-to-own agreement lets a customer rent an asset (like a car, equipment, or property) with a built-in option to buy it later, where part of the rental payments often count toward the purchase price. Investors should watch these deals because they change how a business records revenue and assets, affect cash flow timing and credit risk if buyers default, and can signal demand strength or inventory management, similar to a renter slowly converting into an owner.
non-GAAP financial measures financial
"To supplement the financial measures presented in this press release the Company also presents non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Gross originations Q2 2026: $75.5 million · Guidance included
three and six months ended June 30, 2026
Gross originations Q2 2026
$75.5 million
up 4.7% year over year
Total revenue Q2 2026
$74.8 million
up 4.0% year over year
Net loss Q2 2026
$(4.4) million
44.0% improvement versus $(7.8) million in Q2 2025
Adjusted EBITDA Q2 2026
$1.2 million
increased from $0.3 million in Q2 2025
Operating cash flow H1 2026
$6.1 million
versus $(3.2) million used in operating activities in H1 2025
Guidance
Katapult is not providing a business outlook while its pending mergers with The Aaron’s Company and CCF Holdings LLC remain outstanding.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Katapult (KPLT) perform in Q2 2026?
Katapult’s Q2 2026 results showed revenue of $74.8 million and a net loss of $4.4 million, a 44.0% year-over-year improvement. Adjusted EBITDA rose to $1.2 million from $0.3 million, indicating better underlying profitability despite ongoing GAAP losses.
What were Katapult (KPLT)'s Q2 2026 gross originations?
In Q2 2026, Katapult generated gross originations of $75.5 million, up 4.7% year over year. Excluding the home furnishings and mattress category, gross originations grew 31.0%, highlighting strong demand in other verticals on its lease-to-own platform.
What is Katapult (KPLT)'s cash and debt position as of June 30, 2026?
As of June 30, 2026, Katapult held $24.1 million in cash and cash equivalents, including $6.0 million of restricted cash. The company had $74.1 million of outstanding debt on its revolving credit facility, contributing to an overall stockholders’ deficit.
How did Katapult (KPLT)'s operating cash flow change in 2026?
For the six months ended June 30, 2026, Katapult generated $6.1 million of cash from operations, compared with $3.2 million of cash used in operating activities in the prior-year period, reflecting a significant improvement in cash generation from its core business.
What is the status of Katapult (KPLT)'s merger with Aaron’s and CCF Holdings?
Katapult entered a Merger Agreement on December 11, 2025 to combine with The Aaron’s Company and CCF Holdings LLC. The transaction is expected to close in August 2026, subject to requisite stockholder approval and satisfaction of other customary closing conditions.
What were Katapult (KPLT)'s write-offs as a percentage of revenue in Q2 2026?
Katapult’s Q2 2026 write-offs were 9.7% of revenue, within its stated long-term target range of 8% to 10%. This compared with 9.8% in Q2 2025, indicating stable credit performance on its lease-to-own portfolio.
Why is Katapult (KPLT) not holding a Q2 2026 earnings call or providing guidance?
In light of its pending mergers with The Aaron’s Company and CCF Holdings LLC, Katapult is not hosting a conference call to discuss Q2 2026 results and is not providing a business outlook at this time.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2026
(Exact name of registrant as specified in its charter) | ||
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 4, 2026, Katapult Holdings, Inc., a Delaware corporation, issued a press release regarding its financial results for the three and six months ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
The information in this Current Report, including Exhibits 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Exhibit | |||||||
99.1 | Press Release of Katapult Holdings, Inc. dated August 4, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: | August 4, 2026 | /s/ Orlando Zayas | |||||||||||||||
Name: | Orlando Zayas | ||||||||||||||||
Title: | Chief Executive Officer | ||||||||||||||||
Ex. 99.1
Katapult Reports Second Quarter Results
Gross Originations Increase 5%, 15th Consecutive Quarter of Growth
Revenue Grows 4% ; Adjusted EBITDA Increases Nearly 280%
Pending Merger Transaction with The Aaron’s Company and CCF Holdings LLC Expected to Create a Scaled Financial Solutions Platform for Nonprime Consumers
PLANO, Texas, DATE, 2026— Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the second quarter ended June 30, 2026.
“This quarter we achieved our 15th consecutive quarter of gross originations growth, which reflects both the demand for our lease-to-own product and the dedication of our team,” said Orlando Zayas, CEO of Katapult. “Our consistently high Net Promoter Scores and repeat customer rates demonstrate the trusted relationships we’ve built with consumers and merchant-partners alike, and I’m incredibly proud of what our team has accomplished. As we approach the completion of our transaction with Aaron’s and CCF Holdings, we remain confident that this combination will deliver meaningful benefits for all of our stakeholders. Together, we are creating a scaled, omnichannel platform with a comprehensive suite of financial solutions that will enable us to serve even more nonprime consumers, and I couldn’t be more excited about the road ahead.”
Second Quarter 2026 Financial Highlights
(All comparisons are year-over-year unless stated otherwise.)
•Gross originations were $75.5 million, an increase of 4.7%. Excluding the home furnishings and mattress category, gross originations grew 31.0% year-over-year.
•Total revenue was $74.8 million, an increase of 4.0%.
•Total operating expenses in the second quarter increased by $0.9 million. Our fixed cash operating expenses2, which exclude transaction related costs and other non-cash and variable expenses, decreased by 1.0% year-over-year.
•Loss from operations was $(1.9) million, compared with a loss of $(1.4) million in the second quarter of 2025.
•Net loss was $(4.4) million for the second quarter of 2026, a 44.0% improvement compared with net loss of $(7.8) million reported for the second quarter of 2025. This year-over-year improvement was mainly driven by a $2.2 million decrease in interest expense due to the absence of the Term Loan in 2026 following its extinguishment in November 2025.
•Adjusted net loss1 was $(3.0) million for the second quarter of 2026, an improvement compared with adjusted net loss of $(5.7) million reported for the second quarter of 2025.
•Adjusted EBITDA1 was $1.2 million for the second quarter of 2026 an improvement compared to Adjusted EBITDA2 of $0.3 million in the second quarter of 2025.
•Katapult ended the quarter with total cash and cash equivalents of $24.1 million, which includes $6.0 million of restricted cash. The Company ended the quarter with $74.1 million of outstanding debt on its revolving credit facility.
•Cash provided by operations for the six months ended June 30, 2026 was $6.1 million, compared with cash used in operating activities of $3.2 million during the six months ended June 30, 2025.
1
•Write-offs as a percentage of revenue were 9.7% in the second quarter of 2026 and are within the Company’s 8% to 10% long-term target range. This compares to 9.8% in the second quarter of 2025.
[1] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information.
Pending Mergers with The Aaron’s Company and CCF Holdings LLC
On December 11, 2025, we entered into an agreement (the “Merger Agreement”) to merge with Aaron’s Intermediate Holdco, Inc. (“Aaron’s”) and CCF Holdings LLC (“CCF Holdings”).
We expect this transaction to close in August 2026, subject to requisite stockholder approval and the satisfaction of other customary closing conditions.
Additional information regarding the Merger Agreement and the transaction is included in the notes to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that we filed with the Securities and Exchange Commission.
In light of the pending mergers with Aaron’s and CCF Holdings, Katapult is not hosting a conference call to discuss second quarter financial results nor is the company providing a business outlook at this time.
About Katapult
Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R)(“KPay”), consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity.
Contact
Jennifer Cohn Kull
VP of Investor Relations
ir@katapult.com
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Forward-Looking Statements
Certain statements included in this Press Release 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,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release statements regarding the all-stock merger transaction of Katapult, Aaron’s and CCF Holdings, the closing of the transaction and the timing thereof; the financial and business impact of the transaction and the expected benefits of the transaction; and future opportunities for the combined company and the future operations of the combined company. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the ability to meet closing conditions to the proposed transaction, including stockholder approval, and the occurrence of any event, change or other circumstance that could delay the proposed transaction, or give rise to the termination of the Merger Agreement; potential adverse reactions or changes to business relationships resulting from the announcement of the mergers; litigation relating to the proposed transaction; the inability to retain key personnel, or potential diminished productivity due to the impact of the proposed transaction on Katapult’s current and prospective employees, key management, customers, suppliers, franchisees and business partners; meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; the combined company’s ability to successfully integrate and grow its business; anticipated tax treatment, unexpected costs, charges or expenses resulting from the transaction; the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring KPay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply
3
with laws and regulations applicable to our business and the business of the combined company, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the three months ended June 30, 2026 that we filed with the SEC.
If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. There can be no assurance that the transaction will be implemented or that plans of the respective directors and management of Katapult, Aaron’s and CCF Holdings will proceed as expected or will ultimately be successful. Undue reliance should not be placed on the forward-looking statements in this Press Release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.
Key Performance Metrics
Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA.
Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform.
Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers.
Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management.
4
Non-GAAP Financial Measures
To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net loss and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release.
Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue.
Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before interest expense and other fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, litigation and settlement expenses, provision for impairment of leased assets, interest income, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Transaction-related costs consist primarily of professional fees incurred and retention bonus costs in connection with the Mergers.
Adjusted net loss is a non-GAAP financial measure that is defined as net income (loss) before transaction related costs, stock-based compensation expense,, debt refinancing costs, litigation and settlement expenses, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants.
Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less variable lease costs such as servicing costs and underwriting fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, and litigation and settlement expenses. We believe fixed cash operating expenses illustrates our controllable ongoing expenses.
Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures:
•Are widely used to measure a company’s operating performance;
•Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and
•Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting.
5
Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies.
6
KATAPULT HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Rental revenue | $ | 73,512 | $ | 70,716 | $ | 150,934 | $ | 141,794 | |||||||||||||||
| Other revenue | 1,249 | 1,170 | 2,848 | 2,038 | |||||||||||||||||||
| Total revenue | 74,761 | 71,886 | 153,782 | 143,832 | |||||||||||||||||||
| Cost of revenue | 63,253 | 60,718 | 124,075 | 118,315 | |||||||||||||||||||
| Gross profit | 11,508 | 11,168 | 29,707 | 25,517 | |||||||||||||||||||
| Operating expenses | 13,437 | 12,578 | 27,301 | 27,463 | |||||||||||||||||||
| Income (loss) from operations | (1,929) | (1,410) | 2,406 | (1,946) | |||||||||||||||||||
| Loss on extinguishment of term loan | — | (1,040) | — | (1,040) | |||||||||||||||||||
| Interest expense and other fees | (3,173) | (5,361) | (6,312) | (10,505) | |||||||||||||||||||
| Interest income | 157 | 26 | 287 | 83 | |||||||||||||||||||
| Change in fair value of derivative liability and warrants | 630 | 11 | 4,946 | (25) | |||||||||||||||||||
Income (loss) before income taxes | (4,315) | (7,774) | 1,327 | (13,433) | |||||||||||||||||||
| Provision for income taxes | (73) | (61) | (29) | (90) | |||||||||||||||||||
| Net income (loss) | $ | (4,388) | $ | (7,835) | $ | 1,298 | $ | (13,523) | |||||||||||||||
| Net loss attributable to common stockholders | $ | (7,717) | $ | (7,835) | $ | (5,062) | $ | (13,523) | |||||||||||||||
| Weighted average common shares outstanding - basic and diluted | 5,491 | 4,813 | 5,473 | 4,716 | |||||||||||||||||||
| Net loss per common share attributable to common stockholders - basic and diluted | $ | (1.41) | $ | (1.63) | $ | (0.92) | $ | (2.87) | |||||||||||||||
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KATAPULT HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
| June 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
(unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 18,046 | $ | 22,432 | |||||||
| Restricted cash | 6,042 | 1,048 | |||||||||
Property held for lease, net of accumulated depreciation and impairment | 69,423 | 73,691 | |||||||||
| Prepaid expenses and other current assets | 3,427 | 4,257 | |||||||||
| Deferred financing costs, net | 1,818 | 3,802 | |||||||||
| Total current assets | 98,756 | 105,230 | |||||||||
| Property and equipment, net | 136 | 163 | |||||||||
| Capitalized software and intangible assets, net | 2,773 | 2,119 | |||||||||
| Right-of-use assets, non-current | 312 | 339 | |||||||||
| Security deposits | 15 | 15 | |||||||||
| Total assets | $ | 101,992 | $ | 107,866 | |||||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 4,525 | $ | 1,891 | |||||||
| Accrued liabilities | 15,672 | 17,701 | |||||||||
Accrued litigation settlement | 1,250 | 750 | |||||||||
| Unearned revenue | 5,488 | 4,883 | |||||||||
Revolving line of credit, net | 74,065 | 78,727 | |||||||||
Derivative liability | 8,700 | 13,600 | |||||||||
| Lease liabilities | 56 | 51 | |||||||||
| Total current liabilities | 109,756 | 117,603 | |||||||||
| Lease liabilities, non-current | 362 | 392 | |||||||||
| Other liabilities | — | 45 | |||||||||
| Total liabilities | 110,118 | 118,040 | |||||||||
| MEZZANINE EQUITY | |||||||||||
| Series A Convertible Preferred Stock, $0.001 par value; 35,000 shares authorized and issued (and outstanding) as of June 30, 2026 and December 31, 2025; stated value $1,000 per share; as of June 30, 2026, liquidation preference was $39.5 million. | 11,308 | 11,308 | |||||||||
| Series B Convertible Preferred Stock, $0.001 par value; 30,000 shares authorized and issued (and outstanding) as of June 30, 2026 and December 31, 2025; stated value $1,000 per share; as of June 30 2026, liquidation preference was $33.8 million. | 16,601 | 16,601 | |||||||||
| Total mezzanine equity | 27,909 | 27,909 | |||||||||
| STOCKHOLDERS' DEFICIT | |||||||||||
Common stock, $.0001 par value; 250,000,000 shares authorized; 4,792,405 and 4,750,258 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | — | — | |||||||||
| Additional paid-in capital | 109,753 | 109,003 | |||||||||
| Accumulated deficit | (145,788) | (147,086) | |||||||||
| Total stockholders' deficit | (36,035) | (38,083) | |||||||||
| Total liabilities, mezzanine equity and stockholders' deficit | $ | 101,992 | $ | 107,866 | |||||||
8
KATAPULT HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 1,298 | $ | (13,523) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 82,685 | 81,180 | |||||||||
| Depreciation for early lease purchase options (buyouts) | 21,577 | 19,010 | |||||||||
| Depreciation for impaired leases | 14,720 | 13,932 | |||||||||
| Change in fair value of derivative liability, warrants, and other | (4,982) | 25 | |||||||||
| Stock-based compensation | 858 | 1,930 | |||||||||
| Loss on extinguishment of term loan | — | 1,040 | |||||||||
| Amortization of debt discount | — | 1,873 | |||||||||
| Amortization of debt issuance costs, net | 2,060 | 361 | |||||||||
| Accrued PIK interest expense | — | 1,172 | |||||||||
| Amortization of right-of-use assets | 23 | 161 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Property held for lease | (114,078) | (115,784) | |||||||||
| Prepaid expenses and other current assets | 871 | 2,947 | |||||||||
| Accounts payable | 2,634 | 1,036 | |||||||||
| Accrued liabilities | (2,613) | 1,485 | |||||||||
| Accrued litigation | 500 | (500) | |||||||||
| Lease liabilities | (25) | (159) | |||||||||
| Unearned revenues | 605 | 618 | |||||||||
| Net cash provided by (used in) operating activities | 6,133 | (3,196) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (24) | (24) | |||||||||
| Additions to capitalized software | (730) | (636) | |||||||||
| Net cash used in investing activities | (754) | (660) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from New and Existing Revolving Facilities | 8,844 | 10,013 | |||||||||
| Principal repayments on New and Existing Revolving Facilities | (13,506) | (12,154) | |||||||||
| Payments of deferred financing costs | (1) | (1,204) | |||||||||
| Repurchases of restricted stock | (108) | (361) | |||||||||
| Net cash used in financing activities | (4,879) | (3,706) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 608 | (7,562) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 23,480 | 16,552 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 24,088 | $ | 8,990 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest | $ | 3,890 | $ | 7,066 | |||||||
| Cash paid for income taxes | $ | 547 | $ | 48 | |||||||
| Cash paid for operating leases | $ | 54 | $ | 112 | |||||||
| Supplemental disclosure of non-cash investing and financing activities | |||||||||||
| Issuance of warrants to purchase common stock in connection with debt refinancing | $ | — | $ | 3,934 | |||||||
| Issuance of common stock in connection with litigation settlements | $ | — | $ | 752 | |||||||
| Issuance of New Term Loan derivative liability in connection with debt refinancing | $ | — | $ | 3,558 | |||||||
| Debt issuance costs accrued but not yet paid | $ | 75 | $ | 3,103 | |||||||
| Extinguishment of Existing Term Loan | $ | — | $ | 32,654 | |||||||
| Acquisition of intangible asset through accrued liabilities | $ | 509 | $ | — | |||||||
9
KATAPULT HOLDINGS, INC.
RECONCILIATION OF NON-GAAP MEASURES AND CERTAIN OTHER DATA (UNAUDITED)
(amounts in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net income (loss) | $ | (4,388) | $ | (7,835) | $ | 1,298 | $ | (13,523) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Interest expense and other fees | 3,173 | 5,361 | 6,312 | 10,505 | |||||||||||||||||||
| Transaction related costs | 979 | — | 2,672 | — | |||||||||||||||||||
| Stock-based compensation expense | 312 | 864 | 858 | 1,930 | |||||||||||||||||||
| Litigation and settlement expenses | 720 | 178 | 855 | 437 | |||||||||||||||||||
| Depreciation and amortization on property and equipment, intangibles and capitalized software | 319 | 315 | 636 | 645 | |||||||||||||||||||
| Provision for impairment of leased assets | 820 | 270 | 191 | 420 | |||||||||||||||||||
| Provision for income taxes | 73 | 61 | 29 | 90 | |||||||||||||||||||
| Debt refinancing costs and loss on extinguishment of debt | — | 1,145 | — | 2,116 | |||||||||||||||||||
| Interest income | (157) | (26) | (287) | (83) | |||||||||||||||||||
Change in fair value of derivative liability and warrants | (630) | (11) | (4,946) | 25 | |||||||||||||||||||
| Adjusted EBITDA | $ | 1,221 | $ | 322 | $ | 7,618 | $ | 2,562 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | (4,388) | $ | (7,835) | $ | 1,298 | $ | (13,523) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Transaction related costs | 979 | — | 2,672 | — | |||||||||||||||||||
| Stock-based compensation expense | 312 | 864 | 858 | 1,930 | |||||||||||||||||||
| Litigation and settlement expenses | 720 | 178 | 855 | 437 | |||||||||||||||||||
| Debt refinancing costs | — | 1,145 | — | 2,116 | |||||||||||||||||||
| Change in fair value of derivative liability and warrants | (630) | (11) | (4,946) | 25 | |||||||||||||||||||
Adjusted net income (loss) | $ | (3,007) | $ | (5,659) | $ | 737 | $ | (9,015) | |||||||||||||||
10
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Operating expenses | $ | 13,437 | $ | 12,578 | $ | 27,301 | $ | 27,463 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Transaction related costs | 979 | — | 2,672 | — | |||||||||||||||||||
| Servicing costs | 1,291 | 1,127 | 2,526 | 2,212 | |||||||||||||||||||
| Underwriting fees | 750 | 830 | 1,408 | 1,602 | |||||||||||||||||||
Stock-based compensation expense | 312 | 864 | 858 | 1,930 | |||||||||||||||||||
| Litigation and settlement expenses | 720 | 178 | 855 | 437 | |||||||||||||||||||
| Depreciation and amortization on property and equipment and capitalized software | 319 | 315 | 636 | 645 | |||||||||||||||||||
| Debt refinancing costs | — | 105 | — | 1,076 | |||||||||||||||||||
| Fixed cash operating expenses | $ | 10,045 | $ | 9,159 | $ | 21,018 | $ | 19,561 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenue | $ | 74,761 | $ | 71,886 | $ | 153,782 | $ | 143,832 | |||||||||||||||
| Cost of revenue | 63,253 | 60,718 | 124,075 | 118,315 | |||||||||||||||||||
| Gross profit | 11,508 | 11,168 | 29,707 | 25,517 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Servicing costs | 1,291 | 1,127 | 2,526 | 2,212 | |||||||||||||||||||
| Underwriting fees | 750 | 830 | 1,408 | 1,602 | |||||||||||||||||||
| Adjusted gross profit | $ | 9,467 | $ | 9,211 | $ | 25,773 | $ | 21,703 | |||||||||||||||
CERTAIN KEY PERFORMANCE METRICS
| (in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total revenue | $ | 74,761 | $ | 71,886 | $ | 153,782 | $ | 143,832 | |||||||||||||||
KATAPULT HOLDINGS, INC.
GROSS ORIGINATIONS
| Gross Originations | ||||||||||||||||||||||||||||||||
| ($ millions) | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||
| FY 2026 | $ | 64.2 | $ | 75.5 | $ | — | $ | — | $ | 139.7 | ||||||||||||||||||||||
| FY 2025 | $ | 64.2 | $ | 72.1 | $ | 64.2 | $ | 77.9 | $ | 278.4 | ||||||||||||||||||||||
| FY 2024 | $ | 55.6 | $ | 55.3 | $ | 51.2 | $ | 75.2 | $ | 237.3 | ||||||||||||||||||||||
11