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Market Overview - U.S. stock futures are up early Monday morning, following a mixed week with a rotation from expensive tech stocks to value stocks, despite a third consecutive interest rate cut [1] - The 10-year Treasury bond yielded 4.17%, while the two-year bond was at 3.51%, with a 73.4% likelihood of the Federal Reserve keeping interest rates unchanged in the upcoming meeting [3] Stocks in Focus - iRobot Corp. is down 81.98% pre-market after filing for bankruptcy due to tariffs impacting margins [5] - MindWalk Holdings is expected to report a loss of $0.01 per share on $4 million in revenue, with the stock up 10.73% pre-market [5] - Katapult Holdings is down 9.12% pre-market following an all-stock merger announcement, with poor momentum scores [5] Economic Data and Events - The Empire State Manufacturing Survey results are anticipated, along with speeches from Federal Reserve officials [2][12] - Upcoming economic data includes the home builder confidence index and various economic indicators throughout the week [12] Commodity and Crypto Markets - Crude oil futures are trading higher by 0.31% at approximately $57.42 per barrel, while gold is up 1.10% at around $4,346.35 per ounce [10] - Bitcoin is trading 1.90% higher at $89,848.10 per coin [10]

Market Overview - U.S. stock futures are up early Monday morning, following a mixed week with a rotation from expensive tech stocks to value stocks, despite a third consecutive interest rate cut [1] - The 10-year Treasury bond yielded 4.17%, while the two-year bond was at 3.51% [3] - The CME Group's FedWatch tool indicates a 73.4% likelihood of the Federal Reserve keeping interest rates unchanged at its next meeting on January 28, 2026 [3] Stocks in Focus - iRobot Corp. is down 81.98% pre-market after filing for bankruptcy due to tariffs impacting margins [5] - MindWalk Holdings is expected to report a loss of $0.01 per share on $4 million in revenue, with the stock up 10.73% pre-market [5] - Katapult Holdings is down 9.12% pre-market following news of an all-stock merger with Aaron's and CCF [5] - Argenx SE is down 6.72% pre-market after discontinuing its Phase 2 studies for thyroid eye disease [4] Economic Data and Events - The Empire State Manufacturing Survey results are anticipated, along with speeches from Federal Reserve officials [2][12] - Upcoming economic data includes the home builder confidence index from the National Association of Home Builders [12] Commodity and Crypto Markets - Crude oil futures are trading higher by 0.31% at approximately $57.42 per barrel [10] - Gold Spot is up 1.10%, hovering around $4,346.35 per ounce [10] - Bitcoin is trading 1.90% higher at $89,848.10 per coin [10]

On behalf of Katapult shareholders, Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits. We would handle the action on a contingent fee basis, whereby you would not be responsible for out-of- pocket payment of our legal fees or expenses. Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been ins ...

Core Viewpoint - The Ademi Firm is investigating Katapult for potential breaches of fiduciary duty and legal violations related to its transaction with The Aaron's Company Inc. and CCF Holdings LLC [1] Group 1: Transaction Details - Katapult shareholders will hold 6% of the combined company on a fully diluted basis, while Aaron's and CCF Holdings stakeholders will own the remaining shares [2] - Katapult insiders are set to receive significant benefits as part of the change of control arrangements [2] Group 2: Investigation Focus - The transaction agreement imposes a significant penalty on Katapult if it accepts a competing bid, which may limit competing transactions unreasonably [3] - The investigation is centered on the conduct of Katapult's board of directors and whether they are meeting their fiduciary duties to all shareholders [3]

Katapult Holdings, Inc. (KPLT) is trading 23.20 percent higher at $7.65, up $1.45 on Friday, after announcing a definitive all-stock agreement to merge with The Aaron's Company, Inc. and CCF Holdings LLC. The combined entity will create an expanded omni-channel platform offering non-prime consumers access to durable goods and a broader suite of financial solutions. The stock opened at $9.19 and has moved between $7.01 and $9.23 so far today on the Nasdaq. The bid is at $7.61 and the ask at $8.63. Trading v ...

Core Viewpoint - Katapult Holdings, Inc. has announced a definitive agreement to merge with The Aaron's Company, Inc. and CCF Holdings LLC in an all-stock transaction, aiming to create a premier omni-channel platform for non-prime consumers, enhancing growth potential and financial solutions [1][2][3]. Strategic and Financial Rationale - The merger will create a trusted platform for non-prime consumers to access durable goods and innovative financial solutions tailored to their needs [3]. - The combined company will establish a scaled omni-channel business with approximately 3,000 retail touchpoints and leading digital capabilities [3]. - The financial profile of the combined entity is projected to include over $4 billion in pro forma LTM revenue and approximately $450 million in pro forma LTM Adjusted EBITDA, supporting long-term double-digit Adjusted EBITDA margin potential [3]. - The merger is expected to unlock significant synergies, including enhanced underwriting capabilities and operating efficiencies [3]. Leadership and Governance - The combined company will continue to operate under the Katapult brand, headquartered in Atlanta, Georgia, with Cory Miller as CEO and Russell Falkenstein as CFO [7]. - The board of directors will consist of nine members, including Kyle Hanson as Executive Chair, with a majority being independent [8]. Transaction Details - Upon closing, current Katapult stockholders will own 6% of the combined company, with Aaron's and CCF Holdings stakeholders owning the remainder [5]. - The transaction is expected to close in the first half of 2026, pending stockholder and regulatory approvals [5].

Core Viewpoint - Katapult Holdings held its Third Quarter 2025 Earnings Call, discussing financial performance and future guidance [2]. Group 1: Financial Performance - The call included remarks from key executives, including the CEO, CFO, and Chief Growth Officer, indicating a focus on operational results and financial guidance [2]. - The company provided both GAAP and non-GAAP financial measures, emphasizing the importance of understanding these metrics in evaluating performance [3]. Group 2: Forward-Looking Statements - The executives made forward-looking statements regarding financial guidance and business operations, highlighting the inherent risks and uncertainties associated with these projections [3]. - The company noted that actual results may differ materially from these forward-looking statements, which are based on current beliefs and assumptions [3].

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Financial Performance - Gross originations for the three months ended September 30, 2025, increased to $64,187,000, representing a growth of 25.3% compared to $51,210,000 in the same period of 2024[142]. - Total revenue for the three months ended September 30, 2025, was $74,044,000, up 22.8% from $60,307,000 in the same period of 2024[152]. - Gross profit for the three months ended September 30, 2025, was $14,552,000, reflecting a 21.8% increase from $11,949,000 in the same period of 2024[152]. - The net loss for the three months ended September 30, 2025, decreased to $4,949,000, a 44.3% improvement compared to a net loss of $8,888,000 in the same period of 2024[152]. - Gross originations for the nine months ended September 30, 2025, totaled $200,524,000, representing a 23.7% increase from $162,151,000 in the same period of 2024[144]. - Total revenue for the nine months ended September 30, 2025, was $217,876,000, an 18.3% increase from $184,231,000 in the same period of 2024[162]. - Total revenue increased by $33.6 million, or 18.3%, to $217.9 million for the nine months ended September 30, 2025, compared to $184.2 million for the same period in 2024[163]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, decreased by 26.3% to $12,089,000 from $16,396,000 in the same period of 2024[160]. - Total operating expenses decreased by $2.1 million, or 5.0%, to $39.6 million for the nine months ended September 30, 2025, compared to $41.6 million for the same period in 2024[166]. - Cost of revenue rose by $31.9 million, or 21.9%, to $177.8 million for the nine months ended September 30, 2025, compared to $145.9 million for the same period in 2024[164]. Profitability Metrics - The adjusted EBITDA for the three months ended September 30, 2025, improved significantly, although specific figures were not disclosed in the provided content[151]. - Adjusted gross profit for the nine months ended September 30, 2025, was $34.3 million, compared to $33.4 million for the same period in 2024[170]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $6.98 million, compared to $5.84 million for the same period in 2024[171]. - Gross profit as a percentage of total revenue decreased to 18.4% for the nine months ended September 30, 2025, down from 20.8% for the same period in 2024[165]. Cash Flow and Financing - Cash, cash equivalents, and restricted cash at the end of the period were $8.96 million for the nine months ended September 30, 2025, down from $30.3 million for the same period in 2024[179]. - The company experienced a net cash provided by operating activities of $796,000 for the nine months ended September 30, 2025, compared to a net cash used of $4.07 million for the same period in 2024[179]. - The cash used in financing activities increased by $13.6 million in the 2025 period compared to 2024, driven by a $6.6 million increase in principal repayments and a $3.7 million increase in deferred financing costs[181]. - In the nine months ended September 30, 2025, a $5.8 million principal repayment was made due to a corrected borrowing base calculation, contributing to increased principal repayments compared to the same period in 2024[183]. Debt and Interest Rates - The principal balance outstanding related to the New Revolving Facility was approximately $70.0 million as of November 7, 2025[176]. - As of September 30, 2025, the interest rate on the New Revolving Facility was 11.9%, while the New Term Loan bore interest at a rate of 18.0%[195][196]. - Interest expense increased by $2.4 million to $16.4 million for the nine months ended September 30, 2025, compared to $14.0 million for the same period in 2024[166]. - A hypothetical 100 basis point change in interest rates would affect annual interest expense by approximately $0.8 million for the New Revolving Facility and $0.3 million for the New Term Loan[197]. Going Concern and Economic Factors - The financial statements raise substantial doubt about the company's ability to continue as a going concern for one year following the issuance of these financial statements[184]. - The company anticipates insufficient cash to repay the New Revolving Credit Facility in the event of default[185]. - 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[198]. Customer Concentration - Wayfair accounted for 25% of gross originations during the three months ended September 30, 2025, down from 48% in the same period of 2024[143].