Katapult(US:KPLT)2025-05-15 21:19Financial Performance - Total revenue for the three months ended March 31, 2025, was $71,946,000, representing an increase of $6,885,000 or 10.6% compared to $65,061,000 in the same period in 2024[107] - Rental revenue increased by $6,936,000 or 10.8% to $71,078,000 for the three months ended March 31, 2025, compared to $64,142,000 in 2024[107] - Gross profit decreased to $14,349,000 for the three months ended March 31, 2025, down $2,139,000 or 13.0% from $16,488,000 in the same period in 2024[107] - Net loss for the three months ended March 31, 2025, was $5,688,000, an increase of $5,118,000 or 897.9% compared to a net loss of $570,000 in 2024[107] - Adjusted gross profit for the three months ended March 31, 2025, was $12,492,000, down from $14,847,000 in the same period in 2024[119] - Adjusted EBITDA for the three months ended March 31, 2025, was $2,240,000, a decrease of $3,390,000 or 60.3% from $5,630,000 in 2024[121] - Adjusted net income (loss) for the same period was $(3.356) million, a decrease from an adjusted net income of $0.983 million in 2024[123] Operating Expenses - Operating expenses increased by $2,197,000 or 17.3% to $14,885,000 for the three months ended March 31, 2025, compared to $12,688,000 in 2024[115] - Fixed cash operating expenses increased to $10.402 million in Q1 2025 from $9.390 million in Q1 2024, reflecting a rise of approximately 10.8%[124] Cash Flow and Liquidity - Cash provided by operating activities increased by $1.5 million to $3.438 million in Q1 2025 compared to $1.980 million in Q1 2024[130] - As of May 12, 2025, the company had total cash on hand of $12.8 million, including $7.1 million of unrestricted cash, raising concerns about its ability to repay loans at maturity[126] - The company had a combined principal balance outstanding of approximately $113.3 million related to the RLOC and term loan, both maturing within twelve months[125] - The company experienced a decrease in net proceeds from the RLOC of $4.9 million, contributing to a change in cash used in financing activities of $12.2 million in Q1 2025 compared to Q1 2024[132] Debt and Interest Rates - The interest rate on the RLOC increased from 7.5% to 8.5% per annum, with the current rate at 12.9% as of March 31, 2025[141] - The interest rate on the Term Loan was 18.4% as of March 31, 2025, which includes 6.00% PIK interest[142] - The company is currently seeking to refinance its loans prior to maturity in June 2025, which raises substantial doubt about its ability to continue as a going concern[126] Originations and Write-offs - Gross originations for the three months ended March 31, 2025, were $55,630,000, a decrease of $8,569,000 or 15.4% from $64,199,000 in the same period in 2024[99] - Write-offs as a percentage of total revenue were 9.0% for the three months ended March 31, 2025, compared to 8.4% in the same period in 2024, remaining within the target range of 8% to 10%[109] - Katapult Pay represented 35% of gross originations during the three months ended March 31, 2025, up from 26% in the same period in 2024[100]