Katapult(US:KPLT)2025-11-12 14:02Financial 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].