Katapult(KPLT) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $74.0 million, reflecting a year-over-year increase of 22.8%[8] - Total revenue for Q3 2025 reached $74,044,000, a 22.8% increase from $60,307,000 in Q3 2024[48] - Total revenue for the nine months ended September 30, 2025, was $217,876,000, up from $184,231,000 in the same period of 2024, marking a 18.3% increase[49] - Gross profit for Q3 2025 was $14,552,000, up from $11,949,000 in Q3 2024, representing a 21.8% increase[36] - Gross profit for Q3 2025 was $14,552,000, compared to $11,949,000 in Q3 2024, reflecting a 21.8% growth[48] - Adjusted gross profit for Q3 2025 was $12,615,000, compared to $10,299,000 in Q3 2024, a 22.5% increase[48] - Adjusted EBITDA improved to $4.4 million in Q3 2025, compared to $0.6 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $4,417,000, significantly up from $553,000 in Q3 2024[44] Customer Metrics - Gross originations increased by 25.3% year-over-year to $64.2 million in Q3 2025, with a 50% growth excluding the home furnishings and mattress category[8] - Total applications grew approximately 80% year-over-year in Q3 2025, with 61% of gross originations starting in the Katapult app marketplace[3] - The repeat customer rate accounted for approximately 55% of gross originations in Q3 2025[3] - KPay gross originations grew approximately 66% year-over-year, with 41% of total gross originations transacted using KPay[3] - Gross originations for FY 2025 Q3 were $64.2 million, consistent with Q1 and Q2 of FY 2025[50] Loss and Expenses - Net loss for Q3 2025 was $4.9 million, an improvement from a net loss of $8.9 million in Q3 2024[8] - Net loss for Q3 2025 was $4,949,000, compared to a net loss of $8,888,000 in Q3 2024, indicating a reduction in losses by 44.1%[36] - Adjusted net loss for Q3 2025 was $958,000, compared to $4,071,000 in Q3 2024, indicating a substantial reduction[44] - Operating expenses for Q3 2025 totaled $12,089,000, down from $16,396,000 in Q3 2024, a decrease of 26.5%[47] Balance Sheet and Cash Flow - Total current assets decreased to $83,110,000 as of September 30, 2025, from $90,368,000 at the end of 2024[37] - Total liabilities increased to $144,313,000 as of September 30, 2025, compared to $139,965,000 at the end of 2024[37] - Cash and cash equivalents at the end of the period were $3,397,000, down from $25,877,000 at the end of 2024[41] - The company reported 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 $4,070,000 in the same period of 2024[41] - The company incurred interest expense of $16,405,000 for the nine months ended September 30, 2025, compared to $14,002,000 in the same period of 2024[36] - The company’s accumulated deficit increased to $166,923,000 as of September 30, 2025, from $148,451,000 at the end of 2024[37] Future Outlook - The company expects a year-over-year increase in gross originations of 15% to 20% and revenue growth of 21% to 23% for Q4 2025[13] - Debt refinancing costs for Q3 2025 included $413,000 related to a special meeting of stockholders[44] - A significant investment of $65.0 million from Hawthorn Horizon Credit Fund is expected to strengthen the balance sheet and support growth initiatives[3]