Katapult Delivers 15.4% Gross Originations and 10.6% Revenue Growth in the First Quarter, Above Outlook

Core Insights - Katapult Holdings, Inc. reported strong financial results for Q1 2025, with double-digit growth in gross originations and revenue, driven by increased engagement in its app marketplace [3][5][9] - The company is optimistic about achieving its full-year targets for 2025, expecting gross originations to grow at least 20% [9][11] Financial Performance - Gross originations for Q1 2025 reached $64.2 million, a 15.4% increase year-over-year, with total revenue at $71.9 million, up 10.6% [5][31] - The company experienced a net loss of $5.7 million in Q1 2025, compared to a net loss of $0.6 million in Q1 2024, primarily due to higher costs [5][31] - Adjusted EBITDA for Q1 2025 was $2.2 million, down from $5.6 million in Q1 2024, impacted by increased costs associated with rapid growth [5][36] Market Engagement - Approximately 59% of gross originations in Q1 2025 originated from the Katapult app marketplace, marking it as the largest customer referral source [5] - KPay gross originations grew approximately 57% year-over-year, with a unique customer count increase of over 65% [5][11] Business Outlook - The company plans to introduce new merchants to its app marketplace in 2025, aiming to leverage its strategic marketing and strong consumer offerings to drive growth [8][9] - Katapult expects to maintain strong credit quality in its portfolio, supported by enhancements to risk modeling and onboarding high-quality merchants [15] Key Metrics - Customer satisfaction remains high, with a Net Promoter Score of 66 as of March 31, 2025 [5] - Write-offs as a percentage of revenue were 9.0% in Q1 2025, within the company's long-term target range of 8% to 10% [13]