Katapult Delivers Second Quarter Gross Originations, Revenue and Adjusted EBITDA Above Outlook

Core Insights - Katapult Holdings, Inc. reported strong financial performance in Q2 2025, with a 30% increase in gross originations and a 22% rise in revenue year-over-year, indicating robust growth momentum [2][4][6] - The company is raising its full-year 2025 gross originations outlook, expecting growth between 20% and 25%, driven by a strong customer base and expanding merchant partnerships [7][10] Financial Performance - Gross originations for Q2 2025 reached $72.1 million, a 30.4% increase compared to Q2 2024, with KPay gross originations growing by approximately 81% year-over-year [4][10] - Total revenue for Q2 2025 was $71.9 million, reflecting a 22.1% increase from the previous year [4][39] - Adjusted EBITDA improved to $0.3 million in Q2 2025, compared to a loss of $0.4 million in Q2 2024 [9][37] Customer Metrics - The unique new customer base grew by approximately 40% year-over-year, with a repeat customer rate of 58.4% for Q2 2025 [2][4] - Customer satisfaction remained high, with a Net Promoter Score (NPS) of 63 as of June 30, 2025 [4] Operational Highlights - Approximately 60% of gross originations in Q2 2025 originated from the Katapult app marketplace, which saw a 56% year-over-year growth in gross originations [4][6] - KPay's unique customer count grew nearly 87% year-over-year, with 39% of total gross originations transacted using KPay [4][6] Refinancing and Capital Structure - Katapult entered a new Refinancing Agreement with Blue Owl Capital, increasing its revolving line of credit to $110 million and extending the maturity date to December 4, 2026 [5][11] - The interest rate on the revolving line of credit was reduced by approximately 150 basis points, enhancing the company's liquidity position [5][11] Market Outlook - The company anticipates continued growth in 2025, supported by a large addressable market of underserved, non-prime consumers, particularly as lease-to-own solutions become more attractive in a tightening credit environment [6][7] - The outlook for the home furnishings and mattress category remains cautious, with expectations that performance will not improve materially from 2024 [8]