Core Insights - Katapult Holdings, Inc. reported a 25% year-over-year growth in gross originations for Q3 2025, marking the third consecutive year of growth, driven by increased application activity and a growing customer base [2][4][9] - The company secured a significant investment of $65 million from Hawthorn Horizon Credit Fund, which is expected to strengthen its balance sheet and support growth initiatives [3][8] - The company anticipates continued growth in gross originations and revenue for Q4 2025, despite macroeconomic challenges [10][14] Financial Performance - Gross originations reached $64.2 million in Q3 2025, a 25.3% increase from the previous year, with a notable 50% growth when excluding the home furnishings and mattress category [4][29] - Total revenue for Q3 2025 was $74.0 million, reflecting a 22.8% increase year-over-year [4][29] - The net loss for Q3 2025 was $4.9 million, an improvement from a net loss of $8.9 million in Q3 2024, primarily due to reduced litigation settlement expenses and compensation costs [5][29] Customer Engagement and Marketplace Activity - Total applications grew approximately 80% year-over-year, with 61% of gross originations originating from the Katapult app marketplace, which saw a 44% increase in gross originations [4][8] - The KPay conversion rate increased, leading to a 76% year-over-year growth in unique KPay customers, with KPay gross originations growing approximately 66% [4][8] - Customer satisfaction remained high, with a Net Promoter Score of 64 as of September 30, 2025 [4] Future Outlook - For Q4 2025, the company expects gross originations to grow between 15% and 20% year-over-year and revenue to increase by 21% to 23% [9][14] - Adjusted EBITDA is projected to be between $8 million and $9 million for the full year 2025, reflecting a more conservative outlook due to macroeconomic headwinds [10][14] - The company aims to leverage its improved capital structure and technology to capitalize on long-term growth opportunities in the underserved non-prime consumer market [10][14]

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]