Katapult Holdings Reports Robust Second Quarter Performance
KATAPULT HOLDINGS, INC. (NASDAQ: KPLT), an innovative e-commerce-focused financial technology company, announced robust financial results for the second quarter. With strategic changes, the company achieved significant growth in various financial metrics, showcasing its effective market positioning.
Financial Growth Highlights
During the second quarter, Katapult recorded gross originations of approximately $72.1 million, marking a substantial increase of 30.4% year-over-year. This growth is particularly notable when excluding the home furnishings and mattress categories, where growth surged by an impressive 62%. Revenue for the quarter reached $71.9 million, up 22.1% from last year.
Improved Customer Engagement
Contributing to this success is a remarkable 40% year-over-year growth in Katapult's unique customer base. The company also saw a robust repeat customer rate, highlighting customer satisfaction and engagement with its services. The Net Promoter Score (NPS) stood strong at 63 as of June 30, 2025, reflecting high customer satisfaction within the growing marketplace.
Key Operational Metrics
Katapult's operational achievements included heightened activity within the Katapult app marketplace, which served as the largest customer referral source for gross originations. Approximately 60% of second-quarter gross originations originated from this platform, with total app applications growing by about 39% compared to the prior year.
Strategic Initiatives for Sustained Growth
To bolster consumer engagement and drive growth, Katapult is enhancing app functionality, which helped improve the KPay (Katapult Pay) conversion rate. As a result, KPay gross originations experienced substantial year-over-year growth of around 81%, accounting for 39% of total gross originations.
Financial Metrics Overview
Despite these advancements, Katapult reported a net loss of $7.8 million for the quarter, compared to a net loss of $6.9 million during the same period last year. This increase in net loss was attributed mainly to one-time expenses related to debt refinancing. Nonetheless, adjusted EBITDA showed significant improvement, reaching $0.3 million for the second quarter of 2025, up from a loss of $0.4 million year-over-year.
Refinancing Agreement Enhances Liquidity
In an effort to strengthen its financial footing, Katapult entered into a refinancing agreement with Blue Owl Capital. This agreement not only improved liquidity by increasing the available revolving credit to $110 million but also extended maturity to December 2026 and reduced the interest rate, providing a solid foundation for future growth.
Future Outlook and Expectations
As Katapult navigates the current macroeconomic environment, including challenges specific to the home furnishings sector, the company remains optimistic. The outlook for the third quarter anticipates a year-over-year increase in gross originations ranging from 25% to 30% and revenue growth of 20% to 25%. With plans for further expanding its merchant selection and introducing new marketing strategies, Katapult is well-prepared to leverage its large addressable market of underserved consumers.
Commitment to Operational Efficiency
In moving forward, Katapult is focused on maintaining high credit quality while continuing to innovate within its risk assessment models and merchant partnerships. The company's disciplined expense management strategy is expected to deliver positive adjusted EBITDA of at least $10 million by the year's end.
Conclusion
The success of Katapult Holdings in the recent quarter underscores its commitment to enhancing customer experience and expanding its market presence. With a strong operational foundation and strategic initiatives poised to drive future growth, Katapult is set to redefine possibilities for non-prime consumers seeking access to essential goods.
Frequently Asked Questions
1. What were Katapult's gross originations in the second quarter?
Katapult reported gross originations of $72.1 million, a 30.4% increase year-over-year.
2. What is the company's outlook for the next quarter?
Katapult expects a year-over-year increase in gross originations of 25% to 30% and revenue growth of 20% to 25% in Q3.
3. How has the customer base changed in the second quarter?
The unique customer base has grown approximately 40% year-over-year.
4. What measures has Katapult taken to improve customer engagement?
Katapult has enhanced app functionality and executed targeted marketing campaigns to boost KPay's growth.
5. What was the net loss reported by Katapult in the second quarter?
The company reported a net loss of $7.8 million for Q2, primarily impacted by one-time refinancing expenses.
