KPLT

Gross Originations Increase 5%, 15th Consecutive Quarter of GrowthRevenue Grows 4% ; Adjusted EBITDA Increases Nearly 280% Pending Merger Transaction with The Aaron’s Company and CCF Holdings LLC Expected to Create a Scaled Financial Solutions Platform for Nonprime Consumers PLANO, Texas, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the second quarter ended June 30, 2026. “This quarter we achieved our 15th consecutive quarter of gross originations growth, which reflects both the demand for our lease-to-own product and the dedication of our team,” said Orlando Zayas, CEO of Katapult. “Our consistently high Net Promoter Scores and repeat customer rates demonstrate the trusted relationships we’ve built with consumers and merchant-partners alike, and I’m incredibly proud of what our team has accomplished. As we approach the completion of our transaction with Aaron’s and CCF Holdings, we remain confident that this combination will deliver meaningful benefits for all of our stakeholders. Together, we are creating a scaled, omnichannel platform with a comprehensive suite of financial solutions that will enable us to serve even more nonprime consumers, and I couldn’t be more excited about the road ahead.” Second Quarter 2026 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $75.5 million, an increase of 4.7%. Excluding the home furnishings and mattress category, gross originations grew 31.0% year-over-year. Total revenue was $74.8 million, an increase of 4.0%. Total operating expenses in the second quarter increased by $0.9 million. Our fixed cash operating expenses2, which exclude transaction related costs and other non-cash and variable expenses, decreased by 1.0% year-over-year. Loss from operations was $(1.9) million, compared with a loss of $(1.4) million in the second quarter of 2025. Net loss was $(4.4) million for the second quarter of 2026, a 44.0% improvement compared with net loss of $(7.8) million reported for the second quarter of 2025. This year-over-year improvement was mainly driven by a $2.2 million decrease in interest expense due to the absence of the Term Loan in 2026 following its extinguishment in November 2025. Adjusted net loss1 was $(3.0) million for the second quarter of 2026, an improvement compared with adjusted net loss of $(5.7) million reported for the second quarter of 2025. Adjusted EBITDA1 was $1.2 million for the second quarter of 2026 an improvement compared to Adjusted EBITDA2 of $0.3 million in the second quarter of 2025. Katapult ended the quarter with total cash and cash equivalents of $24.1 million, which includes $6.0 million of restricted cash. The Company ended the quarter with $74.1 million of outstanding debt on its revolving credit facility. Cash provided by operations for the six months ended June 30, 2026 was $6.1 million, compared with cash used in operating activities of $3.2 million during the six months ended June 30, 2025. Write-offs as a percentage of revenue were 9.7% in the second quarter of 2026 and are within the Company’s 8% to 10% long-term target range. This compares to 9.8% in the second quarter of 2025. [1] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information. Pending Mergers with The Aaron’s Company and CCF Holdings LLC On December 11, 2025, we entered into an agreement (the “Merger Agreement”) to merge with Aaron’s Intermediate Holdco, Inc. (“Aaron’s”) and CCF Holdings LLC (“CCF Holdings”). We expect this transaction to close in August 2026, subject to requisite stockholder approval and the satisfaction of other customary closing conditions. Additional information regarding the Merger Agreement and the transaction is included in the notes to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that we filed with the Securities and Exchange Commission. In light of the pending mergers with Aaron’s and CCF Holdings, Katapult is not hosting a conference call to discuss second quarter financial results nor is the company providing a business outlook at this time. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R)(“KPay”), consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Cohn Kull VP of Investor Relations [email protected] Forward-Looking Statements Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release statements regarding the all-stock merger transaction of Katapult, Aaron’s and CCF Holdings, the closing of the transaction and the timing thereof; the financial and business impact of the transaction and the expected benefits of the transaction; and future opportunities for the combined company and the future operations of the combined company. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the ability to meet closing conditions to the proposed transaction, including stockholder approval, and the occurrence of any event, change or other circumstance that could delay the proposed transaction, or give rise to the termination of the Merger Agreement; potential adverse reactions or changes to business relationships resulting from the announcement of the mergers; litigation relating to the proposed transaction; the inability to retain key personnel, or potential diminished productivity due to the impact of the proposed transaction on Katapult’s current and prospective employees, key management, customers, suppliers, franchisees and business partners; meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; the combined company’s ability to successfully integrate and grow its business; anticipated tax treatment, unexpected costs, charges or expenses resulting from the transaction; the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring KPay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business and the business of the combined company, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the three months ended June 30, 2026 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. There can be no assurance that the transaction will be implemented or that plans of the respective directors and management of Katapult, Aaron’s and CCF Holdings will proceed as expected or will ultimately be successful. Undue reliance should not be placed on the forward-looking statements in this Press Release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA. Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net loss and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before interest expense and other fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, litigation and settlement expenses, provision for impairment of leased assets, interest income, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Transaction-related costs consist primarily of professional fees incurred and retention bonus costs in connection with the Mergers. Adjusted net loss is a non-GAAP financial measure that is defined as net income (loss) before transaction related costs, stock-based compensation expense,, debt refinancing costs, litigation and settlement expenses, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less variable lease costs such as servicing costs and underwriting fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, and litigation and settlement expenses. We believe fixed cash operating expenses illustrates our controllable ongoing expenses. Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance; Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies.

Revenue Grows 10% Year-Over-Year Adjusted EBITDA Increases Nearly 200% Year-Over-Year Gross Originations Excluding the Home Furnishings and Mattress Category Grows 17.5% Pending Merger Transaction with The Aaron’s Company and CCF Holdings LLC Expected to Create a Premier Omnichannel Platform for Nonprime Consumers PLANO, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended March 31, 2026. “We remain focused on providing the innovative, transparent and reliable LTO platform that our customers want and deserve,” said Orlando Zayas, CEO of Katapult. “We believe our healthy Net Promoter Scores and repeat customer rates combined with increasing customer lifetime value, demonstrate the affinity consumers across the US have for Katapult. While our first quarter gross originations performance was impacted by macroeconomic headwinds, we posted our 14th consecutive quarter of growth and early in the second quarter, we are already seeing a bit of acceleration. Our revenue growth remained strong and this coupled with our continued focus on fiscal responsibility allowed us to deliver more than $6.4 million in Adjusted EBITDA. ”As we continue to hit new operating milestones, we are looking forward to consummating our pending merger with Aaron’s and CCF Holdings,” continued Zayas. “We believe this combination will enhance our ability to meet the evolving needs of nonprime consumers by creating the scale and scope we need to unlock the value of our business model. We are very excited about the future.” Progress: Recent Highlights (All comparisons are year-over-year unless stated otherwise.) Total lease applications declined 5.0% year-over-year in the first quarter. Increased activity within the Katapult app marketplace: Monthly Active Users (MAU) were down approximately 1.0% in the first quarter 60.8% of first quarter gross originations started in the Katapult app marketplace, making it the single largest customer referral source Total app marketplace gross originations grew 3.1% year-over-year. Total app marketplace gross originations are defined as originations that start in our app but may be consummated elsewhere. Cross-shopping activity continued to increase; customers with two or more current leases with two or more different retailers grew 14.3% in the first quarter and represented approximately 29.0% of the total number of gross originations during the quarter Customer lifetime value grew 14.8% in the first quarter, driven in part by an increase in the average number of leases per customer Customer satisfaction remained high and Katapult had a Net Promoter Score of 63 as of March 31, 2026 Approximately 60.9% of gross originations for the first quarter of 2026 came from repeat customers1 Consumer engagement grew with the addition of app functionality and features and the execution of targeted marketing campaigns In-quarter Katapult Pay (“KPay”) conversion rate during the first quarter grew 200bps compared to last year and the number of KPay transactions grew by approximately 22.3% year-over-year. Unique KPay customer count grew approximately 9.0% year-over-year. KPay gross originations grew 18.6% year-over-year in the first quarter and 42.0% of total gross originations were transacted using KPay. Continued to support our merchant-partners with targeted initiatives focused on strategic underwriting, pricing and event-driven co-marketing campaigns Direct and waterfall gross originations represented approximately 58% of total first quarter originations and declined 10.1%. Excluding the home furnishings and mattress category, these gross originations grew approximately 10.0%. Cohort of top 25 merchants declined 4.2% in the first quarter (as measured by gross originations volume) Added 46 direct or waterfall merchants or merchant pathways to our ecosystem. Pathways include new or existing merchant partners that launched a new website or an in-store experience that includes Katapult as a direct or waterfall LTO offering. Launched BrandsMart in-store experience and added the retailer to the KPay app marketplace. BrandsMart is one of the leading consumer electronics and appliance retailers in the southeastern US and one of the largest appliance retailers in the country. First Quarter 2026 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $64.2 million, an increase of 0.1%. Excluding the home furnishings and mattress category, gross originations grew 17.5% year-over-year. Total revenue was $79.0 million, an increase of 9.8%. Total operating expenses in the first quarter decreased by $1.0 million. Our fixed cash operating expenses2, which exclude transaction related costs and other non-cash and variable expenses, decreased by 10.8% year-over-year. Income from operations was $4.3 million, an improvement compared with a loss of $(0.5) million in the first quarter of 2025. Net income was $5.7 million for the first quarter of 2026, a 200% improvement compared with net loss of $(5.7) million reported for the first quarter of 2025. This year-over-year improvement was mainly driven by a $4.3 million gain on a derivative liability and a $3.9 million increase in gross profit. Adjusted net income2 was $3.7 million for the first quarter of 2026, an improvement compared with adjusted net loss of $(3.4) million reported for the first quarter of 2025. Adjusted EBITDA2 was $6.4 million for the first quarter of 2026 an improvement compared with Adjusted EBITDA2 of $2.2 million in the first quarter of 2025. Katapult ended the quarter with total cash and cash equivalents of $28.1 million, which includes $5.8 million of restricted cash. The Company ended the quarter with $71.6 million of outstanding debt on its revolving credit facility. Cash provided by operations was $12.2 million, compared with $3.4 million in the first quarter of 2025. Write-offs as a percentage of revenue were 9.2% in the first quarter of 2026 and are within the Company’s 8% to 10% long-term target range. This compares with 9.0% in the first quarter of 2025. [1] Repeat customer rate is defined as the percentage of in-quarter originations from existing customers. [2] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information. Pending Mergers with The Aaron’s Company and CCF Holdings LLC On December 11, 2025, we entered into an agreement (the “Merger Agreement”) to merge with Aaron’s Intermediate Holdco, Inc. (“Aaron’s”) and CCF Holdings LLC (“CCF Holdings”). We expect this transaction to close within the third quarter of 2026, subject to requisite stockholder and regulatory approvals and the satisfaction of other customary closing conditions. If completed, we expect the transaction to create a premier omni-channel platform that provides nonprime consumers access to durable goods and a comprehensive suite of innovative financial solutions tailored to their specific needs. Specifically, we believe this transaction will deliver the following benefits: Differentiated customer value proposition: Creates a trusted platform for nonprime consumers to access durable goods and a comprehensive suite of innovative financial solutions tailored to their specific needs. Scale and unique market position: Establishes a scaled omni-channel business with leading digital and mobile capabilities and a nationwide physical footprint including approximately 3,000 retail touchpoints. Enhanced financial profile: the combined company is expected to have a stronger financial and operating model that includes: more than $4 billion in pro forma revenue for the last twelve months (LTM) as of Q3 2025; approximately $450 million in pro forma LTM Adjusted EBITDA as of Q3 2025 and operating scale that supports long-term double-digit Adjusted EBITDA margin potential; a combined reach that includes more than 7 million recently served customers; a broad portfolio of recurring revenue streams; and more attractive unit economics that support long-term profitability. Significant synergy potential: Expected synergies include: expanded opportunities to serve a broader spectrum of nonprime consumer needs; enhanced underwriting capabilities that can drive growth and yield; technology that amplifies and accelerates product innovation; and operating efficiencies. Strengthened balance sheet: Boosts the company’s balance sheet and access to capital that can be used to accelerate and invest in growth opportunities. Experienced leadership: Team of seasoned executives with deep experience in the nonprime consumer segment and track records of delivering operational improvement and innovation. Under the terms of the Merger Agreement, upon the closing of the transaction, current Katapult stockholders will own 6% of the combined company on a fully diluted basis and stakeholders of Aaron’s and CCF Holdings will own the remainder. Aaron’s and CCF Holdings will be subsidiaries of Katapult, which is expected to continue trading on NASDAQ under the ticker symbol “KPLT.” Additional information regarding the Merger Agreement and the transaction is included in the notes to our condensed consolidated financial statements in our Annual Report on Form 10-Q for the quarter ended March 31, 2026 that we filed with the Securities and Exchange Commission. In light of the pending mergers with Aaron’s and CCFI, Katapult is not hosting a conference call to discuss first quarter financial results nor is the company providing a business outlook at this time. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R), consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Cohn Kull VP of Investor Relations [email protected] Forward-Looking Statements Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release statements regarding the nature of market dynamics impacting nonprime consumers and the initiatives we are launching to offset such challenges, our pricing strategy and expected impact on our conversion rates and top-line growth; the success of our anticipated marketing efforts; our market opportunity; our ability to acquire and retain new and existing merchants and customers; customer adoption and continued growth of our mobile app featuring KPay; the all-stock merger transaction of Katapult, Aaron’s and CCF Holdings, the closing of the transaction and the timing thereof; the financial and business impact of the transaction and the expected benefits of the transaction; and future opportunities for the combined company and the future operations of the combined company. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the ability to obtain regulatory approval and meet other closing conditions to the proposed transaction, including stockholder approval, and the occurrence of any event, change or other circumstance that could delay the proposed transaction, including the impact and timing of any government shutdown, or give rise to the termination of the Merger Agreement; potential adverse reactions or changes to business relationships resulting from the announcement of the mergers; litigation relating to the proposed transaction; the inability to retain key personnel, or potential diminished productivity due to the impact of the proposed transaction on Katapult’s current and prospective employees, key management, customers, suppliers, franchisees and business partners; meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; the combined company’s ability to successfully integrate and grow its business; anticipated tax treatment, unexpected costs, charges or expenses resulting from the transaction; the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring Katapult Pay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business and the business of the combined company, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the three months ended March 31, 2026 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. There can be no assurance that the transaction will be implemented or that plans of the respective directors and management of Katapult, Aaron’s and CCF Holdings will proceed as expected or will ultimately be successful. Undue reliance should not be placed on the forward-looking statements in this Press Release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA. Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net loss and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations. The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before interest expense and other fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment and capitalized software, litigation and settlement expenses, provision for impairment of leased assets, interest income, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Transaction-related costs consist primarily of professional fees incurred and retention bonus costs in connection with the Mergers. Adjusted net loss is a non-GAAP financial measure that is defined as net income (loss) before transaction related costs, stock-based compensation expense, debt refinancing costs, litigation and settlement expenses, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less variable lease costs such as servicing costs and underwriting fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment and capitalized software, and litigation and settlement expenses. We believe fixed cash operating expenses illustrates our controllable ongoing expenses. Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance; Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies. CERTAIN KEY PERFORMANCE METRICS KATAPULT HOLDINGS, INC. GROSS ORIGINATIONS

Delivers 13th Consecutive Quarter of Gross Originations Growth Pending Merger Transaction with The Aaron’s Company and CCF Holdings LLC Expected to Create a Premier Omnichannel Platform for Nonprime Consumers PLANO, Texas, March 11, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the fourth quarter ended December 31, 2025. “We made a lot of operating and financial progress during 2025 driven both by the strength of our product offering as well as our team’s dedication to growth and success,” said Orlando Zayas, CEO of Katapult. “During 2025 we achieved 17% gross originations growth, which was supported by a 45% increase in applications and a 25% increase in lease originations, illustrating the affinity our customers have for our lease-to-own (LTO) offering and the value we bring to our merchant-partners. While gross originations growth was quite robust, we fell slightly short of our 20-23% growth objective. Our fourth quarter marked our thirteenth consecutive quarter of gross originations growth, but our customers began to show signs of stress and the holiday season was not as strong as we anticipated. We saw a notable slowdown of year-over-year growth in November compared with October and only a slight pick-up in December. “We believe this performance was driven by economic headwinds including persistently high inflation and a challenging labor market,” continued Zayas. “We are also seeing a notable pullback in spending for nonprime consumers, and access to credit is tightening. We believe these trends are evidence of the financial fatigue our nonprime consumers are experiencing and we are launching initiatives focused on offsetting these challenges. We will continue to watch these dynamics closely but believe they are transient and that Katapult’s innovative LTO platform will remain an important resource for nonprime consumers. Looking ahead, we believe our pending merger with Aaron’s and CCF Holdings will enhance our ability to meet the evolving needs of nonprime consumers while creating value for our combined set of stakeholders.” Progress: Recent Highlights (All comparisons are year-over-year unless stated otherwise.) Total lease applications grew ~9.0% year-over-year in the fourth quarter and 45.0% in 2025. Katapult received approximately 2 million applications in 2025. Increased activity within the Katapult app marketplace The Katapult app was opened nearly 16 million times in 2025, up 30.0% Monthly Active Users (MAU) grew approximately 20.8% in the fourth quarter 66.6% of fourth quarter gross originations started in the Katapult app marketplace, making it the single largest customer referral source Total app marketplace gross originations grew 13.7% year-over-year. Total app marketplace gross originations are defined as originations that start in our app but may be consummated elsewhere. Cross-shopping activity continued to increase; customers with two or more current leases with two or more different retailers grew 15.3% in the fourth quarter and represented approximately 35.8% of the total number of gross originations during the quarter Customer lifetime value grew nearly 4.0% in the fourth quarter Customer satisfaction remained high and Katapult had a Net Promoter Score of 46 as of December 31, 2025 Approximately 63.5% of gross originations for the fourth quarter of 2025 came from repeat customers1 Consumer engagement grew with the addition of app functionality and features and the execution of targeted marketing campaigns KPay conversion rate during the fourth quarter was flat compared to last year, but unique KPay customer count grew approximately 24.6% year-over-year KPay gross originations grew 25.7% year-over-year in the fourth quarter and 49.4% of total gross originations were transacted using KPay. KPay gross originations grew 51.2% during 2025. Gross originations from new KPay customers grew 10.6% in the fourth quarter and 63.0% in 2025. Launched Kay Jewelers in the Katapult app marketplace; there are approximately 40 KPay-enabled merchants in our ecosystem Continued to support our merchant-partners with targeted initiatives focused on strategic underwriting, pricing and event-driven co-marketing campaigns Direct and waterfall gross originations represented approximately 51% of total fourth quarter originations and declined 11.4%. Excluding the home furnishings and mattress category, these gross originations grew approximately 4.7%. Cohort of top 25 merchants grew 1.0% in the fourth quarter (as measured by gross originations volume) and 15.0% in 2025. Added 57 direct or waterfall merchants or merchant pathways to our ecosystem. Pathways include new or existing merchant partners that launched a new website or an in-store experience that includes Katapult as a direct or waterfall LTO offering. Entered partnership with LendPro, a leading waterfall financing platform Fourth Quarter 2025 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $77.9 million, an increase of 3.7%. Excluding the home furnishings and mattress category, gross originations grew approximately 14.2% year-over-year. Total revenue was $73.9 million, an increase of 17.3% Total operating expenses in the fourth quarter increased by $0.3 million. Our fixed cash operating expenses2, which exclude transaction related costs and other non-cash and variable expenses, decreased by 40.5% year-over-year. Loss from operations was $(1.0) million, an improvement compared with a loss of $(4.8) million in the fourth quarter of 2024 Net income was $19.8 million for the fourth quarter of 2025, an improvement compared with net loss of $(9.6) million reported for the fourth quarter of 2024. This year-over-year improvement was mainly driven by a $19.0 million gain on a derivative liability, a $6.2 million gain on the extinguishment of our term loan and a $4.1 million increase in gross profit. Adjusted net loss2 was $(0.3) million for the fourth quarter of 2025, an improvement compared with adjusted net loss of $(8.0) million reported for the fourth quarter of 2024 Adjusted EBITDA2 was $5.4 million for the fourth quarter of 2025 an improvement compared with Adjusted EBITDA2 loss of $(1.1) million in the fourth quarter of 2024 and above our outlook range Katapult ended the quarter with total cash and cash equivalents of $23.5 million, which includes $1.0 million of restricted cash. The Company ended the quarter with $78.7 million of outstanding debt on its revolving credit facility. Cash used in operations was $12.7 million, compared with $28.5 million in the fourth quarter of 2024 Write-offs as a percentage of revenue were 9.6% in the fourth quarter of 2025 and are within the Company’s 8% to 10% long-term target range. This compares with 9.6% in the fourth quarter of 2024. 2025 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $278.5 million, an increase of 17.3%. Excluding the home furnishings and mattress category, gross originations grew approximately 39.0% year-over-year. Total revenue was $291.8 million, an increase of 18.0% and within our outlook range Total operating expense decreased by $1.8 million. Our fixed cash operating expenses2, which exclude transaction related costs, debt refinancing costs and other non-cash and variable expenses, decreased by 11.8% Loss from operations was $(0.5) million, an improvement compared with a loss of $(8.1) million in 2024 Net income was $1.4 million, an improvement compared with net loss of $(25.9) million reported for 2024. This year-over-year improvement was mainly driven by a $17.4 million gain on derivative liabilities,a $5.8 million increase in gross profit, and a $5.1 million gain on extinguishment of our term loan. Adjusted net loss2 was $(10.3) million, an improvement compared with adjusted net loss of $(16.5) million reported for 2024 Adjusted EBITDA2 was $12.4 million an improvement compared with Adjusted EBITDA2 of $4.8 million in 2024 and above our outlook range Cash used in operations was $11.9 million, an improvement compared with cash used in operations of $32.6 million in 2024 Write-offs as a percentage of revenue were 9.6% in 2025 and are within the Company’s 8% to 10% long-term target range. This compares with 9.2% in 2024. [1] Repeat customer rate is defined as the percentage of in-quarter originations from existing customers. [2] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information. Pending Mergers with The Aaron’s Company and CCF Holdings LLC “We are so excited about the opportunity to combine forces with Aaron’s and CCF Holdings and we believe this transaction will create tremendous benefits for consumers, merchants and investors alike,” continued Zayas. “We believe the Katapult LTO offering is best-in-class and that these mergers will create the scale we need to unlock the value of our business model. We look forward to completing the work necessary to get this deal across the finish line.” On December 11, 2025, we entered into an agreement (the “Merger Agreement”) to merge with Aaron’s Intermediate Holdco, Inc. (“Aaron’s”) and CCF Holdings LLC (“CCF Holdings”). We expect this transaction to close in the second quarter of 2026, subject to requisite stockholder and regulatory approvals and the satisfaction of other customary closing conditions. If completed, we expect the transaction to create a premier omni-channel platform that provides nonprime consumers access to durable goods and a comprehensive suite of innovative financial solutions tailored to their specific needs. Specifically, we believe this transaction will deliver the following benefits: Differentiated customer value proposition: Creates a trusted platform for nonprime consumers to access durable goods and a comprehensive suite of innovative financial solutions tailored to their specific needs. Scale and unique market position: Establishes a scaled omni-channel business with leading digital and mobile capabilities and a nationwide physical footprint including approximately 3,000 retail touchpoints. Enhanced financial profile: the combined company is expected to have a stronger financial and operating model that includes: more than $4 billion in pro forma revenue for the last twelve months (LTM) as of Q3 2025; approximately $450 million in pro forma LTM Adjusted EBITDA as of Q3 2025 and operating scale that supports long-term double-digit Adjusted EBITDA margin potential; a combined reach that includes more than 7 million recently served customers; a broad portfolio of recurring revenue streams; and more attractive unit economics that support long-term profitability. Significant synergy potential: Expected synergies include: expanded opportunities to serve a broader spectrum of nonprime consumer needs; enhanced underwriting capabilities that can drive growth and yield; technology that amplifies and accelerates product innovation; and operating efficiencies. Strengthened balance sheet: Boosts the company’s balance sheet and access to capital that can be used to accelerate and invest in growth opportunities. Experienced leadership: Team of seasoned executives with deep experience in the nonprime consumer segment and track records of delivering operational improvement and innovation. Under the terms of the Merger Agreement, upon the closing of the transaction, current Katapult stockholders will own 6% of the combined company on a fully diluted basis and stakeholders of Aaron’s and CCF Holdings will own the remainder. Aaron’s and CCF Holdings will be subsidiaries of Katapult, which is expected to continue trading on NASDAQ under the ticker symbol “KPLT.” Additional information regarding the Merger Agreement and the transaction is included in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025 that we filed with the Securities and Exchange Commission. In light of the pending mergers with Aaron’s and CCFI, Katapult is not hosting a conference call to discuss fourth quarter and full year 2025 financial results nor is the company providing a business outlook at this time. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R), consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Cohn Kull VP of Investor Relations [email protected] Forward-Looking Statements Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release statements regarding the nature of market dynamics impacting nonprime consumers and the initiatives we are launching to offset such challenges, our pricing strategy and expected impact on our conversion rates and top-line growth; the success of our anticipated marketing efforts; our market opportunity; our ability to acquire and retain new and existing merchants and customers; customer adoption and continued growth of our mobile app featuring KPay; the all-stock merger transaction of Katapult, Aaron’s and CCF Holdings, the closing of the transaction and the timing thereof; the financial and business impact of the transaction and the expected benefits of the transaction; and future opportunities for the combined company and the future operations of the combined company. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the ability to obtain regulatory approval and meet other closing conditions to the proposed transaction, including stockholder approval, and the occurrence of any event, change or other circumstance that could delay the proposed transaction, including the impact and timing of any government shutdown, or give rise to the termination of the Merger Agreement; potential adverse reactions or changes to business relationships resulting from the announcement of the mergers; litigation relating to the proposed transaction; the inability to retain key personnel, or potential diminished productivity due to the impact of the proposed transaction on Katapult’s current and prospective employees, key management, customers, suppliers, franchisees and business partners; meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; the combined company’s ability to successfully integrate and grow its business; anticipated tax treatment, unexpected costs, charges or expenses resulting from the transaction; the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring Katapult Pay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business and the business of the combined company, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K for the year ended December 31, 2025 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. There can be no assurance that the transaction will be implemented or that plans of the respective directors and management of Katapult, Aaron’s and CCF Holdings will proceed as expected or will ultimately be successful. Undue reliance should not be placed on the forward-looking statements in this Press Release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA. Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net loss and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before interest expense and other fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment and capitalized software, litigation and settlement expenses, provision for impairment of leased assets, interest income, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Transaction-related costs consist primarily of professional fees incurred and retention bonus costs in connection with the Mergers. Adjusted net loss is a non-GAAP financial measure that is defined as net income (loss) before transaction related costs, stock-based compensation expense,, debt refinancing costs, litigation and settlement expenses, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less variable lease costs such as servicing costs and underwriting fees, transaction related costs, stock-based compensation expense, debt refinancing costs, depreciation and amortization on property and equipment and capitalized software, and litigation and settlement expenses. We believe fixed cash operating expenses illustrates our controllable ongoing expenses. Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance; Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies.

This article first appeared on GuruFocus. Release Date: November 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Katapult Holdings Inc (NASDAQ:KPLT) received a $65 million capital investment from Hawthorne Horizon Credit Fund, which allowed the company to pay off its term loan and invest in growth opportunities. The company reported a 76% growth in applications in the first three quarters of 2025, contributing to a 35% increase in unique new customers. Katapult Holdings Inc (NASDAQ:KPLT) achieved a 25.3% growth in gross originations and a 22.8% increase in revenue during the third quarter, both within their outlook range. The company delivered $4.4 million in positive adjusted EBITDA, exceeding their projected range of $3 to $3.5 million. Katapult Holdings Inc (NASDAQ:KPLT) has experienced 12 consecutive quarters of gross origination growth and 10 consecutive quarters of revenue growth, demonstrating strong and consistent performance. The company noted a slight downward trend in application quality over the last few months, impacting their ability to control credit quality. Katapult Holdings Inc (NASDAQ:KPLT) is facing macroeconomic challenges, including inflation and financial difficulties among non-prime US consumers, which could impact future performance. The company experienced a 60 basis point increase in write-offs as a percentage of revenue compared to the previous year. Despite strong growth, the company is taking a conservative approach to Q4 expectations due to uncertainties in the macroeconomic environment. Katapult Holdings Inc (NASDAQ:KPLT) is tempering its 2025 outlook for gross originations, revenue, and adjusted EBITDA due to recent macro trends and events. Warning! GuruFocus has detected 5 Warning Signs with KPLT. Is KPLT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the recent capital investment from Hawthorne Horizon Credit Fund? A: Orlando Zayas, CEO: The $65 million investment from Hawthorne Horizon Credit Fund allowed us to pay off our term loan in full, repay a portion of our revolving line of credit, and invest in growth opportunities. This investment creates a more efficient capital structure and provides a stable foundation for growth. Q: How has application growth impacted your business in 2025? A: Orlando Zayas, CEO: In the first three quarters of 2025, applications grew by 76%, contributing to a 35% increase in unique new customers and a 30% growth in our total customer base. This growth is a leading indicator for future conversion rate expansion and gross originations growth. Q: What strategies are you implementing to improve conversion rates? A: Derek Medlin, President and Chief Growth Officer: We are optimizing underwriting and promotional activities. We tightened our underwriting decisions in targeted areas, which has improved the credit quality of pre-approved consumers and converted customers. This should drive conversion rate expansion and positively impact write-offs over time. Q: Can you discuss the performance of your app marketplace and KPay feature? A: Derek Medlin, President and Chief Growth Officer: Our app marketplace saw a 62% year-over-year growth in gross originations, driven by repeat customer activity, robust conversion, and targeted marketing campaigns. KPay originations grew 66% year-over-year, representing 41% of total gross originations. Q: What is your outlook for Q4 2025 and full year 2025? A: Nancy Walsh, CFO: For Q4 2025, we expect gross originations to grow in the 15-20% range, with revenue growth of 21-23% and approximately $2 million in adjusted EBITDA. For the full year 2025, we anticipate gross originations growth between 20% and 23%, revenue growth in the 18-20% range, and adjusted EBITDA between $8 and $9 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Gross Originations, Revenue and Adjusted EBITDA Growth to Continue In Fourth Quarter Recent Capital Transaction Increases Liquidity and Strengthens Balance Sheet PLANO, Texas, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the third quarter ended September 30, 2025. “We are continuing to execute against our priorities and our third quarter results demonstrate the progress we’re making,” said Orlando Zayas, CEO of Katapult. “Our 25% gross originations growth in the third quarter marks our third consecutive year of growth and we are very proud of our team’s hard work and dedication that allowed us to achieve this milestone. Underlying this strong growth are several hallmarks of a healthy marketplace including rapid application growth, an expanding unique new customer base, strong repeat customer rates and an uptick in cross-shopping activity. We believe the Katapult app marketplace has become a premier shopping destination for nonprime consumers and we are very excited about our future. We look forward to delivering a strong fourth quarter for our merchants and customers alike. “We also announced a significant investment from Hawthorn Horizon Credit Fund last week,” continued Zayas. “We believe this transaction strengthens our balance sheet and will allow Katapult to accelerate its growth and progress toward achieving sustained profitability. Our team has been working diligently to improve our capital structure and create a better foundation for continued growth, and we are very excited to partner with Hawthorn.” Progress: Recent Highlights Total Applications grew ~80% year-over-year in the third quarter. Increased activity within the Katapult app marketplace 61% of third quarter gross originations started in the Katapult app marketplace, making it the single largest customer referral source. Total app marketplace gross originations grew 44% year-over-year. Customer satisfaction remained high and Katapult had a Net Promoter Score of 64 as of September 30, 2025. Approximately 55% of gross originations for the third quarter of 2025 came from repeat customers1. Consumer engagement grew with the addition of app functionality and features and the execution of targeted marketing campaigns. KPay conversion rate increased during the third quarter leading to unique KPay customer count growth of 76% year-over-year. KPay gross originations grew approximately 66% year-over-year in the third quarter; 41% of total gross originations were transacted using KPay. Launched Apple in the Katapult app marketplace, bringing the total number of merchants in our KPay ecosystem to 40. Made strong progress against merchant engagement initiatives. Direct and waterfall gross originations, which represented approximately 59% of total third quarter originations, grew 6%. Excluding the home furnishings and mattress category, these gross originations grew approximately 42%. Continued to expand our relationships with merchant-partners with new waterfall integrations and monetization strategies as well as co-promoted marketing campaigns. Third Quarter 2025 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $64.2 million, an increase of 25.3%. Excluding the home furnishings and mattress category, gross originations grew approximately 50% year-over-year. Total revenue was $74.0 million, an increase of 22.8%. Total operating expenses in the third quarter decreased by $4.3 million. Our fixed cash operating expenses2, which exclude transaction related costs and other non-cash and variable expenses, decreased by 21.4% year-over-year. Net loss was $4.9 million for the third quarter of 2025, an improvement compared with net loss of $8.9 million reported for the third quarter of 2024. The lower net loss was mainly driven by a decrease in litigation settlement expenses of $3.2 million, and a $2.1 million decrease in compensation costs, partially offset by $1.0 million in transaction related costs. Adjusted net loss2 was $1.0 million for the third quarter of 2025, an improvement compared with adjusted net loss of $4.1 million reported for the third quarter of 2024. Adjusted EBITDA2 was $4.4 million for the third quarter of 2025 an improvement compared with Adjusted EBITDA2 of $0.6 million in the third quarter of 2024. Katapult ended the quarter with total cash and cash equivalents of $9.0 million, which includes $5.6 million of restricted cash. The Company ended the quarter with $79.6 million of outstanding debt on its revolving credit facility. Write-offs as a percentage of revenue were 9.9% in the third quarter of 2025 and are within the Company’s 8% to 10% long-term target range. This compares with 9.3% in the third quarter of 2024. [1] Repeat customer rate is defined as the percentage of in-quarter originations from existing customers. [2] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information. Key Terms for Recent Convertible Preferred Stock Transaction Under the terms of the transaction announced on November 3, 2025, Hawthorn Horizon Credit Fund, LLC (“Hawthorn”) has invested $65.0 million in two newly issued series of convertible preferred stock that have a weighted average initial conversion price of approximately $11.89 per share of the Company’s common stock. A portion of the proceeds from the transaction have been used to repay the Company’s approximately $35.1 million existing term loan and a portion of its existing revolving line of credit. Katapult also plans to use the proceeds to invest in growth opportunities and support other general corporate purposes. Hawthorn has the option to convert the preferred stock into the Company’s common stock at any time, subject to certain limitations until approval of the Company’s other stockholders is obtained as contemplated by Nasdaq listing rules. If Hawthorn were to convert all its shares of preferred stock, assuming stockholder approval (as described below) is obtained and the weighted average initial conversion price of approximately $11.89 per share of common stock applies, then they would beneficially own approximately 5.47 million shares of Katapult common stock or approximately 54.5% of the issued and outstanding common stock. The conversion rate for each series of preferred stock is subject to adjustment in certain circumstances. In addition, each series of preferred stock accrues dividends, and if the Company pays those dividends in-kind and stockholder approval is obtained, the number of shares of common stock Hawthorn may obtain upon conversion of the preferred stock may be substantially higher. In conjunction with the transaction, Hawthorn appointed two new directors to the Katapult board of directors: Philip K. Bartow III and Jeffrey Rubin. Derek Medlin, who is President and Chief Growth Officer of Katapult, was also appointed to the board. Brian Hirsch, Chris Masto and Jane J. Thompson have stepped down from the board. The issuance of common stock on conversion of the preferred stock by Hawthorn in excess of the ownership limitation of 19.99%, among other things, requires Katapult stockholder approval. Katapult intends to file a proxy statement with the Securities and Exchange Commission (“SEC”) to solicit stockholder approval of the transaction and other relevant documents. Please see the Current Report on Form 8-K that the Company filed with the SEC on November 3, 2025 for more details on the transaction. Fourth Quarter and Full Year 2025 Business Outlook The Company is continuing to navigate the current macro environment, which includes a challenging home furnishings category and uncertainty surrounding the impact of tariff regulations and inflation rates. In addition, we believe that the U.S. government shutdown and other macro factors will impact our core consumer in the near-term. We believe we have a large addressable market of underserved, non-prime consumers, and lease-to-own solutions have historically benefited when prime credit options become less available. Given our quarter-to-date progress, Katapult expects the following results for the fourth quarter of 2025: 15% to 20% year-over-year increase in gross originations 21 to 23% year-over-year increase in revenue Approximately $2 million of Adjusted EBITDA Based on the macroeconomic assumptions above, the operating plan in place for the full year 2025 and year-to-date results, Katapult is updating its expectations for its full year 2025 financial results: Gross originations are expected to grow between 20% and 23% We expect the credit quality of our portfolio to remain strong Revenue is expected to grow between 18% and 20% Adjusted EBITDA is expected to between $8 million and $9 million "Thanks to our team’s hard work throughout 2025, we are looking forward to a great fourth quarter,” said Nancy Walsh, CFO of Katapult. “We expect robust gross originations growth during the quarter, but given macroeconomic headwinds we believe it’s prudent to take a more conservative stance on our expectations for this quarter, so we are tempering our full year outlook for gross originations, revenue and Adjusted EBITDA growth. With a more efficient capital structure, market-leading technology and the continued growth of the Katapult app marketplace, we believe that we are well positioned to capitalize on our long-term growth opportunities.” Conference Call and Webcast The Company will host a conference call and webcast at 8:00 AM ET on Wednesday, November 12, 2025, to discuss the Company’s financial results. Related presentation materials will be available before the call on the Company’s Investor Relations page at https://ir.katapultholdings.com. The conference call will be broadcast live in listen-only mode and an archive of the webcast will be available for one year. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay®, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Cohn Kull VP of Investor Relations [email protected] Forward-Looking Statements Certain statements included in this Press Release and on our quarterly earnings call that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release and on our associated earnings call, statements regarding our fourth quarter of 2025 and full year 2025 business outlook; our potential 2026 business outlook; the impact of the preferred stock transaction; our pricing strategy and expected impact on our conversion rates and top-line growth; the success of our anticipated marketing efforts; our market opportunity; our ability to acquire and retain new and existing merchants and customers; and customer adoption and continue growth of our mobile app featuring Katapult Pay. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; our ability to obtain, and the impact of, stockholder approval related to the preferred stock transaction; potential impact of the conversion of our preferred stock;the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring Katapult Pay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Undue reliance should not be placed on the forward-looking statements in this Press Release or on our quarterly earnings call. All forward-looking statements contained herein or expressed on our quarterly earnings call are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA. Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net loss and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP measure that is defined as net loss before interest expense and other fees, stock-based compensation expense, debt refinancing costs and loss on extinguishment of term loan, change in fair value of warrants and derivative liability, [transaction related costs], depreciation and amortization on property and equipment and capitalized software, litigation settlement and other related expenses, provision (benefit) for income taxes, interest income, and provision for impairment of leased assets. Adjusted net loss is a non-GAAP financial measure that is defined as net loss before stock-based compensation expense, debt refinancing costs and loss on extinguishment of term loan, change in fair value of warrants and derivative liability, [transaction related costs], and litigation settlement and other related expenses. Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less variable lease costs such as servicing costs and underwriting fees, stock-based compensation expense, debt refinancing costs, [transaction related costs], depreciation and amortization on property and equipment and capitalized software, and litigation settlement and other related expenses Management believes that fixed cash operating expenses provides a meaningful understanding of non-variable ongoing expenses. Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance; Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies. KATAPULT HOLDINGS, INC. RECONCILIATION OF NON-GAAP MEASURES AND CERTAIN OTHER DATA (UNAUDITED) (amounts in thousands) (1) For the three months ended September 30, 2025, debt refinancing costs consist of expenses associated with the Special Meeting of Stockholders held on August 6, 2025, to obtain shareholder approval for the issuance of convertible shares and warrants as required by the Refinancing Agreement. (1) For the three months ended September 30, 2025, debt refinancing costs consist of expenses associated with the Special Meeting of Stockholders held on August 6, 2025, to obtain shareholder approval for the issuance of convertible shares and warrants as required by the Refinancing Agreement. (1) For the three months ended September 30, 2025, debt refinancing costs consist of expenses associated with the Special Meeting of Stockholders held on August 6, 2025, to obtain shareholder approval for the issuance of convertible shares and warrants as required by the Refinancing Agreement. CERTAIN KEY PERFORMANCE METRICS KATAPULT HOLDINGS, INC. GROSS ORIGINATIONS BY QUARTER