Katapult Holdings 2025 Q1 Earnings Revenue Grows Amidst Widening Losses

Katapult Holdings (KPLT) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company experienced a notable 10.8% increase in total revenue, reaching $71.08 million, compared to $64.14 million in the same quarter of 2024. Despite the revenue growth, Katapult saw its net loss widen significantly to $5.69 million from $570,000 in 2024 Q1. The company maintained its guidance for the year, expecting growth in both gross originations and revenue. The fiscal outlook continues to be optimistic, with expectations of positive adjusted EBITDA by the year's end.

Revenue

In the first quarter of fiscal 2025, Katapult Holdings achieved a total revenue of $71.95 million. This growth was primarily driven by a substantial rise in rental revenue, which totaled $71.08 million, marking a significant uplift from the previous year's figures. Additionally, other revenue contributed $868,000 to the overall total, further bolstering the company's financial performance for the quarter.

Earnings/Net Income

Katapult Holdings reported a deepening loss, with earnings per share dropping to $1.23 in Q1 2025, compared to a loss of $0.13 per share in Q1 2024. The company's net loss expanded to $5.69 million, up from $570,000 in the previous year. These figures underscore the challenging financial environment, highlighting the need for strategic adjustments.

Price Action

Post-Earnings Price Action Review

Following the announcement of its Q1 2025 earnings, Katapult Holdings experienced a premarket stock price decline of 4.47% due to revenue falling short of expectations. Despite this initial negative reaction, the company's "Buy and Hold" strategy has demonstrated positive results. Holding KPLT shares after the revenue miss led to a 10.6% revenue growth and a 15.4% increase in gross originations year-over-year, surpassing initial expectations. This growth is attributed to enhanced consumer engagement through the Katapult app marketplace and successful strategic partnerships, particularly with the 57% growth in KPay originations. The market perception of Katapult as undervalued, coupled with oversold technical indicators, suggests that the dip in stock price may have presented a buying opportunity. Looking ahead, the company remains optimistic about achieving its ambitious growth targets, with guidance indicating further acceleration in the second quarter and throughout the year.

CEO Commentary

Orlando Zayas, CEO of Katapult Holdings, expressed enthusiasm for the company's strong Q1 results, highlighting a 15.4% year-over-year growth in gross originations and a revenue increase of 10.6%. He noted that the launch of their app has positioned Katapult as a vital marketplace, successfully connecting consumers with merchants. Zayas emphasized the importance of consumer engagement, merchant collaboration, and innovative pricing strategies to drive sales. He conveyed confidence in the company’s trajectory, stating, “2025 was off to a great start and we are confident that we are well positioned to achieve our full year goals,” reflecting an optimistic leadership outlook.

Guidance

Katapult Holdings expects Q2 gross originations growth in the range of 25% to 30% and revenue growth between 17% to 20%. The company anticipates approximately breakeven adjusted EBITDA for the second quarter. For the full year 2025, Katapult reaffirms its outlook of at least 20% gross originations growth, with revenue growth also projected at a minimum of 20% and positive adjusted EBITDA of at least $10 million.

Additional News

In recent developments, Katapult Holdings has made a significant addition to its executive team by appointing a new Chief Marketing Officer, further strengthening its leadership. The company has also announced a strategic partnership with Finti, a modern waterfall financing platform, to expand its merchant and consumer financing solutions. Additionally, Katapult has launched a targeted co-branded marketing campaign in collaboration with several merchant partners, aiming to enhance brand visibility and drive growth in gross originations. These initiatives align with Katapult's ongoing efforts to leverage strategic partnerships and expand its market presence, positioning the company for sustained growth in 2025.