Katapult Holdings 2025 Q2 Earnings Worse Losses Despite Revenue Growth

Katapult Holdings (KPLT) reported its fiscal 2025 Q2 earnings on August 13, 2025, showing a 21.5% revenue increase to $70.72 million but wider net losses. The results fell short of profitability, with the company guiding for continued growth in gross originations and adjusted EBITDA for the remainder of the year.

Revenue

Katapult Holdings reported total revenue of $71.89 million for Q2 2025, a 21.5% increase from $58.20 million in the same period last year. Rental revenue was the main contributor, reaching $70.72 million, while other revenue added $1.17 million to the total. The growth was primarily driven by an expanding rental business and increasing transaction volumes.

Earnings/Net Income

The company’s earnings performance deteriorated, with a loss of $1.63 per share in Q2 2025, a 1.2% increase in the loss per share compared to Q2 2024. Net loss expanded to $7.83 million, a 13.7% increase from the $6.89 million loss in the prior-year period. Despite strong top-line growth, the company remains unprofitable.

Price Action

The stock of Katapult Holdings saw a strong short-term rebound, surging 8.85% on the latest trading day and rising 31.99% month-to-date. However, its weekly gain was more modest at 0.87%.

Post-Earnings Price Action Review

Despite a revenue increase quarter-over-quarter, the strategy of buying Katapult Holdings shares on the earnings release date and holding for 30 days has proven highly ineffective. A three-year backtest of this approach resulted in an 81.01% decline in returns, underperforming the benchmark by 127.33%. The compound annual growth rate was -43.64%, while the Sharpe ratio of -0.44 indicated poor risk-adjusted returns. The maximum drawdown of 0.00% suggests no further losses occurred after reaching the lowest point, but this did little to offset the overall negative performance.

CEO Commentary

CEO Orlando J. Zayas highlighted Katapult’s strong Q2 performance, including a 30.4% rise in gross originations, 22.1% revenue growth, and positive adjusted EBITDA. He emphasized the success of the two-sided marketplace model, noting 56% growth in total app originations and 81% in KPay originations. Zayas underscored customer engagement metrics, with 58.4% repeat customers and 40% new customer growth. He outlined strategic priorities, including strengthening consumer and merchant engagement, expanding referral partnerships, and improving unit economics and capital structure to drive profitability. Despite macroeconomic headwinds, the CEO remains optimistic about the company’s ability to scale its business and execute its vision.

Guidance

Katapult expects Q3 2025 gross originations growth of 25% to 30%, with revenue growth of 20% to 25% and adjusted EBITDA between $3 million and $3.5 million. For full-year 2025, the company raised its gross originations guidance to 20% to 25% growth and reiterated revenue growth of at least 20% and adjusted EBITDA of at least $10 million.

Additional News

In the three weeks following Katapult’s earnings report, notable non-earnings related news included Nigeria’s telecom regulator calling for public support to protect telecom infrastructure and Bitcoin hitting a record high above $124,000. Additionally, the Federal Government announced a seven-year ban on establishing new tertiary institutions. These developments reflect broader economic and political dynamics across Nigeria and other regions.