On March 28, 2025, Katapult Holdings Inc (KPLT, Financial) released its 8-K filing detailing its financial performance for the fourth quarter ended December 31, 2024. Katapult Holdings Inc is a technology-driven lease-to-own platform that partners with omni-channel retailers and e-commerce platforms to facilitate the purchase of durable goods for underserved U.S. non-prime consumers.
Performance Overview and Challenges
Katapult Holdings Inc reported a total revenue of $63.0 million for Q4 2024, surpassing the analyst estimate of $62.20 million. This represents a 9.4% increase compared to the same period last year. The company also achieved a significant 11.3% growth in gross originations, reaching $75.2 million. However, the company faced a net loss of $9.6 million, an improvement from the $14.6 million net loss in Q4 2023. Despite the improvement, the net loss per share of $2.12 was below the estimated earnings per share of -1.77.
Financial Achievements and Industry Significance
The company's strong performance during the holiday season, particularly the Cyber 5 period, was driven by targeted marketing campaigns and new app features. Katapult's transition to a two-sided marketplace, with 61% of gross originations starting in the Katapult app marketplace, highlights its strategic shift and potential for growth. This is crucial for a fintech company like Katapult, as it enhances consumer engagement and expands its merchant ecosystem.
Key Financial Metrics
Katapult's total operating expenses decreased by 37.4% in Q4 2024, with fixed cash operating expenses down by 7.1%. The company's adjusted EBITDA loss was $1.1 million, compared to a loss of $0.3 million in Q4 2023, primarily due to higher cost of sales associated with rapid gross originations growth. Katapult ended the quarter with $16.6 million in cash and cash equivalents, including $13.1 million of restricted cash, and $82.8 million in outstanding debt.
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Gross Originations | $75.2 million | $67.6 million |
| Total Revenue | $63.0 million | $57.6 million |
| Net Loss | $(9.6) million | $(14.6) million |
| Adjusted EBITDA Loss | $(1.1) million | $(0.3) million |
Analysis and Outlook
Katapult's Q4 2024 results demonstrate its ability to leverage its two-sided marketplace model to drive growth and improve financial performance. The company's focus on enhancing customer experience and expanding its merchant network positions it well for continued growth in 2025. However, challenges remain, particularly in managing costs and achieving profitability. The company's strategic initiatives and disciplined expense management will be critical in navigating these challenges and capitalizing on growth opportunities in the lease-to-own market.
During 2024, we delivered strong top-line growth while continuing to lean into fiscal discipline and as a result, we were able to generate our first full year of Adjusted EBITDA profitability since 2021," said Nancy Walsh, CFO of Katapult.
Explore the complete 8-K earnings release (here) from Katapult Holdings Inc for further details.
