KPLT · Katapult Holdings, Inc.

Katapult Holdings has secured a critical waiver from its lenders, addressing two significant financial covenant breaches under its primary loan agreement. The company failed to meet the Minimum Trailing Three-Month Net Originations requirement as of March 31, 2026, constituting a default. Concurrently, the percentage of charged-off leases in certain vintage pools exceeded permitted thresholds during December 2025, January 2026, and February 2026, triggering advance rate reduction events. This Tenth Limited Waiver, the latest in a series of amendments and waivers dating back to September 2025, provides permanent relief for these specific historical issues, preventing immediate lender remedies and potential reductions to borrowing capacity. However, the waiver is narrowly scoped and explicitly does not cover any future covenant breaches or trigger events, leaving the company vulnerable to similar issues if performance does not improve. The agreement maintains all other terms of the existing loan facility and requires the credit parties to confirm their ongoing obligations and representations. This development indicates ongoing financial stress and reliance on lender forbearance to maintain liquidity under the company's secured financing arrangement.