KPLT · Katapult Holdings, Inc.

Katapult’s Q1 2026 results reflect a decisive inflection point: the company delivered its first quarterly net income ($5.7M) since inception, reversing a $5.7M net loss in Q1 2025 — a 200% YoY improvement explicitly attributed to a $4.3M gain on a derivative liability and a $3.9M increase in gross profit. Revenue grew 9.8% to $79.0M, while Adjusted EBITDA surged nearly 200% to $6.4M, underscoring disciplined cost management — fixed cash operating expenses fell 10.8% YoY. Gross originations were flat overall ($64.2M), but excluding the underperforming home furnishings and mattress category, they rose 17.5% YoY, revealing underlying strength in core verticals. Management attributes resilience to high repeat customer rates (60.9%), strong Net Promoter Score (63), and accelerating adoption of Katapult Pay (KPay), which accounted for 42% of total gross originations and grew 18.6% YoY. Critically, the filing confirms the pending merger with The Aaron’s Company and CCF Holdings LLC remains on schedule for Q3 2026 closure, with Katapult shareholders retaining only 6% of the combined entity — a structurally dilutive outcome that signals strategic prioritization of scale and omnichannel reach over near-term equity value. The merger is positioned to create a $4B+ LTM revenue platform with ~3,000 retail touchpoints and $450M LTM Adjusted EBITDA, targeting long-term double-digit EBITDA margins. Notably, Katapult has suspended earnings guidance and investor calls pending merger completion, reinforcing that integration execution — not standalone quarterly performance — is now the dominant investor narrative.