Katapult | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 79.02 M

Revenue: As of FY2026 Q1, the actual value is USD 79.02 M, beating the estimate of USD 79 M.

EPS: As of FY2026 Q1, the actual value is USD 0.07.

EBIT: As of FY2026 Q1, the actual value is USD 7.344 M.

Katapult Holdings, Inc. operates as a single reportable segment and does not provide segmented financial data beyond the consolidated level .

Revenue

• Rental revenue increased by $6,344 thousand, or 8.9%, to $77,422 thousand for the three months ended March 31, 2026, from $71,078 thousand in the same period of 2025 .
• Other revenue increased by $731 thousand, or 84.2%, to $1,599 thousand for the three months ended March 31, 2026, from $868 thousand in the same period of 2025 .
• Total revenue increased by $7,075 thousand, or 9.8%, to $79,021 thousand for the three months ended March 31, 2026, from $71,946 thousand in the same period of 2025 .

Operational Metrics

• Cost of revenue increased by $3,225 thousand, or 5.6%, to $60,822 thousand for the three months ended March 31, 2026, from $57,597 thousand in the same period of 2025, primarily due to growth in the Company’s lease portfolio and higher depreciation expense .
• Gross profit increased by $3,850 thousand, or 26.8%, to $18,199 thousand for the three months ended March 31, 2026, from $14,349 thousand in the same period of 2025 . Gross profit as a percentage of total revenue increased to 23.0% for the three months ended March 31, 2026, compared to 19.9% for the same period in 2025 .
• Operating expenses decreased by $1,021 thousand, or -6.9%, to $13,864 thousand for the three months ended March 31, 2026, from $14,885 thousand in the same period of 2025, mainly due to lower compensation and general and administrative expenses, partially offset by transaction-related costs .
• Income from operations was $4,335 thousand for the three months ended March 31, 2026, compared to a loss of - $536 thousand in the same period of 2025 .
• Interest expense and other fees decreased by $2,005 thousand, or -39.0%, to - $3,139 thousand for the three months ended March 31, 2026, from - $5,144 thousand in the same period of 2025, primarily due to the absence of the Term Loan .
• Interest income increased by $73 thousand, or 128.1%, to $130 thousand for the three months ended March 31, 2026, from $57 thousand in the same period of 2025 .
• Change in fair value of derivative liability and warrants resulted in a gain of $4,316 thousand for the three months ended March 31, 2026, compared to a loss of - $36 thousand in the same period of 2025 .
• Net income (loss) was $5,686 thousand for the three months ended March 31, 2026, compared to a net loss of - $5,688 thousand in the same period of 2025 .
• Net income (loss) available to common stockholders was $355 thousand for the three months ended March 31, 2026, compared to a net loss of - $5,688 thousand in the same period of 2025 .
• Net income (loss) per common share (basic and diluted) was $0.07 for the three months ended March 31, 2026, compared to - $1.23 in the same period of 2025 .

Cash Flow

• Net cash provided by operating activities was $12,212 thousand for the three months ended March 31, 2026, compared to $3,438 thousand in the same period of 2025 .
• Net cash used in investing activities was - $384 thousand for the three months ended March 31, 2026, compared to - $401 thousand in the same period of 2025 .
• Net cash used in financing activities was - $7,188 thousand for the three months ended March 31, 2026, compared to - $5,278 thousand in the same period of 2025 .
• Cash, cash equivalents and restricted cash at end of period was $28,120 thousand as of March 31, 2026, compared to $14,311 thousand as of March 31, 2025 .

Unique Metrics

• Gross Originations were $64,243 thousand for the three months ended March 31, 2026, remaining consistent with $64,199 thousand in the same period of 2025 .
• Gross originations through KPay represented 42% of total gross originations during the three months ended March 31, 2026, an increase from 35% in the same period of 2025 .
• Wayfair represented 18% of gross originations during the three months ended March 31, 2026, a decrease from 27% in the same period of 2025 .
• Write-offs as a percentage of total revenue were 9.2% for the three months ended March 31, 2026, compared to 9.0% in the same period of 2025, remaining within the target range of 8% to 10% .
• Adjusted Gross Profit was $16,306 thousand for the three months ended March 31, 2026, compared to $12,492 thousand in the same period of 2025 .
• Adjusted EBITDA was $6,397 thousand for the three months ended March 31, 2026, compared to $2,240 thousand in the same period of 2025 .
• Adjusted Net Income (Loss) was $3,744 thousand for the three months ended March 31, 2026, compared to - $3,356 thousand in the same period of 2025 .
• Fixed Cash Operating Expenses were $9,280 thousand for the three months ended March 31, 2026, compared to $10,402 thousand in the same period of 2025 .

Future Outlook and Strategy

Katapult Holdings, Inc. is pursuing strategic mergers with CCFI and Aaron’s, anticipated to close in the third quarter of 2026, to establish a premier omni-channel platform for non-prime consumers . The company intends to refinance, extend, or replace its New Revolving Facility, which matures on December 4, 2026, though success on acceptable terms is not assured . Independent auditors have expressed substantial doubt about the company’s ability to continue as a going concern without successful refinancing or extension of its indebtedness and adequate operational funding .