In This Article:
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Gross Originations: Grew 15.4% to $64.2 million in Q1 2025.
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Revenue: Increased by 10.6% to $71.9 million in Q1 2025.
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Gross Margin: 19.9% in Q1 2025.
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Net Income: Loss from operations was $500,000 in Q1 2025.
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Adjusted EBITDA: $2.2 million in Q1 2025.
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Cash and Cash Equivalents: $14.3 million as of March 31, 2025.
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Outstanding Debt: $77.8 million on revolving credit facility as of March 31, 2025.
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Cash Generated from Operations: $3.4 million in Q1 2025.
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Repeat Customer Rate: 57.4% as of March 31, 2025.
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Net Promoter Score (NPS): 66% as of March 31, 2025.
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App Originations: Grew 42% to $37.9 million in Q1 2025.
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KPay Originations: $22.8 million, up approximately 57% in Q1 2025.
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Katapult Holdings Inc (NASDAQ:KPLT) reported a 15.4% year-over-year growth in gross originations for Q1 2025, surpassing their outlook of 11% growth.
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First quarter revenue exceeded expectations, achieving a 10.6% growth.
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The company's app marketplace has shown significant growth, with app originations increasing by 42% to $37.9 million.
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Katapult's Net Promoter Score (NPS) improved to 66%, and the repeat customer rate increased to 57.4%, indicating strong customer satisfaction and loyalty.
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The company has successfully expanded its merchant partnerships, adding Ashley Furniture and Bed Bath and Beyond to its roster, enhancing its marketplace offerings.
Negative Points
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Katapult Holdings Inc (NASDAQ:KPLT) faced challenges in the home furnishings and mattress category, with Wayfair's gross originations remaining under pressure.
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The company is negotiating a maturity extension for its credit facility, indicating potential financial constraints.
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Gross profit for Q1 decreased to $14.3 million from $16.5 million the previous year, impacted by higher lease depreciation costs.
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Operating expenses increased by 17% year-over-year, driven by general and administrative costs and investments in growth initiatives.
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Adjusted EBITDA for Q1 was $2.2 million, below the company's outlook, primarily due to the timing of strong gross originations growth.
Q & A Highlights
Q: Can you explain the expected EBITDA growth for the second half of the year given the first quarter results? A: Nancy Walsh, Chief Financial Officer, explained that despite being break-even in Q2, Katapult anticipates achieving the $10 million EBITDA target for the year. This expectation is based on faster growth in the first quarter and anticipated strong growth in the second quarter, along with seasonal growth in Q4.