Katapult Holdings, Inc.

Gross originations increased 25.3% to $64.2 million, and revenue increased 22.8% to $74 million. Gross profit was about $14.6 million, up from $11.9 million a year ago, while gross margin was 19.7% versus 19.8% in Q3 2024. Adjusted EBITDA was $4.4 million, above the $3 million to $3.5 million outlook range, and cash from operations was $800,000 versus $4.1 million of cash used in Q3 2024. Write-offs were 9.9% of revenue, up 60 basis points year over year and within the 8% to 10% target range. For Q4 2025, management expects gross originations growth of 15% to 20%, revenue growth of 21% to 23%, and about $2 million of adjusted EBITDA. For full-year 2025, Katapult now expects gross originations growth of 20% to 23%, revenue growth of 18% to 20%, and adjusted EBITDA of $8 million to $9 million.

Orlando Zayas framed the quarter as evidence that Katapult is making progress on its three priorities for 2025: more top-of-funnel activity, better customer engagement, and a stronger capital structure. He highlighted the $65 million Hawthorn investment as a way to create a more efficient balance sheet and a more stable foundation for growth. His tone was upbeat and confident, emphasizing application growth, repeat usage, and new product features like higher lease lines, auto pay, and PayPal checkout.

Nancy Walsh emphasized disciplined expense management and the resulting profitability improvement. She cited gross originations of $64.2 million, revenue of $74 million, gross profit of about $14.6 million, and gross margin of 19.7%; she also noted total operating expenses were down 26.3% and fixed cash operating expenses fell 21.4% to $7.5 million. On the balance sheet, she said cash and cash equivalents were $9 million, including $5.6 million of restricted cash, and that the company used about $35.1 million of Hawthorn proceeds to repay the term loan and about $6.9 million to reduce revolver borrowings. She also pointed to $79.6 million of outstanding debt on the revolving credit facility at quarter-end and said the lower advance rate should save interest expense over time.

There was no formal analyst Q&A in the transcript provided, so the most important management commentary centered on the prepared remarks and outlook. Management acknowledged a tougher macro backdrop, including inflation, broader delinquency pressure among non-prime consumers, and uncertainty tied to the government shutdown. They also said recent underwriting tightening is already improving credit quality and conversion, but that it is too early to know the full impact on demand and write-offs.