Revenue Grows 10% Year-Over-Year

Adjusted EBITDA Increases Nearly 200% Year-Over-Year

Gross Originations Excluding the Home Furnishings and Mattress Category Grows 17.5%

Pending Merger Transaction with The Aaron's Company and CCF Holdings LLC Expected to Create a Premier Omnichannel Platform for Nonprime Consumers

PLANO, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. ("Katapult" or the "Company") (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended March 31, 2026.

"We remain focused on providing the innovative, transparent and reliable LTO platform that our customers want and deserve," said Orlando Zayas, CEO of Katapult. "We believe our healthy Net Promoter Scores and repeat customer rates combined with increasing customer lifetime value, demonstrate the affinity consumers across the US have for Katapult. While our first quarter gross originations performance was impacted by macroeconomic headwinds, we posted our 14th consecutive quarter of growth and early in the second quarter, we are already seeing a bit of acceleration. Our revenue growth remained strong and this coupled with our continued focus on fiscal responsibility allowed us to deliver more than $6.4 million in Adjusted EBITDA.

"As we continue to hit new operating milestones, we are looking forward to consummating our pending merger with Aaron's and CCF Holdings," continued Zayas. "We believe this combination will enhance our ability to meet the evolving needs of nonprime consumers by creating the scale and scope we need to unlock the value of our business model. We are very excited about the future."

Progress: Recent Highlights

(All comparisons are year-over-year unless stated otherwise.)

   -- Total lease applications declined 5.0% year-over-year in the first 
      quarter. 
 
   -- Increased activity within the Katapult app marketplace: 
 
          -- Monthly Active Users (MAU) were down approximately 1.0% in the 
             first quarter 
 
          -- 60.8% of first quarter gross originations started in the Katapult 
             app marketplace, making it the single largest customer referral 
             source 
 
          -- Total app marketplace gross originations grew 3.1% year-over-year. 
             Total app marketplace gross originations are defined as 
             originations that start in our app but may be consummated 
             elsewhere. 
 
          -- Cross-shopping activity continued to increase; customers with two 
             or more current leases with two or more different retailers grew 
             14.3% in the first quarter and represented approximately 29.0% of 
             the total number of gross originations during the quarter 
 
          -- Customer lifetime value grew 14.8% in the first quarter, driven in 
             part by an increase in the average number of leases per customer 
 
          -- Customer satisfaction remained high and Katapult had a Net 
             Promoter Score of 63 as of March 31, 2026 
 
          -- Approximately 60.9% of gross originations for the first quarter of 
             2026 came from repeat customers1 
 
   -- Consumer engagement grew with the addition of app functionality and 
      features and the execution of targeted marketing campaigns 
 
          -- In-quarter Katapult Pay ("KPay") conversion rate during the first 
             quarter grew 200bps compared to last year and the number of KPay 
             transactions grew by approximately 22.3% year-over-year. Unique 
             KPay customer count grew approximately 9.0% year-over-year. 
 
          -- KPay gross originations grew 18.6% year-over-year in the first 
             quarter and 42.0% of total gross originations were transacted 
             using KPay. 
 
   -- Continued to support our merchant-partners with targeted initiatives 
      focused on strategic underwriting, pricing and event-driven co-marketing 
      campaigns 
 
          -- Direct and waterfall gross originations represented approximately 
             58% of total first quarter originations and declined 10.1%. 
             Excluding the home furnishings and mattress category, these gross 
             originations grew approximately 10.0%. 
 
          -- Cohort of top 25 merchants declined 4.2% in the first quarter (as 
             measured by gross originations volume) 
 
          -- Added 46 direct or waterfall merchants or merchant pathways to our 
             ecosystem. Pathways include new or existing merchant partners that 
             launched a new website or an in-store experience that includes 
             Katapult as a direct or waterfall LTO offering. 
 
          -- Launched BrandsMart in-store experience and added the retailer to 
             the KPay app marketplace. BrandsMart is one of the leading 
             consumer electronics and appliance retailers in the southeastern 
             US and one of the largest appliance retailers in the country. 

First Quarter 2026 Financial Highlights

(All comparisons are year-over-year unless stated otherwise.)

   -- Gross originations were $64.2 million, an increase of 0.1%. Excluding the 
      home furnishings and mattress category, gross originations grew 17.5% 
      year-over-year. 
 
   -- Total revenue was $79.0 million, an increase of 9.8%. 
 
   -- Total operating expenses in the first quarter decreased by $1.0 million. 
      Our fixed cash operating expenses2, which exclude transaction related 
      costs and other non-cash and variable expenses, decreased by 10.8% 
      year-over-year. 
 
   -- Income from operations was $4.3 million, an improvement compared with a 
      loss of $(0.5) million in the first quarter of 2025. 
 
   -- Net income was $5.7 million for the first quarter of 2026, a 200% 
      improvement compared with net loss of $(5.7) million reported for the 
      first quarter of 2025. This year-over-year improvement was mainly driven 
      by a $4.3 million gain on a derivative liability and a $3.9 million 
      increase in gross profit. 
 
   -- Adjusted net income2 was $3.7 million for the first quarter of 2026, an 
      improvement compared with adjusted net loss of $(3.4) million reported 
      for the first quarter of 2025. 
 
   -- Adjusted EBITDA2 was $6.4 million for the first quarter of 2026 an 
      improvement compared with Adjusted EBITDA2 of $2.2 million in the first 
      quarter of 2025. 
 
   -- Katapult ended the quarter with total cash and cash equivalents of $28.1 
      million, which includes $5.8 million of restricted cash. The Company 
      ended the quarter with $71.6 million of outstanding debt on its revolving 
      credit facility. 
 
   -- Cash provided by operations was $12.2 million, compared with $3.4 million 
      in the first quarter of 2025. 
 
   -- Write-offs as a percentage of revenue were 9.2% in the first quarter of 
      2026 and are within the Company's 8% to 10% long-term target range. This 
      compares with 9.0% in the first quarter of 2025. 

[1] Repeat customer rate is defined as the percentage of in-quarter originations from existing customers.

[2] Please refer to the "Reconciliation of Non-GAAP Measure and Certain Other Data" section and the GAAP to non-GAAP reconciliation tables below for more information.

Pending Mergers with The Aaron's Company and CCF Holdings LLC

On December 11, 2025, we entered into an agreement (the "Merger Agreement") to merge with Aaron's Intermediate Holdco, Inc. ("Aaron's") and CCF Holdings LLC ("CCF Holdings"). We expect this transaction to close within the third quarter of 2026, subject to requisite stockholder and regulatory approvals and the satisfaction of other customary closing conditions. If completed, we expect the transaction to create a premier omni-channel platform that provides nonprime consumers access to durable goods and a comprehensive suite of innovative financial solutions tailored to their specific needs. Specifically, we believe this transaction will deliver the following benefits:

   -- Differentiated customer value proposition: Creates a trusted platform for 
      nonprime consumers to access durable goods and a comprehensive suite of 
      innovative financial solutions tailored to their specific needs. 
 
   -- Scale and unique market position: Establishes a scaled omni-channel 
      business with leading digital and mobile capabilities and a nationwide 
      physical footprint including approximately 3,000 retail touchpoints. 
 
   -- Enhanced financial profile: the combined company is expected to have a 
      stronger financial and operating model that includes: 
 
          -- more than $4 billion in pro forma revenue for the last twelve 
             months $(LTM)$ as of Q3 2025; 
 
          -- approximately $450 million in pro forma LTM Adjusted EBITDA as of 
             Q3 2025 and operating scale that supports long-term double-digit 
             Adjusted EBITDA margin potential; 
 
          -- a combined reach that includes more than 7 million recently served 
             customers; 
 
          -- a broad portfolio of recurring revenue streams; and 
 
          -- more attractive unit economics that support long-term 
             profitability. 
   -- Significant synergy potential: Expected synergies include: 
 
          -- expanded opportunities to serve a broader spectrum of nonprime 
             consumer needs; 
 
          -- enhanced underwriting capabilities that can drive growth and 
             yield; 
 
          -- technology that amplifies and accelerates product innovation; and 
 
          -- operating efficiencies. 
 
   -- Strengthened balance sheet: Boosts the company's balance sheet and access 
      to capital that can be used to accelerate and invest in growth 
      opportunities. 
 
   -- Experienced leadership: Team of seasoned executives with deep experience 
      in the nonprime consumer segment and track records of delivering 
      operational improvement and innovation. 

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May 07, 2026 06:00 ET (10:00 GMT)