Katapult (KPLT) Q1 2026 earnings summary

Executive summary

• Net income reached $5.7 million for Q1 2026, reversing a $5.7 million net loss in Q1 2025, driven by revenue growth, improved gross profit, and a $4.3 million non-cash gain from derivative liability remeasurement.

• Total revenue increased 9.8% year-over-year to $79.0 million, marking the 14th consecutive quarter of growth.

• Adjusted EBITDA rose nearly 200% year-over-year to $6.4 million.

• Pending mergers with CCFI and Aaron's expected to close in Q3 2026, creating a leading omnichannel platform for nonprime consumers and significantly altering capital structure and ownership.

Financial highlights

• Gross originations were $64.2 million, flat year-over-year; excluding home furnishings and mattress, originations grew 17.5%.

• Gross profit rose 26.8% to $18.2 million, with gross margin improving to 23.0% from 19.9% in Q1 2025.

• Operating expenses decreased by $1.0 million; fixed cash operating expenses down 10.8% year-over-year.

• Adjusted EBITDA was $6.4 million, up from $2.2 million in Q1 2025.

• Cash provided by operations was $12.2 million, up from $3.4 million in Q1 2025.

Outlook and guidance

• Mergers with CCFI and Aaron's expected to close in Q3 2026, subject to regulatory and stockholder approvals.

• Management intends to refinance or extend the $110 million revolving credit facility maturing December 2026, but substantial doubt exists about the ability to continue as a going concern absent refinancing.