Katapult Holdings, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, total revenue increased to $60.3 million, a 10.0% rise from $54.8 million in the same period of 2023. Rental revenue also saw a 10.3% increase, reaching $59.6 million, up from $54.0 million. Gross profit for the quarter was $11.9 million, compared to $11.5 million in the prior year. However, the company reported a net loss of $8.9 million, significantly higher than the $4.1 million loss in Q3 2023, reflecting a 119.2% increase in losses. The loss from operations also widened to $4.4 million from $0.4 million year-over-year.
For the nine months ended September 30, 2024, total revenue rose to $184.2 million, a 12.3% increase from $164.0 million in the same period of 2023. The net loss for this period was $16.3 million, an improvement from the $22.0 million loss reported in the prior year. The company attributed the improved performance to higher gross originations, which increased by 2.0% to $162.2 million for the nine-month period.
Strategically, Katapult has been focusing on enhancing its technology-driven lease-to-own platform, which serves non-prime consumers. The company has seen a shift in its merchant partnerships, with Wayfair accounting for 42% of gross originations in Q3 2024, down from 56% in Q3 2023. Conversely, Katapult Pay's contribution rose to 31% from 17% in the same timeframe.
The company is currently navigating significant financial challenges, including a total stockholders' deficit of $40.3 million as of September 30, 2024, compared to $28.0 million at the end of 2023. Total current liabilities surged to $131.0 million, up from $42.3 million at the end of the previous year, primarily due to increased litigation settlement expenses and operational costs.
Katapult is actively seeking to refinance its loans, which have a combined principal balance of approximately $98.6 million, maturing in June 2025. The company has been in compliance with all covenants related to its revolving line of credit and term loan as of September 30, 2024.
Additionally, the company has faced litigation challenges, including a recent settlement with Daiwa Corporate Advisory LLC for $3.0 million and ongoing lawsuits that could impact its financial position. The company has recognized $3.0 million in operating expenses related to these settlements in the current reporting period.
Overall, while Katapult has shown revenue growth and improved net loss figures, it continues to grapple with operational challenges, increased liabilities, and the need for strategic refinancing.
About Katapult Holdings, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.