Earnings release
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NEWS RELEASE Katapult Reports Second Quarter Results 2026-08-04 Gross Originations Increase 5%, 15th Consecutive Quarter of Growth Revenue Grows 4% ; Adjusted EBITDA Increases Nearly 280% Pending Merger Transaction with The Aaron’s Company and CCF Holdings LLC Expected to Create a Scaled Financial Solutions Platform for Nonprime Consumers PLANO, Texas, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused nancial technology company, today reported its nancial results for the second quarter ended June 30, 2026. “This quarter we achieved our 15th consecutive quarter of gross originations growth, which re ects both the demand for our lease-to-own product and the dedication of our team,” said Orlando Zayas, CEO of Katapult. “Our consistently high Net Promoter Scores and repeat customer rates demonstrate the trusted relationships we’ve built with consumers and merchant-partners alike, and I’m incredibly proud of what our team has accomplished. As we approach the completion of our transaction with Aaron’s and CCF Holdings, we remain con dent that this combination will deliver meaningful bene ts for all of our stakeholders. Together, we are creating a scaled, omnichannel platform with a comprehensive suite of nancial solutions that will enable us to serve even more nonprime consumers, and I couldn’t be more excited about the road ahead.” Second Quarter 2026 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $75.5 million, an increase of 4.7%. Excluding the home furnishings and mattress category, gross originations grew 31.0% year-over-year. 1
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Total revenue was $74.8 million, an increase of 4.0%. Total operating expenses in the second quarter increased by $0.9 million. Our xed cash operating expenses, which exclude transaction related costs and other non-cash and variable expenses, decreased by 1.0% year-over-year. Loss from operations was $(1.9) million, compared with a loss of $(1.4) million in the second quarter of 2025. Net loss was $(4.4) million for the second quarter of 2026, a 44.0% improvement compared with net loss of $(7.8) million reported for the second quarter of 2025. This year-over-year improvement was mainly driven by a $2.2 million decrease in interest expense due to the absence of the Term Loan in 2026 following its extinguishment in November 2025. Adjusted net loss was $(3.0) million for the second quarter of 2026, an improvement compared with adjusted net loss of $(5.7) million reported for the second quarter of 2025. Adjusted EBITDAwas $1.2 million for the second quarter of 2026 an improvement compared to Adjusted EBITDA of $0.3 million in the second quarter of 2025. Katapult ended the quarter with total cash and cash equivalents of $24.1 million, which includes $6.0 million of restricted cash. The Company ended the quarter with $74.1 million of outstanding debt on its revolving credit facility. Cash provided by operations for the six months ended June 30, 2026 was $6.1 million, compared with cash used in operating activities of $3.2 million during the six months ended June 30, 2025. Write-o s as a percentage of revenue were 9.7% in the second quarter of 2026 and are within the Company’s 8% to 10% long-term target range. This compares to 9.8% in the second quarter of 2025. [1] 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 in August 2026, subject to requisite stockholder approval and the satisfaction of other customary closing conditions. Additional information regarding the Merger Agreement and the transaction is included in the notes to our condensed consolidated nancial statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 that we led with the Securities and Exchange Commission. In light of the pending mergers with Aaron’s and CCF Holdings, Katapult is not hosting a conference call to discuss 2 1 1 2 2
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second quarter nancial results nor is the company providing a business outlook at this time. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R)(“KPay”), consumers who may be unable to access traditional nancing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Cohn Kull VP of Investor Relations ir@katapult.com Forward-Looking Statements Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identi ed by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release statements regarding the all-stock merger transaction of Katapult, Aaron’s and CCF Holdings, the closing of the transaction and the timing thereof; the nancial and business impact of the transaction and the expected bene ts of the transaction; and future opportunities for the combined company and the future operations of the combined company. These statements are based on various assumptions, whether or not identi ed in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a de nitive statement of fact or probability. Actual events and circumstances are di cult or impossible to predict and will di er from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the ability to meet closing conditions to the proposed transaction, including stockholder approval, and the occurrence of any event, change or other circumstance that could delay the 3
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proposed transaction, or give rise to the termination of the Merger Agreement; potential adverse reactions or changes to business relationships resulting from the announcement of the mergers; litigation relating to the proposed transaction; the inability to retain key personnel, or potential diminished productivity due to the impact of the proposed transaction on Katapult’s current and prospective employees, key management, customers, suppliers, franchisees and business partners; meeting future liquidity requirements and complying with restrictive covenants related to indebtedness; the combined company’s ability to successfully integrate and grow its business; anticipated tax treatment, unexpected costs, charges or expenses resulting from the transaction; the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring KPay; the timing and impact of our growth initiatives on our future nancial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors a ecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, in ation, prevailing interest rates, consumer debt and availability of credit, consumer con dence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth, including the home furnishings and retail environment; risks related to the concentration of a signi cant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the e ects of competition on our future business; the impact of unstable market and economic conditions such as rising in ation and interest rates; reliability of our platform and e ectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber- attacks, and the protection of con dential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive o cers or directors; e ectively respond to general economic and business conditions; obtain additional capital, including equity or debt nancing and servicing our indebtedness; enhance future operating and nancial results; anticipate rapid technological changes, including generative arti cial intelligence and other new technologies; comply with laws and regulations applicable to our business and the business of the combined company, including laws and regulations related to rental purchase transactions; stay abreast of modi ed or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over nancial reporting which, if not identi ed and remediated, could a ect the reliability of our nancial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions, terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such 4
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events; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports led with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q for the three months ended June 30, 2026 that we led with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could di er materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to di er from those contained in the forward-looking statements. There can be no assurance that the transaction will be implemented or that plans of the respective directors and management of Katapult, Aaron’s and CCF Holdings will proceed as expected or will ultimately be successful. Undue reliance should not be placed on the forward-looking statements in this Press Release. All forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends a ecting our business, formulate nancial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross pro t, adjusted gross pro t and adjusted EBITDA. Gross originations are de ned as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross pro t represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross pro t and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures 5
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To supplement the nancial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of nancial performance: adjusted gross pro t, adjusted EBITDA, adjusted net loss and xed cash operating expenses. The Company believes that for management and investors to more e ectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP nancials and to review the reconciliation of the Company’s non-GAAP nancial measures to its comparable GAAP nancial measures, which are included in this press release. Adjusted gross pro t represents gross pro t less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross pro t provides a meaningful understanding of one aspect of its performance speci cally attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP nancial measure that is de ned as net income (loss) before interest expense and other fees, transaction related costs, stock-based compensation expense, debt re nancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, litigation and settlement expenses, provision for impairment of leased assets, interest income, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Transaction-related costs consist primarily of professional fees incurred and retention bonus costs in connection with the Mergers. Adjusted net loss is a non-GAAP nancial measure that is de ned as net income (loss) before transaction related costs, stock-based compensation expense,, debt re nancing costs, litigation and settlement expenses, gain on extinguishment of term loan and settlement of derivative liability, net, and change in fair value of derivative liability and warrants. Fixed cash operating expenses is a non-GAAP measure that is de ned as operating expenses less variable lease costs such as servicing costs and underwriting fees, transaction related costs, stock-based compensation expense, debt re nancing costs, depreciation and amortization on property and equipment, intangibles and capitalized software, and litigation and settlement expenses. We believe xed cash operating expenses illustrates our controllable ongoing expenses. Adjusted gross pro t, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance; 6
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Are nancial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and Are used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP nancial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP nancial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP nancial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and nancial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are signi cant in understanding and assessing Katapult’s nancial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross pro t, cash ows from operations or other measures of pro tability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies. KATAPULT HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Rental revenue $ 73,512 $ 70,716 $ 150,934 $ 141,794 Other revenue 1,249 1,170 2,848 2,038 Total revenue 74,761 71,886 153,782 143,832 Cost of revenue 63,253 60,718 124,075 118,315 Gross pro t 11,508 11,168 29,707 25,517 Operating expenses 13,437 12,578 27,301 27,463 Income (loss) from operations (1,929) (1,410) 2,406 (1,946)Loss on extinguishment of term loan — (1,040) — (1,040)Interest expense and other fees (3,173) (5,361) (6,312) (10,505)Interest income 157 26 287 83 Change in fair value of derivative liability and warrants 630 11 4,946 (25) Income (loss) before income taxes (4,315) (7,774) 1,327 (13,433)Provision for income taxes (73) (61) (29) (90) Net income (loss) $ (4,388) $ (7,835) $ 1,298 $ (13,523) Net loss attributable to common stockholders$ (7,717) $ (7,835) $ (5,062) $ (13,523) Weighted average common shares outstanding - basic and diluted 5,491 4,813 5,473 4,716 Net loss per common share attributable to common stockholders - basicand diluted $ (1.41) $ (1.63) $ (0.92) $ (2.87) 7
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KATAPULT HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) June 30, December 31, 2026 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 18,046 $ 22,432 Restricted cash 6,042 1,048 Property held for lease, net of accumulated depreciation and impairment 69,423 73,691 Prepaid expenses and other current assets 3,427 4,257 Deferred nancing costs, net 1,818 3,802 Total current assets 98,756 105,230 Property and equipment, net 136 163 Capitalized software and intangible assets, net 2,773 2,119 Right-of-use assets, non-current 312 339 Security deposits 15 15 Total assets $ 101,992 $ 107,866 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 4,525 $ 1,891 Accrued liabilities 15,672 17,701 Accrued litigation settlement 1,250 750 Unearned revenue 5,488 4,883 Revolving line of credit, net 74,065 78,727 Derivative liability 8,700 13,600 Lease liabilities 56 51 Total current liabilities 109,756 117,603 Lease liabilities, non-current 362 392 Other liabilities — 45 Total liabilities 110,118 118,040 MEZZANINE EQUITY Series A Convertible Preferred Stock, $0.001 par value; 35,000 shares authorized andissued (and outstanding) as of June 30, 2026 and December 31, 2025; stated value $1,000per share; as of June 30, 2026, liquidation preference was $39.5 million. 11,308 11,308 Series B Convertible Preferred Stock, $0.001 par value; 30,000 shares authorized andissued (and outstanding) as of June 30, 2026 and December 31, 2025; stated value $1,000per share; as of June 30 2026, liquidation preference was $33.8 million. 16,601 16,601 Total mezzanine equity 27,909 27,909 STOCKHOLDERS' DEFICIT Common stock, $.0001 par value; 250,000,000 shares authorized; 4,792,405 and 4,750,258shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively — — Additional paid-in capital 109,753 109,003 Accumulated de cit (145,788) (147,086) Total stockholders' de cit (36,035) (38,083) Total liabilities, mezzanine equity and stockholders' de cit$ 101,992 $ 107,866 KATAPULT HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) Six Months Ended June 30, 2026 2025 Cash ows from operating activities: Net income (loss) $ 1,298 $ (13,523)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 82,685 81,180 Depreciation for early lease purchase options (buyouts) 21,577 19,010 Depreciation for impaired leases 14,720 13,932 Change in fair value of derivative liability, warrants, and other (4,982) 25 Stock-based compensation 858 1,930 Loss on extinguishment of term loan — 1,040 Amortization of debt discount — 1,873 A i i fdbi 2060 361 8
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Amortization of debt issuance costs, net 2,060 361 Accrued PIK interest expense — 1,172 Amortization of right-of-use assets 23 161 Changes in operating assets and liabilities: Property held for lease (114,078) (115,784)Prepaid expenses and other current assets 871 2,947 Accounts payable 2,634 1,036 Accrued liabilities (2,613) 1,485 Accrued litigation 500 (500)Lease liabilities (25) (159)Unearned revenues 605 618 Net cash provided by (used in) operating activities 6,133 (3,196) Cash ows from investing activities: Purchases of property and equipment (24) (24)Additions to capitalized software (730) (636) Net cash used in investing activities (754) (660) Cash ows from nancing activities: Proceeds from New and Existing Revolving Facilities 8,844 10,013 Principal repayments on New and Existing Revolving Facilities (13,506) (12,154)Payments of deferred nancing costs (1) (1,204)Repurchases of restricted stock (108) (361) Net cash used in nancing activities (4,879) (3,706) Net increase (decrease) in cash, cash equivalents and restricted cash 608 (7,562)Cash, cash equivalents and restricted cash at beginning of period 23,480 16,552 Cash, cash equivalents and restricted cash at end of period$ 24,088 $ 8,990 Supplemental disclosure of cash ow information: Cash paid for interest $ 3,890 $ 7,066 Cash paid for income taxes $ 547 $ 48 Cash paid for operating leases $ 54 $ 112 Supplemental disclosure of non-cash investing and nancing activities Issuance of warrants to purchase common stock in connection with debt re nancing$ — $ 3,934 Issuance of common stock in connection with litigation settlements$ — $ 752 Issuance of New Term Loan derivative liability in connection with debt re nancing$ — $ 3,558 Debt issuance costs accrued but not yet paid$ 75 $ 3,103 Extinguishment of Existing Term Loan$ — $ 32,654 Acquisition of intangible asset through accrued liabilities$ 509 $ — KATAPULT HOLDINGS, INC. RECONCILIATION OF NON-GAAP MEASURES AND CERTAIN OTHER DATA (UNAUDITED) (amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $ (4,388) $ (7,835) $ 1,298 $ (13,523)Add back: Interest expense and other fees 3,173 5,361 6,312 10,505 Transaction related costs 979 — 2,672 — Stock-based compensation expense 312 864 858 1,930 Litigation and settlement expenses 720 178 855 437 Depreciation and amortization on property and equipment, intangiblesand capitalized software 319 315 636 645 Provision for impairment of leased assets 820 270 191 420 Provision for income taxes 73 61 29 90 Debt re nancing costs and loss on extinguishment of debt — 1,145 — 2,116 Interest income (157) (26) (287) (83)Change in fair value of derivative liability and warrants (630) (11) (4,946) 25 Adjusted EBITDA $ 1,221 $ 322 $ 7,618 $ 2,562 9
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Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $ (4,388) $ (7,835) $ 1,298 $ (13,523)Add back: Transaction related costs 979 — 2,672 — Stock-based compensation expense 312 864 858 1,930 Litigation and settlement expenses 720 178 855 437 Debt re nancing costs — 1,145 — 2,116 Change in fair value of derivative liability and warrants (630) (11) (4,946) 25 Adjusted net income (loss) $ (3,007) $ (5,659) $ 737 $ (9,015) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating expenses $ 13,437 $ 12,578 $ 27,301 $ 27,463Less: Transaction related costs 979 — 2,672 —Servicing costs 1,291 1,127 2,526 2,212Underwriting fees 750 830 1,408 1,602Stock-based compensation expense 312 864 858 1,930Litigation and settlement expenses 720 178 855 437Depreciation and amortization on property and equipment and capitalizedsoftware 319 315 636 645Debt re nancing costs — 105 — 1,076 Fixed cash operating expenses$ 10,045 $ 9,159 $ 21,018 $ 19,561 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total revenue $ 74,761 $ 71,886 $ 153,782 $ 143,832Cost of revenue 63,253 60,718 124,075 118,315 Gross pro t 11,508 11,168 29,707 25,517Less: Servicing costs 1,291 1,127 2,526 2,212Underwriting fees 750 830 1,408 1,602 Adjusted gross pro t $ 9,467 $ 9,211 $ 25,773 $ 21,703 CERTAIN KEY PERFORMANCE METRICS (ih d) ThMhEddJ 30 SiMhEddJ 30 10
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(in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total revenue $ 74,761 $ 71,886 $ 153,782 $ 143,832 KATAPULT HOLDINGS, INC. GROSS ORIGINATIONS Gross Originations ($ millions) Q1 Q2 Q3 Q4 Full Year FY 2026 $ 64.2 $ 75.5 $ — $ — $ 139.7FY 2025 $ 64.2 $ 72.1 $ 64.2 $ 77.9 $ 278.4FY 2024 $ 55.6 $ 55.3 $ 51.2 $ 75.2 $ 237.3 Source: Katapult Holdings, Inc. 11