Katapult (KPLT) Q2 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of gross originations growth, with Q2 2024 originations up 1.1% year-over-year to $55.3M, despite home furnishings headwinds.

• Revenue for Q2 2024 increased 8.7% year-over-year to $58.9M, driven by strong non-Wayfair and Katapult Pay performance.

• Net loss improved to $6.9M from $7.4M in Q2 2023; adjusted EBITDA loss narrowed to $0.4M from $1.5M.

• Katapult Pay originations more than doubled year-over-year, now representing 28% of total originations.

• Added major merchant partnerships and expanded product offerings, including Lowe's, Costco, Newegg, and layoff insurance.

Financial highlights

• Gross originations: $55.3M in Q2 2024, up 1.1% year-over-year; two-year stack nearly 20%.

• Revenue: $58.9M in Q2 2024, up 8.7% year-over-year; gross profit: $9.9M (16.9% margin), up 4.9% year-over-year.

• Adjusted EBITDA loss: $0.4M in Q2 2024, improved by $1.2M year-over-year; YTD adjusted EBITDA: $5.3M.

• Net loss per share for Q2 2024 was $1.61, compared to $1.83 in Q2 2023.

• Cash and equivalents at quarter-end: $38.4M (including $4.6M restricted cash); outstanding debt: $69.7M.

Outlook and guidance

• Q3 2024: gross originations growth of 8–10%, revenue growth of 7–8%, break-even or better adjusted EBITDA.

• Full year 2024: at least 10% growth in gross originations and revenue, positive adjusted EBITDA expected.

• Expects positive income from operations in 2025; outlook assumes home furnishings retail returns to growth and no major macro changes.