Katapult Holdings (KPLT) Q3 2026 earnings summary

Executive summary

• Aug. 11 merger combined Aaron’s, CCFI and Katapult operations across lease-to-own, retail and consumer finance; integration is underway with ~$30M in annualized cost synergies identified.

• Combined full-quarter Q3 revenue was $1.006B, down 1% YoY, while Adjusted EBITDA rose 23% to $131.7M.

• Strategy prioritizes portfolio returns, technology-enabled servicing efficiency, loss management and lower funding costs to improve cash generation.

Financial highlights

• Reported Q3 revenue was $753.9M, gross profit $437.7M at a 58.1% margin, operating profit $24.9M and net loss $28.0M.

• Reported Adjusted EBITDA was $110.4M, with a 14.6% margin; net interest expense was $64.9M.

• Combined full-quarter revenue was $1.006B vs. $1.019B in Q3 2025; Adjusted EBITDA was $131.7M vs. $106.8M.

• Combined full-quarter net loss was $44.5M vs. $30.1M in Q3 2025; nine-month operating cash flow was $496.8M.

• Reported Q3 results include Aaron’s and Katapult only from the Aug. 11 merger close; combined comparisons are illustrative, not Article 11 pro forma information.

Outlook and guidance

• Q4 2026 guidance: revenue of $975M–$1.025B and Adjusted EBITDA of $105M–$120M.

• Guidance assumes macro headwinds persist through year-end, with lower average tickets and selective lease-to-own spending; underwriting remains disciplined and margin protection takes priority over volume.

• Cost synergies are expected to build through Q4 and be largely in the run rate by mid-2027; significant progress on funding structure is expected in 2027.

• Q1 historically contributes roughly 30% of annual Adjusted EBITDA; Q2 and Q3 are each in the mid-20s, while Q4 is typically roughly 20%.