Katapult (KPLT) Q4 2025 earnings summary

Executive summary

• Achieved 13th consecutive quarter of gross originations growth, with 17% year-over-year increase in 2025, though slightly below the 20–23% target.

• Pending merger with Aaron's and CCF Holdings expected to create a leading omnichannel platform for nonprime consumers.

• Economic headwinds, including high inflation and a challenging labor market, led to a slowdown in growth during the holiday season.

Financial highlights

• Gross originations for Q4 2025 were $77.9M, up 3.7% year-over-year; full year 2025 originations reached $278.5M, up 17.3%.

• Q4 2025 revenue was $73.9M, up 17.3%; full year revenue was $291.8M, up 18%.

• Q4 net income was $19.8M, compared to a net loss of $9.6M in Q4 2024, driven by gains on derivative liability and loan extinguishment.

• Full year net income was $1.4M, compared to a net loss of $25.9M in 2024.

• Adjusted EBITDA for Q4 was $5.4M (vs. loss of $1.1M prior year); full year Adjusted EBITDA was $12.4M (vs. $4.8M prior year).

• Cash used in operations improved to $11.9M for 2025, down from $32.6M in 2024.

• Ended Q4 with $23.5M in cash and $78.7M in outstanding revolving credit facility debt.

Segment performance

• App marketplace originations grew 13.7% year-over-year; 66.6% of Q4 originations started in the app.

• KPay gross originations grew 25.7% in Q4 and 51.2% for the year; 49.4% of total originations used KPay.

• Direct and waterfall originations declined 11.4% in Q4, but excluding home furnishings and mattress, grew 4.7%.

• Top 25 merchant cohort originations grew 1% in Q4 and 15% for the year.