Katapult Holdings Reports Better-Than-Expected Q4 Revenue, But Losses Exceed Wall Street Projections — Retail Remains Optimistic

The company reported a loss of $2.12 per share during the quarter, wider than the projected loss of $1.77.

Updated: Mar 31, 2025, 7:00 AM IST

Shares of Katapult Holdings Inc. (KPLT) drew investor attention on Friday after the company’s fourth-quarter revenue topped Wall Street estimates, but losses exceeded projections.

Revenue rose 9% year over year (YoY) to $62.96 million, topping a Street estimate of $62.35 million, according to FinChat data. The company reported a loss of $2.12 per share, which was wider than the projected loss of $1.77.

However, net loss narrowed to $9.57 million in the fourth quarter (Q4), compared to $14.63 million in the same quarter a year ago.

The company’s gross originations rose 11.3% to $75.2 million. Excluding the home furnishings and mattress category within the direct-waterfall channel, gross originations jumped 50% YoY.

Katapult ended the quarter with $16.6 million in cash and cash equivalents, including $13.1 million of restricted cash. At the end of the quarter, the company had $82.8 million of outstanding debt on its credit facility.

For the first quarter (Q1) of 2025, Katapult expects an approximately 11% YoY increase in gross originations and an approximately 10% YoY rise in revenue. The company projected $3 million of positive adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the year.

For 2025, Katapult anticipates at least 20% growth in gross originations and a 20% rise in revenue.

CEO Orlando Zayas said the fourth quarter saw stronger-than-expected gross originations growth and 50% growth in application volume.

“The fourth quarter holiday season is an incredibly important time for many of our merchant-partners and the Katapult marketplace delivered, including more than 100% year-over-year gross originations growth during the Cyber 5 period in 2024.”

On Stocktwits, retail sentiment dipped marginally but continued to trend in the ‘extremely bullish’ territory (85/100) accompanied by significant chatter.