This article first appeared on GuruFocus .
Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Katapult Holdings Inc ( NASDAQ:KPLT ) received a $65 million capital investment from Hawthorne Horizon Credit Fund, which allowed the company to pay off its term loan and invest in growth opportunities.
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The company reported a 76% growth in applications in the first three quarters of 2025, contributing to a 35% increase in unique new customers.
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Katapult Holdings Inc ( NASDAQ:KPLT ) achieved a 25.3% growth in gross originations and a 22.8% increase in revenue during the third quarter, both within their outlook range.
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The company delivered $4.4 million in positive adjusted EBITDA, exceeding their projected range of $3 to $3.5 million.
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Katapult Holdings Inc ( NASDAQ:KPLT ) has experienced 12 consecutive quarters of gross origination growth and 10 consecutive quarters of revenue growth, demonstrating strong and consistent performance.
Negative Points
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The company noted a slight downward trend in application quality over the last few months, impacting their ability to control credit quality.
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Katapult Holdings Inc ( NASDAQ:KPLT ) is facing macroeconomic challenges, including inflation and financial difficulties among non-prime US consumers, which could impact future performance.
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The company experienced a 60 basis point increase in write-offs as a percentage of revenue compared to the previous year.
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Despite strong growth, the company is taking a conservative approach to Q4 expectations due to uncertainties in the macroeconomic environment.
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Katapult Holdings Inc ( NASDAQ:KPLT ) is tempering its 2025 outlook for gross originations, revenue, and adjusted EBITDA due to recent macro trends and events.
Q & A Highlights
Q: Can you provide more details on the recent capital investment from Hawthorne Horizon Credit Fund? A: Orlando Zayas, CEO: The $65 million investment from Hawthorne Horizon Credit Fund allowed us to pay off our term loan in full, repay a portion of our revolving line of credit, and invest in growth opportunities. This investment creates a more efficient capital structure and provides a stable foundation for growth.
Q: How has application growth impacted your business in 2025? A: Orlando Zayas, CEO: In the first three quarters of 2025, applications grew by 76%, contributing to a 35% increase in unique new customers and a 30% growth in our total customer base. This growth is a leading indicator for future conversion rate expansion and gross originations growth.
Q: What strategies are you implementing to improve conversion rates? A: Derek Medlin, President and Chief Growth Officer: We are optimizing underwriting and promotional activities. We tightened our underwriting decisions in targeted areas, which has improved the credit quality of pre-approved consumers and converted customers. This should drive conversion rate expansion and positively impact write-offs over time.
Q: Can you discuss the performance of your app marketplace and KPay feature? A: Derek Medlin, President and Chief Growth Officer: Our app marketplace saw a 62% year-over-year growth in gross originations, driven by repeat customer activity, robust conversion, and targeted marketing campaigns. KPay originations grew 66% year-over-year, representing 41% of total gross originations.
Q: What is your outlook for Q4 2025 and full year 2025? A: Nancy Walsh, CFO: For Q4 2025, we expect gross originations to grow in the 15-20% range, with revenue growth of 21-23% and approximately $2 million in adjusted EBITDA. For the full year 2025, we anticipate gross originations growth between 20% and 23%, revenue growth in the 18-20% range, and adjusted EBITDA between $8 and $9 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
