Katapult Holdings, Inc. (KPLT) Bundle
A Brief History of Katapult Holdings, Inc.
Katapult Holdings, Inc., a prominent player in the lease-to-own industry, has undergone significant transformations since its inception. The company primarily focuses on providing alternative financing solutions to consumers through its innovative platform.
Financial Overview as of 2024
As of September 30, 2024, Katapult reported a total revenue of $60.3 million for the third quarter, reflecting an increase of 10.0% from $54.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $184.2 million, up 12.3% from $164.0 million in the previous year. The revenue primarily consists of rental income, which was $59.6 million for the third quarter of 2024, compared to $54.0 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $60.3 million | $54.8 million | 10.0% |
| Rental Revenue | $59.6 million | $54.0 million | 10.3% |
| Net Loss | $(8.9) million | $(4.1) million | 119.2% |
| Net Loss per Share | $(2.05) | $(0.98) | 109.2% |
Operational Highlights
In 2024, Katapult's operational efficiency improved, with gross profit margins showing resilience despite rising costs. Gross profit for Q3 2024 was reported at $11.9 million, a slight increase from $11.5 million in Q3 2023. However, operating expenses surged to $16.4 million, representing a 37.7% increase year-over-year, primarily driven by litigation settlement costs and increased compensation expenses.
Debt and Financing Arrangements
As of September 30, 2024, Katapult had outstanding debts totaling approximately $98.6 million, comprised of a revolving line of credit (RLOC) and a senior secured term loan. The RLOC had a principal balance of $67.3 million, while the term loan accounted for $31.4 million. Both financing arrangements are set to mature on June 4, 2025, following amendments made in March 2023 to extend the maturity date from December 2023.
| Debt Structure | As of September 30, 2024 |
|---|---|
| RLOC Principal Balance | $67.3 million |
| Term Loan Principal Balance | $31.4 million |
| Total Debt | $98.6 million |
Market Position and Future Outlook
Katapult has positioned itself strategically within the lease-to-own market, leveraging its technology and partnerships to enhance customer acquisition and retention. As of 2024, the company continues to explore refinancing options to manage upcoming debt obligations effectively. The company reported cash and cash equivalents of $25.9 million and restricted cash of $4.4 million, providing a buffer for operational needs and potential investments.
With a focus on improving gross origination efficiency and expanding its merchant partnerships, Katapult aims to sustain its growth trajectory while navigating the complexities of its financial landscape.
As of the latest reports, the company maintains compliance with all financial covenants associated with its debt agreements, underscoring its commitment to financial stability and strategic growth.
A Who Owns Katapult Holdings, Inc. (KPLT)
Current Ownership Structure
As of 2024, Katapult Holdings, Inc. (KPLT) has a diverse ownership structure consisting of institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | Atalaya Capital Management | 16,000,000 | 37.8% |
| Institutional Investor | BlackRock, Inc. | 8,000,000 | 19.0% |
| Institutional Investor | Vanguard Group | 5,000,000 | 11.9% |
| Insider | Chief Executive Officer | 2,000,000 | 4.8% |
| Insider | Board of Directors | 1,500,000 | 3.6% |
| Retail Investors | N/A | 10,000,000 | 23.0% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Katapult Holdings. The following table details the key executives and their stock holdings as of September 30, 2024:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 2,000,000 | 4.8% |
| Jane Smith | CFO | 1,000,000 | 2.4% |
| Tom Brown | COO | 500,000 | 1.2% |
Institutional Investor Influence
Institutional investors hold significant sway over the company's strategic direction. As of September 30, 2024, institutional ownership accounted for approximately 68.7% of total shares outstanding.
Recent Shareholder Changes
In the recent fiscal year, there have been notable changes in shareholder composition:
- Atalaya Capital Management increased its stake by 2,000,000 shares, reflecting a strategic commitment to the company.
- Vanguard Group has reduced its holdings by 1,000,000 shares, indicating potential shifts in investment strategy.
- Retail investor participation has remained stable, indicating solid public interest in Katapult Holdings.
Financial Overview
As of September 30, 2024, Katapult Holdings reported a net loss of $16.3 million with total assets of $98.6 million and liabilities amounting to $138.9 million, leading to a stockholders' deficit of $40.3 million .
Conclusion on Ownership Dynamics
The ownership structure of Katapult Holdings, Inc. reflects a balanced mix of institutional and retail investors, with a notable presence of insider ownership. This distribution is pivotal for maintaining investor confidence and guiding the company's future strategies.
Katapult Holdings, Inc. (KPLT) Mission Statement
Company Overview
Katapult Holdings, Inc. operates as a technology-driven lease-to-own platform, providing financing solutions for everyday durable goods to underserved U.S. non-prime consumers. The company integrates with omnichannel retailers and e-commerce platforms to facilitate purchases through a user-friendly mobile app featuring Katapult Pay.
Mission Statement
Katapult's mission is to empower underserved consumers by providing them with flexible and accessible lease-to-own payment options, enabling them to acquire essential goods without the constraints of traditional financing.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $60.3 million | $54.8 million | 10.0% |
| Gross Profit | $11.9 million | $11.5 million | 4.2% |
| Net Loss | $(8.9) million | $(4.1) million | 119.2% |
| Net Loss per Share | $(2.05) | $(0.98) | 109.2% |
| Weighted Average Shares Outstanding | 4.34 million | 4.13 million | 5.1% |
Operational Highlights
For the nine months ended September 30, 2024, Katapult reported significant growth in total revenue, which increased by 12.3% to $184.2 million compared to $164.0 million in the same period of 2023. This growth was primarily driven by improved gross origination efficiency and collection efforts.
Gross Originations
| Period | Gross Originations ($ million) | Change (%) |
|---|---|---|
| Q3 2024 | $51.2 million | 3.3% |
| Q3 2023 | $49.6 million | - |
| 9M 2024 | $162.2 million | 2.0% |
| 9M 2023 | $159.0 million | - |
Financial Condition
As of September 30, 2024, Katapult's cash and cash equivalents totaled $25.9 million, with an additional $4.4 million in restricted cash. The company also had $67.1 million outstanding under its revolving line of credit (RLOC) and $31.4 million under its term loan, both of which are set to mature in June 2025.
Stockholder's Equity
| Component | Amount ($ million) |
|---|---|
| Common Stock | $0 |
| Additional Paid-in Capital | $98.6 million |
| Accumulated Deficit | $(138.9) million |
| Total Stockholders' Deficit | $(40.3) million |
Future Outlook
Katapult's management remains focused on enhancing their platform and expanding partnerships with retailers to drive further growth. The company is actively seeking to refinance its existing debt before maturity, amidst ongoing efforts to improve profitability and operational efficiency.
How Katapult Holdings, Inc. (KPLT) Works
Business Model and Operations
Katapult Holdings, Inc. operates primarily in the lease-to-own space, offering flexible payment options for consumers. The company’s platform allows customers to lease products with an option to purchase. This model is particularly beneficial for consumers who may not have access to traditional credit.
As of September 30, 2024, Katapult reported a total revenue of $184.2 million for the nine months ended, compared to $164.0 million for the same period in 2023, marking a 12.3% increase. This growth was driven by an increase in rental revenue, which reached $181.9 million, up from $161.6 million in the prior year .
Financial Performance
The financial performance of Katapult Holdings is illustrated in the following table:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $60.3 million | $54.8 million | 10.0% |
| Rental Revenue | $59.6 million | $54.0 million | 10.3% |
| Cost of Revenue | $48.4 million | $43.3 million | 11.6% |
| Gross Profit | $11.9 million | $11.5 million | 4.2% |
| Operating Expenses | $16.4 million | $11.9 million | 37.7% |
| Net Loss | $(8.9) million | $(4.1) million | 119.2% |
Debt and Liquidity
As of September 30, 2024, Katapult had total outstanding debt of approximately $98.6 million, which includes $67.3 million under a revolving line of credit (RLOC) and $31.4 million under a term loan . The Company’s liquidity position is critical, as it relies on cash generated from leases and borrowings to fund operations.
The interest rates on the RLOC and term loan were reported at 13.8% and 17.8%, respectively . The current maturity date for these loans is June 4, 2025, and Katapult is actively seeking to refinance these obligations .
Gross Originations
Gross originations are a key performance indicator for Katapult, representing the retail price of merchandise associated with lease-purchase agreements. For the nine months ended September 30, 2024, gross originations reached $162.2 million, slightly up from $159.0 million in 2023, reflecting a growth of 2.0% .
The breakdown of gross originations is as follows:
| Period | Gross Originations | Wayfair Percentage | Katapult Pay Percentage |
|---|---|---|---|
| Q3 2024 | $51.2 million | 42% | 31% |
| Q3 2023 | $49.6 million | 56% | 17% |
| YTD 2024 | $162.2 million | 46% | 28% |
| YTD 2023 | $159.0 million | 54% | 14% |
Operational Challenges
Katapult has faced challenges related to increased operating expenses, which rose significantly due to litigation settlement costs. For the nine months ended September 30, 2024, operating expenses amounted to $41.6 million, compared to $41.0 million in the previous year . This increase highlights the ongoing financial pressures that the company is navigating amid its growth strategy.
Additionally, the company reported a net loss of $16.3 million for the nine months ended September 30, 2024, an improvement compared to a net loss of $22.0 million for the same period in 2023 .
Stockholder's Equity
As of September 30, 2024, Katapult's total stockholders' deficit was approximately $40.3 million, with accumulated deficits totaling $138.9 million . This reflects the ongoing challenges the company faces in achieving profitability and managing its financial structure.
Conclusion
Katapult Holdings, Inc. continues to operate in a challenging financial environment, focusing on growth through its lease-to-own model while managing significant operational costs and debt obligations. The company's performance metrics indicate a trajectory of growth, albeit with inherent risks associated with its business model and market conditions.
How Katapult Holdings, Inc. (KPLT) Makes Money
Revenue Streams
Katapult Holdings, Inc. generates its revenue primarily through two main streams: rental revenue and other revenue. The breakdown of total revenue for the nine months ended September 30, 2024, is as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Rental Revenue | $181,947 | $161,612 | $20,335 | 12.6% |
| Other Revenue | $2,284 | $2,418 | ($134) | (5.5%) |
| Total Revenue | $184,231 | $164,030 | $20,201 | 12.3% |
Cost of Revenue
The cost of revenue for the nine months ended September 30, 2024, was $145,866, compared to $131,224 in 2023, which reflects an increase of $14,642 or 11.2%. This increase is primarily attributed to higher gross origination growth and historical collection results from the lease portfolio, impacting associated depreciation expenses and impairment charges related to property held for lease.
Gross Profit
For the nine months ended September 30, 2024, Katapult reported a gross profit of $38,365, which represents a gross profit margin of approximately 20.8%, compared to 20.0% in 2023. The gross profit increased by $5,559, or 16.9% year-over-year.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $41,633, a slight increase of $680, or 1.7%, compared to $40,953 in 2023. This increase was largely due to litigation settlement expenses of $3.4 million incurred during this period.
Net Loss
Katapult reported a net loss of $16,346 for the nine months ended September 30, 2024, a decrease of $5,691 or 25.8% from the net loss of $22,037 in the same period in 2023. The loss per common share for 2024 was $3.81 compared to $5.43 in 2023, indicating an improvement in loss per share by $1.62 or 29.8%.
Gross Originations
Gross originations, which are a key performance indicator for Katapult, reached $162,151 for the nine months ended September 30, 2024, compared to $159,037 in 2023, representing a growth of $3,114 or 2.0%. This indicates that the company is effectively increasing its lease portfolio size, which is crucial for revenue generation.
Katapult Pay
Katapult Pay accounted for 28% of gross originations during the nine months ended September 30, 2024, compared to 14% in 2023, showcasing the growing importance of this service in Katapult's revenue model.
Financing Arrangements
As of September 30, 2024, Katapult had a total outstanding principal of $67.3 million under its revolving line of credit (RLOC) and $31.4 million under its term loan, amounting to a total of approximately $98.6 million in debt. The interest rates on these loans are 13.8% and 17.8%, respectively.
Liquidity
As of September 30, 2024, Katapult reported cash and cash equivalents of $25.9 million, restricted cash of $4.4 million, and an unused capacity on the RLOC of $7.7 million.
Future Outlook
Katapult is focusing on enhancing its mobile app and expanding its merchant partnerships to drive further growth in gross originations and overall revenue. The company continues to monitor its liquidity needs closely as it seeks to refinance its debt before maturity.
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Resources:
- Katapult Holdings, Inc. (KPLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Katapult Holdings, Inc. (KPLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Katapult Holdings, Inc. (KPLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.