Katapult Holdings Reports Third Quarter 2026 Results
First Quarter with Combined Company Operations; Integration Well Underway
Approximately $30 Million in Annualized Cost Synergies Identified
Company Issues Fourth Quarter 2026 Outlook
ATLANTA, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (“Katapult Holdings” or the “Company”) (NASDAQ: KPLT), a scaled, technology and data-driven platform serving nonprime consumers seeking greater financial flexibility, today reported its financial results for the third quarter ended September 30, 2026.
“Our first quarter with combined company operations marks an important milestone for Katapult Holdings and was defined by speed of execution,” said Cory Miller, CEO of Katapult Holdings. “Since closing the merger in August, our teams have hit the ground running, and I want to thank everyone across our brands for their hard work and dedication. We’ve already identified approximately $30 million in annualized cost synergies and we’re building on that, with revenue opportunities across the business. We’re also putting our technology and data to work across our brands to help us approve the right customers and lower our cost to serve them. At the same time, we are focused on our plans to optimize our balance sheet with the goal of reducing our cost of funding. We believe the work we’ve done positions us to transform Katapult Holdings into a trusted destination for nonprime consumers and create long-term value for all our stakeholders.”
Factors Affecting Comparability to Prior Periods
On August 11, 2026, Katapult Holdings completed its business combination with The Aaron’s Company, Inc. (“Aaron’s”) and CCF Holdings, LLC (“CCFI”) through a series of merger transactions (the “Mergers”). Our financial results for the third quarter of 2026 are not directly comparable to the Company’s prior year results due to the Mergers. Based on the accounting treatment for the Mergers, the financial results in this press release reflect: (i) Q3 2026 financial and certain operating results that include CCFI, which comprises the Consumer Finance segment, for the full quarter, and the Aaron’s and Katapult businesses, which comprise the Lease-to-Own & Retail segment, only for the period beginning on August 11, 2026; and (ii) Q3 2025 financial and operating results that only include CCFI and its consolidated subsidiaries. These factors will impact year-over-year comparability for our Consolidated and Lease-to-Own & Retail segment financial results through the end of the third quarter of 2027. Additional information regarding the Mergers is included in the notes to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 that we will file with the Securities and Exchange Commission.
Third Quarter 2026 Consolidated Highlights
Third Quarter 2026 Consumer Finance Segment Highlights
(Consumer Finance includes the CCFI business)
Third Quarter 2026 Lease-to-Own & Retail Segment Highlights
(Lease-to-Own & Retail includes the Aaron’s and Katapult businesses)
1 Please refer to the “Non-GAAP Financial Measures” section and the GAAP to non-GAAP reconciliation tables below for more information.
2 Combined figures reflect the sum of the results of CCFI, Aaron’s and Katapult for the full period, including periods before the Mergers closed on August 11, 2026. See “Combined Financial Information” and the reconciliation tables below.
Close of Mergers and Integration Update
On August 11, 2026, Katapult Holdings, Aaron’s and CCFI combined in the “Mergers” to create a scaled platform serving nonprime consumers across lease-to-own, retail and consumer finance.
To date, the Company has identified approximately $30 million in annualized cost synergies and is pursuing additional revenue opportunities.
Cost synergies
Revenue synergies
“We’re still early, but we’re executing well on our integration plan,” said Russ Falkenstein, CFO of Katapult Holdings. “On a combined basis, Adjusted EBITDA margin was up more than 250 basis points year-over-year. Our fourth quarter outlook reflects a cautious view of the consumer, and we’re staying deliberate on underwriting and protecting margin rather than chasing volume. We’re also focused on reducing our cost of funding, which we believe will improve earnings and cash flow and create value for our shareholders.”
Fourth Quarter Outlook
The Company is providing the following outlook for the fourth quarter of 2026, its first full quarter as a combined company:
The outlook reflects a cautious view of the consumer. Macroeconomic headwinds are impacting customer behavior, resulting in lower average ticket sizes and more selective spending in lease-to-own. The outlook assumes these conditions continue through year-end with no improvement, and reflects the Company’s continued disciplined approach to underwriting.
Conference Call and Webcast
The Company will host a conference call and webcast at 8:00 AM ET today, Thursday, November 12, 2026, to discuss the Company’s financial results. The conference call will be webcast live in listen-only mode and can be accessed through the Company’s Investor Relations website at https://ir.katapultholdings.com. An archive of the webcast will be available for one year. An investor presentation is also available on the Company’s Investor Relations website.
Upcoming Investor Conference
The Company also announced that Cory Miller, CEO, and Russ Falkenstein, CFO, will host a fireside chat and Q&A session at the Stephens Annual Investment Conference on Tuesday, November 17, 2026 at 9:45 AM ET.
A live audio webcast and replay will be available on the Company’s Investor Relations website at https://ir.katapultholdings.com/.
About Katapult Holdings
Katapult Holdings, Inc. (NASDAQ: KPLT) is a scaled, technology and data-driven platform serving nonprime consumers seeking greater financial flexibility. Through its Aaron’s, CCFI, and Katapult operating brands, the Company provides access to lease-to-own solutions and alternative consumer financial services. The Company is headquartered in Atlanta, Georgia.
Contact
Jennifer Cohn
VP of Investor Relations
IR@KPLTholdings.com
Forward-Looking Statements
Certain statements included in this press release that are not historical facts include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the Company’s fourth quarter 2026 outlook; expected cost and revenue synergies and the timing of their realization; integration plans; plans to optimize the balance sheet, simplify the capital structure and reduce interest expense and cost of capital; and future financial and operating performance. These forward-looking statements are subject to risks and uncertainties, and actual results might differ materially from those discussed in, or implied by, the forward-looking statements. Forward-looking statements are based on the current beliefs and assumptions of the management of Katapult Holdings, CCFI and Aaron’s, respectively, and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “would,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook,” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements. Accordingly, there is no assurance that such results will be realized.
These forward-looking statements are subject to a number of risks and uncertainties, including, among others: the combined company’s ability to successfully integrate the businesses of Katapult, Aaron’s and CCFI; the combined company’s ability to realize the expected benefits of the transaction, including expected synergies, operating efficiencies, enhanced underwriting capabilities, product innovation and growth opportunities; disruption of management’s attention from ongoing business operations due to integration matters; potential adverse changes to relationships with customers, suppliers, franchisees, merchant partners, lenders, creditors, financing sources, employees and other business partners; the ability to retain key personnel; risks related to the Company’s capital structure, indebtedness, liquidity, cost of capital and compliance with restrictive covenants; the availability of financing and the Company’s ability to access capital on acceptable terms; credit performance, delinquency, charge-off and collection trends; changes in customer demand, consumer behavior, economic conditions, inflation, interest rates and other macroeconomic factors; unexpected costs, charges or expenses resulting from the transaction or integration; the Company’s ability to maintain effective internal controls, financial reporting systems, technology systems and data infrastructure across the combined business; risks related to cybersecurity, data privacy and platform reliability; the Company’s ability to comply with laws and regulations applicable to its business, including laws and regulations related to rental purchase transactions, consumer credit, alternative financial services, data privacy and consumer protection; litigation, regulatory inquiries, enforcement actions, complaints, adverse publicity and other legal proceedings; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission.
If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the combined company does not presently know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Undue reliance should not be placed on the forward-looking statements in this press release. All forward-looking statements contained herein are based on information available as of the date hereof, and the combined company does not assume any obligation to update these statements as a result of new information or future events, except as required by law.
Non-GAAP Financial Measures
To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents certain non-GAAP and other measures of financial performance. The Company believes that for management and investors to more effectively compare core performance from period to period, non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations. The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. The Company does not provide a reconciliation of its forward-looking outlook for certain financial measures on a GAAP basis because the Company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, restructuring expenses, litigation and settlement expenses and certain other unusual adjustments.
Adjusted EBITDA is a non-GAAP financial measure that is defined as net income (loss) before income taxes, interest expense, net, depreciation on property plant and equipment and intangibles, amortization on intangibles, stock-based compensation expense, restructuring expenses, net, acquisition-related costs, litigation and settlement expenses, non-interest related financing fees, and other non-recurring charges.
Adjusted EBITDA margin is a non-GAAP financial measure that is defined as Adjusted EBITDA divided by total revenue.
Net leverage is a ratio of two non-GAAP financial measures: Net debt and Adjusted EBITDA for the trailing twelve month period. Net debt is calculated as the Company’s total debt less cash and cash equivalents.
The Company believes Adjusted EBITDA, Adjusted EBITDA margin and Net leverage are useful to an investor in evaluating the Company’s performance because these measures:
Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies.
KATAPULT HOLDINGS, INC.
RECONCILIATION OF NON-GAAP EBITDA AND ADJUSTED EBITDA (UNAUDITED)
KATAPULT HOLDINGS, INC.
RECONCILIATION OF COMBINED FINANCIAL INFORMATION
KATAPULT HOLDINGS, INC.
RECONCILIATION OF NET LEVERAGE (UNAUDITED)