Q1 2025 Katapult Holdings Inc Earnings Call Transcript
Key Points
- Katapult Holdings Inc (KPLT) reported a 15.4% year-over-year growth in gross originations for Q1 2025, surpassing their outlook of 11% growth.
- First quarter revenue exceeded expectations, achieving a 10.6% growth.
- The company's app marketplace has shown significant growth, with app originations increasing by 42% to $37.9 million.
- Katapult's Net Promoter Score (NPS) improved to 66%, and the repeat customer rate increased to 57.4%, indicating strong customer satisfaction and loyalty.
- The company has successfully expanded its merchant partnerships, adding Ashley Furniture and Bed Bath and Beyond to its roster, enhancing its marketplace offerings.
- Katapult Holdings Inc (KPLT) faced challenges in the home furnishings and mattress category, with Wayfair's gross originations remaining under pressure.
- The company is negotiating a maturity extension for its credit facility, indicating potential financial constraints.
- Gross profit for Q1 decreased to $14.3 million from $16.5 million the previous year, impacted by higher lease depreciation costs.
- Operating expenses increased by 17% year-over-year, driven by general and administrative costs and investments in growth initiatives.
- Adjusted EBITDA for Q1 was $2.2 million, below the company's outlook, primarily due to the timing of strong gross originations growth.
Hello and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Katapult Holdings first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press one again.
Thank you. I would now like to turn the call over to Jennifer Kull, Head of Investor Relations. Please go ahead.
Welcome to Katapult's first quarter 2025 conference call. On the policy today are Orlando Zayas, Chief Executive Officer, Nancy Walsh, Chief Financial Officer, and Derek Medlin, President and Chief Growth Officer.
For your reference, we have posted materials related to today's call on the Investor Relations
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