MergerMay 7, 2026, 06:42 AM
Katapult Q1 Net Income $5.7M; Merger with Aaron's Expected Q3 2026
AI Summary
Katapult Holdings reported strong first-quarter 2026 financial results, with net income significantly improving to $5.7 million and Adjusted EBITDA increasing by nearly 200%. The company also provided an update on its pending merger with The Aaron’s Company and CCF Holdings LLC, which is expected to close in the third quarter of 2026. This merger aims to create a premier omnichannel platform for nonprime consumers, enhancing scale, financial profile, and synergy potential.
Key Highlights
- Pending merger with The Aaron's Company and CCF Holdings LLC expected to close in Q3 2026.
- Q1 2026 net income was $5.7 million, a 200% improvement from a $(5.7) million loss YoY.
- Adjusted EBITDA increased nearly 200% YoY to $6.4 million.
- Total revenue grew 9.8% YoY to $79.0 million.
- Gross originations were $64.2 million (+0.1% YoY); excluding home furnishings, grew 17.5%.
- Cash provided by operations was $12.2 million, up from $3.4 million in Q1 2025.
- Katapult stockholders will own 6% of the combined company on a fully diluted basis.
- Write-offs as a percentage of revenue were 9.2%, within the 8%-10% target range.