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

• Total revenues were $753.9 million.
• Gross profit was $437.7 million and gross margin was 58.1%.
• Total operating expenses were $412.8 million.
• Operating profit was $24.9 million, impacted by acquisition-related costs and restructuring expenses.
• Net loss was $28.0 million, primarily impacted by interest expense. Net loss margin was 3.7%.
• Adjusted EBITDA¹ was $110.4 million and Adjusted EBITDA margin¹ was 14.6%.
• On a combined^2, full-quarter basis, net loss was $44.5 million compared with $30.1 million in the third quarter of last year, and was primarily impacted by acquisition-related costs.
• On a combined², full-quarter basis, Adjusted EBITDA¹ was $131.7 million, up 23% from $106.8 million in the same period of last year, with a margin¹ of 13.1%, up approximately 260 basis points year-over-year.
• The Company ended the quarter with total cash and cash equivalents of $261.0 million, restricted cash of $10.8 million and outstanding debt of $1.95 billion.
• Cash provided by operations for the nine months ended September 30, 2026 was $496.8 million.
• Net leverage¹ was 3.5x. Approximately two-thirds of our debt is asset-backed funding against receivables and lease merchandise.
• E-commerce penetration was 39.6%. E-commerce penetration measures the number of leases and loans that were originated through a non-retail channel, as a percentage of total originations.

Third Quarter 2026 Consumer Finance Segment Highlights
(Consumer Finance includes the CCFI business)

• Revenues were $448.8 million compared with $443.3 million in the third quarter of 2025.
• Gross profit was $280.7 million compared with $280.0 million for the third quarter of 2025. Gross margin was 62.6% compared with 63.2% for the same period of last year.
• Operating profit was $19.6 million compared with $43.0 million for the third quarter of 2025. Operating profit for the third quarter of 2026 was impacted by acquisition-related costs and restructuring expenses.
• Loss before income taxes for the segment was $22.0 million compared with $1.5 million in the third quarter of 2025, and was impacted by interest expense as well as acquisition-related costs and restructuring expenses.
• Adjusted EBITDA¹ was $78.3 million compared with $74.8 million for the third quarter of 2025. Adjusted EBITDA margin¹ was 17.5% compared with 16.9% during the same period of last year.
• Finance receivables at quarter end were approximately $1.0 billion compared with $991.6 million in the same period of last year.
• During the quarter, the Consumer Finance segment served approximately 1.04 million unique active customers compared with approximately 1.05 million in the same quarter of last year.

Third Quarter 2026 Lease-to-Own & Retail Segment Highlights
(Lease-to-Own & Retail includes the Aaron’s and Katapult businesses)

• Revenues were $305.1 million.
• Gross profit was $157.0 million. Gross margin was 51.4%.
• Operating profit was $5.3 million and was impacted by acquisition-related costs and restructuring expenses.
• Loss before income taxes was $18.1 million, primarily impacted by interest expense.
• Adjusted EBITDA¹ was $32.1 million. Adjusted EBITDA margin¹ was 10.5%.
• On a combined², full-quarter basis, loss before income taxes for the segment was $35.8 million, compared with $42.1 million in the same period last year, and was impacted by interest expense and acquisition-related costs.
• On a combined², full-quarter basis, Adjusted EBITDA¹ for the segment was $53.4 million, up from $31.9 million in the third quarter of last year, with a margin¹ of 9.6%, up about 400 basis points year-over-year.
• Book value of merchandise on lease was $484.8 million as of September 30, 2026.
• During the quarter, the lease-to-own business served approximately 1.08 million unique active customers, compared with approximately 1.12 million in the same period of last year (this operating metric reflects the full period and is comparable year-over-year).

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

• Combined leadership and support roles across the business and reduced the corporate and regional office footprint.
• Consolidating vendors and contracts, including payroll and HR systems, financial reporting tools, data and professional services.
• Moving finance, accounting, HR, technology and marketing into shared teams on common platforms.

Revenue synergies

• Connecting the customer journey across our brands, starting with lease-to-own offers for consumer finance customers.
• Expanding protection plans to virtual lease-to-own and adding new product categories in stores through merchant partnerships.
• Growing the virtual lease-to-own merchant pipeline and coordinating customer acquisition across the business.

“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:

• Are widely used to measure a company’s operating performance;
• Are financial measurements used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; and
• Are used by the Company’s management for various purposes, including as a measure of performance and as a basis for strategic planning and forecasting.

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)

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