Katapult Holdings (NASDAQ:KPLT), an e-commerce focused lease-to-own (LTO) platform, reported its fourth-quarter and full-year 2025 financial results on Wednesday.
Despite a challenging macroeconomic environment for nonprime consumers, the company maintained its upward trajectory, marking 13 consecutive quarters of year-over-year growth in gross originations.
For the full year 2025, Katapult reported gross originations of $278.5 million, a 17.3% increase compared to 2024.
Total revenue followed suit, rising 18% to $291.8 million.
The company achieved an adjusted EBITDA of $12.4 million for the year, demonstrating the scalability of its digital-first LTO model even as inflationary pressures continue to strain its core customer base.
While the annual results were strong, management highlighted a degree of softness during the holiday season, citing heightened consumer stress and shifting spending patterns among nonprime shoppers.
The company ended the year with a cash balance of $23.5 million and $78.7 million outstanding on its revolving credit facility.
The focal point for investors remains the pending three-way merger between Katapult, The Aaron’s Company, and CCF Holdings.
The transaction, which is expected to close in the second quarter of 2026, aims to create a dominant leader in the specialty retail and LTO space.
The combined pro forma entity is projected to generate over $4 billion in annual revenue and approximately $450 million in pro forma adjusted EBITDA, based on the last twelve months through Q3 2025.