Katapult Q4 Revenue Up 17.3% to $73.9M; 17% Originations Growth and Merger with Aaron’s
Katapult posted Q4 gross originations of $77.9M, up 3.7%, and full-year originations grew 17% on a 45% rise in applications and 25% boost in leases. Q4 revenue rose 17.3% to $73.9M and net income swung to a $19.8M profit from a $9.6M loss, while merger expands its LTO scale.
1. Q4 Financial Results
Katapult closed Q4 with $77.9 million in gross originations, a 3.7% year-over-year increase, and reported $73.9 million in revenue, up 17.3%. Net income turned to a $19.8 million profit from a $9.6 million loss, and adjusted EBITDA improved to $5.4 million.
2. Full-Year Growth Metrics
For full-year 2025, gross originations grew 17%, driven by a 45% surge in applications to approximately 2 million and a 25% increase in lease originations. App engagement rose as monthly openings climbed 30% to nearly 16 million, with 66.6% of Q4 originations starting in the app.
3. Expense Efficiency and Profit Turnaround
Fixed cash operating expenses declined 40.5% year-over-year, helping narrow the Q4 operating loss to $1.0 million from $4.8 million. A $19.0 million gain on derivative liabilities and a $6.2 million gain on term loan extinguishment fueled the swing to net profitability.
4. Strategic Outlook and Merger
The planned merger with Aaron’s and CCF Holdings aims to build a premier omnichannel lease-to-own platform for nonprime consumers. Katapult is launching initiatives—strategic underwriting, targeted pricing and enhanced app features—to counter tighter credit conditions and lift consumer engagement across new merchant pathways.