Katapult extends credit agreement to June 13

Katapult Holdings, Inc. (NASDAQ:KPLT), a company specializing in equipment rental and leasing services with annual revenue of $254 million, announced on Monday an extension to its existing credit agreement. The amendment, known as the Third Limited Waiver, extends the maturity date of its loan from today to June 13, 2025. According to InvestingPro data, the company currently carries total debt of approximately $110 million.

The agreement, which amends the original Loan and Security Agreement from May 14, 2019, comes after two prior amendments—the First Limited Waiver and the Second Limited Waiver. These previous waivers were also designed to adjust the maturity date and terms of the loan.

Katapult Holdings is actively negotiating with lenders for a comprehensive maturity extension amendment that would realign the covenants and advance rate with the company’s business plan. The company has indicated that while these negotiations are ongoing, there is no guarantee that the amendment will be finalized on favorable terms, or at all. InvestingPro analysis reveals concerning financial health indicators, including a current ratio of 0.62, suggesting the company’s short-term obligations exceed its liquid assets. Failure to secure the amendment could have a material adverse effect on Katapult’s business and future prospects.

The Third Limited Waiver and the ongoing negotiations reflect Katapult’s efforts to manage its financial obligations and align them with its operational strategy. The company’s stock, KPLT, is registered and traded on The Nasdaq Stock Market LLC.

This news is based on a recent SEC filing and provides investors with the latest developments regarding Katapult’s financial arrangements. The details of the Third Limited Waiver are available in the full text of the document, which is incorporated by reference into the SEC filing.

In other recent news, Katapult Holdings reported a robust financial performance for the first quarter of 2025. The company achieved a 10.6% increase in revenue, reaching $71.9 million, alongside a 15.4% growth in gross originations to $64.2 million. Despite the positive financial results, concerns over future earnings projections linger among investors. Katapult has also extended its loan maturity date to June 9, 2025, as part of ongoing negotiations to amend its Credit Agreement. This extension provides additional time to finalize a comprehensive maturity extension amendment. At the annual shareholder meeting, key proposals were approved, including the election of Chris Masto as a Class I Director and the ratification of Grant Thornton LLP as the independent accounting firm for the fiscal year ending December 31, 2025. Additionally, the frequency of advisory votes on executive compensation will occur annually. Katapult’s strategic partnerships with major retailers like Ashley Furniture and Bed Bath & Beyond continue to drive growth, as the company projects a 25-30% increase in gross originations for the second quarter of 2025.

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