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Katapult Holdings, Inc. (NASDAQ:KPLT), a $40.79 million market cap company currently trading at $8.99, announced that it has entered into a Limited Waiver and Amendment Agreement to its existing Loan and Security Agreement. The agreement, effective June 3, 2025, extends the maturity date and the limited waiver termination date from June 4, 2025, to June 9, 2025. This extension is part of ongoing negotiations to amend the Credit Agreement, which involves adjusting covenants and advance rates to align with the company’s business plan. With total debt of $109.71 million and a current ratio of 0.62, the company’s liquidity position requires careful management. InvestingPro analysis reveals 11 additional key insights about Katapult’s financial health and future prospects.
The agreement includes Katapult SPV-1 LLC, Katapult Group, Inc., and Midtown Madison Management LLC, acting as the administrative, payment, and collateral agent, along with other lenders involved. The extension aims to provide more time for Katapult Holdings to finalize a comprehensive maturity extension amendment, which is currently under negotiation.
Katapult Holdings is actively working with its lenders to conclude these negotiations as soon as possible. However, the company acknowledges the possibility of not being able to secure favorable terms or complete the amendment at all. This could potentially have a material adverse effect on its business, financial condition, and operational results. While the company generates annual revenue of $254.08 million, InvestingPro data indicates it’s quickly burning through cash, making these negotiations particularly crucial for its future stability.
The information is based on a press release statement from Katapult Holdings, Inc. The full text of the Second Limited Waiver is attached as Exhibit 10.1 to the company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission.
In other recent news, Katapult Holdings reported a notable financial performance for the first quarter of 2025. The company achieved a 10.6% increase in revenue, reaching $71.9 million, and a 15.4% growth in gross originations, totaling $64.2 million year-over-year. Despite these positive figures, Katapult’s stock experienced a decline, reflecting investor concerns about future earnings and market conditions. The company has formed new partnerships with major retailers, including Ashley Furniture and Bed Bath and Beyond, to further bolster its growth strategy. Additionally, Katapult is projecting a significant increase in gross originations for the upcoming quarter, estimating a 25-30% growth. For the full year, the company anticipates at least 20% growth in both gross originations and revenue, alongside an adjusted EBITDA of at least $10 million. These recent developments indicate Katapult’s ongoing efforts to expand its market presence and strengthen its financial standing.
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