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Katapult Holdings, Inc. (NASDAQ:KPLT), which according to InvestingPro data is quickly burning through cash with a concerning current ratio of 0.62, announced Tuesday it has entered into a limited waiver with its lenders relating to its Amended and Restated Loan and Security Agreement. The waiver, signed August 5, addresses the company’s failure to maintain the required minimum trailing three-month net originations as of July 31, 2025, which constituted a default under the terms of the refinancing agreement.
The agreement, originally dated June 12, 2025, involves Katapult SPV-1 LLC, Katapult Group, Inc., Midtown Madison Management LLC as administrative, payment and collateral agent and lender, and other participating lenders. The limited waiver formally excuses the specific default tied to net originations for the referenced period.
Katapult Holdings stated it intends to file the full text of the limited waiver as an exhibit to its next periodic report on Form 10-Q.
The company also confirmed that, in connection with its refinancing transaction, it has filed a definitive proxy statement with the Securities and Exchange Commission to solicit stockholder approval for the issuance of equity securities related to the refinancing. Stockholders of record as of June 16, 2025, have been mailed the proxy statement and proxy card. The refinancing comes as InvestingPro analysis shows the company’s short-term obligations exceed its liquid assets, with total debt standing at $109.71 million.
Katapult Holdings’ common stock and redeemable warrants are listed on The Nasdaq Stock Market LLC under the symbols KPLT and KPLTW, respectively.
This article is based on a statement from a recent SEC filing.
In other recent news, Katapult Holdings Inc. reported strong financial performance for the first quarter of 2025, showcasing significant year-over-year growth in gross originations and revenue. Despite these positive financial results, the company’s stock faced investor concerns over future earnings projections and market conditions. Additionally, Katapult entered into an Amended and Restated Loan and Security Agreement, introducing a revised revolving credit facility initially set at $110 million and a term loan facility of approximately $32.65 million. This agreement aims to enhance the company’s financial flexibility, with the term loan maturing by December 4, 2026, or potentially earlier if certain conditions are unmet.
Furthermore, Katapult announced an extension to its existing credit agreement, known as the Third Limited Waiver, which extends the loan’s maturity date to June 13, 2025. This follows previous amendments designed to adjust loan terms. In another development, Katapult’s annual shareholder meeting was held virtually, with participation from holders representing approximately 77.35% of eligible shares, ensuring quorum for the voting process. The company also entered into a Limited Waiver and Amendment Agreement, extending the loan maturity date to June 9, 2025, as part of ongoing negotiations to amend the Credit Agreement. These recent developments highlight Katapult’s strategic efforts to manage its financial agreements and shareholder engagement.
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