Katapult Stock Falls 27% as Company Reports Q3 Results and Q4 Outlook

Katapult Holdings (Nasdaq: KPLT) fell 27.0% on Thursday, closing at $8.16 against a previous close of $11.18, while the S&P 500 ETF (SPY) slipped 0.35%. Volume ran at about 2.9 times its usual level. The move came the same morning the company released third-quarter results in an 8-K and its accompanying press release.

Outlook calls for a cautious consumer

The press release set fourth-quarter 2026 consolidated revenue guidance at $975 million to $1,025 million and Adjusted EBITDA at $105 million to $120 million. The company said the outlook reflects a cautious view of the consumer, with macroeconomic headwinds causing lower average ticket sizes and more selective spending in lease-to-own. The outlook assumes those conditions persist through year-end with no improvement.

Net loss and debt in the quarter

Third-quarter GAAP net loss was $28.0 million, primarily impacted by interest expense, on total revenues of $753.9 million. On a combined, full-quarter basis, net loss was $44.5 million compared with $30.1 million a year earlier, which the company attributed mainly to acquisition-related costs. The company ended the quarter with $261.0 million in cash and cash equivalents and $1.95 billion of outstanding debt, and reported net leverage of 3.5 times.

Integration and cost savings

The company said the merger with The Aaron's Company and CCFI, completed Aug. 11, has identified about $30 million in annualized cost synergies. Chief Financial Officer Russ Falkenstein said the company is staying deliberate on underwriting rather than chasing volume, and that reducing its cost of funding is a priority.

The company did not say what drove the sell-off.