CORRECTING AND REPLACING - Katapult Delivers 15.4% Gross Originations and 10.6% Revenue Growth in the First Quarter, Above Outlook

Expects Growth to Accelerate In Second QuarterReiterates 2025 Guidance PLANO, Texas, May 15, 2025 (GLOBE NEWSWIRE) -- In the press release issued by Katapult Holdings, Inc. on May 15, 2025, in the gross originations by quarter table, Q4 in FY 2024 should be $75.2 million instead of $64.2 million. The updated release reads: Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT), an e-commerce-focused financial technology company, today reported its financial results for the first quarter ended March 31, 2025. “2025 is off to a strong start and we are well positioned to achieve our full year targets,” said Orlando Zayas, CEO of Katapult. “We achieved double-digit gross originations and revenue growth, driven by increasing engagement with the Katapult app marketplace, including 57% growth in KPay originations. Our marketplace is thriving - from application growth to repeat purchase rates, to high Net Promoter scores and beyond, we believe we have all the hallmarks of a healthy ecosystem and we intend to lean into opportunities to accelerate our growth. We are excited about the future and as we continue to execute on our consumer and merchant initiatives, we feel confident that we can create value for all of our stakeholders.” Operating Progress: Recent Highlights Increased activity within the Katapult app marketplace ~59% of first quarter gross originations started in the Katapult app marketplace, making it the single largest customer referral source. Total app originations grew 42% year-over-year.Applications grew ~59% year-over-year in the first quarterCustomer satisfaction remained high and Katapult had a Net Promoter Score of 66 as of March 31, 202557.4% of gross originations for the first quarter of 2025 came from repeat customers1 Grew consumer engagement by adding app functionality and features and executing targeted marketing campaigns KPay conversion rate increased during the first quarter leading to unique customer count growth of more than 65% year-over-yearKPay gross originations grew approximately 57% year-over-year in the first quarter; 35% of total gross originations were transacted using KPayLaunched Ashley and Bed Bath & Beyond in the Katapult app marketplace, bringing the total number of merchants in our KPay ecosystem to 35 Made strong progress against merchant engagement initiatives Direct and waterfall gross originations, which represented 65% of total first quarter originations, grew approximately 40%, excluding the home furnishings and mattress categoryContinued to expand our waterfall partnerships by kicking off a new partnership with Finti, a modern waterfall financing platform that connects consumers with a curated network of lenders and financing providersTogether with several merchant-partners, we launched targeted co-branded, co-promoted marketing campaigns that delivered year-over-year gross originations growth ranging from 7% to more than 75% depending on the campaign First Quarter 2025 Financial Highlights (All comparisons are year-over-year unless stated otherwise.) Gross originations were $64.2 million, an increase of 15.4%. Excluding the home furnishings and mattress category, gross originations grew 51% year-over-year.Total revenue was $71.9 million, an increase of 10.6%Total operating expenses in the first quarter increased 17.3%. Our fixed cash operating expenses2, which exclude litigation settlement and other non-cash and variable expenses, increased approximately 10.8%.Net loss was $5.7 million for the first quarter of 2025 compared with net loss of $0.6 million reported for the first quarter of 2024. The higher net loss was mainly due to higher cost of sales and higher operating expenses.Adjusted net loss2 was $3.4 million for the first quarter of 2025 compared to adjusted net income of $1.0 million reported for the first quarter of 2024Adjusted EBITDA2 was $2.2 million for the first quarter of 2025 compared to Adjusted EBITDA2 of $5.6 million in the first quarter of 2024. The year-over-year performance was impacted by higher cost of sales related to rapid, faster-than-expected gross originations growth during the first quarter of 2025 and the end of the fourth quarter of 2024.Katapult ended the quarter with total cash and cash equivalents of $14.3 million, which includes $8.3 million of restricted cash. The Company ended the quarter with $77.8 million of outstanding debt on its credit facility.Write-offs as a percentage of revenue were 9.0% in the first quarter of 2025 and are within the Company’s 8% to 10% long-term target range. This compares with 8.4% in the first quarter of 2024. [1] Repeat customer rate is defined as the percentage of in-quarter originations from existing customers. [2] Please refer to the “Reconciliation of Non-GAAP Measure and Certain Other Data” section and the GAAP to non-GAAP reconciliation tables below for more information. Second Quarter and Full Year 2025 Business Outlook The Company is continuing to navigate a challenging macro environment particularly within the home furnishings category. Given the current breadth of our merchant selection as well as our plans to introduce new merchants to the Katapult App Marketplace during 2025, our strategic marketing and our strong consumer offering, we believe we are well positioned to deliver continued growth in 2025. We continue to believe that we have a large addressable market of underserved, non-prime consumers, and it’s important to note that lease-to-own solutions have historically benefited when prime credit options become less available. Given our quarter-to-date progress, Katapult expects the following results for the second quarter of 2025: 25% to 30% year-over-year increase in gross originations17% to 20% year-over-year increase in revenueApproximately breakeven Adjusted EBITDA Based on the macroeconomic assumptions above and the operating plan in place for the full year 2025, Katapult is reiterating its expectations for full year 2025: We expect gross originations to grow at least 20% This outlook does not include any material impact from prime creditors tightening or loosening above us and assumes that there are no significant changes to the macro environment. Both our second quarter and full year outlooks assume that the gross originations for the home furnishings and mattress category do not improve materially from our 2024 performance. We also expect to maintain strong credit quality in our portfolio. This will be driven by ongoing enhancements to our risk modeling, onboarding high quality new merchants through integrations, and repeat customers engaging with Katapult Pay Revenue growth is expected to be at least 20% Finally, with the continued execution of our disciplined expense management strategy combined with our growing top-line, we expect to deliver at least $10 million in positive Adjusted EBITDA "The first quarter came in stronger than our outlook, and we are continuing to successfully grow our top-line without meaningfully increasing our expense base,” said Nancy Walsh, CFO of Katapult. “The second quarter is off to a great start and we believe we can continue to scale our business by offering a transparent and fair LTO product to consumers and a growth engine to our partners. Our team’s hard work and agile execution is fueling our growth and we are looking forward to a great 2025.” Conference Call and Webcast The Company will host a conference call and webcast at 8:00 AM ET on Thursday, May 15, 2025, to discuss the Company’s financial results. Related presentation materials will be available before the call on the Company’s Investor Relations page at https://ir.katapultholdings.com. The conference call will be broadcast live in listen-only mode and an archive of the webcast will be available for one year. About Katapult Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay(R), consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. Contact Jennifer Kull VP of Investor Relations ir@katapult.com Forward-Looking Statements Certain statements included in this Press Release and on our quarterly earnings call that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to: in this Press Release and on our associated earnings call, statements regarding our second quarter of 2025 and full year 2025 business outlook and underlying expectations and assumptions and statements regarding our ability to obtain a comprehensive maturity extension amendment to our credit facility. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of our management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, our ability to refinance our indebtedness and continue as a going concern, the execution of our business strategy and expanding information and technology capabilities; our market opportunity and our ability to acquire new customers and retain existing customers; adoption and success of our mobile application featuring Katapult Pay; the timing and impact of our growth initiatives on our future financial performance; anticipated occurrence and timing of prime lending tightening and impact on our results of operations; general economic conditions in the markets where we operate, the cyclical nature of customer spending, and seasonal sales and spending patterns of customers; risks relating to factors affecting consumer spending that are not under our control, including, among others, levels of employment, disposable consumer income, inflation, prevailing interest rates, consumer debt and availability of credit, consumer confidence in future economic conditions, political conditions, and consumer perceptions of personal well-being and security and willingness and ability of customers to pay for the goods they lease through us when due; risks relating to uncertainty of our estimates of market opportunity and forecasts of market growth; risks related to the concentration of a significant portion of our transaction volume with a single merchant partner, or type of merchant or industry; the effects of competition on our future business; meet future liquidity requirements and complying with restrictive covenants related to our long-term indebtedness; the impact of unstable market and economic conditions such as rising inflation and interest rates; reliability of our platform and effectiveness of our risk model; data security breaches or other information technology incidents or disruptions, including cyber-attacks, and the protection of confidential, proprietary, personal and other information, including personal data of customers; ability to attract and retain employees, executive officers or directors; effectively respond to general economic and business conditions; obtain additional capital, including equity or debt financing and servicing our indebtedness; enhance future operating and financial results; anticipate rapid technological changes, including generative artificial intelligence and other new technologies; comply with laws and regulations applicable to our business, including laws and regulations related to rental purchase transactions; stay abreast of modified or new laws and regulations applying to our business, including with respect to rental purchase transactions and privacy regulations; maintain and grow relationships with merchants and partners; respond to uncertainties associated with product and service developments and market acceptance; the impacts of new U.S. federal income tax laws; material weaknesses in our internal control over financial reporting which, if not identified and remediated, could affect the reliability of our financial statements; successfully defend litigation; litigation, regulatory matters, complaints, adverse publicity and/or misconduct by employees, vendors and/or service providers; and other events or factors, including those resulting from civil unrest, war, foreign invasions (including the conflict involving Russia and Ukraine and the Israel-Hamas conflict), terrorism, public health crises and pandemics (such as COVID-19), trade wars, or responses to such events; our ability to meet the minimum requirements for continued listing on the Nasdaq Global Market; and those factors discussed in greater detail in the section entitled “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K for the year ended December 31, 2024 that we filed with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Undue reliance should not be placed on the forward-looking statements in this Press Release or on our quarterly earnings call. All forward-looking statements contained herein or expressed on our quarterly earnings call are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. Key Performance Metrics Katapult regularly reviews several metrics, including the following key metrics, to evaluate its business, measure its performance, identify trends affecting our business, formulate financial projections and make strategic decisions, which may also be useful to an investor: gross originations, total revenue, gross profit, adjusted gross profit and adjusted EBITDA. Gross originations are defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period through the Katapult platform. Gross originations do not represent revenue earned. However, we believe this is a useful operating metric for both Katapult’s management and investors to use in assessing the volume of transactions that take place on Katapult’s platform. Total revenue represents the summation of rental revenue and other revenue. Katapult measures this metric to assess the total view of pay through performance of its customers. Management believes looking at these components is useful to an investor as it helps to understand the total payment performance of customers. Gross profit represents total revenue less cost of revenue, and is a measure presented in accordance with generally accepted accounting principles in the United States ("GAAP"). See the “Non-GAAP Financial Measures” section below for a description and presentation of adjusted gross profit and adjusted EBITDA, which are non-GAAP measures utilized by management. Non-GAAP Financial Measures To supplement the financial measures presented in this press release and related conference call or webcast in accordance with GAAP, the Company also presents the following non-GAAP and other measures of financial performance: adjusted gross profit, adjusted EBITDA, adjusted net income/(loss) and fixed cash operating expenses. The Company believes that for management and investors to more effectively compare core performance from period to period, the non-GAAP measures should exclude items that are not indicative of our results from ongoing business operations.The Company urges investors to consider non-GAAP measures only in conjunction with its GAAP financials and to review the reconciliation of the Company’s non-GAAP financial measures to its comparable GAAP financial measures, which are included in this press release. Adjusted gross profit represents gross profit less variable operating expenses, which are servicing costs, and underwriting fees. Management believes that adjusted gross profit provides a meaningful understanding of one aspect of its performance specifically attributable to total revenue and the variable costs associated with total revenue. Adjusted EBITDA is a non-GAAP measure that is defined as net loss before interest expense and other fees, interest income, change in fair value of warrants and loss on issuance of shares, provision for income taxes, depreciation and amortization on property and equipment and capitalized software, provision of impairment of leased assets, loss on partial extinguishment of debt, stock-based compensation expense, litigation settlement and other related expenses, and debt refinancing costs. Adjusted net income (loss) is a non-GAAP measure that is defined as net loss before change in fair value of warrants and loss on issuance of shares, stock-based compensation expense and litigation settlement and other related expenses and debt refinancing costs. Fixed cash operating expenses is a non-GAAP measure that is defined as operating expenses less depreciation and amortization on property and equipment and capitalized software, stock-based compensation expense, litigation settlement and other related expenses, debt refinancing costs, and variable lease costs such as servicing costs and underwriting fees. Management believes that fixed cash operating expenses provides a meaningful understanding of non-variable ongoing expenses. Adjusted gross profit, adjusted EBITDA and adjusted net loss are useful to an investor in evaluating the Company’s performance because these measures: Are widely used to measure a company’s operating performance;Are financial measurements that are used by rating agencies, lenders and other parties to evaluate the Company’s credit worthiness; andAre used by the Company’s management for various purposes, including as measures of performance and as a basis for strategic planning and forecasting. Management believes that the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are not part of our core operations, highly variable or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. Management believes that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. However, these non-GAAP measures exclude items that are significant in understanding and assessing Katapult’s financial results. Therefore, these measures should not be considered in isolation or as alternatives to revenue, net loss, gross profit, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Katapult’s presentation of these measures may not be comparable to similarly titled measures used by other companies. KATAPULT HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(amounts in thousands, except per share data) Three Months Ended March 31, 2025 2024 Revenue Rental revenue$71,078 $64,142 Other revenue 868 919 Total revenue 71,946 65,061 Cost of revenue 57,597 48,573 Gross profit 14,349 16,488 Operating expenses 14,885 12,688 Income (loss) from operations (536) 3,800 Interest expense and other fees (5,144) (4,527)Interest income 57 324 Change in fair value of warrant liability (36) (162)Loss before income taxes (5,659) (565)Provision for income taxes (29) (5)Net loss$(5,688) $(570) Weighted average common shares outstanding - basic and diluted 4,618 4,242 Net loss per common share - basic and diluted$(1.23) $(0.13) KATAPULT HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(dollars in thousands, except per share data) March 31, December 31, 2025 2024 (unaudited) ASSETS Current assets: Cash and cash equivalents$5,965 $3,465 Restricted cash 8,346 13,087 Property held for lease, net of accumulated depreciation and impairment 66,913 67,085 Prepaid expenses and other current assets 4,445 6,731 Total current assets 85,669 90,368 Property and equipment, net 244 253 Capitalized software and intangible assets, net 2,155 2,076 Right-of-use assets, non-current 376 383 Security deposits 91 91 Total assets$88,535 $93,171 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable$3,040 $1,491 Accrued liabilities 18,945 17,372 Accrued litigation settlement 2,199 2,199 Unearned revenue 5,711 4,823 Revolving line of credit, net 77,663 82,582 Term loan, net, current 31,490 30,047 Lease liabilities 129 179 Total current liabilities 139,177 138,693 Lease liabilities, non-current 431 444 Other liabilities 614 828 Total liabilities 140,222 139,965 STOCKHOLDERS' DEFICIT Common stock, $.0001 par value-- 250,000,000 shares authorized; 4,483,544 and 4,446,540 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively — — Additional paid-in capital 102,452 101,657 Accumulated deficit (154,139) (148,451)Total stockholders' deficit (51,687) (46,794)Total liabilities and stockholders' deficit$88,535 $93,171 KATAPULT HOLDINGS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(dollars in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net loss$(5,688) $(570)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 39,392 34,026 Depreciation for early lease purchase options (buyouts) 9,664 7,613 Depreciation for impaired leases 6,632 5,636 Change in fair value of warrants and other non-cash items 36 162 Stock-based compensation 1,066 1,391 Amortization of debt discount 963 669 Amortization of debt issuance costs, net 88 66 Accrued PIK interest expense 480 347 Amortization of right-of-use assets 76 76 Changes in operating assets and liabilities: Property held for lease (55,185) (45,249)Prepaid expenses and other current assets 2,217 1,029 Accounts payable 1,549 754 Accrued liabilities 1,573 (4,123)Accrued litigation (250) — Lease liabilities (63) (55)Unearned revenues 888 208 Net cash provided by operating activities 3,438 1,980 Cash flows from investing activities: Purchases of property and equipment (24) — Additions to capitalized software (377) (126)Net cash used in investing activities (401) (126)Cash flows from financing activities: Proceeds from revolving line of credit 5,128 10,058 Principal repayments on revolving line of credit (10,135) (2,840)Repurchases of restricted stock (271) (312)Net cash (used in) provided by financing activities (5,278) 6,906 Net (decrease) increase in cash, cash equivalents and restricted cash (2,241) 8,760 Cash and cash equivalents and restricted cash at beginning of period 16,552 28,811 Cash and cash equivalents and restricted cash at end of period$14,311 $37,571 Supplemental disclosure of cash flow information: Cash paid for interest$3,661 $3,382 Cash paid for income taxes$— $112 Cash paid for operating leases$111 $82 KATAPULT HOLDINGS, INC.RECONCILIATION OF NON-GAAP MEASURES AND CERTAIN OTHER DATA (UNAUDITED)(amounts in thousands) Three Months Ended March 31, 2025 2024 Net loss$(5,688) $(570)Add back: Interest expense and other fees 5,144 4,527 Interest income (57) (324)Change in fair value of warrants 36 162 Provision for income taxes 29 5 Depreciation and amortization on property and equipment and capitalized software 330 266 Provision for impairment of leased assets 150 173 Stock-based compensation expense 1,066 1,391 Litigation settlement and other related expenses 259 $— Debt refinancing costs$971 — Adjusted EBITDA$2,240 $5,630 Three Months Ended March 31, 2025 2024 Net loss$(5,688) $(570)Add back: Change in fair value of warrants 36 162 Stock-based compensation expense 1,066 1,391 Litigation settlement and other related expenses 259 — Debt refinancing costs 971 — Adjusted net income (loss)$(3,356) $983 Three Months Ended March 31, 2025 2024 Operating expenses$14,885 $12,688 Less: Depreciation and amortization on property and equipment and capitalized software 330 266 Stock-based compensation expense 1,066 1,391 Servicing costs 1,085 1,132 Underwriting fees 772 509 Litigation settlement and other related expenses 259 — Debt refinancing costs 971 $— Fixed cash operating expenses$10,402 $9,390 (in thousands)Three Months Ended March 31, 2025 2024 Total revenue$71,946 $65,061 Cost of revenue 57,597 48,573 Gross profit 14,349 16,488 Less: Servicing costs 1,085 1,132 Underwriting fees 772 509 Adjusted gross profit$12,492 $14,847 CERTAIN KEY PERFORMANCE METRICS (in thousands)Three Months Ended March 31, 2025 2024 Total revenue$71,946 $65,061 KATAPULT HOLDINGS, INC.GROSS ORIGINATIONS BY QUARTER Gross Originations by Quarter($ millions) Q1 Q2 Q3 Q4FY 2025 $64.2 $— $— $— FY 2024 $55.6 $55.3 $51.2 $75.2 FY 2023 $54.7 $54.7 $49.6 $67.5 FY 2022 $46.7 $46.4 $44.1 $59.8 FY 2021 $63.8 $64.4 $61.0 $58.9

CORRECTING AND REPLACING - Katapult Delivers 15.4% Gross Originations and 10.6% Revenue Growth in the First Quarter, Above Outlook

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