PLANO, Texas — Katapult Holdings, an e-commerce-focused financial technology provider, saw its revenue increase 18% year over year for the first quarter ended March 31.

“We were able to deliver gross originations and revenue growth above our expectations, despite a challenging retail environment,” said Orlando Zayas, CEO. “We continue to execute against the core tenets of our merchant and customer strategies, and our progress is showing up in our financial results.

“Our non-Wayfair gross originations grew 9% during the first quarter, Katapult Pay gross originations grew by more than 150%, and our repeat purchase rate remained strong at 56%,” he added.

With revenues for the quarter of $65.1 million, the company saw its total operating expenses decrease 18.5%. Its net loss for the period was $600,000, compared with a net loss of $10.5 million for the same period of 2023.

Katapult’s adjusted EBITDA improved to positive $5.6 million for the first quarter of 2024 compared with a loss of $1 million in the first quarter of 2023.

Looking ahead to the second quarter, the company said in its earnings release that it expects a 3% to 5% increase in gross originations year over year, reflecting the ongoing headwinds in the home furnishings retail category, and an 8% to 10% year-over-year increase in revenue.

For the full year, Katapult said it expects gross originations to grow at a rate of at least 10%. It also noted that the company assumes the retail environment for home furnishings begins to normalize and looks for revenue growth of at least 10%.

“During the first quarter we faced retail headwinds, but as expected, we picked up momentum as the quarter progressed,” said Nancy Walsh, CFO. “Each month we improved year-over-year gross originations growth, and this performance, coupled with our strong revenue growth, lease portfolio quality and our disciplined expense management, allowed us to improve adjusted EBITDA substantially year-over-year.”

 See also:

• Don’t offer financing? Study shows 44% of credit-challenged consumers will go somewhere else
• Consumer credit services gain sophistication with new technology, programs

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