Katapult sees Q4 revenue up 13%-15% y/y

The Company continues to navigate an evolving, but still uncertain macro environment. While there are tailwinds such as stable inflation data and a reduced likelihood of a recession in the US, retail traffic is down, interest rates remain elevated, lending standards are tight and there is uncertainty surrounding how the resumption of student loan repayments may impact our core consumer’s ability to take on new leases. It is also important to note, however, that over time, lease-to-own solutions have historically benefited when prime credit options become less available. Based on these dynamics and the operating plan in place for the second half of 2023, Katapult expects to deliver the following results for the fourth quarter of 2023: A 3 to 5% year-over-year increase in gross originations. A 13 to 15% year-over-year increase in revenue. As a reminder, there is a lag between new gross originations and revenue. Based on this, the Company expects to see the revenue benefit from gross originations recorded this quarter in future quarters. Meaningful improvement in its Adjusted EBITDA performance compared with the fourth quarter of last year, reflecting both its revenue growth expectation and a sustained reduction of fixed cash operating expenses. Fixed cash operating expenses are expected to be down approximately 25% year-over-year in the fourth quarter.