Katapult Holdings, Inc. (KPLT) - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Katapult Holdings, Inc. on April 16, 2026, covering events occurring on April 15, 2026. The Company, incorporated in Delaware and trading on The Nasdaq Stock Market LLC under the symbols KPLT (Common Stock) and KPLTW (Redeemable Warrants), reported the entry into a material definitive agreement regarding its debt facilities.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, or total debt balances. However, it discloses specific covenant breaches related to:
- Net Originations: Failure to maintain the required Minimum Trailing Three-Month Net Originations as of March 31, 2026.
- Collateral Quality: The percentage of leases included in the collateral that have been charged-off exceeded certain thresholds defined in the Loan Agreement.
Material Changes and Events
On April 15, 2026, the Company entered into the "Tenth Limited Waiver" to its Amended and Restated Loan and Security Agreement (originally dated June 12, 2025). This agreement involves Katapult SPV-1 LLC, Katapult Group, Inc., and the Company as Credit Parties, with Midtown Madison Management LLC acting as the administrative agent and lender.
This waiver addresses two specific defaults:
- The failure to meet the Minimum Trailing Three-Month Net Originations requirement for the period ended March 31, 2026.
- The excess percentage of charged-off leases within the collateral pool.
The Tenth Limited Waiver permanently waives the "Existing Default" and waives any reduction to the Advance Rate resulting from the "Existing Advance Rate Trigger Events." This follows a series of nine previous waivers and amendments to the Loan Agreement between September 2025 and March 2026.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the disclosed covenant breaches. The primary contingency noted is the Company's ongoing reliance on lender waivers to maintain compliance with its debt covenants. The text explicitly states that the description of the waiver is not complete and refers investors to the full text of the Tenth Limited Waiver attached as Exhibit 10.1.
Key Facts for Investor Verification
- Frequency of Waivers: Verify the cumulative impact of ten separate waivers/amendments to the Loan Agreement within a nine-month period (September 2025 to April 2026).
- Advance Rate Status: Confirm the current Advance Rate and whether the waiver fully restored the original rate or if other restrictions remain.
- Collateral Health: Review the specific percentage of charged-off leases and the trend in Net Originations to assess the sustainability of the business model.
- Exhibit 10.1 Details: Examine the full text of the Tenth Limited Waiver for any new covenants, fees, or conditions imposed by the lenders in exchange for the waiver.