Katapult Secures Tenth Loan Covenant Waiver Amid Persistent Financial Defaults
KPLT sits 22% above its 52-week low of $5.5.
Summary
Katapult Holdings obtained its tenth loan waiver, addressing repeated failures to meet financial covenants related to originations and charge-offs, underscoring severe and ongoing financial distress.
Key Events · Financing and Capital Events · KPLT
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Tenth Loan Waiver Secured
Katapult Holdings entered into its tenth limited waiver to its Amended and Restated Loan and Security Agreement, effective April 15, 2026.
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Addresses Persistent Defaults
The waiver specifically addresses the company's failure to maintain Minimum Trailing Three-Month Net Originations and exceeding certain charge-off percentage thresholds as of March 31, 2026.
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Waiver of Existing Default
The agreement permanently waives the identified existing default and any resulting reduction to the Advance Rate.
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Ongoing Financial Distress
This marks the tenth such waiver since September 2025, indicating a recurring inability to meet loan covenants and highlighting severe, persistent operational and financial challenges for the company.
Analysis · KPLT · Trade & Services
Katapult Holdings, already facing a going concern warning and significant prior dilution, has secured its tenth limited waiver to its loan agreement. This waiver addresses ongoing failures to meet minimum net originations and exceeding charge-off thresholds, indicating persistent operational and financial challenges. While the waiver temporarily prevents an immediate default, the recurring nature of these breaches highlights severe and unaddressed underlying issues, raising significant concerns about the company's long-term viability and ability to operate without continuous lender forbearance.
At the time of this filing, KPLT was trading at $6.71 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $31.3M. The 52-week trading range was $5.50 to $24.34. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.