Katapult Swaps Grant Thornton for Elliott Davis After Merger Closes
Turnaround
Company Background
Katapult Holdings (NASDAQ: KPLT) is a nonprime consumer finance platform that before August 2026 operated primarily as an e-commerce lease-to-own intermediary. Full-year 2025 revenue was $291.8 million and net income was $1.4 million — its first annual profit — though adjusted net loss remained at $10.3 million as non-cash derivative gains drove the GAAP figure. The company carried a stockholders' deficit throughout the year and drew serial covenant waivers from its lender, Midtown Madison Management, negotiating at least eight separate waivers between September 2025 and April 2026 for repeated breaches of its minimum origination covenant.
On August 11, 2026, Katapult completed a transformational three-way all-stock merger with CCF Holdings LLC and Aaron's Intermediate Holdco, Inc. Post-closing, former CCFI and Aaron's equityholders own roughly 79.8% and 14.1% of the combined company, respectively, leaving legacy Katapult stockholders with approximately 6.1%. The combination was funded in part by a new $200 million senior secured term loan (15% cash interest plus 5% PIK, maturing August 11, 2029) and a separate $75 million term loan. The combined company reported more than $4 billion in 2025 pro forma revenue.
Prior to the merger, Katapult also carried $65 million in convertible preferred stock issued in November 2025 to Hawthorn Horizon Credit Fund, proceeds from which were used to retire the legacy term loan. That preferred stock carried an 18% dividend rate until stockholder approval was obtained and a 12% rate thereafter — an unusually high cost that reflected the company's financial stress at the time.
What Was Disclosed
The Audit Committee of Katapult's board approved the dismissal of Grant Thornton LLP as independent registered public accounting firm on September 2, 2026, effective immediately, and simultaneously approved the engagement of Elliott Davis, PLLC as its replacement, also effective immediately.