Catapult lifts adjusted earnings 23% on a pro forma basis in the third quarter
Key Facts
Catapult Holdings reported results for the third quarter ended September 30, 2026, with adjusted earnings before interest, taxes, depreciation and amortization of $131.7 million on a full-quarter pro forma basis, up 23% from $106.8 million in the year-earlier period. The company said in its statement that this was the combined entity’s first operating quarter after Catapult, Aarons and CCFI completed their merger on August 11, 2026. Adjusted earnings margin on a pro forma basis was 13.1%, up about 260 basis points year over year. The difference between the two bases reflects the timing of the merged companies’ inclusion in the year-over-year performance comparison.
Reported revenue was $753.9 million, gross profit was $437.7 million at a margin of 58.1%, and the company posted operating income of $24.9 million. The quarter ended with a net loss of $28 million. CCFI’s figures cover the full quarter, while Aarons and Catapult figures cover only the period beginning August 11. Third-quarter 2025 results included only CCFI, making the year-over-year change in reported figures subject to a change in the scope of operations between the periods. The company defines adjusted earnings before interest, taxes, depreciation and amortization as a non-GAAP measure and says investors should consider it alongside, and not in isolation from, financial statements prepared under those principles.
In consumer finance, revenue rose to $448.8 million from $443.3 million in the third quarter of 2025. The segment’s adjusted earnings were $78.3 million, compared with $74.8 million a year earlier. Adjusted earnings margin rose to 17.5% from 16.9%. The segment figures cover the full quarter in both periods, unlike the partial inclusion of Aarons and Catapult in this year’s reported figures for the combined entity. The segment comparison provides a separate measure of consumer finance performance within the group after the merger.
In lease-to-own and retail, revenue was $305.1 million and reported adjusted earnings were $32.1 million during the period included in the quarterly results. On a full-quarter pro forma basis, the segment’s adjusted earnings were $53.4 million, compared with $31.9 million in the third quarter of 2025. Adjusted earnings margin on this basis was 9.6%. The pro forma comparison shows the segment’s performance for a full quarter, while the reported figure reflects the inclusion of Aarons and Catapult from August 11. The segment results therefore show one figure for the quarter based on the actual inclusion period and another on a full-period comparative basis.
The company said it had identified about $30 million in annual cost savings as it integrates operations following the combination. Measures include consolidating leadership and support functions, reducing offices, and unifying suppliers, systems and shared teams. The chief financial officer said adjusted earnings margin on a pro forma basis rose more than 250 basis points year over year. He added that the company is focused on lowering its cost of funding while taking a cautious approach to underwriting and protecting margins. These measures and the cost-cutting plan frame the merger’s results within the group’s operating trajectory in coming periods.
The company expects fourth-quarter 2026 revenue of between $975 million and $1.025 billion, and adjusted earnings before interest, taxes, depreciation and amortization of between $105 million and $120 million. It said the outlook assumes current economic conditions continue through year-end without improvement. Management attributed its caution to economic pressures affecting customer behavior, lowering average purchase values and prompting greater selectivity in lease-to-own spending. The company ties its estimates for the coming period to customer purchase volumes and spending patterns. The outlook follows the combined entity’s first operating quarter, as the group works to integrate operations and realize the savings it identified.