Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $34.45M
• Dividend Yield: N/A
• Average Volume (3M): 110.33K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 1.15
• Revenue Growth: 16.56%
• EPS Growth: 28.25%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.13
• Shares Outstanding: 4,765,058
• 10 Day Avg. Volume: 80,643
• 30 Day Avg. Volume: 110,330
• PEG Ratio: -0.24
• Price to Book (P/B): -3.19
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -2.71
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: -1.08
• Enterprise Value/Ebitda: 0.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2.4
• Revenue Forecast (FY): $339.80M

• Rating: 45 Neutral
• Price Target: $6.00 ▼(-14.53% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by weak financial quality (negative equity and negative operating/free cash flow) and a bearish technical trend (below key moving averages with negative MACD). Offsetting factors include a constructive earnings-call narrative with improving growth and positive adjusted EBITDA, but corporate-event waivers around loan covenants and limited valuation signal keep the overall score in the low range.

Positive Factors

Customer & application growth

Sustained, high single- to double-digit growth in applications, unique new customers and gross originations demonstrates durable product-market fit with merchants. Scale in originations and repeat customers supports long-term revenue expansion and strengthens commercial integrations with retail partners.

Return to positive adjusted EBITDA

Achieving consecutive quarters of positive adjusted EBITDA indicates operating leverage and progress toward sustainable profitability. Improved operating margins provide a foundation to reinvest in product and sales, making future earnings less dependent solely on external funding if cash conversion improves.

Material capital infusion

A committed $65M capital infusion that retired term debt and funded growth materially reduces immediate refinancing pressure and preserves access to originations capital. That durable funding support enables scaling merchant integrations and product investment while management executes growth initiatives.

Negative Factors

Negative shareholders' equity & leverage

Persistently negative equity and material outstanding debt constrain financial flexibility and limit the firm's ability to absorb operating shocks. A weak capital base increases insolvency risk and makes funding organic growth or adverse cycles more reliant on external capital or dilutive restructurings.

Poor cash generation

Repeated negative operating and free cash flows despite accounting profits signal weak cash conversion. Persistent cash shortfalls raise dependency on external funding to originate leases and invest, increasing liquidity risk and potentially raising funding costs over the medium term.

Repeated covenant waivers

Multiple loan-agreement waivers to cure covenant breaches indicate recurring underperformance versus lender metrics and reliance on lender tolerance. This structural financing fragility limits long-term planning, can constrain growth initiatives, and increases execution risk until covenant metrics sustainably recover.

Katapult Holdings Business Overview & Revenue Model

Company Description

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce merchants. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

How the Company Makes Money

Katapult makes money primarily through economics associated with lease-to-own transactions it originates for merchant partners. In a typical transaction, a consumer selects Katapult’s LTO option at a participating merchant’s checkout; Katapult (directly or through its program structure) funds the purchase of the merchandise and then enters into a lease arrangement with the consumer. The company’s revenue is generated from the difference between (a) amounts collected from the consumer over the lease term (including applicable fees/charges embedded in the LTO structure) and (b) the cost of the underlying merchandise paid to the merchant, net of losses (e.g., customer defaults/charge-offs), returns, and servicing/operating costs. Katapult also earns revenue through arrangements with merchant partners and platform integrations that drive transaction volume (for example, integrations with e-commerce platforms/retailers that embed Katapult as a checkout option), though specific commercial terms (such as merchant fees, revenue-share rates, or pricing) are null if not publicly detailed for a given partnership. Key factors influencing earnings include approval/underwriting performance, customer repayment behavior and credit losses, return rates, funding costs and availability of capital to finance leases, and the scale of merchant relationships and e-commerce integrations that generate originations.

Katapult Holdings Financial Statement Overview

Summary

Revenue growth and a return to small profitability in 2025 are positives, but the overall financial profile remains weak due to negative shareholders’ equity, meaningful debt, and persistently negative operating/free cash flow (including a deterioration in 2025), which raises funding and durability risks.

Income Statement

Revenue has grown steadily in recent years (2022–2025), but profitability has been volatile. Gross margin has compressed meaningfully versus 2020–2021 (low-to-high teens recently vs ~30%+ earlier). After sizable net losses in 2022–2024, the company returned to a small profit in 2025, but the net margin remains thin, indicating limited earnings durability and sensitivity to costs/volume.

Balance Sheet

The balance sheet is pressured by consistently negative shareholders’ equity from 2022–2025, which weakens financial flexibility and makes leverage risk harder to absorb. Debt remains significant (~$79M–$113M over the period), and debt-to-equity is not a reliable comfort signal given the negative equity base. Total assets have also trended lower from 2021, pointing to a smaller capital base supporting the business.

Cash Flow

Cash generation is the main weak spot: operating cash flow and free cash flow are negative in 2020 and again in 2022–2025, with a sharp deterioration in free cash flow in 2025 versus 2024. While earnings improved to slightly positive in 2025, cash flow did not follow—suggesting the profits are not yet translating into cash and increasing reliance on external funding or balance-sheet capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	291.76M	247.19M	221.59M	209.50M	303.11M
Gross Profit	-84.24M	45.77M	41.71M	37.41M	88.99M
EBITDA	186.73M	161.48M	137.12M	95.94M	182.22M
Net Income	1.36M	-25.91M	-36.67M	-40.47M	21.21M
Balance Sheet
Total Assets	107.87M	93.17M	100.86M	130.05M	166.16M
Cash, Cash Equivalents and Short-Term Investments	22.43M	3.46M	21.41M	65.43M	92.49M
Total Debt	79.17M	113.25M	90.34M	106.52M	101.90M
Total Liabilities	118.04M	139.97M	128.85M	132.12M	125.36M
Stockholders Equity	-10.17M	-46.79M	-27.99M	-2.07M	40.80M
Cash Flow
Free Cash Flow	-11.97M	-32.62M	-18.39M	-22.35M	730.00K
Operating Cash Flow	-11.93M	-32.57M	-17.41M	-20.85M	2.17M
Investing Cash Flow	-1.10M	-1.30M	-974.00K	-1.50M	-1.44M
Financing Cash Flow	19.97M	21.61M	-22.64M	-4.24M	26.10M

Katapult Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPLT, the sentiment is Positive. The current price of 7.02 is above the 20-day moving average (MA) of 6.37, above the 50-day MA of 6.54, and below the 200-day MA of 10.01, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 92.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KPLT.

Katapult Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JG	58 Neutral	$45.68M	22.16	0.58%	―	20.68%	84.51%
XBP	54 Neutral	$54.76M	-0.21	-2369.34%	―	―	―
KPLT	45 Neutral	$34.45M	0.43	-3.13%	―	16.56%	28.25%
SOS	45 Neutral	$40.77M	-0.75	-3.86%	―	134.43%	95.39%

Katapult Holdings Corporate Events

Katapult Holdings Secures Waiver to Maintain Loan Agreement

On February 13, 2026, Katapult Holdings, Inc. entered into an Eighth Limited Waiver to its Amended and Restated Loan and Security Agreement after its credit parties failed to maintain the required minimum trailing three‑month net originations as of January 31, 2026. The new waiver, which follows a series of prior limited waivers and amendments since September 2025, permanently waives this specific default, temporarily stabilizing Katapult’s standing with its lenders and helping preserve access to its key funding facility despite performance shortfalls.

The most recent analyst rating on (KPLT) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Secures Waiver to Cure Loan Default

On January 15, 2026, Katapult Holdings, Inc. entered into a Seventh Limited Waiver to its Amended and Restated Loan and Security Agreement with Midtown Madison Management LLC and other lenders after the company and its related credit parties failed to maintain the required minimum trailing three-month net originations as of December 31, 2025. The new waiver permanently cures this existing default under the loan agreement, offering Katapult continued access to its financing arrangements and temporarily stabilizing its lending relationships despite recent underperformance against covenant benchmarks.

The most recent analyst rating on (KPLT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Announces Major Merger Agreement

On December 11, 2025, Katapult Holdings, Inc. entered into a merger agreement involving its subsidiaries and two other companies, CCF Holdings LLC and Aaron’s Intermediate Holdco, Inc. This complex transaction involves multiple exchanges of equity and stock issuance, with the aim of consolidating the companies into a single entity. Upon completion, existing Katapult stockholders, CCFI unitholders, and Aaron’s stockholders will hold approximately 6.0%, 79.9%, and 14.1% of the combined company, respectively. The merger is subject to customary conditions and regulatory approvals, and includes various agreements such as lock-up, support, and stockholders agreements to ensure smooth execution. The merger is expected to significantly alter the ownership structure and governance of Katapult, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (KPLT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.