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Katapult Holdings (KPLT)
NASDAQ:KPLT
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Katapult Holdings
(NASDAQ:KPLT)
42Neutral
Katapult Holdings (KPLT) vs. S&P 500 (SPY)
Market Cap
$39.88M
Dividend YieldN/A
Average Volume (3M)32.30K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth11.25%
EPS Growth34.57%
CountryUS
Employees94
SectorTechnology
Sector Strength40
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-5.91
Shares Outstanding4,461,243
10 Day Avg. Volume65,033
30 Day Avg. Volume32,296
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)-2.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside19.05% Upside
Rating ConsensusHold
Number of Analyst Covering1
Katapult Holdings Business Overview & Revenue Model
Company DescriptionKatapult 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 MoneyKatapult Holdings generates revenue primarily through its lease-to-own agreements. When consumers choose to lease items using Katapult's platform, they enter into an agreement to make regular lease payments over a set period. The company earns money from these recurring lease payments, which include both the cost of the product and an additional fee that serves as Katapult's profit margin. Additionally, Katapult may charge fees for early purchase options if consumers decide to buy the leased product before the term ends. Strategic partnerships with retailers play a crucial role in Katapult's business model, as these collaborations expand its market reach and customer base, driving lease originations and subsequent revenue.
Katapult Holdings Financial Statement Overview
Summary
Katapult Holdings is facing significant financial challenges across all key verticals. Income statements reflect declining margins and negative profitability; the balance sheet highlights financial instability with high leverage and negative equity; cash flows are under pressure with persistent negative free cash flow. The company needs strategic improvements to stabilize its financial health and achieve sustainable growth.Income Statement
Katapult Holdings has shown inconsistent revenue growth, with recent declines compared to earlier periods. The gross profit margin has decreased from 32.3% in 2020 to 18.5% in 2024. Net profitability remains negative, with a net profit margin of -10.5% in 2024, indicating challenges in generating profit from sales. EBIT and EBITDA margins have significantly deteriorated, pointing to operational inefficiencies.40
Negative
Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity of -$46.8 million, reflecting a possible risk of insolvency. The debt-to-equity ratio is not calculable due to negative equity, but high total debt relative to assets suggests leverage issues. Return on equity is also negative, consistent with net losses, while the equity ratio is negative, underscoring financial instability.30
Negative
Cash Flow
Cash flow analysis indicates negative free cash flow growth, with free cash flow worsening to -$32.6 million in 2024. Operating cash flow remains negative, reflecting operational challenges. The cash flow to net income ratios are not favorable, showing an inability to convert income into cash efficiently.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 240.94M | 247.19M | 221.59M | 212.10M | 303.11M | 247.20M | Gross Profit |
| 42.19M | 45.77M | 41.71M | 40.99M | 88.99M | 79.79M | EBIT |
| 1.43M | -8.10M | -18.79M | -24.36M | 29.96M | 52.97M | EBITDA |
| 141.54M | -8.10M | 137.12M | 95.94M | 161.42M | 164.42M | Net Income Common Stockholders |
| -34.93M | -25.91M | -36.67M | -37.87M | 21.21M | 22.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.51M | 3.46M | 21.41M | 65.43M | 92.49M | 65.62M | Total Assets |
| 49.01M | 93.17M | 100.86M | 131.90M | 166.16M | 139.83M | Total Debt |
| 62.70M | 113.25M | 86.76M | 106.52M | 101.90M | 110.73M | Net Debt |
| 55.19M | 109.79M | 65.35M | 41.09M | 9.40M | 45.11M | Total Liabilities |
| 72.96M | 139.97M | 128.85M | 124.77M | 125.36M | 140.78M | Stockholders Equity |
| -23.94M | -46.79M | -27.99M | 7.13M | 40.80M | -949.00K |
| Cash Flow | Free Cash Flow | ||||
| -14.63M | -32.62M | -18.39M | -22.35M | 730.00K | -2.58M | Operating Cash Flow |
| -13.76M | -32.57M | -17.41M | -20.85M | 2.17M | -2.14M | Investing Cash Flow |
| -867.00K | -1.30M | -974.00K | -1.50M | -1.44M | -402.00K | Financing Cash Flow |
| 6.05M | 21.61M | -22.64M | -4.24M | 26.10M | 59.90M |
Katapult Holdings Technical Analysis
Negative
9.24
Price Trends
10.58
Negative
8.74
Positive
10.94
Negative
Market Momentum
0.61
Positive
41.06
Neutral
27.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPLT, the sentiment is Negative. The current price of 9.24 is below the 20-day moving average (MA) of 11.55, below the 50-day MA of 10.58, and below the 200-day MA of 10.94, indicating a bearish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 27.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KPLT.
Katapult Holdings Risk Analysis
Katapult Holdings disclosed 114 risk factors in its most recent earnings report. Katapult Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Katapult Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.22B | 11.72 | 17.19% | ― | 25.51% | 36.96% | |
70 Outperform | $714.57M | 43.05 | 33.59% | ― | 2.71% | ― | |
57 Neutral | $18.52B | 9.81 | -13.96% | 2.71% | 5.07% | -23.65% | |
53 Neutral | $985.31M | 19.11 | 3.96% | ― | 3.63% | 27.77% | |
53 Neutral | $3.26B | ― | -20.27% | ― | 24.50% | 49.38% | |
50 Neutral | $11.44B | ― | -7.34% | ― | 46.27% | 74.39% | |
42 Neutral | $39.88M | ― | 86.76% | ― | 11.25% | 34.57% |
* Technology Sector Average
Performance Comparison
KPLT
Katapult Holdings
9.24
-1.11
-10.72%
LC
LendingClub
8.83
0.15
1.73%
ENVA
Enova International
87.16
24.15
38.33%
UPST
Upstart Holdings
37.78
12.49
49.39%
OPFI
OppFi
8.16
5.71
233.06%
AFRM
Affirm Holdings
37.57
3.46
10.14%
Katapult Holdings Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: -28.81% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Katapult's earnings call highlighted strong growth in originations and revenue driven by its app marketplace and improved customer engagement. The company achieved positive adjusted EBITDA for the first time since 2021. However, challenges such as increased lease write-offs, high dependence on Wayfair, and concerns over cash flow and debt refinancing were also noted.Highlights
Strong Q4 Growth in Originations and Revenue
Q4 growth originations grew more than 11% year-over-year, and fourth quarter revenue was up more than 9%. This marks nine consecutive quarters of growth in gross originations.
Successful App and Marketplace Strategy
Since launching the Katapult app, 54% of 2024 originations are driven by the company's own ecosystem. The app marketplace generated approximately $127 million in gross originations in 2024, with KPay enabling nearly $77 million of those.
Positive Adjusted EBITDA for Full-Year 2024
Katapult reported the first full-year of positive adjusted EBITDA since 2021, with a $6.7 million improvement compared to the previous year.
Improved Customer Engagement and Metrics
Applications grew approximately 50% during Q4, and customer repeat rate was 61.5%. The Net Promoter Score improved to 58 from 52 in the previous year.
Lowlights
Increased Lease Merchandise Write-offs
Lease merchandise write-offs were 9.6% of revenue in Q4, up from 8.7% in the fourth quarter of 2023.
Dependence on Wayfair
Wayfair represented 27% of total gross originations in Q4, down from 43% the previous year, indicating high concentration risk despite the reduction.
Cash Flow and Debt Concerns
Cash used in operations for full-year 2024 was $32.6 million, driven by an increase in property held for lease and litigation settlement costs. The company also has $82.8 million in outstanding debt and is working on refinancing with no assurance yet of a new facility.
Company Guidance
During the Katapult Holdings Q4 and full-year 2024 earnings call, the company reported substantial growth metrics and shared optimistic guidance for 2025. In Q4, gross originations increased by 11.3% year-over-year to $75.2 million, with total revenue rising by 9.4% to $63 million. Notably, 61% of Q4 gross originations were driven by Katapult's marketplace efforts, and 41% utilized their KPay feature. For 2024, gross originations from the Katapult app reached $127 million, with KPay enabling $77 million. The company anticipates at least 20% growth in both gross originations and revenue for 2025, alongside a projected $10 million in positive adjusted EBITDA, leveraging their strong marketplace and strategic initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.