Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $30.21M
• Dividend Yield: N/A
• Average Volume (3M): 110.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 16.56%
• EPS Growth: 28.25%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 4,720,466
• 10 Day Avg. Volume: 80,643
• 30 Day Avg. Volume: 110,330
• PEG Ratio: 0.03
• Price to Book (P/B): -0.63
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -0.90
• Enterprise Value/Market Cap: 4.72
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $7.00 ▲(9.03% Upside)

Katapult Holdings' overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. Despite positive growth signals from the earnings call and recent capital investment, the company's high leverage and financial instability pose significant risks. Technical indicators also suggest bearish momentum, further weighing down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Katapult's services and successful market penetration, supporting long-term business expansion.

Customer Base Expansion

A growing customer base enhances revenue potential and market presence, indicating effective customer acquisition strategies and product appeal.

Strategic Merger

The merger creates a premier omni-channel platform, expanding market reach and product offerings, potentially boosting long-term growth and competitiveness.

Negative Factors

High Financial Leverage

High leverage can strain financial flexibility and increase risk, impacting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flow

Negative cash flow limits the company's ability to fund operations and growth internally, increasing reliance on external financing and impacting financial stability.

Decline in Application Quality

A decline in application quality may lead to higher default rates, impacting profitability and necessitating tighter underwriting, which could slow growth.

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 generates revenue primarily through its lease-to-own financing model, where it earns money from the fees charged to consumers for financing options. These fees can include transaction fees, late payment fees, and interest charges, depending on the specific terms of the lease agreements. Additionally, Katapult earns revenue from its retail partners through partnership agreements that often include a percentage of the financing fees generated from customer transactions. The company also benefits from increased sales volume for its retail partners, creating a symbiotic relationship that enhances both parties' earnings. Significant partnerships with various e-commerce platforms and brick-and-mortar retailers further bolster Katapult's revenue streams, as these collaborations expand its reach to a broader customer base.

Katapult Holdings Financial Statement Overview

Summary

Katapult Holdings faces significant financial challenges, with negative profitability and high leverage. While there is some revenue growth, the company's financial stability is at risk due to negative equity and cash flow issues. Strategic improvements in cost management and debt reduction are essential for future stability.

Income Statement

Katapult Holdings has shown a modest revenue growth rate of 5.14% in the TTM, indicating some recovery from previous declines. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 19.46%, reflecting challenges in cost management.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative debt-to-equity ratio, indicating high debt levels relative to negative equity. Return on equity is positive but misleading due to negative equity. The equity ratio is negative, suggesting potential financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a concerning decline in free cash flow growth. The free cash flow to net income ratio is slightly above 1, indicating some ability to cover net losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	280.84M	247.19M	221.59M	209.50M	303.11M	247.20M
Gross Profit	47.48M	45.77M	41.71M	37.41M	88.99M	79.79M
EBITDA	105.86M	161.48M	137.12M	95.94M	182.22M	148.05M
Net Income	-28.04M	-25.91M	-36.67M	-40.47M	21.21M	22.53M
Balance Sheet
Total Assets	85.94M	93.17M	100.86M	130.05M	166.16M	139.83M
Cash, Cash Equivalents and Short-Term Investments	3.40M	3.46M	21.41M	65.43M	92.49M	65.62M
Total Debt	110.66M	113.25M	90.34M	106.52M	101.90M	110.73M
Total Liabilities	144.31M	139.97M	128.85M	132.12M	125.36M	140.78M
Stockholders Equity	-58.37M	-46.79M	-27.99M	-2.07M	40.80M	-949.00K
Cash Flow
Free Cash Flow	-28.93M	-32.62M	-18.39M	-22.35M	730.00K	-2.58M
Operating Cash Flow	-27.70M	-32.57M	-17.41M	-20.85M	2.17M	-2.14M
Investing Cash Flow	-1.61M	-1.30M	-974.00K	-1.50M	-1.44M	-402.00K
Financing Cash Flow	7.97M	21.61M	-22.64M	-4.24M	26.10M	59.90M

Katapult Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPLT, the sentiment is Neutral. The current price of 6.42 is above the 20-day moving average (MA) of 6.38, below the 50-day MA of 8.49, and below the 200-day MA of 10.77, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$40.52M	-78.02	-5.30%	―	20.68%	84.51%
SOS	50 Neutral	$71.19M	-95.98	-3.89%	―	134.43%	95.39%
SNCR	49 Neutral	$97.24M	-8.26	-21.44%	―	0.07%	58.47%
KPLT	47 Neutral	$30.21M	-1.09	―	―	16.56%	28.25%
XBP	47 Neutral	$75.80M	0.07	2125.09%	―	―	―

Katapult Holdings Corporate Events

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.

Gregory L. Zink Joins Katapult Holdings Board

On November 25, 2025, Jeffrey Rubin resigned from the Board of Directors of Katapult Holdings, Inc., a decision not stemming from any disagreements with the company or its operations. Subsequently, on November 26, 2025, Gregory L. Zink was appointed to fill the vacancy, bringing extensive experience from his roles at Newtek Business Services Corp and Newport LLC. Mr. Zink’s appointment is expected to strengthen the board with his strategic advisory expertise, as he also joins the Audit, Compensation, and Nominating and Corporate Governance Committees.

Katapult Holdings Enters Waiver Agreement with HHCF

On November 13, 2025, Katapult Holdings, Inc. entered into a waiver agreement with HHCF Series 21 Sub, LLC, the holder of its Series A and Series B Convertible Preferred Stock. The waiver modifies certain requirements in the Certificate of Designations, including waiving the need for a preliminary proxy statement filing and adjusting the dividend rate conditions. This move is part of a broader strategy to seek stockholder approval for the issuance of common stock upon conversion of the Preferred Stock, which will be addressed in an upcoming proxy statement filing with the SEC.

Katapult Holdings Raises $65M Through Convertible Stock

On November 3, 2025, Katapult Holdings, Inc. entered into agreements for the issuance of Series A and Series B Convertible Preferred Stock, raising $65 million in total. The proceeds were used to repay loans and for corporate purposes. The transactions allow the purchaser, HHCF Series 21 Sub, LLC, to potentially own 54.5% of the common stock upon conversion, subject to stockholder approval to remove ownership limitations. Additionally, the company amended its loan agreement, waiving defaults and adjusting financial covenants, which could stabilize its financial position.

Katapult Holdings Enters Sixth Limited Waiver Agreement

On October 29, 2025, Katapult Holdings, Inc. entered into a Sixth Limited Waiver to their Loan and Security Agreement due to failing to maintain required minimum originations for August and September 2025. This waiver temporarily addresses the default until October 31, 2025, but allows Class B Lenders to convert outstanding loan amounts into common stock based on the 20-day VWAP, which was approximately $12.85 as of October 28, 2025.

Katapult Holdings Enters Fifth Limited Waiver Agreement

On October 27, 2025, Katapult Holdings, Inc. entered into a Fifth Limited Waiver to their Amended and Restated Loan and Security Agreement. This action was taken in response to the company’s failure to meet the Minimum Trailing Three-Month Originations for August and September 2025. The waiver temporarily addresses the Existing Default until October 29, 2025, allowing Class B Lenders the right to convert outstanding term loan amounts into common stock based on the 20-day VWAP, which was approximately $13.04 as of October 24, 2025.

Katapult Holdings Secures Fourth Limited Waiver Agreement

On October 20, 2025, Katapult Holdings entered into a Fourth Limited Waiver to their Amended and Restated Loan and Security Agreement due to failing to maintain Minimum Trailing Three-Month Originations for August and September 2025. This waiver temporarily addresses the existing default until October 27, 2025, allowing Class B Lenders to convert outstanding term loan amounts into common stock based on the 20-day volume weighted average price, which was approximately $14.49 as of October 17, 2025.

Katapult Holdings Secures Waiver Amid Loan Agreement Default

On October 13, 2025, Katapult Holdings entered into a Third Limited Waiver to their Loan and Security Agreement due to failing to maintain required minimum originations for August and September 2025. This waiver temporarily addresses the default until October 20, 2025, allowing Class B Lenders the right to convert outstanding loan amounts into company stock, potentially impacting the company’s financial structure.

Katapult Holdings Secures Second Limited Waiver Agreement

Katapult Holdings, Inc. entered into a Second Limited Waiver on September 29, 2025, to address their failure to maintain Minimum Trailing Three-Month Originations as required by their Loan Agreement. This waiver extends the temporary waiver of the existing default until October 13, 2025, allowing Class B Lenders the right to convert the outstanding term loan into common stock based on the 20-day VWAP, which was approximately $19.52 as of September 26, 2025.