Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $29.08M
• Dividend Yield: N/A
• Average Volume (3M): 110.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• 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: 4.69
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 1.29
• 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: 48 Neutral
• Price Target: $6.00 ▼(-14.53% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is held down primarily by weak financial fundamentals (negative profitability, negative operating/free cash flow, and a highly leveraged balance sheet with negative equity). The latest earnings call provides an offset with improving growth and positive adjusted EBITDA plus continued growth guidance, while technicals are neutral-to-weak and valuation is constrained by losses and no dividend support.

Positive Factors

Fresh capital and debt paydown

The $65M investment that funded term-loan payoff and reduced revolver usage materially lowers near-term refinancing risk and interest burden. That capital gives Katapult durable funding capacity to support originations growth, invest in product integrations, and extend runway without immediate dilutive financings.

Growing customer and application traction

Rapid, broad-based customer and application growth improves unit economics scalability: a larger active base and rising repeat-originations (55.3% repeat share) increase lifetime revenue potential, strengthen merchant partnerships, and make future marketing spend more productive over the medium term.

Sustained revenue growth and positive adjusted EBITDA

Consecutive revenue expansion and a return to positive adjusted EBITDA signal improving operating leverage and a clearer path to profitability. Persistent top-line growth plus EBITDA generation supports reinvestment in technology and originations capacity and reduces reliance on external equity over time.

Negative Factors

Highly leveraged balance sheet

Negative equity and high leverage are structural constraints: they reduce loss-absorbing capacity, raise cost of capital, and limit strategic flexibility. Over months this elevates bankruptcy or restructuring risk if originations or credit performance deteriorate, and increases likelihood of future covenant or financing concessions.

Negative operating and free cash flows

Persistent negative operating and free cash flow forces dependence on external funding to finance leases and growth. Even with adjusted EBITDA improvement, ongoing cash burn undermines self-funding of originations, increases refinancing frequency, and magnifies dilution or covenant pressure over the medium term.

Recent covenant waivers and ownership change risk

Repeated covenant waivers and a recent merger agreement indicate structural capital and governance uncertainty. Reliance on waivers signals recurring covenant strain; planned merger and prior preferred-stock waivers create potential dilution and strategic shifts that could materially alter priorities and creditor/shareholder outcomes.

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

Financial health is weak: profitability remains negative (net profit and EBIT margins), operating and free cash flow are negative, and the balance sheet shows high leverage with negative equity (negative equity ratio and debt-to-equity). Modest TTM revenue growth (5.14%) is a positive but not enough to offset balance-sheet and cash-flow risk.

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: Negative
• Last Price: 7.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.02 is above the 20-day moving average (MA) of 6.43, above the 50-day MA of 6.59, and below the 200-day MA of 10.15, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 34.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$45.30M	-90.16	-5.30%	―	20.68%	84.51%
XBP	54 Neutral	$90.72M	0.08	2125.09%	―	―	―
KPLT	48 Neutral	$29.08M	-1.04	―	―	16.56%	28.25%
SOS	45 Neutral	$40.93M	-63.57	-3.89%	―	134.43%	95.39%

Katapult Holdings Corporate Events

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.

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.

The most recent analyst rating on (KPLT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

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.

The most recent analyst rating on (KPLT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.