Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $53.25M
• Dividend Yield: N/A
• Average Volume (3M): 23.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 9.71%
• EPS Growth: -1.97%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): -0.73
• Shares Outstanding: 4,266,753
• 10 Day Avg. Volume: 25,415
• 30 Day Avg. Volume: 23,601
• PEG Ratio: 0.07
• Price to Book (P/B): -0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.22
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 0.27
• 1Y Price Target: $8.00
• Price Target Upside: -35.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $11.50 ▼(-7.93%Downside)

The overall stock score is primarily impacted by the significant financial challenges faced by Katapult Holdings, including negative equity and strained cash flows. Despite bullish technical indicators and strong earnings call highlights, the company's precarious financial position and recent negative corporate events weigh heavily on the score.

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 Holdings generates revenue through its lease-to-own model, which involves entering into agreements with consumers who wish to purchase durable goods. The company earns money by charging consumers a series of lease payments over a predetermined period, with the option for the consumer to purchase the item at the end of the lease term. Key revenue streams include the initial lease payments, subsequent periodic payments, and any additional fees associated with the lease agreements. Katapult also collaborates with retail partners, leveraging these partnerships to access a broader customer base while providing retailers with a mechanism to increase sales by reaching consumers who might otherwise be unable to afford upfront purchases.

Katapult Holdings Financial Statement Overview

Summary

Katapult Holdings is facing significant financial challenges, with declining profitability and high leverage. The income statement reflects operational struggles, while the balance sheet shows a precarious financial position due to negative equity. Cash flows are also strained, limiting financial flexibility.

Income Statement

Katapult Holdings experienced fluctuating revenue trends with a recent uptick in TTM, but overall profitability remains a concern. The gross profit margin has deteriorated from 2020 to TTM (Trailing-Twelve-Months), now at 15.1%, while the net profit margin is negative, indicating significant losses. Revenue growth from 2024 to TTM is minimal at 2.8%, showing sluggish momentum. The EBIT and EBITDA margins have also shown negative trends, reflecting operational challenges.

Balance Sheet

The balance sheet of Katapult Holdings shows high leverage, with a negative stockholders' equity position leading to an undefined debt-to-equity ratio. The company's equity ratio is negative, suggesting that liabilities exceed assets. This indicates financial instability and a potential risk for creditors and investors. The return on equity is also negative, reflecting consistent net losses and poor returns for shareholders.

Cash Flow

Cash flows for Katapult Holdings are under pressure, with negative free cash flow and operating cash flow in TTM. The free cash flow to net income ratio is negative, indicating inefficiencies in converting earnings to cash. Despite a small improvement in free cash flow growth from 2024 to TTM, the overall cash flow position remains weak, posing liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.19M	221.59M	212.10M	303.11M	247.20M
Gross Profit	45.77M	41.71M	40.99M	88.99M	79.79M
EBITDA	161.48M	137.12M	95.94M	161.42M	164.42M
Net Income	-25.91M	-36.67M	-37.87M	21.21M	22.53M
Balance Sheet
Total Assets	93.17M	100.86M	131.90M	166.16M	139.83M
Cash, Cash Equivalents and Short-Term Investments	3.46M	21.41M	65.43M	92.49M	65.62M
Total Debt	113.25M	86.76M	106.52M	101.90M	110.73M
Total Liabilities	139.97M	128.85M	124.77M	125.36M	140.78M
Stockholders Equity	-46.79M	-27.99M	7.13M	40.80M	-949.00K
Cash Flow
Free Cash Flow	-32.62M	-18.39M	-22.35M	730.00K	-2.58M
Operating Cash Flow	-32.57M	-17.41M	-20.85M	2.17M	-2.14M
Investing Cash Flow	-1.30M	-974.00K	-1.50M	-1.44M	-402.00K
Financing Cash Flow	21.61M	-22.64M	-4.24M	26.10M	59.90M

Katapult Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 12.49 is above the 20-day moving average (MA) of 8.95, above the 50-day MA of 8.75, and above the 200-day MA of 8.62, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 76.79 is Negative, neither overbought nor oversold. The STOCH value of 91.09 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
JG	62 Neutral	$69.82M	―	-10.44%	―	16.93%	85.85%
KPLT	58 Neutral	$53.25M	―	86.76%	―	9.71%	-1.97%
Sector *	57 Neutral	$897.91M	11.67	-16.27%	2.28%	10.33%	-39.65%
MSAI	43 Neutral	$25.04M	―	-308.31%	―	―	―
XBP	42 Neutral	$33.76M	―	87.90%	―	―	―

Katapult Holdings Corporate Events

Katapult Holdings Secures New Credit Facility Agreement

On June 12, 2025, Katapult Holdings entered into an Amended and Restated Loan and Security Agreement, which includes a new revolving credit facility of $110 million and a term loan of approximately $32.7 million. This refinancing aims to enhance the company’s financial flexibility and address existing defaults, with implications for stockholder approval and potential dilution due to conversion features and warrants. The agreement imposes various covenants and restrictions, impacting the company’s operational strategies and financial obligations.

The most recent analyst rating on (KPLT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Amends Loan Agreement Maturity Date

On June 9, 2025, Katapult Holdings entered into a Third Limited Waiver to amend its existing Loan and Security Agreement, extending the maturity date to June 13, 2025. The company is actively negotiating a comprehensive maturity extension amendment to align with its business plan, but failure to secure favorable terms could adversely affect its financial condition and operations.

The most recent analyst rating on (KPLT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Concludes Annual Stockholders Meeting

On June 6, 2025, Katapult Holdings, Inc. held its annual meeting of stockholders virtually, where several key proposals were voted upon. The meeting saw a quorum with approximately 77.35% of the outstanding shares represented. Key outcomes included the election of Chris Masto as a Class I Director, the ratification of Grant Thornton LLP as the independent registered public accounting firm for 2025, and the approval of executive compensation on a non-binding advisory basis. Additionally, the frequency of advisory votes on executive compensation was determined.

The most recent analyst rating on (KPLT) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Extends Credit Agreement Maturity Date

On June 3, 2025, Katapult Holdings entered into a Second Limited Waiver to extend the maturity date of its Credit Agreement from June 4 to June 9, 2025. The company is negotiating a comprehensive maturity extension amendment to align with its business plan, but failure to secure favorable terms could adversely affect its financial condition and operations.

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.