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Katapult Holdings (KPLT)
NASDAQ:KPLT
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Katapult Holdings
(NASDAQ:KPLT)
Rating:43Neutral
Price Target:
$8.50
▼( -5.56% Downside)
Katapult Holdings (KPLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.84M
Dividend YieldN/A
Average Volume (3M)44.11K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth9.71%
EPS Growth-1.97%
CountryUS
Employees94
SectorTechnology
Sector Strength75
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.73
Shares Outstanding4,537,568
10 Day Avg. Volume94,921
30 Day Avg. Volume44,112
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)-0.69
Price to Sales (P/S)0.00
P/FCF Ratio-0.89
Enterprise Value/Market Cap3.42
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda0.24
Forecast
1Y Price Target
$8.00Price Target Upside-11.11% Downside
Rating ConsensusHold
Number of Analyst Covering2
Katapult Holdings Business Overview & Revenue Model
Company DescriptionKatapult Holdings, Inc. is a financial technology company that operates in the lease-to-own sector, primarily serving non-prime consumers. The company offers an innovative digital platform that provides a seamless point-of-sale payment solution, enabling consumers to acquire durable goods through flexible payment options. Katapult's services are accessible through various retail partners, allowing consumers to shop both online and in-store for a range of products including electronics, furniture, and appliances.
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 | ||||
| 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 | EBIT |
| -8.10M | -18.79M | -24.36M | 29.96M | 52.97M | EBITDA |
| 161.48M | 137.12M | 95.94M | 161.42M | 164.42M | Net Income Common Stockholders |
| -25.91M | -36.67M | -37.87M | 21.21M | 22.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.46M | 21.41M | 65.43M | 92.49M | 65.62M | Total Assets |
| 93.17M | 100.86M | 131.90M | 166.16M | 139.83M | Total Debt |
| 113.25M | 86.76M | 106.52M | 101.90M | 110.73M | Net Debt |
| 109.79M | 65.35M | 41.09M | 9.40M | 45.11M | 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
Neutral
9.00
Price Trends
9.04
Negative
9.09
Negative
9.30
Negative
Market Momentum
0.07
Negative
61.53
Neutral
81.41
Negative
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 9 is above the 20-day moving average (MA) of 7.59, below the 50-day MA of 9.04, and below the 200-day MA of 9.30, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Performance Comparison
KPLT
Katapult Holdings
8.95
-10.03
-52.85%
JG
Aurora Mobile
10.99
7.84
248.89%
XBP
XBP Europe Holdings
1.10
-0.71
-39.23%
MSAI
Infrared Cameras Holdings
0.85
-1.48
-63.52%
Katapult Holdings Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 34.13%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Katapult Holdings displayed strong growth in gross originations and revenue, driven by increased consumer engagement and the expansion of the KPay and app marketplace. However, challenges with gross profit, operating expenses, and credit facility maturity present notable concerns.Q1-2025 Updates
Positive Updates
Strong Q1 Gross Originations Growth
Gross originations grew 15.4% year-over-year, exceeding the outlook of 11% growth. Excluding the home furnishings and mattress category, gross originations grew 51% year-over-year.
Increasing Consumer Engagement
Applications grew by approximately 59%, and the total lease count increased by approximately 22%. The percentage of customers with more than one active lease increased to over 28% from just under 27% last year.
Significant Growth in KPay Originations
KPay originations were $22.8 million, up approximately 57%, and represented 35% of total gross originations, up from 26% in Q1 2024.
Expansion of App Marketplace
App originations grew 42% to $37.9 million, with approximately 59% of gross originations starting in the app marketplace.
Positive Revenue Growth
First quarter revenue grew 10.6% to $71.9 million, marking the eighth consecutive quarter of year-over-year growth.
Negative Updates
Lower Gross Profit and Margin
Gross profit decreased to $14.3 million with a gross margin of 19.9%, down from $16.5 million last year. This was affected by front-loaded lease depreciation costs.
Challenges with Credit Facility Maturity
The company faced challenges in negotiating a maturity extension for its credit facility, with ongoing discussions to adjust covenants and advance rates.
Wayfair Originations Decline
Wayfair's gross originations were $17.2 million, showing continued category challenges.
Increased Operating Expenses
Operating expenses increased by 17%, driven by increased general and administrative costs, including efforts to refinance debt.
Company Guidance
During Katapult Holdings' first quarter 2025 earnings call, the company provided optimistic financial guidance, highlighting a 15.4% increase in gross originations, surpassing their 11% growth outlook. Revenue slightly exceeded expectations at a 10.6% growth rate. The company emphasized the momentum gained from their app marketplace strategy, with KPay originations rising by 57% to $22.8 million and total app originations increasing by 42% to $37.9 million, indicating that 59% of their gross originations began in their app marketplace. The company also reported improvements in consumer metrics, including a Net Promoter Score (NPS) of 66 and a repeat customer rate of 57.4%, contributing to a nearly 6% rise in lifetime value (LTV). Looking ahead, Katapult anticipates continued strong performance, projecting gross originations growth of 25% to 30% for the second quarter and at least 20% for the full year, alongside a revenue growth target of at least 20% and at least $10 million in positive adjusted EBITDA for 2025.Katapult Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Katapult Holdings Director Joyce Phillips Steps Down
Neutral
Apr 11, 2025
On April 11, 2025, Joyce Phillips informed Katapult Holdings Inc. that she will not stand for reelection at the Company’s 2025 Annual Meeting of Shareholders. Her decision was not related to any disagreement with the Company on its operations, policies, or practices.
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.