Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $40.79M
• Dividend Yield: N/A
• Average Volume (3M): 41.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 9.71%
• EPS Growth: -1.97%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): -0.73
• Shares Outstanding: 4,537,568
• 10 Day Avg. Volume: 17,797
• 30 Day Avg. Volume: 41,306
• PEG Ratio: 0.01
• Price to Book (P/B): 13.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.21
• Enterprise Value/Market Cap: 3.31
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 0.26
• 1Y Price Target: $8.00
• Price Target Upside: -1.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: $8.00 ▼(-1.23%Downside)

The overall stock score is primarily influenced by significant financial challenges, including high leverage and poor profitability. Although there is some positive sentiment from the latest earnings call, these are overshadowed by valuation concerns and technical analysis indicating a lack of strong market momentum. Corporate events further highlight financial instability risks.

Katapult Holdings Business Overview & Revenue Model

Company Description

Katapult 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 Money

Katapult 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 experiencing significant financial challenges, including negative profitability and high leverage. The income statement highlights operational struggles, and the balance sheet reflects financial instability with negative equity. Cash flows are strained, indicating liquidity issues and the need for strategic initiatives to improve financial health.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
254.08M	247.19M	221.59M	212.10M	303.11M	247.20M
	Gross Profit
38.26M	45.77M	41.71M	40.99M	88.99M	79.79M
	EBIT
-12.44M	-8.10M	-18.79M	-24.36M	29.96M	52.97M
	EBITDA
95.55M	161.48M	137.12M	95.94M	161.42M	164.42M
	Net Income Common Stockholders
-31.03M	-25.91M	-36.67M	-37.87M	21.21M	22.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.96M	3.46M	21.41M	65.43M	92.49M	65.62M
	Total Assets
88.53M	93.17M	100.86M	131.90M	166.16M	139.83M
	Total Debt
109.71M	113.25M	86.76M	106.52M	101.90M	110.73M
	Net Debt
103.75M	109.79M	65.35M	41.09M	9.40M	45.11M
	Total Liabilities
140.22M	139.97M	128.85M	124.77M	125.36M	140.78M
	Stockholders Equity
-51.69M	-46.79M	-27.99M	7.13M	40.80M	-949.00K
Cash Flow		Free Cash Flow
-32.31M	-32.62M	-18.39M	-22.35M	730.00K	-2.58M
	Operating Cash Flow
-31.11M	-32.57M	-17.41M	-20.85M	2.17M	-2.14M
	Investing Cash Flow
-1.58M	-1.30M	-974.00K	-1.50M	-1.44M	-402.00K
	Financing Cash Flow
9.43M	21.61M	-22.64M	-4.24M	26.10M	59.90M

Katapult Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.10
• 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 8.1 is below the 20-day moving average (MA) of 8.89, below the 50-day MA of 8.13, and below the 200-day MA of 8.92, indicating a bearish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 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
JG	63 Neutral	$61.91M	―	-10.44%	―	16.93%	85.85%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
KPLT	44 Neutral	$40.79M	―	86.76%	―	9.71%	-1.97%
MSAI	40 Neutral	$24.21M	―	-308.31%	―	―	―
XBP	39 Underperform	$35.79M	―	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.

Katapult Holdings Director Joyce Phillips Steps Down

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.