Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $96.35M
• Dividend Yield: N/A
• Average Volume (3M): 49.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 13.23%
• EPS Growth: -1.78%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): -1.18
• Shares Outstanding: 4,569,546
• 10 Day Avg. Volume: 87,604
• 30 Day Avg. Volume: 49,287
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $14.75
• Price Target Upside: -34.82% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $19.50 ▼(-13.83% Downside)

Katapult Holdings' overall stock score reflects significant financial challenges, particularly in profitability and leverage, which weigh heavily on the score. Despite strong technical indicators and positive earnings call results, the negative valuation metrics and recent corporate events suggest caution. The company's ability to manage its financial structure and leverage will be crucial in improving its stock performance.

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 faces significant financial challenges, with negative profitability and high leverage. Despite some revenue growth and improved free cash flow, the negative equity and financial instability are major concerns.

Income Statement

Katapult Holdings has shown some revenue growth, with a 5.13% increase in the TTM period. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 19.49%, indicating challenges in cost management. The EBITDA margin is healthier at 22.99%, suggesting some operational efficiency, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates potential financial instability. The return on equity is positive at 66.35%, but this is skewed by the negative equity base. The equity ratio is negative, reflecting a precarious financial position.

Cash Flow

Cash flow analysis shows a negative operating cash flow, indicating challenges in generating cash from operations. However, free cash flow has improved by 17.94% in the TTM period, which is a positive sign. The free cash flow to net income ratio is above 1, suggesting that the company is generating more cash than its reported net income, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	267.10M	247.19M	221.59M	209.50M	303.11M	247.20M
Gross Profit	52.05M	45.77M	41.71M	48.81M	88.99M	79.79M
EBITDA	61.40M	161.48M	137.12M	106.34M	145.65M	165.42M
Net Income	-31.98M	-25.91M	-36.67M	-40.47M	21.21M	22.53M
Balance Sheet
Total Assets	90.58M	93.17M	100.86M	130.05M	166.16M	139.83M
Cash, Cash Equivalents and Short-Term Investments	3.66M	3.46M	21.41M	65.43M	92.49M	65.62M
Total Debt	112.92M	113.25M	86.76M	106.52M	101.90M	110.73M
Total Liabilities	144.65M	139.97M	128.85M	132.12M	125.36M	140.78M
Stockholders Equity	-54.06M	-46.79M	-27.99M	7.13M	40.80M	-949.00K
Cash Flow
Free Cash Flow	-38.11M	-32.62M	-18.39M	-22.35M	730.00K	-2.58M
Operating Cash Flow	-37.12M	-32.57M	-17.41M	-20.85M	2.17M	-2.14M
Investing Cash Flow	-1.63M	-1.30M	-974.00K	-1.50M	-1.44M	-402.00K
Financing Cash Flow	9.36M	21.61M	-22.64M	-4.24M	26.10M	59.90M

Katapult Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.63
• 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 22.63 is above the 20-day moving average (MA) of 15.70, above the 50-day MA of 12.58, and above the 200-day MA of 9.57, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 79.56 is Negative, neither overbought nor oversold. The STOCH value of 89.66 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
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
JG	61 Neutral	$58.83M	―	-9.11%	―	18.99%	77.96%
KPLT	56 Neutral	$96.35M	―	86.76%	―	13.23%	-1.78%
VHC	―	$78.55M	―	-42.34%	―	―	―
XBP	47 Neutral	$71.80M	―	87.90%	―	―	―
MSAI	40 Underperform	$22.59M	―	-335.10%	―	―	―
UBXG	―	$58.40M	22.08	-1.44%	―	―	―

Katapult Holdings Corporate Events

Katapult Holdings Approves Key Nasdaq Compliance Proposal

On August 6, 2025, Katapult Holdings, Inc. held a virtual special meeting of stockholders to vote on proposals outlined in their proxy statement. The meeting achieved a quorum with approximately 68.48% of shares represented. The key proposal to comply with Nasdaq Listing Rules regarding the issuance of shares upon exercise of warrants and term loan conversion was approved, rendering further adjournment unnecessary.

Katapult Holdings Secures Waiver to Avoid Default

On August 5, 2025, Katapult Holdings entered into a Limited Waiver agreement related to their Refinancing Agreement, addressing a failure to meet certain financial requirements as of July 31, 2025. This waiver prevents a default event under the agreement, and the company is seeking stockholder approval for a related equity issuance, with important documents filed with the SEC.

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.

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.