Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $52.55M
• Dividend Yield: N/A
• Average Volume (3M): 110.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 13.23%
• EPS Growth: -1.78%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 4,569,546
• 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: 2.71
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $11.00
• Price Target Upside: 65.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $6.50 ▼(-2.11% Downside)

Katapult Holdings' overall stock score is primarily impacted by its financial instability and bearish technical indicators. While the earnings call provided some positive insights into growth and capital investment, the company's financial leverage and negative valuation metrics weigh heavily on the score. The technical analysis further supports a cautious outlook, with bearish momentum and oversold conditions.

Katapult Holdings Business Overview & Revenue Model

Company Description

Katapult Holdings, Inc. is a leading provider of e-commerce and point-of-sale financing solutions, specializing in offering flexible payment options for consumers. The company operates primarily in the fintech sector, focusing on the underserved credit market by providing lease-to-own and other financing solutions that enable consumers to purchase goods without traditional credit. Katapult partners with a variety of retailers, enhancing their ability to offer financing options at the point of sale, thus improving customer acquisition and sales conversion rates.

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

Katapult Holdings is facing significant financial challenges, with profitability and leverage being major concerns. Despite some revenue growth and improvement in free cash flow, the negative equity and high leverage pose substantial risks. The company needs to focus on improving its cost structure and financial stability to enhance its overall financial health.

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	37.41M	88.99M	79.79M
EBITDA	100.79M	161.48M	137.12M	95.94M	182.22M	148.05M
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: Negative
• Last Price: 6.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 6.64 is below the 20-day moving average (MA) of 10.83, below the 50-day MA of 14.61, and below the 200-day MA of 11.26, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 23.60 is Positive, neither overbought nor oversold. The STOCH value of 4.80 is Positive, 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	57 Neutral	$38.93M	―	-9.11%	―	18.99%	77.96%
SOS	50 Neutral	$50.15M	-77.89	-3.89%	―	134.43%	95.39%
SNCR	46 Neutral	$63.64M	―	-21.44%	―	0.07%	58.47%
KPLT	45 Neutral	$52.55M	-1.64	―	―	13.23%	-1.78%
XBP	40 Neutral	$69.10M	―	―	―	―	―

Katapult Holdings Corporate Events

Katapult Holdings Raises $65M Through Convertible Stock

On November 3, 2025, Katapult Holdings, Inc. entered into agreements for the issuance of Series A and Series B Convertible Preferred Stock, raising $65 million in total. The proceeds were used to repay loans and for corporate purposes. The transactions allow the purchaser, HHCF Series 21 Sub, LLC, to potentially own 54.5% of the common stock upon conversion, subject to stockholder approval to remove ownership limitations. Additionally, the company amended its loan agreement, waiving defaults and adjusting financial covenants, which could stabilize its financial position.

The most recent analyst rating on (KPLT) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Enters Sixth Limited Waiver Agreement

On October 29, 2025, Katapult Holdings, Inc. entered into a Sixth Limited Waiver to their Loan and Security Agreement due to failing to maintain required minimum originations for August and September 2025. This waiver temporarily addresses the default until October 31, 2025, but allows Class B Lenders to convert outstanding loan amounts into common stock based on the 20-day VWAP, which was approximately $12.85 as of October 28, 2025.

The most recent analyst rating on (KPLT) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Enters Fifth Limited Waiver Agreement

On October 27, 2025, Katapult Holdings, Inc. entered into a Fifth Limited Waiver to their Amended and Restated Loan and Security Agreement. This action was taken in response to the company’s failure to meet the Minimum Trailing Three-Month Originations for August and September 2025. The waiver temporarily addresses the Existing Default until October 29, 2025, allowing Class B Lenders the right to convert outstanding term loan amounts into common stock based on the 20-day VWAP, which was approximately $13.04 as of October 24, 2025.

The most recent analyst rating on (KPLT) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Secures Fourth Limited Waiver Agreement

On October 20, 2025, Katapult Holdings entered into a Fourth Limited Waiver to their Amended and Restated Loan and Security Agreement due to failing to maintain Minimum Trailing Three-Month Originations for August and September 2025. This waiver temporarily addresses the existing default until October 27, 2025, allowing Class B Lenders to convert outstanding term loan amounts into common stock based on the 20-day volume weighted average price, which was approximately $14.49 as of October 17, 2025.

The most recent analyst rating on (KPLT) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Secures Waiver Amid Loan Agreement Default

On October 13, 2025, Katapult Holdings entered into a Third Limited Waiver to their Loan and Security Agreement due to failing to maintain required minimum originations for August and September 2025. This waiver temporarily addresses the default until October 20, 2025, allowing Class B Lenders the right to convert outstanding loan amounts into company stock, potentially impacting the company’s financial structure.

The most recent analyst rating on (KPLT) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Secures Second Limited Waiver Agreement

Katapult Holdings, Inc. entered into a Second Limited Waiver on September 29, 2025, to address their failure to maintain Minimum Trailing Three-Month Originations as required by their Loan Agreement. This waiver extends the temporary waiver of the existing default until October 13, 2025, allowing Class B Lenders the right to convert the outstanding term loan into common stock based on the 20-day VWAP, which was approximately $19.52 as of September 26, 2025.

The most recent analyst rating on (KPLT) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Secures Limited Waiver for Loan Default

On September 15, 2025, Katapult Holdings, Inc. entered into a Limited Waiver agreement to address a failure to maintain Minimum Trailing Three-Month Origination as required by their Loan Agreement. This waiver temporarily resolves the existing default until September 29, 2025, impacting the company’s financial obligations and stability.

The most recent analyst rating on (KPLT) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Katapult Holdings stock, see the KPLT Stock Forecast page.

Katapult Holdings Reports Strong Growth Amid Challenges

The latest earnings call from Katapult Holdings, Inc. painted a picture of robust growth and strategic financial maneuvers, tempered by some challenges in specific areas. The company reported impressive increases in gross originations, revenue, and consumer engagement, alongside positive adjusted EBITDA and successful debt refinancing efforts. However, concerns were raised regarding lease depreciation impacts on profit margins, challenges in certain product categories, and an uptick in charge-off rates.

Katapult Holdings Reports Strong Q2 2025 Results

Katapult Holdings, Inc. is a financial technology company specializing in e-commerce, offering lease-to-own solutions for non-prime consumers in the United States. The company integrates with retailers and e-commerce platforms to facilitate purchases of durable goods.