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Katapult Holdings, Inc. (KPLT)
:KPLT
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Katapult Holdings (KPLT) AI Stock Analysis

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KPLT

Katapult Holdings

(NASDAQ:KPLT)

Rating:58Neutral
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 (KPLT) vs. SPDR S&P 500 ETF (SPY)

Katapult Holdings Business Overview & Revenue Model

Company DescriptionKatapult 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 MoneyKatapult 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 Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 86.14%|
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 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
45
Neutral
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
30
Negative
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
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue247.19M221.59M212.10M303.11M247.20M
Gross Profit45.77M41.71M40.99M88.99M79.79M
EBITDA161.48M137.12M95.94M161.42M164.42M
Net Income-25.91M-36.67M-37.87M21.21M22.53M
Balance Sheet
Total Assets93.17M100.86M131.90M166.16M139.83M
Cash, Cash Equivalents and Short-Term Investments3.46M21.41M65.43M92.49M65.62M
Total Debt113.25M86.76M106.52M101.90M110.73M
Total Liabilities139.97M128.85M124.77M125.36M140.78M
Stockholders Equity-46.79M-27.99M7.13M40.80M-949.00K
Cash Flow
Free Cash Flow-32.62M-18.39M-22.35M730.00K-2.58M
Operating Cash Flow-32.57M-17.41M-20.85M2.17M-2.14M
Investing Cash Flow-1.30M-974.00K-1.50M-1.44M-402.00K
Financing Cash Flow21.61M-22.64M-4.24M26.10M59.90M

Katapult Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.49
Price Trends
50DMA
8.75
Positive
100DMA
9.17
Positive
200DMA
8.62
Positive
Market Momentum
MACD
0.66
Negative
RSI
76.79
Negative
STOCH
91.09
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 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$69.82M-10.44%16.93%85.85%
58
Neutral
$53.25M86.76%9.71%-1.97%
57
Neutral
$897.91M11.67-16.27%2.28%10.33%-39.65%
43
Neutral
$25.04M-308.31%
42
Neutral
$33.76M87.90%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KPLT
Katapult Holdings
12.48
-7.31
-36.94%
JG
Aurora Mobile
11.36
8.68
323.88%
XBP
XBP Europe Holdings
0.94
-0.41
-30.37%
MSAI
Infrared Cameras Holdings
0.75
-0.85
-53.13%

Katapult Holdings Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Katapult Holdings Secures New Credit Facility Agreement
Neutral
Jun 13, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Katapult Holdings Amends Loan Agreement Maturity Date
Negative
Jun 9, 2025

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.

Executive/Board ChangesShareholder Meetings
Katapult Holdings Concludes Annual Stockholders Meeting
Neutral
Jun 6, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Katapult Holdings Extends Credit Agreement Maturity Date
Negative
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 23, 2025