Katapult Holdings (KPLT) AI Stock Analysis

• Market Cap: $30.18M
• Dividend Yield: N/A
• Average Volume (3M): 35.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 11.25%
• EPS Growth: 34.57%
• Country: US
• Employees: 94
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Infrastructure
• EPS (TTM): -5.91
• Shares Outstanding: 4,186,207
• 10 Day Avg. Volume: 15,047
• 30 Day Avg. Volume: 35,471
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 50.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Katapult Holdings is currently struggling with significant financial and operational challenges. The company's declining financial performance and weak technical signals are the primary concerns. Despite positive earnings call insights regarding revenue growth and improved customer engagement, the stock is weighed down by high leverage, negative profitability, and cash flow issues. The overall score reflects these critical risks, suggesting caution to potential investors.

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 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.

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.

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.

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
-8.10M	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

• Technical Analysis Sentiment: Negative
• Last Price: 7.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 7.31 is below the 20-day moving average (MA) of 8.16, below the 50-day MA of 10.14, and below the 200-day MA of 10.33, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 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 *	59 Neutral	$10.72B	10.37	-6.60%	3.02%	7.37%	-11.29%
JG	58 Neutral	$50.43M	―	-9.96%	―	7.31%	88.98%
KPLT	42 Neutral	$30.18M	―	86.76%	―	11.25%	34.57%
MSAI	40 Underperform	$26.72M	―	-226.35%	―	―	―
XBP	39 Underperform	$37.35M	―	87.90%	―	―	―

Katapult Holdings Corporate Events

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.

Spark’s Take on KPLT Stock

According to Spark, TipRanks’ AI Analyst, KPLT is a Neutral.

Katapult Holdings faces critical financial challenges with negative profitability and cash flows, and a heavily leveraged balance sheet. Despite positive earnings call highlights, including growth in originations and a return to positive EBITDA, the financial instability and valuation concerns significantly weigh on the stock’s attractiveness.

To see Spark’s full report on KPLT stock, click here.