Stephens has adjusted its price target for Katapult (KPLT, Financial), reducing it from $10 to $9, while maintaining an Equal Weight rating for the stock. Despite seeing an uptick in volume growth, as highlighted by the Q1 results and Q2 expectations, the firm has lowered its forecast for the company's adjusted EBITDA for fiscal year 2026. A significant point of concern remains Katapult's ability to refinance its $113 million debt by the upcoming deadline of June 4, which adds a layer of uncertainty to its financial outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Katapult Holdings Inc (KPLT, Financial) is $9.25 with a high estimate of $11.50 and a low estimate of $7.00. The average target implies an upside of 20.92% from the current price of $7.65. More detailed estimate data can be found on the Katapult Holdings Inc (KPLT) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Katapult Holdings Inc's (KPLT, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Katapult Holdings Inc (KPLT, Financial) in one year is $20.32, suggesting a upside of 165.62% from the current price of $7.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Katapult Holdings Inc (KPLT) Summary page.
KPLT Key Business Developments
Release Date: May 15, 2025
- Gross Originations: Grew 15.4% to $64.2 million in Q1 2025.
- Revenue: Increased by 10.6% to $71.9 million in Q1 2025.
- Gross Margin: 19.9% in Q1 2025.
- Net Income: Loss from operations was $500,000 in Q1 2025.
- Adjusted EBITDA: $2.2 million in Q1 2025.
- Cash and Cash Equivalents: $14.3 million as of March 31, 2025.
- Outstanding Debt: $77.8 million on revolving credit facility as of March 31, 2025.
- Cash Generated from Operations: $3.4 million in Q1 2025.
- Repeat Customer Rate: 57.4% as of March 31, 2025.
- Net Promoter Score (NPS): 66% as of March 31, 2025.
- App Originations: Grew 42% to $37.9 million in Q1 2025.
- KPay Originations: $22.8 million, up approximately 57% in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Katapult Holdings Inc (KPLT, Financial) reported a 15.4% year-over-year growth in gross originations for Q1 2025, surpassing their outlook of 11% growth.
- First quarter revenue exceeded expectations, achieving a 10.6% growth.
- The company's app marketplace has shown significant growth, with app originations increasing by 42% to $37.9 million.
- Katapult's Net Promoter Score (NPS) improved to 66%, and the repeat customer rate increased to 57.4%, indicating strong customer satisfaction and loyalty.
- The company has successfully expanded its merchant partnerships, adding Ashley Furniture and Bed Bath and Beyond to its roster, enhancing its marketplace offerings.
Negative Points
- Katapult Holdings Inc (KPLT) faced challenges in the home furnishings and mattress category, with Wayfair's gross originations remaining under pressure.
- The company is negotiating a maturity extension for its credit facility, indicating potential financial constraints.
- Gross profit for Q1 decreased to $14.3 million from $16.5 million the previous year, impacted by higher lease depreciation costs.
- Operating expenses increased by 17% year-over-year, driven by general and administrative costs and investments in growth initiatives.
- Adjusted EBITDA for Q1 was $2.2 million, below the company's outlook, primarily due to the timing of strong gross originations growth.
