Katapult Holdings Inc. (KPLT) stock has reached a 52-week low, trading at $6.56, as the company faces a turbulent market environment. This latest price point reflects a significant downturn from the previous year, with Finserv Acquisition Corp's 1-year change showing a steep decline of -39.09%. Investors are closely monitoring Katapult's performance as it navigates through the headwinds affecting the broader financial sector, with many keeping an eye on the company's strategic moves to rebound from this low.
In other recent news, Katapult Holdings has reported its third-quarter earnings for 2024, demonstrating an eighth consecutive quarter of growth in gross originations and a year-over-year increase of 37% in origination excluding Wayfair (NYSE:W). The company's gross originations for Q3 2024 were $51.2 million, a 3.3% increase, with revenue growing by 10% to $60.3 million. Adjusted EBITDA was positive at $600,000, with a year-to-date total of $5.8 million. The full-year outlook for gross originations is adjusted to a growth of 2% to 4%, with revenue expected to grow at least 10%.
Loop Capital recently adjusted its outlook on Katapult Holdings, decreasing the price target to $9.00 from the previous $15.00, while maintaining a Hold rating on the company's shares. This revision follows the company's third-quarter performance, which did not meet expectations. The firm expressed concerns over the trajectory of Katapult's business growth and skepticism regarding the company's earlier forecasts.
Among other recent developments, Katapult is finalizing a new credit facility to replace the current one and has recorded a reserve for a DCA settlement. Despite a significant decline in application volume from Wayfair, the company has shown strong growth in the automotive category, increasing over 25% in Q3. The company is also addressing a patent infringement lawsuit, intending to defend itself vigorously.
InvestingPro Insights
Recent data from InvestingPro paints a challenging picture for Katapult Holdings Inc. (KPLT). The company's market cap stands at a modest $27.93 million, reflecting the significant downturn mentioned in the article. InvestingPro Tips highlight that KPLT is "trading near 52-week low" and has "fared poorly over the last month," with a 1-month price total return of -23.99% as of the latest data.
Despite these challenges, KPLT has shown some positive financial metrics. The company's revenue growth stands at 14.99% over the last twelve months, with a quarterly growth of 10.03% in the most recent quarter. Additionally, KPLT's EBITDA growth is reported at 27.55%, indicating some operational improvements.
However, investors should note that KPLT is "quickly burning through cash" and "short term obligations exceed liquid assets," according to InvestingPro Tips. These factors may contribute to the stock's high volatility and poor performance over various time frames.
For a more comprehensive analysis, InvestingPro offers 12 additional tips on KPLT, which could provide valuable insights for investors considering the stock's future prospects amidst its current challenges.
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