Katapult Holdings Inc. (KPLT) stock has reached a 52-week low, trading at $8.25, as the company navigates through a turbulent market environment. This price level reflects a significant downturn from the stock's performance over the past year, with Finserv Acquisition, a key player in the financial sector, reporting a 1-year change with a decline of 21.03%. Investors are closely monitoring KPLT's strategic moves to combat the headwinds that have led to this low point, as the market seeks signs of a potential rebound or further indicators of the company's long-term financial health.
In other recent news, Katapult Holdings reported its financial results for Q2 2024, demonstrating growth in several key areas. The company reported an increase in gross originations to $55.3 million, a rise of 1.1%, and revenue growth of 8.7% to $58.9 million. The adjusted EBITDA loss improved to $377,000, and the company added over 70 new merchants, indicating an expanding market presence.
Loop Capital recently adjusted its outlook on Katapult, reducing the price target to $15.00 from the previous $20.00. The firm maintained a Hold rating on the stock, expressing concerns after Katapult reported a gross origination shortfall for the second quarter of 2024. Loop Capital's analysis points to skepticism regarding Katapult's gross origination growth forecast for 2024, particularly in relation to the sales trends of its largest retail partner, Wayfair (NYSE:W).
Looking forward, Katapult anticipates gross origination growth of 8-10% and revenue growth of 7-8% for Q3. For the entire year of 2024, the company reaffirms a minimum 10% growth in gross originations and revenue. Katapult also expects to be cash accretive after 2025, with positive income from operations as early as 2025. These are recent developments in the company's financial outlook.
InvestingPro Insights
Katapult Holdings Inc.'s recent stock performance aligns with several concerning metrics highlighted by InvestingPro. The company's market capitalization stands at a modest $34.6 million, reflecting the market's current valuation of the firm. InvestingPro Tips indicate that KPLT is "quickly burning through cash" and that "short term obligations exceed liquid assets," which may explain the stock's descent to its 52-week low.
The company's financial health appears precarious, with a negative P/E ratio of -34.27 for the last twelve months as of Q2 2024, suggesting ongoing profitability challenges. This is further supported by an InvestingPro Tip noting that KPLT has "not been profitable over the last twelve months." Despite these challenges, the company has shown some positive signs, with revenue growth of 14.82% over the same period, reaching $236.29 million.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 11 more tips for KPLT, providing a deeper understanding of the company's financial position and market performance.
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