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what it is
Katapult lets non-prime shoppers lease everyday goods at checkout when traditional financing says no.
how it gets paid
Last year Katapult made $292M in revenue. e-commerce lease originations was the main engine at $175.2M, or 60% of sales.
why it's growing
Revenue grew 18.0% last year. Sales surged 194% vs. prior year, but the business still did not convert that growth into profits.
what just happened
Revenue hit $218M, but EPS still landed at negative $3.77.
At a glance
C balance sheet — red flag territory — real financial stress
20.6% return on capital — every dollar works hard here
-$5.96 fy2024 eps est
$247M fy2024 rev est
0.2% operating margin
xvary composite: 19/100 — weak
What they do
Katapult lets non-prime shoppers lease everyday goods at checkout when traditional financing says no.
Katapult sits inside retailer checkouts, so the offer shows up when your cart is already full. That matters because annual revenue reached $292 million, up 18.0% vs. prior year, despite serving customers most lenders avoid. POS integration → built into checkout → so what: merchants do not need shoppers to leave the page to find financing.
How they make money
$292M
annual revenue · their business grew +18.0% last year
e-commerce lease originations
$175.2M
omni-channel retail integrations
$52.6M
Katapult Pay mobile app
$35.0M
other durable goods financing
$29.2M
The products that matter
consumer financing platform
Lease-to-Own Platform
up to $3,500 · 200+ retailers
It approves shoppers in seconds for up to $3,500 in spending across more than 200 partner retailers. That is the core business, and right now it has to carry the whole company.
entire revenue engine
mobile shopping and payments
Katapult App
2025 applications +45%
The app drove a 45% increase in total lease applications for full-year 2025. Here is the catch: more applications do not matter unless they turn into funded originations that repay well.
distribution bet
merchant connections
Retailer Network
200+ partners
Those merchant integrations are the front door. In a business this concentrated, retailer demand is not a side detail. It is one of the few things keeping originations moving.
demand pipe
Key numbers
$292M
annual revenue
That is the proof this is not a concept stock. You have a real business, just not a reliably profitable one.
0.2%
operating margin
Operating margin → profit after running the business → so what: Katapult is basically at break-even before any bad quarter shows up.
18.4%
gross margin
Gross margin → money left after direct costs → so what: this is a thin-margin model, not a software money printer.
1.9
beta
Beta → stock volatility versus the market → so what: if you buy this, you are buying drama with the spreadsheet attached.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $0M (1% of capital)
C — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for KPLT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $218M, but EPS still landed at negative $3.77.
Sales surged 194% vs. prior year, but the business still did not convert that growth into profits. Gross margin was 18.4%, which tells you this is a volume story with very little cushion.
$218M
revenue
$3.77
eps
18.4%
gross margin
the number that mattered
The number that mattered was 18.4% gross margin, because thin unit economics make every growth dollar work harder.
source: company earnings report, 2026
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What could go wrong
Katapult does not have the luxury of vague risks. The big one is simple: it has to narrow cash burn before the June 30, 2026 lender conversion window turns balance-sheet pressure into shareholder dilution.
high
cash burn outruns market value
Katapult used $11.9M in operating cash in Q4 2025. Against a market cap of roughly $33M, that is not background noise. It is the whole financing conversation.
If burn stays anywhere near that pace, the turnaround stops being about patience and starts being about survival.
high
lender conversion can dilute you before the story improves
Lenders holding 51% of the New Term Loan can elect to convert debt into common stock before June 30, 2026. That makes the capital structure an active risk, not a footnote.
Even if operations stabilize, existing shareholders can still end up owning a much smaller slice.
med
nonprime demand is only useful if collections hold up
Katapult serves customers other lenders often decline. That creates demand. It also means credit discipline and funding terms matter every quarter, because a small change in repayment behavior hits revenue and cash at once.
If approval quality slips, application growth becomes expensive instead of helpful.
At a $33M market cap, another quarter that looks anything like the recent $11.9M operating cash burn would matter more than any EPS surprise.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
june 30, 2026 conversion window
Lenders with 51% of the New Term Loan can choose equity conversion before that date. If they move, dilution stops being theoretical.
calendar
q1 2026 earnings
The next report is expected May 14, 2026. You want one thing first: evidence that operating cash burn is narrowing.
metric
originations versus revenue
Gross originations were $77.9M in Q4 while revenue was $73.9M. Watch whether originations growth starts pulling reported revenue higher in a cleaner way.
trend
app demand quality
The app drove a 45% increase in lease applications in 2025. More applications help only if approval quality and repayment economics hold up.
Analyst rankings
coverage depth
thin
There is not much analyst coverage here. in human-speak, you are not getting a sturdy consensus safety net.
estimate quality
noisy
A quarter can show a huge EPS surprise and still leave the operating picture unresolved. That makes cash flow a better anchor than headline estimates.
what matters more
liquidity
For this stock, the ranking you care about is simple: can the business fund itself before the capital structure forces the issue.
source: institutional data
Institutional activity
institutional ownership data for KPLT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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