Katapult Holdings Inc. Common Stock (KPLT)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business I can understand and trust. Katapult serves nonprime consumers with lease-to-own and retail financial solutions. Revenue is growing only modestly: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $74.8M, up from $71.9M in fiscal Q2 2025, the quarter ended 2025-06-30. Profit is erratic. Fiscal 2025, the year ended 2025-12-31, produced net income of $1.4M after a fiscal 2024 net loss of $25.9M, yet fiscal Q2 2026 lost $4.4M, and diluted EPS was -$1.41, after fiscal Q1 2026 net income of $5.7M and diluted EPS of $0.07. That is not the steady earnings stream I want. At the 2026-10-13 close of $4.45, FairStock shows a P/E of 2.47, EV/EBITDA of 0.36, and PEG of 0.06, which look almost absurdly cheap. But price is not value if the business cannot generate cash. Trailing free cash flow is -$3.9M, a FCF yield of -17.5%. The Piotroski F-Score is 0/9, the Altman Z-Score is -1.36, and P/B, ROE, and D/E are not available. Those are red flags. FairStock classifies it as a TURNAROUND because it returned to profit after losses within three years, but one profitable quarter followed by another loss does not prove durability. The nonprime lease-to-own market may have demand, but I see little durable competitive moat and a beta of 1.68. At a $22.1M market cap, this is a speculative deep-value situation, not a high-quality compounder. I would need consistent positive earnings and free cash flow before trusting the cheap ratios.

In plain English: Katapult provides lease-to-own and retail financing for people with less-than-perfect credit. The business has swung between small profits and losses, and in its latest reported quarter it lost money while cash use was negative. The shares look very cheap compared with some of its profit numbers, but weak cash generation and shaky financial-health signals make that cheapness risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer