Katapult Holdings Inc. (KPLT) stock has reached a 52-week low, trading at $5.78, representing a dramatic 75% decline from its 52-week high of $23.54. According to InvestingPro analysis, the company's Financial Health Score stands at 1.8 (Fair), with concerning signs of rapid cash burn. This price level reflects significant pressure on the stock, which has seen a substantial decline over the past year. The company's financial metrics reveal a concerning picture, with a negative return on assets of -31.89% and short-term obligations exceeding liquid assets. Investors are showing concern as the broader market grapples with economic headwinds. The 1-year change data for Finserv Acquisition, a related financial sector entity, underscores the sector's difficulties with a decrease of -32.37%, indicating a challenging period for financial services and technology firms alike. As Katapult Holdings navigates through these market conditions, stakeholders are closely monitoring its performance and strategic responses to the current financial climate. For deeper insights into KPLT's financial health and future prospects, including 11 additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, Katapult Holdings has expanded its credit facility from $75 million to $100 million, enhancing its financial flexibility. The company's recent filing with the Securities and Exchange Commission revealed that this amendment includes a $15 million increase in revolving lending commitments and the addition of a $10 million uncommitted line of credit. The lenders have also agreed to waive the original issue discount, providing Katapult with more immediate access to the additional funds.
The company disclosed its third-quarter earnings, marking an eighth consecutive quarter of growth in gross originations. Gross originations for Q3 2024 were $51.2 million, a 3.3% increase, and revenue grew by 10% to $60.3 million. Adjusted EBITDA was positive at $600,000, with a year-to-date total of $5.8 million.
Loop Capital has adjusted its outlook on Katapult Holdings, decreasing the price target to $9.00 from the previous $15.00, while maintaining a Hold rating. 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 Holdings is finalizing a new credit facility to replace the current one and has recorded a reserve for a DCA settlement. The company is also addressing a patent infringement lawsuit, intending to defend itself vigorously.
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