Katapult Holdings Inc (NASDAQ:KPLT) Stock Continues to Move Lower On Disappointing Outlook

Katapult Holdings Inc (NASDAQ:KPLT) was down 45% in a week following the release of its Q2 earnings report and withdrawal of its full-year outlook.

The company reported a net loss of $8.1 million, a drop from a profit of $5.1 million a year ago. Adjusted net income in Q2 was $1.5 million, a 70% decline YoY. The financial and credit options provider for customers who might not access such services also withdrew its earnings guidance for the rest of the year in the wake of uncertainty.

Revenue during the quarter was up 27.6% YoY to $77.5 million, with year-to-date revenue being around $158.1 million, a 52,6% YoY increase from sales of $103.6 million it had accumulated at the same point last year. Although Q2 revenue results were not that bad, gross origination figures and the decision to withdraw guidance spooked investors. Gross originations were 17% down YoY to $64.4 million, suggesting that future growth in sales could be weak. Therefore, in the coming months, KPTL is worth keeping an eye on.

Market Reaction:

On Monday, KPLT stock decreased 5% at $3.18 with more than 5.35 million shares, compared to its average volume of 1.55 million shares. The stock has moved within a range of $3.1000 – 3.3700 after opening the trade at $3.37.