Katapult Merges with Aaron's, Projected Annual Revenue Exceeds $4 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 1 hour ago0mins
- Merger Agreement: Katapult has entered into a definitive all-stock agreement with Aaron's and CCF Holdings, projecting combined annual revenue to exceed $4 billion, thereby enhancing the company's competitive edge in the non-prime consumer market.
- Financial Strength: The combined entity is expected to achieve approximately $450 million in pro forma Adjusted EBITDA, supporting long-term double-digit EBITDA margin potential, which will enhance financial stability and operational leverage.
- Market Reach: The merger will create a scaled omni-channel platform with around 3,000 retail touchpoints, enabling better service to non-prime consumers and expanding market share.
- Leadership Team: Following the merger, Cory Miller will serve as CEO, ensuring that an experienced leadership team drives sustainable growth in a rapidly evolving retail landscape.
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Analyst Views on KPLT
Wall Street analysts forecast KPLT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KPLT is 12.00 USD with a low forecast of 12.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 6.250
Low
12.00
Averages
12.00
High
12.00
Current: 6.250
Low
12.00
Averages
12.00
High
12.00
Stephens
Kyle Joseph
Equal Weight
maintain
$9 -> $10
2025-08-14
Reason
Stephens
Kyle Joseph
Price Target
$9 -> $10
2025-08-14
maintain
Equal Weight
Reason
Stephens analyst Kyle Joseph raised the firm's price target on Katapult to $10 from $9 and keeps an Equal Weight rating on the shares. The firm sees better visibility into its estimates based on progress seen in Q2 and following a debt refinancing, the analyst tells investors in a post-earnings note.
Stephens
Stephens
Equal Weight
downgrade
$10 -> $9
2025-05-16
Reason
Stephens
Stephens
Price Target
$10 -> $9
2025-05-16
downgrade
Equal Weight
Reason
Stephens lowered the firm's price target on Katapult to $9 from $10 and keeps an Equal Weight rating on the shares. While noting that Q1 results and Q2 guidance reflect accelerating volume growth, the firm lowered its FY26 adjusted EBITDA estimate and voices uncertainty around the company's ability to refinance its $113M debt by June 4.
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About KPLT
Katapult Holdings, Inc. is an e-commerce-focused financial technology company. The Company offers e-commerce point-of-sale (POS) lease-purchase options for non-prime United States consumers. Its fully digital technology platform provides non-prime consumers with a flexible lease-purchase option to enable them to obtain durable goods from the Company’s network of e-commerce retailers. It operates within the virtual lease-to-own (LTO) market. Its LTO platform offers customers an alternative to traditional financing of automotive goods, computers, electronics, home furnishings and other durable goods. It has launched the Katapult mobile app, which includes a feature called Katapult PayTR that allows consumers to leverage its virtual credit card technology to shop with a variety of durable goods merchants featured in the Company’s app marketplace. It also offers an in-store POS integration option called text-to-checkout, which simplifies the in-store leasing experience for consumers.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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What are the key terms of Katapult's merger with Aaron's?
How will the merger enhance Katapult's competitive edge in the non-prime market?
What impact will the merger have on Katapult's annual revenue projections?
How might the combined entity's omni-channel platform influence market share growth?