Klarna Group Faces Investigation Over Misleading Provision Trends Amid 102% Credit Loss Spike
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Credit Loss Provision Surge: Klarna's provision for credit losses increased by 102% year-over-year in Q3 2025, raising questions about transparency during its IPO and potentially undermining investor confidence.
- IPO Price Decline: Since its IPO on September 9, 2025, at $40 per share, Klarna's stock has dropped approximately 23.6%, reflecting market concerns over its financial health.
- Fair Financing Growth: The 139% growth in Klarna's Fair Financing portfolio was not adequately disclosed regarding its adverse impact on credit loss provisions, which may have misled investors about the company's risk profile.
- Legal Investigation Initiated: Hagens Berman has launched an investigation into Klarna, focusing on whether the company misrepresented lending risks in its offering documents, urging affected investors to seek legal recourse.
KLAR
$30.39+Infinity%1D
Analyst Views on KLAR
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 47.53 USD with a low forecast of 39.00 USD and a high forecast of 55.00 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.
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 31.310
Low
39.00
Averages
47.53
High
55.00
Current: 31.310
Low
39.00
Averages
47.53
High
55.00
About KLAR
Klarna Group Plc is a United Kingdom-based technology company focused on developing commerce networks. The Company is an artificial intelligence (AI)-powered global payments network and shopping assistant. It provides consumers and merchants with a range of solutions, including payment, advertising and digital retail banking, through several channels. Its online payments solution is designed to bridge uncertainty in the transactions between consumers and merchants by providing short-term credit to consumers interest-free. Its range of payment options allows consumers to purchase what they choose, both online and offline. Its payment solutions include Pay in Full, Pay Later and Fair Financing. Its Pay in Full instantly settles purchases at the time of the transaction. Its Pay Later enables consumers to purchase goods or services at the time of the transaction and pay the full amount at a later date. Its Fair Financing allows consumers to pay for their purchase over a longer duration.
About the author
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.
