Klarna Reports Q4 Revenue Beat with Strong Growth Metrics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy KLAR?
Source: seekingalpha
- Strong Revenue Performance: Klarna's Q4 revenue reached $1.08 billion, exceeding expectations by $10 million, indicating the company's sustained growth potential in the fintech sector and further solidifying its market position.
- GMV Growth: Klarna's gross merchandise volume (GMV) hit $38.7 billion, representing a 32% year-over-year increase, with the U.S. market showing an impressive 43% growth, highlighting its significant penetration in North America.
- User Base Expansion: The number of active Klarna Card users reached 4.2 million, while banking consumers surged to 15.8 million, up 101% year-over-year, showcasing its successful transformation and appeal in the digital banking space.
- Record Merchant Growth: Klarna's total active consumers reached 118 million, a 28% year-over-year increase, and the merchant count rose to 966,000, up 42%, with a record addition of 115,000 merchants in Q4, reflecting the strong attractiveness of its business model.
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Analyst Views on KLAR
Wall Street analysts forecast KLAR stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 18.950
Low
36.00
Averages
44.36
High
55.00
Current: 18.950
Low
36.00
Averages
44.36
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.
Klarna Achieves Over $1 Billion in Quarterly Revenue for the First Time, Yet Stock Prices Continue to Decline.
- Klarna's Revenue Milestone: Klarna reported its first billion-dollar revenue quarter, marking a significant achievement for the Swedish buy now, pay later provider.
- Investor Reaction: Despite the milestone, the stock market response suggests that investors were not particularly impressed with the results.
See More
Klarna to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Klarna is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus estimates predicting an EPS of -$0.02 and revenue of $1.07 billion, providing investors with crucial insights into the company's financial health.
- Market Expectation Analysis: Analysts maintain a cautious outlook on Klarna's financial performance, as the high revenue expectations are tempered by the negative EPS, indicating ongoing challenges in profitability that could impact investor confidence and stock performance.
- Industry Position: As a disruptor in the Buy Now Pay Later (BNPL) and digital banking sectors, Klarna is actively expanding its market share, particularly through its partnership with Coinbase to enable USDC-denominated funding, showcasing its innovative capabilities in the fintech space.
- Future Outlook: Klarna's growth potential is widely recognized, and despite profitability pressures, its expansion in digital banking and collaborations with major tech companies may lay the groundwork for future financial improvements.
See More
Klarna's Stock Plummets 26% Amid Revenue Warning
- Earnings Warning: Klarna forecasts Q1 2026 revenue between $900M and $980M, with a midpoint of $940M, falling short of the $966M consensus, indicating a slowdown in growth due to tough year-over-year comparisons, which may dampen investor confidence.
- GMV Growth Slowdown: The company expects its gross merchandise volume (GMV) growth to decelerate to between $32B and $33B in Q2, below the $33.2B consensus, reflecting challenges in the gradual rollout of new partnerships that could impact future market share.
- Increased Credit Loss Reserves: Klarna's provision for credit losses rose to $250M in Q4, slightly above the $249M estimate, highlighting pressures in credit risk management that could affect profitability and investor trust moving forward.
- Partnership Expansion: Klarna plans to launch new partnerships with Worldpay and JP Morgan Payments, although the rollout will be gradual, these collaborations are expected to significantly expand its total addressable market (TAM), laying the groundwork for future growth.
See More
Klarna Reports Mixed Q4 Results Amid Stock Decline
- Mixed Financial Results: Klarna reported a Q4 loss of $0.12 per share, missing the consensus estimate of a $0.03 loss, although revenue of $1.08 billion exceeded expectations, indicating potential revenue growth but ongoing profitability challenges.
- Rapid U.S. Market Growth: Revenue in the U.S. surged 58% year-over-year, making it the company's fastest-growing market with 29 million consumers, showcasing Klarna's competitive edge in the rapidly expanding fintech sector.
- Significant User Growth: Active consumers increased by 28% to 118 million, while the number of merchants rose by 42% to 966,000, including a record addition of 115,000 merchants in the quarter, reflecting success in market penetration and user acquisition.
- Stock Continues to Decline: Klarna's stock has fallen 58.64% over the past year, currently trading at $15.76, significantly below both the 20-day and 100-day simple moving averages, indicating a persistent bearish trend, with negative investor sentiment potentially leading to further declines.
See More
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruqi & Faruqi LLP is investigating potential securities litigation against Klarna Group plc, particularly regarding the registration statement from its September 2025 IPO, urging investors to contact them by February 20, 2026, to seek lead plaintiff status.
- Disclosure Issues: The lawsuit alleges that Klarna and its executives failed to disclose the risk of significantly increased loss reserves shortly after the IPO, resulting in investor losses when the true information became public, highlighting a major lack of financial transparency from the company.
- Financial Performance Impact: Klarna reported a net loss of $95 million in its first earnings report, with loan loss provisions rising to $235 million, exceeding analyst expectations of $215.8 million, which led to a 9.3% drop in its stock on November 18, 2025, indicating market concerns over its financial health.
- Investor Rights Protection: Faruqi & Faruqi LLP reminds investors to contact them with any information regarding Klarna's conduct, emphasizing the importance of protecting investor rights and encouraging potential plaintiffs to actively participate in the litigation for compensation.
See More
Klarna Group Shareholder Class Action Notice
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased KLAR shares during the September 10, 2025 IPO to contact them for potential lead plaintiff appointment, indicating the case involves claims for losses related to Klarna securities.
- Allegations: The lawsuit alleges that Klarna failed to adequately disclose the significant risk of increased loss reserves shortly after the IPO, resulting in materially false and misleading public statements that could lead to severe financial losses for investors.
- Participation Requirements: Shareholders must register by February 20, 2026, to participate in the class action, and upon registration, they will receive updates through portfolio monitoring software to keep them informed about the case's progress.
- Law Firm's Advantage: The Gross Law Firm is committed to protecting investor rights and focuses on claims arising from companies' false statements or omissions, emphasizing its national reputation and commitment to responsible business practices.
See More
Klarna Achieves Over $1 Billion in Quarterly Revenue for the First Time, Yet Stock Prices Continue to Decline.
- Klarna's Revenue Milestone: Klarna reported its first billion-dollar revenue quarter, marking a significant achievement for the Swedish buy now, pay later provider.
- Investor Reaction: Despite the milestone, the stock market response suggests that investors were not particularly impressed with the results.
See More
Klarna to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Klarna is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus estimates predicting an EPS of -$0.02 and revenue of $1.07 billion, providing investors with crucial insights into the company's financial health.
- Market Expectation Analysis: Analysts maintain a cautious outlook on Klarna's financial performance, as the high revenue expectations are tempered by the negative EPS, indicating ongoing challenges in profitability that could impact investor confidence and stock performance.
- Industry Position: As a disruptor in the Buy Now Pay Later (BNPL) and digital banking sectors, Klarna is actively expanding its market share, particularly through its partnership with Coinbase to enable USDC-denominated funding, showcasing its innovative capabilities in the fintech space.
- Future Outlook: Klarna's growth potential is widely recognized, and despite profitability pressures, its expansion in digital banking and collaborations with major tech companies may lay the groundwork for future financial improvements.
See More
Klarna's Stock Plummets 26% Amid Revenue Warning
- Earnings Warning: Klarna forecasts Q1 2026 revenue between $900M and $980M, with a midpoint of $940M, falling short of the $966M consensus, indicating a slowdown in growth due to tough year-over-year comparisons, which may dampen investor confidence.
- GMV Growth Slowdown: The company expects its gross merchandise volume (GMV) growth to decelerate to between $32B and $33B in Q2, below the $33.2B consensus, reflecting challenges in the gradual rollout of new partnerships that could impact future market share.
- Increased Credit Loss Reserves: Klarna's provision for credit losses rose to $250M in Q4, slightly above the $249M estimate, highlighting pressures in credit risk management that could affect profitability and investor trust moving forward.
- Partnership Expansion: Klarna plans to launch new partnerships with Worldpay and JP Morgan Payments, although the rollout will be gradual, these collaborations are expected to significantly expand its total addressable market (TAM), laying the groundwork for future growth.
See More
Klarna Reports Mixed Q4 Results Amid Stock Decline
- Mixed Financial Results: Klarna reported a Q4 loss of $0.12 per share, missing the consensus estimate of a $0.03 loss, although revenue of $1.08 billion exceeded expectations, indicating potential revenue growth but ongoing profitability challenges.
- Rapid U.S. Market Growth: Revenue in the U.S. surged 58% year-over-year, making it the company's fastest-growing market with 29 million consumers, showcasing Klarna's competitive edge in the rapidly expanding fintech sector.
- Significant User Growth: Active consumers increased by 28% to 118 million, while the number of merchants rose by 42% to 966,000, including a record addition of 115,000 merchants in the quarter, reflecting success in market penetration and user acquisition.
- Stock Continues to Decline: Klarna's stock has fallen 58.64% over the past year, currently trading at $15.76, significantly below both the 20-day and 100-day simple moving averages, indicating a persistent bearish trend, with negative investor sentiment potentially leading to further declines.
See More
Faruqi & Faruqi Encourages Klarna Investors to Reach Out
- Legal Investigation: Faruqi & Faruqi LLP is investigating potential securities litigation against Klarna Group plc, particularly regarding the registration statement from its September 2025 IPO, urging investors to contact them by February 20, 2026, to seek lead plaintiff status.
- Disclosure Issues: The lawsuit alleges that Klarna and its executives failed to disclose the risk of significantly increased loss reserves shortly after the IPO, resulting in investor losses when the true information became public, highlighting a major lack of financial transparency from the company.
- Financial Performance Impact: Klarna reported a net loss of $95 million in its first earnings report, with loan loss provisions rising to $235 million, exceeding analyst expectations of $215.8 million, which led to a 9.3% drop in its stock on November 18, 2025, indicating market concerns over its financial health.
- Investor Rights Protection: Faruqi & Faruqi LLP reminds investors to contact them with any information regarding Klarna's conduct, emphasizing the importance of protecting investor rights and encouraging potential plaintiffs to actively participate in the litigation for compensation.
See More
Klarna Group Shareholder Class Action Notice
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased KLAR shares during the September 10, 2025 IPO to contact them for potential lead plaintiff appointment, indicating the case involves claims for losses related to Klarna securities.
- Allegations: The lawsuit alleges that Klarna failed to adequately disclose the significant risk of increased loss reserves shortly after the IPO, resulting in materially false and misleading public statements that could lead to severe financial losses for investors.
- Participation Requirements: Shareholders must register by February 20, 2026, to participate in the class action, and upon registration, they will receive updates through portfolio monitoring software to keep them informed about the case's progress.
- Law Firm's Advantage: The Gross Law Firm is committed to protecting investor rights and focuses on claims arising from companies' false statements or omissions, emphasizing its national reputation and commitment to responsible business practices.
See More
