Klarna Reports Record Q3 Revenue but $95 Million Loss Amid Increased Provisions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
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Source: Globenewswire
- Revenue Growth: Klarna reported record revenue in Q3 that exceeded estimates, indicating strong market performance, yet the company faces increased credit loss provisions that could impact future profitability.
- Increased Provisions: The company set aside $235 million for potential bad loans, surpassing analyst expectations of $215.8 million, reflecting growing concerns over loan quality and risk management.
- Net Loss Situation: Despite revenue growth, Klarna reported a net loss of $95 million, highlighting the need for improved risk management and credit policies as the company expands its operations.
- Stock Price Reaction: Following the earnings report, Klarna's shares fell by 9.3% the next day, indicating investor concerns regarding the company's future profitability and financial stability.
KLAR
$30.4+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: 30.640
Low
39.00
Averages
47.53
High
55.00
Current: 30.640
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.
