Klarna Reports Record Q4 Results with $1 Billion Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
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Should l Buy KLAR?
Source: Newsfilter
- Revenue Milestone: Klarna achieved a record revenue of $1.082 billion in Q4 2025, marking a 38% year-over-year increase and surpassing guidance, indicating strong momentum in its transition from a payments network to a global digital bank.
- Significant User Growth: The number of Klarna's banking consumers doubled to 15.8 million, with revenue per user tripling from $30 to $107, showcasing the company's success in attracting high-value customers and solidifying its market position.
- Market Share Expansion: Fair Financing saw a 165% increase in GMV, reflecting a growing consumer demand for transparent financial services, as Klarna continues to capture market share in a competitive financial landscape.
- Operational Efficiency Gains: Despite a 32% growth in GMV, provisions for credit losses decreased from 0.72% to 0.65%, while a 49% reduction in headcount led to a revenue per employee of $1.24 million, demonstrating Klarna's enhanced operational efficiency through AI technology and improved profitability.
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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 STOCK PLUMMETS 23% FOLLOWING Q4 REPORT
- Company Performance: KARNASHARE reported a 23% decline in its stock price following the release of its Q4 results.
- Market Reaction: The significant drop in stock value indicates investor concerns regarding the company's financial performance and future outlook.
- Financial Results: Details of the Q4 results that led to the stock decline have not been specified, but they likely included disappointing earnings or revenue figures.
- Investor Sentiment: The reaction from the market suggests a lack of confidence in KARNASHARE's ability to recover or improve in the near term.
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
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
Klarna Group Faces Class Action Lawsuit
- Class Action Filed: The Schall Law Firm has announced a class action lawsuit against Klarna Group for violations of federal securities laws related to its IPO on September 10, 2025, with investors encouraged to contact the firm by February 20, 2026, to participate.
- False Statements Allegation: The complaint alleges that Klarna made false and misleading statements regarding the risks of increasing loss reserves, failing to accurately reflect the risk profile of its customer base, which led to investor losses when the truth emerged.
- Opportunity for Loss Recovery: Affected investors are urged to join the lawsuit to recover their losses, as Schall Law Firm specializes in securities class actions and aims to protect shareholder rights through legal representation.
- Legal Process Status: The class action has not yet been certified by the court, meaning investors are not currently represented by an attorney, and those who choose not to act will remain absent class members.
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 STOCK PLUMMETS 23% FOLLOWING Q4 REPORT
- Company Performance: KARNASHARE reported a 23% decline in its stock price following the release of its Q4 results.
- Market Reaction: The significant drop in stock value indicates investor concerns regarding the company's financial performance and future outlook.
- Financial Results: Details of the Q4 results that led to the stock decline have not been specified, but they likely included disappointing earnings or revenue figures.
- Investor Sentiment: The reaction from the market suggests a lack of confidence in KARNASHARE's ability to recover or improve in the near term.
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
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
Klarna Group Faces Class Action Lawsuit
- Class Action Filed: The Schall Law Firm has announced a class action lawsuit against Klarna Group for violations of federal securities laws related to its IPO on September 10, 2025, with investors encouraged to contact the firm by February 20, 2026, to participate.
- False Statements Allegation: The complaint alleges that Klarna made false and misleading statements regarding the risks of increasing loss reserves, failing to accurately reflect the risk profile of its customer base, which led to investor losses when the truth emerged.
- Opportunity for Loss Recovery: Affected investors are urged to join the lawsuit to recover their losses, as Schall Law Firm specializes in securities class actions and aims to protect shareholder rights through legal representation.
- Legal Process Status: The class action has not yet been certified by the court, meaning investors are not currently represented by an attorney, and those who choose not to act will remain absent class members.
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
