Klarna's Stock Drops 24% Post-IPO Despite $903 Million Q3 Revenue Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Record Revenue: Klarna achieved a quarterly revenue of $903 million in Q3 2025, marking a 28% year-over-year increase, showcasing strong performance in the U.S. market despite a 24% drop in stock price since its IPO.
- Significant User Growth: The number of active customers rose by 32%, and the total number of merchants increased by 38% to around 850,000, indicating Klarna's growing appeal and market penetration in consumer finance.
- Increased Credit Loss Provisions: Klarna's credit loss provisions more than doubled to $235 million in Q3, reflecting heightened competition and rising consumer credit risks, leading to a net loss of $95 million for the period.
- Successful Strategic Partnership: Klarna replaced Affirm as the sole provider for Walmart's OnePay BNPL service, demonstrating its competitive strength and enhanced market position in large retail collaborations.
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: 30.020
Low
39.00
Averages
47.53
High
55.00
Current: 30.020
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.
