Klarna Group plc (KLAR)
NYSE NYSE Primary Summary
KLAR Chart
Klarna: A High-Risk Growth Play In The Fintech Sector
Klarna Group offers strong growth prospects but remains a high-risk, high-reward speculative investment in fintech. KLAR's business model is evolving from BNPL to a broader digital banking platform, aiming for diversified, higher-margin revenue streams. Despite rapid revenue and merchant growth, KLAR struggles with profitability, reporting a $273M net loss in 2025 and uncertain near-term monetization.
Klarna: Paying Attention Here
Klarna has seen its share price collapse 70% post-IPO, despite robust topline growth and expanding GMV. Klarna's operating losses persist, driven by sharply rising credit loss provisions, though non-credit expenses are well controlled. Valuation has compressed to ~1x sales as revenue guidance for 2026 implies at least $4.3 billion, but balance sheet risk remains material.
Klarna: Buy The Dip In Oversold Territory As Fair Financing Takes Off
Klarna has plunged to nearly 10% of its 2021 valuation, now trading at deeply oversold levels. Despite a perceived weak 2026 outlook, KLAR's minimum guidance supports a compelling valuation at just 11.3x EV/FY26 adjusted operating profits. Klarna guides to $155B+ GMV and $4.34B revenue in 2026, with adjusted operating margin above 6.9%.
