Klarna Revenue Grows Amid Credit Loss Concerns Following IPO

New updates have been reported about Klarna (PC:KLRNA)

Klarna, the Sweden-based global BNPL giant, is under investigation by The Schall Law Firm for potential securities law violations, raising concerns about its first earnings report since going public on the NYSE. A recent Bloomberg report highlighted record revenue for Klarna during its third quarter, surpassing estimates, but also revealed significant challenges tied to its growing loan provisions. The company reported a $95 million net loss as it allocated $235 million for loan losses—higher than the $215.8 million analysts had projected. These provisions accounted for 0.72% of gross merchandise volume, a year-over-year increase from 0.44%. Following these disclosures, Klarna’s stock price declined by 9.3% on November 19, 2025.

Klarna, which recently became a public company, faces increasing scrutiny over its financial structure and risk management as it confronts the challenges of providing longer-term loans in a competitive industry. Record revenue underscores strong consumer demand for its services, but rising loan provisions signal potential issues with credit quality or borrower repayment risk. This development carries implications for investors and stakeholders, not only in terms of immediate financial performance but also regarding the company’s ability to balance growth with financial stability in the BNPL market. The investigation by The Schall Law Firm could expose further risks tied to Klarna’s disclosures and operational transparency. Stakeholders are advised to closely monitor regulatory and legal developments, as well as Klarna’s future financial performance, given the heightened uncertainty surrounding its business trajectory.