Klarna Group Plc (KLAR)
NYSE:KLAR
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Klarna Group Plc
(NYSE:KLAR)
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Rating:57Neutral
Price Target:
$18.00
▲(19.52% Upside)
Action:Reiterated
Date:05/18/26
The score is held back primarily by weakened financial performance (notably the 2025 cash flow reversal and higher leverage) and low valuation support due to negative earnings. These are partially offset by constructive technical momentum and an earnings call that reiterated guidance while highlighting improving operating leverage, albeit with cost and credit-risk headwinds.
Positive Factors
Robust revenue & GMV growth
Sustained double‑digit top‑line growth and accelerating GMV reflect widening merchant and consumer adoption of Klarna’s payments and financing suite. Durable growth scales network effects, supports higher transaction volumes and predictable revenue streams that can sustain investment in product and risk infrastructure.
Negative Factors
2025 cash‑flow reversal
A sharp swing to large negative operating and free cash flow materially reduces financial flexibility. Persistent cash burn can force refinancing, constrain growth investments, increase funding costs or require asset/receivable sales, weakening the firm's ability to absorb shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust revenue & GMV growth
Sustained double‑digit top‑line growth and accelerating GMV reflect widening merchant and consumer adoption of Klarna’s payments and financing suite. Durable growth scales network effects, supports higher transaction volumes and predictable revenue streams that can sustain investment in product and risk infrastructure.
Read all positive factors
Klarna Group Plc (KLAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.36B
Dividend YieldN/A
Average Volume (3M)6.25M
Price to Earnings (P/E)―
Beta (1Y)2.19
Revenue Growth33.05%
EPS Growth-199.10%
CountryUS
Employees3,778
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.53
Shares Outstanding377,507,900
10 Day Avg. Volume9,689,335
30 Day Avg. Volume6,251,741
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)4.29
Price to Sales (P/S)3.07
P/FCF Ratio-10.40
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit2.28
Enterprise Value/Ebitda18.81
Forecast
1Y Price Target
$20.44Price Target Upside35.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.21
Revenue Forecast (FY)$4.41B
Klarna Group Plc Business Overview & Revenue Model
Company Description
Klarna Group plc operates as a technology-driven payments company in the United Kingdom, the United States, Germany, Sweden, and internationally. The company offers advertising and marketing solutions, consumer services, digital financial services...
How the Company Makes Money
Klarna primarily makes money through fees it charges merchants for facilitating transactions and offering flexible payment options at checkout. Merchant revenue typically includes a per-transaction fee and/or a percentage of the purchase amount in...
Klarna Group Plc Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call painted a picture of strong top-line and operating momentum: double-digit growth in revenue, GMV and transaction margin dollars, milestone user and merchant expansion, clear operating leverage, and restored profitability metrics with guidance reiterated. Offsetting risks include higher transaction and processing costs from rapid product scaling, provisioning and cohort variability requiring model tuning, potential volatility from receivable sales and FX normalization, and seasonality/tougher comps in the back half. On balance, the positives (broad growth, margin expansion, profitable compounding network, strong card and deposit economics) materially outweigh the near-term execution and volatility risks.Positive Updates
Strong Revenue and Profitability Improvement
Revenue of $1.012 billion, up 44% year-over-year; adjusted operating profit of $68 million versus $3 million a year ago; operating income turned positive to $17 million from a $90 million loss a year ago; net income approximately $1 million, a ~$100 million year-over-year improvement; EPS improved from -$0.26 to -$0.01.
Negative Updates
Rising Transaction and Processing Costs
Transaction costs increased to $623 million, up 45% year-over-year (37% like-for-like); processing and servicing costs grew 62% year-over-year, driven by scaling of Fair Financing and the card, pressuring near-term unit economics.
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Q1-2026 Updates
Positive
Negative
Strong Revenue and Profitability Improvement
Revenue of $1.012 billion, up 44% year-over-year; adjusted operating profit of $68 million versus $3 million a year ago; operating income turned positive to $17 million from a $90 million loss a year ago; net income approximately $1 million, a ~$100 million year-over-year improvement; EPS improved from -$0.26 to -$0.01.
Read all positive updates
Company Guidance
Klarna reiterated unchanged 2026 guidance: full‑year GMV of greater than $155 billion, revenue greater than 2.8% of GMV (implying >$4.34 billion), Transaction Margin Dollars (TMD) greater than 1.04% of GMV (implying >$1.61 billion) and adjusted operating income greater than 6.9% of revenue (implying >$299 million on the minimum revenue). For Q2 the company guided GMV of $35.5–$36.5 billion, revenue of $960 million–$1.0 billion, TMD of $375–$395 million and adjusted operating income of $30–$50 million, noting normal retail seasonality (Q1 ≈20% of annual GMV; Q2 ≈23%) and FX normalization versus last year.Klarna Group Plc Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.82B | 3.51B | 2.67B | 2.20B | 1.89B | 1.62B |
| Gross Profit | 2.28B | 1.24B | 2.07B | 1.66B | 1.37B | 1.02B |
| EBITDA | 276.00M | -103.00M | 427.00M | 126.00M | -687.00M | -602.26M |
| Net Income | -199.00M | -294.00M | 3.00M | -249.00M | -1.04B | -775.71M |
Balance Sheet | ||||||
| Total Assets | 17.99B | 18.80B | 13.80B | 13.75B | 12.01B | 11.81B |
| Cash, Cash Equivalents and Short-Term Investments | 2.81B | 3.80B | 3.59B | 2.39B | 2.57B | 2.83B |
| Total Debt | 1.42B | 1.36B | 791.00M | 472.00M | 637.95M | 1.28B |
| Total Liabilities | 15.35B | 16.11B | 11.55B | 11.55B | 9.69B | 9.10B |
| Stockholders Equity | 2.46B | 2.51B | 2.09B | 2.19B | 2.32B | 2.70B |
Cash Flow | ||||||
| Free Cash Flow | -2.60B | -1.03B | 542.00M | 723.00M | 231.00M | -392.56M |
| Operating Cash Flow | -2.59B | -1.03B | 587.00M | 808.00M | 336.00M | -365.47M |
| Investing Cash Flow | -31.00M | -30.00M | 154.00M | -83.00M | -459.00M | -489.40M |
| Financing Cash Flow | 1.00B | 988.00M | 312.00M | -62.00M | 18.00M | 2.14B |
Klarna Group Plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.71B | 24.88 | 10.01% | ― | 7.19% | -36.03% | |
73 Outperform | $24.45B | 64.93 | 11.17% | ― | 32.33% | ― | |
73 Outperform | $14.48B | 37.09 | 20.74% | ― | 23.44% | 151.36% | |
68 Neutral | $1.67B | 802.27 | 0.27% | ― | 23.39% | -94.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $3.48B | 32.14 | 6.42% | ― | 28.28% | -72.43% | |
57 Neutral | $10.36B | -34.75 | -8.16% | ― | 33.05% | -199.10% |
* Technology Sector Average
KLAR
Klarna Group Plc
18.29
-24.45
-57.21%
FOUR
Shift4 Payments
44.56
-50.23
-52.99%
PAYO
Payoneer
5.20
-1.61
-23.64%
AFRM
Affirm Holdings
73.65
21.75
41.91%
MQ
Marqeta
4.06
-1.32
-24.54%
TOST
Toast Inc
26.03
-16.15
-38.29%
Klarna Group Plc Corporate Events
Klarna Group Sets First Post-IPO NYSE AGM and Seeks Shareholder Backing for Pay Policy and Capital Authorities
May 27, 2026
On May 27, 2026, Klarna Group plc released its 2025 Annual Report, Directors’ Remuneration Report and policy, and formally convened its first Annual General Meeting since listing on the New York Stock Exchange. The AGM is scheduled for June ...
Klarna Posts Profitable Q1 2026 as Revenue Jumps 44% and Network Passes One Million Merchants
May 14, 2026
On May 14, 2026, Klarna reported strong first-quarter 2026 results, with gross merchandise volume rising 33% year-on-year to $33.7 billion and revenue climbing 44% to $1.0 billion. Adjusted operating profit surged to $68 million from $3 million a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.