Klarna Group plc (KLAR)

Price$14.41Cached quoteAs of 2026-09-05 06:58 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because rapid margin growth is offset by weak reported profits and credit risk.

Klarna's market value is about $5.4 billion, roughly 19 times the midpoint of 2026 adjusted operating income guidance of $280-$300 million. That adjusted measure excludes items including share-based compensation, while second-quarter reported net income was only $9 million. The valuation is therefore not obviously cheap. Still, revenue grew 27% and transaction margin dollars grew 42%, so a fair rather than overvalued verdict is reasonable if profitability keeps scaling without a meaningful rise in credit losses.

Big pictureConsumer usage and transaction economics are improving quickly, but weaker German retail has slowed the growth outlook.

Second-quarter payment volume reached $36.6 billion, up 18%, while revenue rose 27% to $1.04 billion and transaction margin dollars rose 42% to $446 million. Active consumers exceeded 120 million, and revenue per active consumer increased 24%. However, management cut full-year volume guidance to $149-$151 billion from more than $155 billion and lowered revenue guidance to $4.08-$4.16 billion. Germany, Klarna's largest market by volume, was the main source of caution, showing that consumer spending conditions still matter.

Business strengthDeposit funding and liquid assets provide resilience, while growing receivables make underwriting discipline essential.

At June, Klarna held $2.67 billion of cash plus $2.59 billion of debt securities, while consumer deposits were $11.67 billion and consumer receivables totaled roughly $9.75 billion across accounting categories. About 90% of funding comes from relatively low-cost consumer deposits. Credit provisions were 0.52% of second-quarter payment volume, down from 0.56% a year earlier. Shares have also increased modestly, and first-half share-based payments were $67 million, so dilution remains a real ownership cost despite improving profitability.

What could change the storyFurther margin gains could create upside, while slower growth or worsening credit would quickly weaken the valuation.

The bull case requires transaction margin dollars to keep growing faster than payment volume, adjusted operating income to move beyond $300 million, and Apple, J.P. Morgan, and other distribution partnerships to deepen consumer engagement. The bear case is weaker European retail demand or poorer underwriting, which would reduce growth while increasing credit costs. If annual adjusted operating income stalls below roughly $250 million or credit provisions rise materially above 0.6% of payment volume, the current market value would look difficult to justify.

AI: News

Guidance cut shocks sharesKlarna delivered a surprise profit, but sharply reduced growth guidance triggered a major stock selloff.

On August 18, Klarna reported second-quarter revenue of $1.04 billion, adjusted operating income of $91 million, and net income of $9 million, all showing clear operating improvement. Management nevertheless cut full-year payment-volume and revenue guidance because of weaker German retail trends. Shares fell 22.8% that session. The reaction is consistent with investors focusing on the weaker forward outlook rather than the earnings beat, although broader market conditions may also have contributed.

Apple Upgrade launchesThe Apple leasing partnership expands Klarna into high-value devices and could deepen U.S. customer relationships.

On July 28, Apple launched Apple Upgrade in the United States with Klarna as the leasing provider for eligible iPhones, Macs, iPads, and Apple Watches. Klarna said the program should contribute positively to adjusted operating income during 2026 and over the arrangement's life. Shares rose about 1.2% that day. The modest reaction suggests investors viewed the partnership as strategically useful rather than transformative immediately, and the price move cannot be attributed solely to the announcement.

Chief executive buys sharesThe chief executive bought about ten million dollars of stock after the post-earnings collapse.

Klarna disclosed on August 28 that chief executive Sebastian Siemiatkowski, through an associated entity, had purchased 692,506 shares for about $9.95 million on August 26. The purchase increased his indirect economic exposure after the sharp post-results decline. Shares rose about 1.4% on the announcement day. Insider buying can signal confidence, but it does not change operating results, and the modest move may also have reflected normal volatility after an unusually large selloff.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$3.51B	$2.81B	$2.28B	$1.90B
Research & development	$486.0M	$444.0M	$389.0M	$430.0M
Operating expenses	$3.74B	$2.93B	$2.60B	$1.67B
Operating income	−$230.0M	−$121.0M	−$323.0M	−$833.0M
Operating margin	−6.55%	−4.30%	−14.19%	−43.75%
EBITDA	$551.0M	$725.0M	$220.0M	−$729.0M
EBITDA margin	15.70%	25.79%	9.67%	−38.29%
Net income	−$273.0M	$21.0M	−$244.0M	−$1.03B
Net profit margin	−7.78%	0.75%	−10.72%	−54.31%
Basic EPSper basic share	-$0.79	$0.01	-$0.69	-$2.75
Diluted EPSper diluted share	-$0.79	$0.01	-$0.69	-$2.75

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of KLAR
Holder	Shares held
SC US (TTGP), LTD.	55.03M
Reed Andrew Phillips	55.03M
Siemiatkowski Sebastian	24.65M
Commonwealth Bank of Australia	17.41M
SOFTBANK GROUP CORP.	15.4M
Silver Lake Group, L.L.C.	14.47M
BlackRock, Inc.	5.7M
SCGE MANAGEMENT, L.P.	5.27M
HarbourVest Partners LLC	5.02M
MARSHALL WACE, LLP	4.97M
Pictet Asset Management Holding SA	4.96M
Dragoneer Investment Group, LLC	4.86M
JPMORGAN CHASE & CO	4.01M
Technology Crossover Management X, Ltd.	3.84M
MORITZ MICHAEL J	3.47M
WELLCOME TRUST LTD (THE) as trustee of the WELLCOME TRUST	3.16M
Mubadala Investment Co PJSC	2.99M
MILLENNIUM MANAGEMENT LLC	2.77M
AMERIPRISE FINANCIAL INC	2.5M
Walmart Inc.	2.4M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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