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KLAR

Klarna Group plc

KLAR

Klarna Group plc • NYSE
$31.47 ▲ 1.61% (+0.50)
Market Cap $11.87 B
52w High $47.48
52w Low $27.90
Dividend Yield 0%
P/E -104.9
Volume 1.22M
Outstanding Shares 377.26M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $903M ▲ $590M ▼ $-95M ▼ -10.52% ▼ $-0.26 ▼ $-62M ▼
Q2-2025 $789M ▲ $648M ▲ $-52M ▲ -6.591% ▲ $-0.14 ▲ $135M ▲
Q1-2025 $669M ▲ $595M ▲ $-101M ▼ -15.097% ▼ $-0.26 ▼ $34M ▼
Q2-2024 $642M ▲ $498M ▼ $-7M ▲ -1.09% ▲ $-0.02 ▲ $147M ▲
Q1-2024 $608M $500M $-31M -5.099% $-0.09 $86M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $6.795B ▲ $20.782B ▲ $18.162B ▲ $2.449B ▲
Q2-2025 $6.111B ▲ $19.189B ▲ $16.679B ▲ $2.338B ▲
Q1-2025 $4.105B $15.526B $13.183B $2.17B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-95M ▼ $472M ▼ $-8M ▼ $809M ▲ $1.291B ▼ $472M ▼
Q2-2025 $-46M ▲ $927M ▲ $-7M $145M ▲ $1.399B ▲ $920M ▲
Q1-2025 $-92M ▼ $607M ▲ $-7M ▲ $9M ▼ $862M ▲ $600M ▲
Q2-2024 $-2M ▲ $-350M ▼ $-12M ▼ $161M ▼ $-210M ▼ $-362M ▼
Q1-2024 $-25M $1.175B $-11M $163M $1.238B $1.164B

Five-Year Company Overview

Income Statement

Income Statement Klarna’s income statement shows a business that has grown quickly and is steadily repairing past losses. Revenue has climbed each year, and profit after direct costs has kept pace, suggesting the core service is attractive and priced reasonably well. Operating results have moved from heavy losses toward only modest shortfalls, with cash-based profitability (EBITDA) now positive. Net income has improved from deep red numbers to roughly breakeven, which signals better cost control and more disciplined lending, but profitability is still early and not yet firmly established.

Balance Sheet

Balance Sheet The balance sheet looks reasonably solid for a fintech in transition. Total assets have held steady while the cash cushion has grown, giving Klarna more flexibility to fund operations and absorb shocks. Debt has increased but remains modest relative to the overall asset base and shareholder capital, pointing to a balanced use of borrowing rather than aggressive leverage. Equity has slipped slightly due to earlier losses, yet remains positive, so the company still has a tangible capital buffer as it pursues growth.

Cash Flow

Cash Flow Klarna’s cash flows are a relative bright spot. The business has generated positive cash from operations for several years, even when the income statement showed losses, which implies that the underlying model converts activity into cash reasonably well. Free cash flow has also been consistently positive, helped by limited spending on physical assets, reflecting the asset-light nature of a software and payments platform. This pattern suggests Klarna can largely fund its own growth, though cash generation will still depend heavily on credit performance and how quickly it scales new products.

Competitive Edge

Competitive Edge Klarna holds a strong but contested position in digital payments and buy now, pay later. Its strengths include a large and growing network of merchants and users, a widely recognized brand—especially among younger shoppers—and a smooth checkout experience that merchants value. Years of operating data support its credit models and risk tools, giving it an informational edge versus newer entrants. However, the company faces intense competition from other BNPL providers, card networks, big tech wallets, and banks, all under growing regulatory scrutiny around consumer lending. Maintaining differentiation as more rivals copy BNPL features will be an ongoing challenge.

Innovation and R&D

Innovation and R&D Innovation is one of Klarna’s main levers. The company has leaned heavily into artificial intelligence to personalize shopping, power product recommendations, and automate customer service at scale, turning its app into more of a shopping hub than a simple payment tool. Partnerships like the ChatGPT plugin and the AI assistant show a willingness to adopt cutting-edge technology to both delight users and lower costs. At the same time, initiatives like the Klarna Card, a planned stablecoin, and a broader shift toward full neobank services are ambitious bets that could meaningfully expand its role in consumers’ financial lives—but they come with execution, regulatory, and reputational risk if not managed carefully.

Summary

Overall, Klarna looks like a high-growth fintech that is gradually maturing financially. Revenues and margins have trended in the right direction, losses have narrowed sharply, and cash generation is healthier than past earnings might suggest. The balance sheet carries a comfortable level of cash and manageable debt, giving some resilience as the company experiments with new products. Its competitive edge rests on network effects, brand strength, and advanced use of AI, but it operates in a crowded and closely watched space. The long-term story hinges on whether Klarna can successfully evolve from a BNPL specialist into a broader shopping and banking ecosystem while keeping credit risk, regulation, and competition under control.

NEWS

November 27, 2025 · 8:00 AM UTC

Klarna Set to Take off With Lufthansa Group, Bringing Flexible Payments to Travellers Across Europe and the U.S.

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November 25, 2025 · 8:00 AM UTC

Klarna Launches KlarnaUSD as Stablecoin Transactions Hit $27 Trillion Annually

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November 20, 2025 · 9:00 AM UTC

Klarna Deepens Partnership With Blackhawk Network to Tap $447B U.S. Gift Card Market

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November 18, 2025 · 10:22 AM UTC

Klarna now available on Apple Pay in Denmark, Spain, and Sweden with France to follow

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November 18, 2025 · 8:50 AM UTC

Klarna Delivers Record-breaking Q3 as AI-Powered Digital Bank: $903 Million in Revenue and 4 Million Card Sign-ups in 4 Months

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