Klarna shares plunge after bigger-than-expected Q4 loss

Klarna

19/02/2026 17:46

** Shares of Swedish fintech firm Klarna KLAR.N down 27.1% to $13.82 on Thurs after co swung to Q4 net loss, missing analyst estimates, as rapid growth hiked costs

** KLAR shares hit lowest since co's New York debut in Sept, and are now about 65% below IPO price

** Co, best known for its "buy now, pay later" services, posted net loss of $26 mln compared to $40 mln profit a year earlier and missed avg forecast loss of $9.8 mln, per LSEG data; Klarna also gave weaker-than-expected 2026 guidance

** It set aside $250 mln for credit losses in Q4, up about 60% from yr-ago period

** Despite the loss, Q4 revenue rose 38% to $1.08 bln, beating estimates, while Gross Merchandise Volume (GMV) grew 32% to $38.7 bln

** 12 of 17 analysts rate the stock "strong buy" or "buy", 5 "hold" and their median PT is $45

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))