Track market-moving stories before they get noisy

Klarna Group (KLAR) is the BNPL market leader, growing rapidly but trading at a deeply discounted valuation near $4.94 billion. KLAR delivered 27% YoY revenue growth and turned net income positive, while improving loan quality and operational efficiency. Despite lowering FY guidance, KLAR still forecasts 16% GMV growth and maintains strong balance sheet flexibility with $5.3B in cash and low debt.

When a consumer taps to pay for a new winter coat or a flight home, they likely don't think about the global financial infrastructure moving their money. Klarna Group (KLAR +1.58%) acts as that silent bridge, functioning as a technology-driven payments provider that has evolved from a niche tool for deferred payments into a comprehensive digital banking ecosystem.

Despite this reach, the stock has struggled, falling to $13.46 as of Oct. 8, 2026, marking a 65% decline over the past year as the market weighed the company's aggressive growth against its path to sustained profitability.

Our proprietary Hidden Gems scoring system assigns Klarna Group an overall Superscore of 70 out of 100, placing it in the Above Average category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).

A 70 Superscore places Klarna in the Top ~31% of every company we score, representing a signal that invites deeper investigation into the company's operations and risks.

Why KLAR Has a 70 SuperscoreRobust revenue growth: The company reported 27% year-over-year revenue growth in Q2 2026, reaching $1.04 billion as its expanded network of 1.2 million merchants drove higher payment volumes.Operational efficiency: Integration of an AI assistant to handle 80% of customer service chats allowed the company to keep service costs flat despite a 32% surge in total transaction volume during the fourth quarter of its 2025 fiscal year.Deposit-led funding: Roughly 90% of the company's funding currently originates from low-cost consumer deposits, providing a structural cost advantage that shields its margins from volatile wholesale financing markets.Strong network effects: A two-sided ecosystem connecting 120 million active consumers with over 1.2 million merchants creates a data-rich environment that lowers the cost of acquiring new users and merchants.Why Is KLAR's Superscore Not Higher?Persistent net losses: Despite improving operating metrics, the company posted a net loss of $273 million for the full-year 2025, underscoring the challenge of balancing global expansion with a bottom-line profit.Credit-provision volatility: The shift toward higher-risk Fair Financing products caused credit loss provisions to spike by 60% in fiscal 2025, creating immediate margin pressure that offsets gains in payment processing.Valuation risk: The stock's trailing price-to-sales ratio has steadily declined over the past year, dropping to 1.3x as of Oct. 8, but shares could drop further if growth cools or if credit losses accelerate beyond current expectations.Klarna benefits from high capital efficiency, with a return on net tangible assets ranking in the top 20% of our universe. Because the company earns outsized profits on a relatively small base of hard tangible assets, the market often assigns a premium to its ability to turn revenue growth into meaningful long-term value, though this efficiency must still compete with the risks inherent in its credit-heavy model.

Table 1: Hidden Gems Database Scores for Klarna Group (KLAR)ScoreScore (out of 100)RankSupporting Data PointProduct (1Y)82Top ~16%Successful pivot to a global default PSP strategy with the Klarna Card crossing 5 million users.Product (5Y)61Top ~49%Transition from niche BNPL provider to a comprehensive digital commerce network with a 21% 5-year revenue CAGR.Financial (1Y)60Top ~45%Revenue grew 32% in fiscal 2025, but operating cash flow turned negative at -$1.032 billion.Financial (5Y)64Top ~34%Consistently high revenue growth offset by volatile cash flow and historical dependence on external financing.Leaders73Top ~36%Management demonstrates transparency through granular KPIs and a well-defined AI-driven roadmap.AI22Bottom ~24%Heavy reliance on traditional lending moats leaves the company vulnerable to commoditization by major AI platforms.Valuation Risk67Top ~24%The stock trades at a trailing price-to-sales ratio of 1.50x, reflecting its current market valuation.Is KLAR Right For Your Portfolio?This stock warrants a closer look if...

You are seeking exposure to an evolving digital banking model comparable to leading best bank ETFs in the payments space.You believe that AI-driven automation will continue to lower operating costs and lead the company toward sustainable profitability.You may want to keep researching before buying if...

You are concerned about the sustainability of a business model reliant on consumer credit in a shifting economic cycle.You prefer to wait for proof that the company can achieve consistent GAAP profitability without relying on one-time financial adjustments.This Superscore is just one data-driven signal worth investigating, and you should weigh it against your own research, financial goals, and risk tolerance before making any investment decisions.

My 5-year prediction for KLAR stockThe key to Klarna's ability to produce business growth over the long haul relies on its ecosystem. That's what gives me optimism about the company's long-term success. It exited the second quarter with 120 million active consumers, representing 8% year-over-year growth, and 1.2 million merchants, which is a whopping 54% year-over-year increase.

Klarna's stock has plunged significantly from its September IPO price of $40 per share, as the company cut its 2026 guidance amid softness in the German market, Klarna's largest market by volume. However, the U.S. market is its fastest growing region, and that's a positive sign for its business growth.

The company's core buy now, pay later offering is key in an environment of persistent inflation, helping consumers to make purchases. Over the long run, Klarna is moving toward becoming a full-scale digital neobank. Its Fair Financing product, which is its long-term, interest-bearing lending segment, saw 82% year-over-year growth in Q2 gross merchandise volume. This segment should help it fuel margin growth. In fact, it achieved Q2 net income of $9 million, a substantial turnaround from a net loss of $53 million in the prior year.

Klarna's trailing price-to-sales ratio is down to 1.3x, its lowest level since the IPO. While it could drop further, I think there's greater potential for shares to rebound considering how far it's fallen, making now a good entry point into the stock.

The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.

Affirm Holdings (NASDAQ:AFRM | AFRM Price Prediction) stock was September's relative winner among the three buy now, pay later names, even after falling 10.5% to $69.61. Klarna Group (NYSE:KLAR) stock declined 12.5% to $12.42, while Sezzle (NASDAQ:SEZL) stock fell 13.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc ("Klarna" or the "Company") (NYSE: KLAR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering ("IPO"), selling 34.3 million shares priced at $40.00. Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026. Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion. Klarna also announced that the Company's Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna's ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Payments FinTech Adyen hired Klarna Chief Financial Officer Niclas Neglen as its new CFO, effective Feb. 1, 2027, according to a Tuesday (Sept. 22) press release.

KLAR Investors Have Opportunity to Join Klarna Group plc Fraud Investigation with SBS Law Schall, Brown & Schwartz LLP (“SBS”), a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Klarna Group plc (“Klarna” or “the Company”) (NYSE: KLAR) for violations of the securities laws.

INVESTIGATION DETAILS: The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Klarna released its financial results for Q2 2026 on August 18, 2026. The Company significantly lowered its full-year 2026 revenue forecast. The Company also announced the departure of its CFO and CMO in early 2027. Based on this news shares of Klarna fell by more than 22.8% on the same day.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

WHY SBS? Schall, Brown & Schwartz LLP represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. Bringing together the extensive experience and diverse skillsets of founding partners Brian Schall, Andrew Brown, and David Schwartz, SBS is dedicated to aggressively advocating for every investor.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260919070337/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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NEW YORK, Sept. 15, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc (“Klarna” or the “Company”) (NYSE: KLAR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering (“IPO”), selling 34.3 million shares priced at $40.00.  Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026.  Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion.  Klarna also announced that the Company’s Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna’s ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Engineers Gate Manager LP acquired a new position in shares of Klarna Group plc (NYSE:KLAR – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 134,058 shares of the company’s stock, valued at approximately $2,713,000.

Several other hedge funds have also modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new position in Klarna Group during the second quarter worth approximately $35,000. NewEdge Advisors LLC grew its stake in shares of Klarna Group by 1,269.7% during the 2nd quarter. NewEdge Advisors LLC now owns 12,683 shares of the company’s stock valued at $257,000 after buying an additional 11,757 shares during the period. California State Teachers Retirement System purchased a new stake in shares of Klarna Group during the 2nd quarter valued at $26,747,000. Alyeska Investment Group L.P. acquired a new stake in shares of Klarna Group during the 2nd quarter worth $11,848,000. Finally, Wedbush Securities Inc. acquired a new stake in shares of Klarna Group during the 2nd quarter worth $258,000.

Analysts Set New Price Targets A number of brokerages recently weighed in on KLAR. Wells Fargo & Company reduced their target price on Klarna Group from $26.00 to $21.00 and set an “overweight” rating on the stock in a report on Wednesday, August 19th. Wolfe Research lowered Klarna Group from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, August 25th. Loop Capital began coverage on Klarna Group in a report on Wednesday, September 9th. They issued a “hold” rating and a $18.00 price objective on the stock. Bank of America lifted their price objective on Klarna Group from $21.00 to $23.00 and gave the company a “buy” rating in a research note on Monday, May 18th. Finally, Scotiabank assumed coverage on Klarna Group in a report on Wednesday, September 2nd. They set a “sector perform” rating and a $16.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $29.05.

Check Out Our Latest Research Report on KLAR Insider Activity In related news, CEO Sebastian Siemiatkowski bought 692,506 shares of the stock in a transaction dated Wednesday, August 26th. The stock was acquired at an average price of $14.37 per share, for a total transaction of $9,951,311.22. Following the completion of the purchase, the chief executive officer owned 25,344,322 shares in the company, valued at $364,197,907.14. This represents a 2.81% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Klarna Group Trading Up 3.0% NYSE:KLAR opened at $14.24 on Tuesday. The firm’s fifty day simple moving average is $17.29 and its 200 day simple moving average is $16.10. Klarna Group plc has a twelve month low of $12.06 and a twelve month high of $47.48. The firm has a market capitalization of $5.38 billion and a price-to-earnings ratio of -38.50.

Klarna Group (NYSE:KLAR – Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.07. Klarna Group had a negative return on equity of 5.39% and a negative net margin of 3.54%.The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $992.56 million. Klarna Group’s quarterly revenue was up 26.6% on a year-over-year basis. On average, analysts predict that Klarna Group plc will post -0.01 earnings per share for the current year.

About Klarna Group (Free Report)

Klarna Group plc is a financial technology company that provides digital payments and shopping services for consumers and merchants. Its offerings include flexible payment options such as pay now, pay later and installment plans, along with digital checkout tools designed to help merchants accept and manage online and in-store transactions.

The company also operates a consumer shopping platform and mobile application that allow users to search for products, compare offerings, make purchases and manage payments.

Read More Five stocks we like better than Klarna Group Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down

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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc ("Klarna" or the "Company") (NYSE: KLAR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering ("IPO"), selling 34.3 million shares priced at $40.00.  Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026.  Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion.  Klarna also announced that the Company's Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna's ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc (“Klarna” or the “Company”) (NYSE: KLAR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering (“IPO”), selling 34.3 million shares priced at $40.00.  Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026.  Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion.  Klarna also announced that the Company’s Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna’s ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Klarna Group plc - KLAR PR Newswire

NEW YORK, Sept. 3, 2026

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc ("Klarna" or the "Company") (NYSE: KLAR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering ("IPO"), selling 34.3 million shares priced at $40.00. Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026. Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion. Klarna also announced that the Company's Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027.

On this news, Klarna's ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

View original content to download multimedia:https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-klarna-group-plc---klar-302868631.html

SOURCE Pomerantz LLP

NEW YORK, Sept. 01, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc (“Klarna” or the “Company”) (NYSE: KLAR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering (“IPO”), selling 34.3 million shares priced at $40.00.  Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026.  Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion.  Klarna also announced that the Company’s Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna’s ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

NEW YORK, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc (“Klarna” or the “Company”) (NYSE: KLAR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering (“IPO”), selling 34.3 million shares priced at $40.00.  Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026.  Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion.  Klarna also announced that the Company’s Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna’s ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Klarna Group plc ("Klarna" or the "Company") (NYSE: KLAR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Klarna and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On or around September 10, 2025, Klarna completed its initial public offering ("IPO"), selling 34.3 million shares priced at $40.00. Then, on August 18, 2026, Klarna announced its financial results for the second quarter of 2026. Among other items, Klarna significantly lowered its full-year 2026 revenue forecast to a range of $4.08 billion to $4.16 billion, down sharply from previous guidance of more than $4.34 billion. Klarna also announced that the Company's Chief Financial Officer and Chief Marketing Officer would both depart Klarna early in 2027. 

On this news, Klarna's ordinary share price fell $4.45, or 22.81%, to close at $15.06 per share on August 18, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Klarna Group plc (NYSE: KLAR) today discloses the following transaction by its Chief Executive Officer, filed with the U.S. Securities and Exchange Commission on Form 4.

Sebastian Siemiatkowski, through an associated entity, purchased 692,506 ordinary shares on August 26, 2026, at an aggregate consideration of $9,949,171.94.

The Form 4 filing for the transaction is available on the SEC's EDGAR database at www.sec.gov.

Forward-Looking Statements

This press release contains factual descriptions of disclosed securities transactions. It does not constitute a profit forecast or guidance of any kind. Investors should review the risk factors in Klarna's filings with the SEC for a complete discussion of risks.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 120 million global active Klarna users and 3.8 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. Over 1.2 million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Apple, Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

Category: Investor News

View source version on businesswire.com: https://www.businesswire.com/news/home/20260828348780/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Stripe and Advent International just walked away from a potential $50 billion PayPal takeover, and the BNPL challengers are celebrating loudly. Here is what the Friday moves actually signal about who wins and who is still exposed.

The buy now, pay later relief trade broadened Friday morning after Bloomberg reported that Stripe and Advent International walked away from a takeover of PayPal Holdings valued at more than $50 billion. In morning trading, the challengers have widened rather than faded their gains, and PayPal itself has recovered part of its opening decline. The dispersion looks like a name-level event tied to a specific deal collapse, with no evidence of a broad fintech rotation.

Klarna (NYSE:KLAR | KLAR Price Prediction) stock is up 6% to $14.86. Meanwhile, Affirm Holdings (NASDAQ:AFRM) stock is up 10% to $85.01 after the company released its fiscal fourth-quarter earnings.

Sezzle (NASDAQ:SEZL) stock is up 2% to $128.46, extending its early advance. At the same time, PayPal Holdings (NASDAQ:PYPL) stock is down 11% to $54.40 as the takeover premium unwinds.

Deal Collapse Removes a Big Buyer Bloomberg first reported Stripe’s interest in February, and The Wall Street Journal reported in August that PayPal had found the initial bid insufficient and that the two sides were negotiating a higher price. Friday’s withdrawal by Stripe and Advent International removes that scenario, and because both suitors are privately held, it does so without introducing a new public competitor to the checkout stack. The exit matters because a Stripe-plus-PayPal combination would have been the single largest checkout-brand consolidation event in fintech.

PayPal stock had risen more than 40% this quarter on the combination of a second-quarter earnings beat and takeover speculation. One of those two supports is now gone, which explains today’s give-back better than any fundamentals reset. Our earlier coverage of the opening reaction tracked PayPal’s initial slide alongside the challengers’ pop and framed the numbers as they printed.

Affirm Delivers, Peers Ride the Read-Across Affirm reported fiscal fourth-quarter 2026 results after Thursday’s close, covering the quarter ended June 30. Chief Executive Max Levchin described the period as “our most profitable quarter ever, even without the tax allowance release.” On the earnings call he added that “the company is thriving and the core business is firing on all business,” reinforcing the profitability improvement that Affirm has strung together across multiple quarters.

Affirm also promoted Michael Linford to president, part of a leadership restructuring designed to support tighter execution while Levchin focuses on longer-dated product work. Separately, Shop Pay Installments launched in Australia powered exclusively by Affirm, marking Affirm’s return to that market. Shopify (NASDAQ:SHOP) is the platform behind Shop Pay and is the distribution partner in that launch.

Klarna has no verified company-specific catalyst today. Its move reflects read-across and relief following the withdrawal of the largest checkout-brand consolidation scenario, and nothing more. Sezzle’s follow-through looks similar in character, with the challengers rallying on the removal of a giant would-be rival rather than any fresh operating datapoint of their own.

The ARK Blockchain & Fintech Innovation ETF (CBOE:ARKF), an actively managed, concentrated fund rather than a broad index product, is down 0.1% to $47. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.1% to $772.16, and the fund-level stillness signals a name-level event rather than a sector move.

What to Watch Investors should watch for confirmation that Affirm’s profitability inflection and the Shop Pay Australia distribution deal show up in fiscal Q1 2027 volume metrics. That confirmation matters because Klarna’s and Sezzle’s read-across gains rest on the checkout challengers keeping their standalone growth stories intact through the holiday season. PayPal’s next real test is whether branded-checkout stabilization can carry the stock without a takeover backstop underneath.

Traders should size their positions with the understanding that beta across these four names is elevated and that the deal-related premium in PayPal shares is still unwinding. Trimming their exposure into strength on Klarna, Affirm, and Sezzle, and waiting for a lower-volatility entry on PayPal, remains a reasonable risk-management posture for stretched positioning at current levels.

Contact [email protected] for any questions or corrections.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of KLAR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Klarna cut 2026 GMV guidance to $149B-$151B while raising transaction margin dollar guidance.U.S. GMV rose 27% to $7.9B as transaction margin dollars jumped 126% to $88M.Klarna Memberships hit 2M paying subscribers, while subscription revenues rose more than 600%. Klarna Group plc (KLAR - Free Report) used its second-quarter earnings call to emphasize improving transaction economics as management cut its 2026 volume outlook on softer German consumer spending and currency effects.

The quarter cleared expectations: revenues of $1.042 billion topped the Zacks Consensus Estimate of $992.6 million, while EPS of $0.01 exceeded the consensus estimate for a loss of $0.07.

KLAR Raises Margin Outlook Despite Lower VolumeCEO and Director Sebastian Siemiatkowski said that transaction margin dollars remain Klarna’s central operating measure. Second-quarter transaction margin dollars rose 42% year over year to $446 million, outpacing 27% revenue growth and 18% GMV growth.

CFO and Director Niclas Neglen said that improved underwriting, offloading programs and a richer product mix helped widen transaction margin to 42.8% of revenues. Adjusted operating income reached $91 million.

For 2026, KLAR lowered GMV guidance to $149-$151 billion from more than $155 billion and revenue guidance to $4.08-$4.16 billion. Transaction margin dollar guidance rose to $1.62-$1.65 billion, while adjusted operating income is projected at $280-$300 million.

Klarna Sees Germany Staying SoftNeglen said that Germany, Klarna’s largest market by volume, weakened late in the second quarter as discretionary retail spending softened. The revised outlook assumes that trend continues rather than rebounds.

During Q&A, an Autonomous Research analyst pressed management on Germany’s role in the lower volume outlook. Neglen said that Pay Later and Pay in Full make up large portions of the German business, while Fair Financing is less prominent.

A Prime Executions analyst asked about quarter-to-date conditions. Neglen said that the downward trend had remained roughly consistent into Q3 and was already reflected in guidance.

KLAR Leans on U.S. Mix and Fair FinancingSiemiatkowski described the United States as Klarna’s fastest-growing large region. U.S. GMV rose 27% to $7.9 billion, while U.S. transaction margin dollars increased 126% to $88 million.

Fair Financing grew 82% globally to $4.7 billion of GMV and reached 256,000 merchants. Management tied the product to stronger transaction economics.

Neglen said that U.S. assumptions were unchanged despite the lower companywide GMV guide. He cited JPMorgan Payments, Adyen, Worldline, Worldpay, Fiserv’s Clover and the Apple Upgrade program as second-half growth drivers.

Klarna Expands Distribution and Recurring RevenueSiemiatkowski said that Klarna Memberships reached 2 million paying subscribers, eight times the year-earlier level, while subscription revenue rose more than 600%. He framed memberships as a way to grow transaction margin without equivalent GMV growth.

The Klarna Card reached 6.5 million active users across 16 countries, up from 1.3 million a year earlier. Management sees the card as a vehicle to extend Klarna’s payment products into offline spending.

JPMorgan Payments went live on Aug. 6, letting merchants on its platform offer Klarna’s payment suite through existing setups. Management expects broader distribution to support U.S. volume into peak season.

KLAR Clarifies Fair Value and Funding StrategyNeglen said that substantially all new U.S. and German Fair Financing originations are expected to move to fair-value accounting in the second half. The change lowers reported revenue and transaction costs while leaving transaction margin economics intact.

Excluding an estimated 2-basis-point timing benefit from the presentation change, management expects stronger unit economics to add $40-$50 million of transaction margin dollars for 2026 despite lower volume.

In Q&A, Morgan Stanley and Compass Point analysts focused on forward flows and funding. Neglen reiterated a capital-light approach while preserving flexibility to retain or offload receivables when economics support either choice.

Klarna Keeps Margin Discipline at the CenterManagement characterized the third quarter as an investment quarter, with marketing and major platform launches arriving ahead of expected volume. Third-quarter adjusted operating income is projected at $5-$15 million.

Siemiatkowski and Neglen consistently returned to deeper consumer engagement, higher-value products and transaction margin growth as operating priorities. The revised outlook pairs lower volume expectations with a higher margin-dollar target.

Zacks Signals for KLARKLAR currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A is favorable, but a Value Score of F, a Growth Score of F and a VGM Score of F indicate weaker readings across those style dimensions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Score complements the Zacks Rank, with A and B grades viewed more favorably. The current mix is uneven rather than uniformly strong, and the Zacks Rank can change as analysts revise estimates after the just-reported results.

STOCKHOLM--(BUSINESS WIRE)--Regulatory News: Klarna Bank AB, a subsidiary of Klarna Holding AB, published its H1 2026 Financial Report today at 11:00 AM CET. It is now available on Klarna's Investor Relations website.

Klarna Group plc (NYSE:KLAR) on Tuesday reported upbeat second-quarter results but issued 2026 sales guidance that missed expectations.

Klarna reported earnings of 1 cent per share, beating the consensus estimate for a loss of 5 cents per share. Revenue rose 27% year over year to $1.042 billion, beating the $993.39 million analyst estimate.

For 2026, the company expects revenue of $4.08 billion to $4.16 billion, missing the $4.415 billion analyst estimate.

Klarna raised its transaction margin dollar forecast to $1.62 billion to $1.65 billion, or about 1.09% of GMV. Adjusted operating income is expected to range from $280 million to $300 million, representing 6.9% to 7.2% of revenue.

“Over 120 million consumers now use Klarna, and each is using it for more of their everyday spend — revenue per active consumer grew 24%. That deepening engagement is why transaction margin dollars grew 42%, well ahead of revenue and volume. We measure our progress in transaction margin dollars.”

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Klarna Group shares fell 2.2% to trade at $14.72 on Wednesday.

These analysts made changes to their price targets on Klarna Group following earnings announcement.

Wells Fargo analyst Jason Kupferberg maintained the stock with an Overweight rating and lowered the price target from $26 to $21. Barclays analyst Nik Cremo maintained the stock with an Equal-Weight rating and cut the price target from $20 to $16. Considering buying KLAR stock? Here’s what analysts think:

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Klarna (KLAR -22.37%) is Swedish for "clear up" or "sort it out." The name feels ironic today, with the stock down 21.9% as of 10 a.m. ET, despite a strong Q2 report. Aren't headline surprises supposed to lift stocks?

Today's Change

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Q2 2026 was the easy part That wasn't a typo. The Stockholm-based fintech crushed Wall Street's estimates in the second quarter of 2026. The average analyst expected a net loss of $0.05 per share on revenues near $993 million. The company reported positive earnings of $0.01 per share and $1.04 billion of top-line revenues. That's not even a close call, and sales rose 27% year over year.

The stock fell anyway, for at least two clear reasons.

Management offered full-year revenue guidance of $4.12 billion, give or take $40 million. The current analyst consensus points to $4.42 billion, and Klarna's earlier guidance was above $4.34 billion. Klarna pointed to currency-exchange headwinds and shifting consumer trends in the German market. The earnings report wasn't Klarna's only news today. The company also announced transitions for its CFO and Chief Marketing Officer (CMO) roles. Six-year CFO Niclas Neglén and nine-year CMO David Sandström will remain in their roles into early 2027, but Klarna is looking for new talent in New York. It's hard to say which item weighed more heavily on Klarna's stock today. Weak guidance and executive turnover make a tough single-day combo.

Image source: Getty Images.

Down 47% and still hard to read After today's drop, the "buy now, pay later" specialist's stock is down 47% year to date. The company is growing rapidly while forming partnerships with OpenAI, where its AI shopping app now lives inside ChatGPT, and Alphabet (GOOG -0.28%) (GOOGL -0.35%), which is bringing Klarna's payment options to Google Search and the Gemini app. However, investors aren't sure what to make of its cloudy financial picture.

Klarna is clearing up its profit problem and creating a credibility issue instead. Beating a quarter is easy to celebrate; cutting the year is harder to explain away, especially while the CFO and CMO are packing their bags. I wish Klarna would live up to its clear-eyed name.

Anders Bylund has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Klarna Group. The Motley Fool has a disclosure policy.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of KLAR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

For the quarter ended June 2026, Klarna (KLAR - Free Report) reported revenue of $1.04 billion, representing no change compared to the same period last year. EPS came in at $0.01, compared to -$0.14 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $992.56 million, representing a surprise of +4.98%. The company delivered an EPS surprise of +114.29%, with the consensus EPS estimate being -$0.07.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Klarna performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

GMV: $36.65 billion versus the two-analyst average estimate of $36.58 billion.Revenue Take Rate: 2.8% compared to the 2.7% average estimate based on two analysts.Active Users/Consumers: 120 million versus the two-analyst average estimate of 121 million.Revenue- Transaction and service revenue: $707 million versus $688.49 million estimated by two analysts on average.Revenue- Interest income: $266 million compared to the $251.18 million average estimate based on two analysts.Gain on Sale of Consumer Receivables: $69 million versus the two-analyst average estimate of $58.97 million.View all Key Company Metrics for Klarna here>>>

Shares of Klarna have returned +4% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.