Klarna Group (NYSE:KLAR) Releases Earnings Results, Beats Estimates By $0.12 EPS

Klarna Group (NYSE:KLAR) posted its quarterly earnings data on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.12, Zacks reports. The business had revenue of $839.00 million during the quarter, compared to the consensus estimate of $940.90 million. Klarna Group had a negative return on equity of 7.64% and a negative net margin of 5.21%.Klarna Group’s revenue was up 42.7% on a year-over-year basis.

Here are the key takeaways from Klarna Group’s conference call:

• Klarna said Q1 was a strong quarter, with revenue up 44% to $1.012 billion, transaction margin dollars up 44% to $389 million, and net income turning positive.
• The company reported broad-based growth in GMV and merchant adoption, including GMV up 33% to $33.7 billion and merchant count rising 49% to 1.07 million, helped by its push to be a default payment service provider across markets.
• Financing is scaling rapidly, with volume up 138% year over year to $4.1 billion and more merchants offering the product, while management said credit trends remain healthy and delinquency metrics are improving in the U.S.
• The Klarna Card crossed 5 million active users globally, and the company said card users are significantly more engaged, with higher transaction frequency and higher revenue per user as the product matures.
• Klarna reiterated its full-year 2026 guidance, including GMV above $155 billion, while guiding Q2 revenue of $960 million to $1 billion and adjusted operating income of $30 million to $50 million.

Klarna Group Price Performance

KLAR stock traded down $1.28 during mid-day trading on Friday, reaching $15.19. The company had a trading volume of 14,619,640 shares, compared to its average volume of 5,751,900. The stock has a 50 day simple moving average of $14.01 and a two-hundred day simple moving average of $22.96. The company has a market capitalization of $5.73 billion and a price-to-earnings ratio of -29.20. Klarna Group has a 52 week low of $12.06 and a 52 week high of $57.20.

Key Stories Impacting Klarna Group

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna posted its first quarterly profit since listing, with Q1 revenue rising about 44% year over year to roughly $1.0 billion and adjusted operating profit of $68 million, signaling improving unit economics and stronger business momentum. BusinessWire earnings release
• Positive Sentiment: The company beat EPS expectations, reporting a loss of just $0.01 per share versus forecasts for a much larger loss, which suggests earnings are improving faster than analysts expected. Zacks earnings summary
• Positive Sentiment: Management said gross merchandise volume reached $33.7 billion and that the consumer/merchant network continues to expand, supporting the growth story behind Klarna’s buy-now-pay-later platform. PYMNTS article
• Positive Sentiment: Several Wall Street firms turned more constructive, with Goldman Sachs raising its target to $21, Keefe, Bruyette & Woods lifting its target to $26, and BMO also nudging its target higher, reinforcing investor confidence after the earnings beat. Benzinga analyst roundup
• Neutral Sentiment: One analyst, Wells Fargo, lowered its price target to $26, but kept an overweight rating, so the change was not a clear bearish signal. Benzinga analyst update
• Negative Sentiment: Revenue came in below consensus at $839 million versus expectations near $941 million, and the stock had already been under pressure earlier in the week before the earnings-driven rebound. MarketBeat stock data

Institutional Trading of Klarna Group

Hedge funds have recently made changes to their positions in the business. US Bancorp DE acquired a new stake in shares of Klarna Group in the third quarter valued at approximately $30,000. Global Retirement Partners LLC lifted its position in shares of Klarna Group by 800.0% in the fourth quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock valued at $26,000 after buying an additional 800 shares during the last quarter. Legal & General Group Plc acquired a new stake in shares of Klarna Group in the third quarter valued at approximately $148,000. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in shares of Klarna Group in the third quarter valued at approximately $153,000. Finally, National Bank of Canada FI acquired a new stake in shares of Klarna Group in the third quarter valued at approximately $182,000.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. The Goldman Sachs Group increased their price objective on Klarna Group from $19.00 to $21.00 and gave the stock a “buy” rating in a report on Friday. Bank of America assumed coverage on Klarna Group in a report on Thursday, March 5th. They set a “buy” rating and a $21.00 price objective for the company. TD Cowen initiated coverage on Klarna Group in a report on Monday, May 11th. They set a “hold” rating and a $16.00 price objective for the company. Morgan Stanley decreased their price target on Klarna Group from $39.00 to $23.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 18th. Finally, Wells Fargo & Company decreased their price target on Klarna Group from $32.00 to $26.00 and set an “overweight” rating for the company in a research note on Friday. Eleven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $33.41.

Klarna Group Company Profile

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.