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

Klarna Group (NYSE:KLAR) released its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.12, Zacks reports. The company had revenue of $839.00 million for the quarter, compared to analyst estimates of $940.90 million. Klarna Group had a negative return on equity of 11.62% and a negative net margin of 8.41%.The business’s revenue was up 42.7% compared to the same quarter last year.

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

Shares of NYSE:KLAR traded down $1.25 during trading hours on Friday, hitting $15.22. The company’s stock had a trading volume of 12,454,633 shares, compared to its average volume of 5,971,726. The firm’s fifty day moving average price is $13.98 and its 200 day moving average price is $23.02. Klarna Group has a 52 week low of $12.06 and a 52 week high of $57.20. The company has a market capitalization of $5.75 billion and a price-to-earnings ratio of -19.68.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Keefe, Bruyette & Woods increased their target price on shares of Klarna Group from $22.00 to $26.00 and gave the company an “outperform” rating in a research note on Friday. Wall Street Zen upgraded shares of Klarna Group from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. JPMorgan Chase & Co. decreased their price objective on shares of Klarna Group from $40.00 to $20.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. BMO Capital Markets upped their target price on Klarna Group from $16.00 to $17.00 and gave the company a “market perform” rating in a research note on Friday. Finally, Wells Fargo & Company reduced their price target on Klarna Group from $32.00 to $26.00 and set an “overweight” rating on the stock in a report on Friday. Eleven analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $33.41.

Institutional Trading of Klarna Group

Hedge funds have recently bought and sold shares of the stock. Freestone Grove Partners LP bought a new position in shares of Klarna Group in the 3rd quarter worth $1,272,000. Quadrature Capital Ltd purchased a new position in Klarna Group in the fourth quarter valued at about $1,120,000. Deutsche Bank AG raised its holdings in Klarna Group by 10.6% in the fourth quarter. Deutsche Bank AG now owns 35,153 shares of the company’s stock worth $1,016,000 after purchasing an additional 3,366 shares in the last quarter. Bank of Montreal Can purchased a new stake in shares of Klarna Group during the fourth quarter valued at about $767,000. Finally, Schonfeld Strategic Advisors LLC purchased a new position in shares of Klarna Group in the 3rd quarter worth approximately $693,000.

Klarna Group News Roundup

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

• Positive Sentiment: Klarna reported its first quarterly profit, with adjusted operating profit of $68 million and revenue of about $1.0 billion, reinforcing the company’s progress toward sustained profitability.
• Positive Sentiment: First-quarter gross merchandise volume rose to $33.7 billion and revenue increased 44% year over year, suggesting the BNPL and digital banking platform is still expanding quickly.
• Positive Sentiment: Goldman Sachs and Keefe, Bruyette & Woods both raised their price targets on KLAR and reiterated bullish ratings, while Wells Fargo also maintained an overweight view with a higher target than the current share price. Analyst price target updates

About Klarna Group

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.