Klarna Group logo 3 of the Most Highly Anticipated IPOs of 2026 Klarna Group (NYSE:KLAR) reported what management described as an accelerating adoption of its expanded set of “banking services” in Q4 2025, including the Klarna Card, deposit accounts, and “fair financing,” alongside its core buy now, pay later (BNPL) offering. On the company’s earnings call, CEO Sebastian Siemiatkowski said growth in these products outpaced internal expectations during the quarter, while the company also emphasized tha ...

Core Viewpoint - A class action lawsuit has been filed against Klarna Group plc for allegedly misleading investors regarding the company's financial health and risk disclosures related to its IPO [8]. Allegation Details - The lawsuit claims that Klarna's Registration Statement contained false and misleading statements, particularly regarding the risk of increased loss reserves shortly after the IPO [8]. - It is alleged that the defendants either knew or should have known about the risk profile of individuals taking Klarna's buy now, pay later loans, which was not adequately disclosed [8]. Financial Impact - Klarna launched its IPO on September 10, 2025, selling 34,311,274 shares at $40.00 each [8]. - Following the announcement of disappointing Q3 2025 financial results on November 18, 2025, which included a significant increase in credit loss provisions, Klarna's share price fell by $3.25, or approximately 9.3%, from $34.88 to $31.63 [8]. Next Steps for Investors - Investors who purchased Klarna shares and suffered losses are encouraged to contact the law firm Bragar Eagel & Squire for more information and to discuss their legal rights [4].

KLAR INVESTOR NOTICE: Faruqi & Faruqi, LLP Reminds Klarna Group plc (KLAR) Investors of Securities Class Action Deadline on February 20, 2026 [Accessibility Statement] Skip NavigationFaruqi & Faruqi, LLP Securities Litigation Partner [James (Josh) Wilson] Encourages Investors Who Suffered Losses In Klarna To Contact Him Directly To Discuss Their OptionsIf you purchased or acquired securities in [Klarna] pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Regist ...

Financial Data and Key Metrics Changes - In Q4 2025, active consumers reached 180 million, up 28% year-over-year, while merchants grew to 966,000, up 42% year-over-year [4] - Gross Merchandise Volume (GMV) was $38.7 billion, exceeding guidance, and revenue grew 38% to over $1 billion, also beating guidance [4] - Transaction margin dollars before provisions grew 31% to $622 million, while after provisions, it was $372 million, up 17% year-over-year and up 28% sequentially from Q3 [5][6] Business Line Data and Key Metrics Changes - The adoption of banking products, including the Klarna Card and fair financing, accelerated beyond expectations, contributing to revenue growth [4] - Active card users grew to 4.2 million, up 288% year-over-year, and consumer deposits reached $13 billion, up 37% [11] - The most engaged banking customers reached 15.8 million, growing at 101% year-over-year, with a significant increase in average revenue per user (ARPU) [12] Market Data and Key Metrics Changes - Klarna operated across 26 markets and three continents, achieving over $127 billion in volume in 2025 [5] - The company added 285,000 merchants, up 42% year-over-year, and expanded partnerships with major players like Walmart and Stripe [9][10] Company Strategy and Development Direction - Klarna aims to become a ubiquitous payment solution, leveraging partnerships to expand its acceptance points and product offerings [9][10] - The company is focused on building a consumer bank of the future, emphasizing efficiency and technology to maintain a competitive advantage [14][15] - The strategy includes scaling banking relationships and enhancing product ubiquity, with a focus on consumer trust and engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit quality and the potential for future profitability despite near-term provisioning impacts [16][21] - The company anticipates continued growth in banking products and a positive trajectory for transaction margins as cohorts mature [42][43] - Management highlighted the importance of maintaining a disciplined approach to growth and cost management while expanding product offerings [20][68] Other Important Information - Revenue per employee reached $1.24 million in 2025, a 3.6x increase since 2022, indicating improved operational efficiency [15] - The company is experiencing a compounding growth effect as more consumers engage with its banking products [11][12] Q&A Session Summary Question: When are you planning to become profitable? - Management indicated that while upfront transaction margins may be lower due to growth, future profits from increased loan volumes will offset this [16] Question: How will you prioritize capital allocation between reinvestment, debt reduction, and shareholder returns? - Management emphasized the importance of growth and product adoption while remaining disciplined on costs, with future discussions on capital allocation to occur once profits are realized [19][20] Question: What are the latest delinquency trends and confidence in provisions stabilizing? - Management reported a decline in provisions for credit losses from 0.72% of GMV to 0.65%, indicating stability in delinquency trends [21] Question: Can you elaborate on the impact of excess loan growth on transaction margin dollars? - Management explained that strong growth in pay-later volumes is driving higher provisions, but this is expected to normalize over time [23][24] Question: How is the Walmart rollout performing? - Management expressed satisfaction with the Walmart partnership and its potential to drive growth, highlighting the importance of distribution partnerships [34][36] Question: What are the expectations for transaction margins in the coming year? - Management indicated that transaction margins are expected to remain consistent with Q4 2025 levels, with growth anticipated in the second half of 2026 [42][43] Question: What is the outlook for fair financing loan growth in 2026? - Management expects absolute volume growth to accelerate compared to 2025, despite potential deceleration in year-over-year percentage growth [49]

Financial Data and Key Metrics Changes - Active consumers reached 180 million, up 28% year-over-year [3] - Merchants grew to 966,000, up 42% year-over-year [3] - Gross Merchandise Volume (GMV) was $38.7 billion, exceeding guidance [3] - Revenue grew 38% to over $1 billion, also beating guidance [3] - Transaction margin dollars before provisions grew 31% to $622 million [4] - After provisions, transaction margin dollars were $372 million, up 17% year-over-year [4] Business Line Data and Key Metrics Changes - Klarna's banking products, including the Klarna Card and deposit accounts, saw accelerated adoption [3] - Active card users grew to 4.2 million, up 288% year-over-year [11] - Consumer deposits reached $13 billion, up 37% [11] - Klarna banking customers reached 15.8 million, growing at 101% year-over-year [11] Market Data and Key Metrics Changes - In 2025, Klarna processed over $127 billion in volume across 26 markets [4] - The adoption of fair financing products grew at 165% annually [8] - The company added 285,000 merchants, up 42% year-over-year [9] Company Strategy and Development Direction - Klarna aims to become a ubiquitous payment solution, expanding its network and partnerships [9] - The company is focusing on building deeper relationships with consumers to transition them from casual users to banking customers [10] - The strategy includes enhancing product offerings and ensuring relevant payment options are available at every checkout [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit quality and the potential for future profitability despite current provisioning impacts [16][20] - The company anticipates continued growth in banking products and expects transaction margins to improve as loan cohorts mature [42] - Management highlighted the importance of maintaining a lean cost structure while scaling operations [14] Other Important Information - Revenue per employee reached $1.24 million in 2025, a 3.6x increase since 2022 [14] - Adjusted operating expenses declined by 8% while revenue grew 104% since 2022 [14] Q&A Session Summary Question: When are you planning to become profitable? - Management indicated that while current growth may reduce transaction margin dollars, it will lead to increased future profits as loan books mature [16] Question: How will you prioritize capital allocation between reinvestment, debt reduction, and shareholder returns? - Management emphasized the focus on growth and product adoption while being disciplined on costs, which will inform future capital allocation decisions [19] Question: What are the latest delinquency trends and confidence in provisions stabilizing? - Management reported a decline in provisions for credit losses from 0.72% of GMV to 0.65%, indicating stable delinquency trends [20][21] Question: Can you elaborate on the impact of excess loan growth on transaction margins? - Management explained that strong growth in pay later volumes is affecting transaction margins but is expected to normalize as the business matures [23][24] Question: How is the Walmart rollout performing? - Management expressed satisfaction with the Walmart rollout and highlighted the importance of partnerships in driving growth [35][36] Question: What are the expectations for transaction margins in the coming year? - Management indicated that transaction margins are expected to remain consistent with Q4 2025 levels as the company continues to invest in growth [42]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Klarna Group plc about the upcoming lead plaintiff deadline for a class action lawsuit related to Klarna's September 2025 IPO [1]. Group 1: Class Action Details - Investors who purchased Klarna securities may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by February 20, 2026 [3]. - Investors can join the class action by visiting the provided link or contacting the law firm directly for more information [6]. Group 2: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting their own success in this area [4]. - The firm has achieved significant settlements for investors, including over $438 million in 2019 alone, and has been recognized for its performance in securities class action settlements [4]. Group 3: Case Allegations - The lawsuit claims that the Registration Statement issued during Klarna's IPO contained false or misleading statements, particularly regarding the risk of increased loss reserves shortly after the IPO [5]. - It is alleged that the defendants either knew or should have known about the risks associated with Klarna's buy now, pay later loans, leading to materially false public statements [5].

Core Viewpoint - Klarna Group plc is facing a securities fraud class action lawsuit due to significant losses incurred by investors following its IPO and subsequent financial disclosures that revealed a substantial increase in credit loss provisions [1] Group 1: Company Overview - Klarna Group plc conducted its IPO on September 10, 2025, selling 34.3 million shares at $40 per share [1] - Following the IPO, the company's stock price has significantly declined, closing at $31.63 per share on November 18, 2025, after a 9.3% drop due to negative financial results [1] Group 2: Financial Performance - In its third quarter 2025 financial results, Klarna reported a 39% increase in its provision for credit losses, attributed to changes in market and product mix, particularly an increased share of the U.S. market in its Gross Merchandise Volume (GMV) [1] Group 3: Legal Proceedings - The class action lawsuit alleges that Klarna's management made materially false and misleading statements regarding the company's business and operations, particularly underestimating the risk of increased loss reserves shortly after the IPO [1] - Investors who acquired Klarna securities in connection with the IPO have until February 20, 2026, to seek appointment as lead plaintiffs in the lawsuit [1]

Core Viewpoint - A class action lawsuit has been filed against Klarna Group plc for allegedly providing misleading information in its IPO registration statement, which led to investor losses [7]. Allegation Details - The lawsuit claims that Klarna materially understated the risk of increased loss reserves shortly after its IPO, which was known or should have been known given the risk profile of its customers [7]. - It is alleged that the public statements made by Klarna were materially false and misleading, resulting in damages to investors when the true information became public [7]. Financial Impact - Klarna launched its IPO on September 10, 2025, selling 34,311,274 shares at a price of $40.00 per share [7]. - Following the announcement of disappointing Q3 2025 financial results on November 18, 2025, which included a significant increase in credit loss provisions, Klarna's share price fell by $3.25, or approximately 9.3%, from $34.88 to $31.63 [7]. Next Steps - Investors who purchased Klarna shares and suffered losses are encouraged to contact the law firm Bragar Eagel & Squire for more information and to discuss their legal rights [4].

Core Insights - Klarna Group's stock has decreased by 56% since its IPO last September, indicating a significant decline in investor confidence [1] - The company is a leading player in the Buy Now, Pay Later (BNPL) sector, partnering with major brands like Walmart and offering various payment options [3] - Despite reporting a 26% year-over-year revenue increase in Q3, Klarna continues to face net losses, which widened from $4 million to $94 million [4][5] Financial Performance - Revenue for Klarna increased by 26% year-over-year in Q3, with gross merchandise volume rising by 23%, including a notable 48% increase in the U.S. market [4] - The company achieved 4 million card signups in the quarter, contributing to 15% of total global transactions in October, and saw a 32% increase in new users, totaling 114 million [4] - Fair Financing, an interest-based product, experienced a 244% year-over-year increase in U.S. gross merchandise volume, while the merchant count grew by 38% to 850,000 [5] Valuation and Market Sentiment - Klarna's current market capitalization stands at $6.8 billion, with a trading price of $18.11, reflecting a price-to-sales ratio of only 2 times trailing-12-month sales, suggesting it may be undervalued [7] - The market perceives Klarna as risky due to ongoing losses and macroeconomic conditions, but there is potential for recovery and value creation for shareholders in the long term [8]

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Klarna To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $100,000 in Klarna pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Klarna’s September 2025 initial public offering (the “IPO”)and would like to discuss your legal rights, call Faruqi & Fa ...