SAN FRANCISCO, Jan. 05, 2026 (GLOBE NEWSWIRE) -- A securities class action styled Nayak v. Klarna Group plc, et al., No. 1:25-cv-07033 (E.D.N.Y.) has been filed, seeking to represent investors who purchased or otherwise acquired Klarna Group plc (NYSE: KLAR) securities in the company’s September 2025 initial public offering. National shareholder rights law firm Hagens Berman continues to investigate claims that Klarna’s offering documents violated federal securities laws and urges investors who suffered sig ...

Klarna Group plc (NYSE:KLAR) is among the 7 Best Digital Payments Stocks to Invest In Now. Klarna Group plc (KLAR) Collaborates With Coinbase For Stablecoin Funding On December 19, 2025, Fortune revealed that Klarna Group plc (NYSE:KLAR) and cryptocurrency exchange Coinbase have partnered. According to cryptocurrency reporter Ben Weiss, the agreement is to take institutional investors’ funds denominated in stablecoins. The buy now, pay later company, which had traditionally avoided involvement in cryptoc ...

In a Monday interview with CNB's Jim Cramer, Affirm CEO Max Levchin reviewed his company's strategy, suggesting the buy now, pay later outfit benefits from not charging its customers late fees."We have total alignment with our consumers. If they don't pay us back, we just lose money," Levchin said. "There's no magic in the business model, and that transparency aligns us fully with that person."According to Levchin, late fees aren't necessary "if you get really good at underwriting." He advocated for more cl ...

Core Insights - Buy now, pay later (BNPL) providers experienced significant sales growth during the November shopping holidays, driven by consumer reliance on deferred payments amid ongoing inflation [1] - The sector generated $10.1 billion in sales from November 1 to December 1, marking a 9 percent increase from 2024, with projections indicating that this figure will double by the end of the year [2] - Shoppers are expected to spend $20.2 billion using BNPL tools between November 1 and December 31, reflecting an 11 percent increase from the previous year [2] Group 1: Company Performance - Klarna reported a 45 percent year-over-year growth in gross merchandise volume in the U.S. from November 1 to Black Friday on November 28 [3] - Block, the parent company of Afterpay, Square, and Cash App, noted a 10 percent year-over-year increase in transactions during the Black Friday-Cyber Monday weekend, processing 124 million purchases [5] - Approximately 49.8 million consumers utilized Afterpay, Square, and Cash App, engaging with 1.3 million businesses [6] Group 2: Consumer Behavior - Deferred payment plans gained popularity, with average basket sizes for Afterpay increasing by 10 percent year over year, indicating consumers are purchasing more items per transaction [6] - Spending on services surged by 91 percent compared to the same period in 2024, suggesting that higher retail prices may have limited consumer spending on goods [7] - Travel and experiences payments grew by 13 percent year over year, highlighting a shift in consumer spending patterns [7] Group 3: Product Trends - Growth was observed across various categories, particularly in footwear, technology, beauty, and home goods, with Birkenstock achieving the top position in adult footwear sales [4]

Core Viewpoint - Affirm's stock has experienced a significant decline of 24% over the past three months, despite a remarkable increase of approximately 365% over the past three years, raising questions about its current investment appeal [1]. Group 1: Company Performance - Affirm's gross merchandise volume reached $10.8 billion in Q1 of fiscal year 2026, marking a 42% year-over-year increase [4]. - The company has generated free cash flow of $769 million over the past four quarters, representing 22% of its revenue, and reported a net income of just under $81 million in the latest quarter [5]. - Delinquency rates have remained stable, consistent with levels from 2024 and 2025, indicating a solid credit performance [4]. Group 2: Competitive Position - Affirm continues to stand out in the buy now, pay later industry by not charging hidden or late fees, which are common complaints among users of similar services [2]. - The company has established partnerships with major brands and e-commerce platforms, including Amazon, Apple, and Shopify, which have contributed to its business growth despite low consumer sentiment [3]. - Affirm's enterprise-value-to-revenue ratio has more than doubled to 8.1 over the past three years, indicating an increase in the stock's valuation [9]. Group 3: Market Outlook - The buy now, pay later sector remains competitive, and Affirm must maintain high execution standards to succeed [8]. - The recent five-year extension of the partnership with Amazon is a positive development, although reliance on a single partner could pose risks [8]. - Despite the current stock price volatility, Affirm is still considered relevant in the market, but investment in the stock may require a long-term perspective and a diversified portfolio approach [9].

Core Insights - Klarna has leveraged AI-related savings to increase staff salaries by nearly 60%, but may consider further job cuts after reducing its workforce by almost half over the past three years [1][4][5] Workforce and Employment - The company's headcount decreased from 5,527 to 2,907 since 2022, primarily due to natural attrition, with technology replacing departing staff rather than hiring new employees [1][4] - Klarna's internal AI program has reduced reliance on outsourced workers, with technology now performing the work of 853 full-time staff, an increase from 700 earlier this year [2] Financial Performance - Klarna reported a 108% increase in revenues while maintaining flat operating costs, which was described as "pretty remarkable" by the CEO [3] - Average employee compensation has risen from $126,000 in 2022 to $203,000 today, reflecting the company's commitment to sharing efficiency gains with employees [5] Revenue Metrics - The revenue per employee metric has reached $1.1 million, with expectations for continued growth in this area, potentially leading to further staff reductions [6] - Klarna reported a 26% increase in revenues for the three months ending September, totaling $903 million, surpassing analysts' expectations [7] Losses and Accounting Changes - Despite revenue growth, Klarna experienced a $95 million loss during the same period, significantly higher than the $4 million loss reported the previous year, attributed to changes in accounting standards following its NYSE listing [8]

Core Insights - Klarna achieved a 26% increase in third-quarter revenue, reaching $903 million, surpassing analysts' expectations of $882 million, and forecasts revenue above $1 billion for the current quarter [1][4] Financial Performance - Gross merchandise volume (GMV) rose 23% to $32.7 billion, with a significant 43% growth in the U.S. market and a 51% increase in revenue [3][4] - Active customers increased by 32% to 114 million year-over-year [4] - The company reported a net loss of $95 million, a shift from a profit of $12 million in the same period last year, attributed to changes in accounting principles following its public listing [4] Technology and Market Trends - CEO Sebastian Siemiatkowski noted that AI is enhancing the company's ability to launch new features and products, although there are concerns regarding high spending on data centers [2] - There is an anticipated increase in AI demand across consumer and enterprise sectors, but potential compression of data in businesses may impact future compute demand [3]

Core Insights - Buy now, pay later (BNPL) companies like Affirm are intensifying competition with traditional credit card companies [1] Group 1: Industry Trends - The BNPL sector is experiencing growth as consumers seek alternative payment options to credit cards [1] - Companies in the BNPL space are innovating their offerings to attract more customers and increase market share [1] Group 2: Company Strategies - Affirm is focusing on enhancing its product features to better compete with credit card offerings [1] - The company aims to position itself as a viable alternative to credit cards by emphasizing flexibility and consumer-friendly terms [1]

Core Insights - The CEO of Affirm, Max Levchin, indicated that while there is no significant credit stress among federally employed borrowers due to the government shutdown, there are emerging changes in shopping habits among this group [1][2] - The ongoing federal funding lapse, which started on October 1, is the longest in U.S. history and has affected not only government employees but also programs like SNAP, which serves 42 million Americans [2] Group 1 - Affirm is observing a subtle decline in shopping interest among federal employees, with a noted change of a couple of basis points [1] - Approximately 670,000 federal employees have been furloughed, and around 730,000 are working without pay due to the shutdown [1] - The company is monitoring employment data for potential disruptions but currently reports no major disturbances in its operations [2] Group 2 - Affirm has the capability to adjust its credit standards if necessary, indicating a proactive approach to potential economic changes [2] - The impact of the federal funding lapse extends beyond government employees, affecting various sectors and programs [2]

Core Insights - Affirm Holdings, Inc. is a significant player in the buy now, pay later (BNPL) sector, with quarterly earnings set to be released on November 6, 2025, and Wall Street estimates earnings per share (EPS) at $0.10 and revenue at approximately $882 million [1] - The Internet Software sector, including Affirm, is expected to benefit from advancements in artificial intelligence, cloud computing, and automation, contributing to a projected revenue increase of 26.7% year-over-year, reaching $885 million [2] Financial Performance - Affirm is anticipated to report a revenue increase of 26.7% year-over-year, reaching $885 million [5] - The company has a strong liquidity position with a current ratio of approximately 54.19, indicating ample current assets to cover liabilities [3][5] - However, Affirm's debt-to-equity ratio is about 2.56, suggesting a significant reliance on debt financing relative to equity [3][5] Market Challenges - Despite the positive outlook, Affirm faces challenges from high interest rates and market volatility, which could moderate revenue growth [3][5] - Investors should closely monitor management's discussion during the earnings call to assess the sustainability of price changes and future earnings projections [4]