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

Klarna Group (NYSE:KLAR) released its quarterly earnings results on Wednesday. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.12, Briefing.com reports. Klarna Group had a negative net margin of 5.21% and a negative return on equity of 7.62%. 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:

• Q1 performance was strong across the board, with revenue and transaction margin dollars both up 44% year over year while operating expenses rose just 3%, highlighting improving operating leverage and near-break-even profitability.
• Klarna reiterated its spend-centric strategy, emphasizing a network of 1 million merchants, 119 million users, broad product coverage, and 26-market reach rather than positioning itself as purely a lender.
• Credit trends remained stable to improving, with Pay Later stable and Fair Financing delinquency improving from its peak; management expects provisions for credit losses to stay around 55 basis points of GMV through the year.
• The Klarna Card is becoming an important growth lever, with 5.4 million customers and strong engagement that is driving higher deposits, more frequent spend, and significantly higher ARPU in mature cohorts.
• Management said U.S. and international expansion still have substantial runway, citing growing merchant penetration, rising transaction margin dollars, and a path for established markets to move toward about 60% transaction margin over time.

Klarna Group Stock Performance

Shares of KLAR stock opened at $16.14 on Thursday. Klarna Group has a fifty-two week low of $12.06 and a fifty-two week high of $57.20. The firm has a market capitalization of $6.09 billion and a price-to-earnings ratio of -31.04. The stock’s 50-day simple moving average is $14.11 and its 200-day simple moving average is $22.37.

Institutional Investors Weigh In On Klarna Group

A number of large investors have recently modified their holdings of KLAR. Global Retirement Partners LLC lifted its holdings in shares of Klarna Group by 800.0% during the fourth quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock worth $26,000 after purchasing an additional 800 shares during the period. US Bancorp DE acquired a new stake in shares of Klarna Group during the third quarter worth about $30,000. Legal & General Group Plc acquired a new stake in shares of Klarna Group during the third quarter worth about $148,000. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in shares of Klarna Group during the third quarter worth about $153,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Klarna Group during the fourth quarter worth about $164,000.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Morgan Stanley lifted their target price on Klarna Group from $16.00 to $18.00 and gave the company an “equal weight” rating in a research note on Monday. JPMorgan Chase & Co. cut their target price on Klarna Group from $40.00 to $20.00 and set an “overweight” rating on the stock in a research note on Friday, February 20th. TD Cowen started coverage on Klarna Group in a research note on Monday, May 11th. They issued a “hold” rating and a $16.00 target price on the stock. Bank of America boosted their price target on Klarna Group from $21.00 to $23.00 and gave the stock a “buy” rating in a research note on Monday. Finally, Weiss Ratings lowered Klarna Group from a “sell (d)” rating to a “sell (e+)” rating in a research note on Monday. Eleven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Klarna Group currently has an average rating of “Moderate Buy” and a consensus price target of $33.24.

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.