KLARNA MISSES GUIDANCE FOR SECOND STRAIGHT QUARTER AS PUBLIC COMPANY; STOCK DOWN 68% FROM IPO

KLARNA MISSES GUIDANCE FOR SECOND STRAIGHT QUARTER AS PUBLIC COMPANY; STOCK DOWN 68% FROM IPO

Stockholm—Klarna Holdings reported fourth-quarter results that fell short of its own guidance for the second consecutive quarter as a public company, sending shares sharply lower and eroding investor confidence in management's forecasting ability.

The buy-now-pay-later company reported transaction margin dollars of $372 million versus its mid-November guidance midpoint of $395 million, resulting in a surprise quarterly loss. More concerning for CFOs tracking the fintech space: Klarna's 2026 guidance for gross merchandise volume, revenue, transaction margin dollars, and adjusted profit all trailed consensus estimates.

Klarna attributed the shortfall to rapid expansion of its fair financing product—longer-duration, interest-bearing loans that require immediate credit loss provisioning, suppressing near-term profitability while interest income is recognized ratably over loan terms of up to 24 months.

The stock has fallen 68% from its $40 IPO price. Klarna's current $5 billion market cap represents a fraction of its $46 billion private valuation peak in 2021.

The consecutive miss raises questions about the company's ability to balance growth investments with near-term profitability—a critical tension for finance leaders evaluating fintech partnerships and credit exposure.