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

Key Points

• Klarna beat earnings expectations, reporting a Q1 loss of $0.01 per share versus the expected $0.13 loss. Revenue also rose about 43% year over year, helping lift the stock.
• Operational growth was strong, with revenue up 44% to $1.012 billion, GMV up 33% to $33.7 billion, and merchant count rising 49% to 1.07 million. Management also said net income turned positive and transaction margin dollars increased sharply.
• The company raised confidence in its longer-term trajectory by reiterating 2026 guidance for GMV above $155 billion and pointing to rapid growth in financing and the Klarna Card, which surpassed 5 million active users globally.

Klarna Group (NYSE:KLAR - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.12, Zacks reports. Klarna Group had a negative net margin of 8.41% and a negative return on equity of 11.62%. The firm'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 Stock Up 19.7%

NYSE:KLAR traded up $2.70 during trading hours on Thursday, reaching $16.39. 27,154,804 shares of the company's stock were exchanged, compared to its average volume of 4,702,477. The firm has a market capitalization of $6.19 billion and a price-to-earnings ratio of -21.29. The company has a 50-day moving average of $13.98 and a 200 day moving average of $23.02. Klarna Group has a 1-year low of $12.06 and a 1-year high of $57.20.

Key Headlines Impacting Klarna Group

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

• Positive Sentiment: Klarna reported its first-ever quarterly net profit, with adjusted operating profit of $68 million, signaling a major step toward sustainable earnings. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
• Positive Sentiment: Revenue rose about 44% year over year to roughly $1.0 billion, while gross merchandise volume climbed 33% to $33.7 billion, showing strong consumer demand and platform usage. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
• Positive Sentiment: The company beat earnings estimates, reporting a small loss of $0.01 per share versus expectations for a larger loss, which likely reassured investors about margin improvement. Klarna (KLAR) Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: Management highlighted expansion in deposits, debit usage, and point-of-sale financing, suggesting Klarna is broadening beyond pure BNPL and deepening customer engagement. Klarna Expands Deposits and Debit Push as GMV Hits $33.7 Billion
• Neutral Sentiment: Unusually heavy call option activity points to heightened trading interest, but it does not by itself explain the move in the shares. Klarna Q1 Earnings Beat Estimates on Strong GMV & Network Expansion
• Neutral Sentiment: Klarna also updated second-quarter guidance, but the details provided were incomplete in the feed, so its impact is unclear. Klarna Group Trading Page

Hedge Funds Weigh In On Klarna Group

A number of large investors have recently bought and sold shares of KLAR. Global Retirement Partners LLC raised its position in Klarna Group by 800.0% during the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company's stock worth $26,000 after buying an additional 800 shares during the last quarter. US Bancorp DE purchased a new position in Klarna Group during the 3rd quarter worth $30,000. Legal & General Group Plc purchased a new position in Klarna Group during the 3rd quarter worth $148,000. Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in Klarna Group during the 3rd quarter worth $153,000. Finally, Kestra Advisory Services LLC purchased a new position in Klarna Group during the 4th quarter worth $164,000.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on KLAR shares. Bank of America began coverage on shares of Klarna Group in a research note on Thursday, March 5th. They issued a "buy" rating and a $21.00 price objective on the stock. BMO Capital Markets assumed coverage on shares of Klarna Group in a research report on Wednesday, April 22nd. They issued a "market perform" rating and a $16.00 target price on the stock. TD Cowen assumed coverage on shares of Klarna Group in a report on Monday. They issued a "hold" rating and a $16.00 target price for the company. UBS Group lowered their target price on shares of Klarna Group from $46.00 to $20.00 and set a "buy" rating for the company in a report on Friday, February 20th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Klarna Group from $45.00 to $26.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Eleven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $35.71.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.