TLDR
- Klarna (KLAR) Q4 revenue hit $1.08 billion, beating the $1.07 billion estimate and marking the company’s first billion-dollar quarter.
- GMV of $38.7 billion and 118 million active users both topped Wall Street forecasts.
- Transaction margin dollars missed at $372 million versus the $395 million estimate — a second straight quarterly miss.
- Q1 2026 revenue guidance midpoint and full-year GMV outlook both came in below consensus.
- Shares fell 22% to $14.68, extending a 34% year-to-date decline heading into earnings.
Klarna’s Q4 2025 results checked the headline boxes. Revenue of $1.08 billion topped estimates and marked the company’s first-ever billion-dollar quarter. GMV of $38.7 billion beat the $38.1 billion forecast. Active users came in at 118 million, ahead of the 117 million Wall Street expected.
KLARNA $KLAR Q4’25 EARNINGS HIGHLIGHTS
Revenue: $1.082B (Est. $1.07B)
; +38% YoY (+58% U.S.)
— Wall St Engine (@wallstengine) February 19, 2026
Yet shares fell more than 22% to $14.68 on Thursday. The details told a different story than the headlines.
Revenue grew 38% year-over-year, with U.S. revenue up 58%. U.S. GMV rose 43%. Those are strong growth numbers, but the market was focused elsewhere.
Margins and Costs Raise Concerns
Transaction margin dollars came in at $372 million, missing the $395 million forecast. This was the second consecutive quarter the metric fell short of analyst estimates. Adjusted operating margin landed at 4.4%, well below the 6.4% forecast.
Klarna attributed the transaction margin miss to faster-than-expected growth in its Fair Financing installment product. J.P. Morgan analysts pointed to processing and funding costs as the primary driver, noting the miss versus their own model.
J.P. Morgan described the full-year outlook as having “missed Street estimates across most all key metrics.”
2026 Guidance Disappoints
For Q1 2026, Klarna guided revenue of $900 million to $980 million. The midpoint falls below the $965.1 million analyst consensus. Q1 GMV guidance of $32–$33 billion also trailed the $33.4 billion estimate.
Full-year 2026 GMV guidance came in above $155 billion, short of the $159 billion consensus. Klarna expects revenue to grow more than 24% for the year — below the 29–31% analysts had projected.
The company’s banking push did show real momentum. Banking consumers doubled to 15.8 million, generating more than three times the revenue of average users. Fair Financing GMV grew 165% in Q4, up from 139% growth in Q3. Klarna added a record 115,000 merchants in the quarter, bringing the total to 966,000, a 42% year-over-year increase.
Credit loss provisions dropped to 0.65% of GMV from 0.72% in Q3. Revenue per employee reached $1.24 million. Since Q4 2022, revenue has grown 104% while operating expenses have fallen 8%.
Stock Under Pressure Before Earnings
Klarna listed on the NYSE in September, pricing at $40 per share. Shares jumped 15% on debut day but lost momentum quickly. By the time Q4 earnings arrived, the stock had already fallen more than 34% in 2026.
The pressure came from several directions — broader fintech weakness, concerns around AI disruption, and a proposed 10% cap on credit-card interest rates introduced in January.
Klarna’s full annual financial statements are scheduled for release on February 26.
The post Klarna (KLAR) Stock Slides 22% as Weak Margins and Soft Guidance Overshadow Record Quarter appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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