Klarna Posts $1.08B Quarter but $26M Loss Triggers 25% Plunge
Klarna reported a 38% year-over-year revenue surge to $1.08 billion in its first billion-dollar quarter but swung to a $26 million loss and cut first-quarter revenue guidance below analysts’ forecasts. The company’s stock plunged 25% on rising credit costs and the Feb. 20 deadline for a securities suit lead plaintiff filings.
1. Record-Breaking Revenue Quarter
Klarna posted $1.08 billion in fourth-quarter revenue, a 38% increase year-over-year, marking its first quarter above $1 billion. Growth was fueled by expansion in installment financing products and an active consumer base that reached 118 million users.
2. Loss Swing and Weaker Outlook
The company recorded a $26 million net loss driven by sharply higher provisions for loan losses as credit costs rose. Management issued first-quarter revenue guidance below analyst expectations, highlighting pressure on margins and slowing growth momentum.
3. Mounting Legal Challenge
A securities class-action lawsuit deadline on Feb. 20 allows investors to seek lead plaintiff status over alleged IPO disclosure failures regarding loan loss risks. The potential legal liabilities add to investor concerns following the stock’s 25% drop.