Klarna shares plunge 25% after Q4 net loss of $26M
Klarna posted a Q4 net loss of $26 million versus a $0.02-per-share loss forecast, marking its second straight unprofitable quarter and triggering a near-25% share decline. Revenue rose 38% to $1.082 billion for its first billion-dollar quarter, GMV grew 32% to $38.7 billion, and active users hit 118 million.
1. Q4 Earnings Shortfall
Klarna reported a net loss of $26 million, or $0.19 per share, in the fourth quarter, missing expectations of a $0.02-per-share loss and marking its second consecutive quarterly loss. The buy-now-pay-later provider set aside additional provisions for souring loans, contributing to the widened loss.
2. Revenue Growth and User Metrics
Revenue jumped 38% year-over-year to $1.082 billion, representing the company’s first billion-dollar revenue quarter. Gross merchandise volume climbed 32% to $38.7 billion, active consumers rose 28% to 118 million, and merchant partners increased 42% to 966,000, while US revenue grew 58%.
3. Market Reaction
Shares plunged nearly 25% on the earnings miss, marking the worst trading day since the IPO and extending a decline of over 60% since last September’s listing. Investors remain cautious over the path to sustained profitability despite robust growth metrics.