Klarna Stock Falls 27% After Q4 Revenue Tops $1 Billion But Posts $26M Loss
Klarna’s shares plunged 26.8%, closing at $13.85 after hitting a 52-week low on concerns over rising losses and credit risks. The company reported Q4 revenue of $1.08 billion, up 38% year-over-year, but posted a $26 million net loss and issued softer-than-expected Q1 guidance.
1. Stock Performance
Klarna shares tumbled 26.8% to close at $13.85, marking a new 52-week low. The stock’s intraday range spanned $13.66 to $15.90 as investors sharply reduced positions following the earnings release.
2. Q4 Financial Results
The company achieved its first quarter with revenue above $1 billion since going public, recording $1.08 billion in Q4 sales, a 38% increase year-over-year. Despite top-line growth, Klarna posted a $26 million net loss driven by elevated credit provisions and operational expenses.
3. Investor Concerns and Guidance
Management issued first-quarter guidance below analyst expectations, highlighting increased credit risk and anticipated pressure on profitability. These warnings, combined with a spike in credit provisions, rattled investor confidence and fueled the steep selloff.