Klarna’s Q4 Revenue Hits $1.08B as Stock Plunges 25% on Loss
Klarna posted record quarterly sales of $1.08 billion yet reported a steeper-than-expected $0.19 loss per share, triggering a near 25% stock drop after Q4 results. Its US division led 58% revenue growth, driven by a 165% surge in Fair Financing sales, but EPS omission drew public criticism.
1. Q4 Earnings Highlights
Klarna reported $1.08 billion in fourth-quarter revenue—its first quarter above $1 billion—yet posted a $0.19 loss per share versus a $0.02 loss estimate, sparking a near 25% share price decline in one session. The stock has now fallen 71% since its September IPO and 54% year-to-date.
2. US Business Performance
The US unit delivered a standout performance with revenue growth of 58%, driven primarily by the Fair Financing product, which saw sales surge 165% over the prior quarter. This segment’s strength helped offset weakness in other markets.
3. Analyst and Cramer Reactions
Keefe Bruyette cut its price target to $45 from $52 while retaining an Outperform rating, signaling tempered optimism despite the revenue beat. Jim Cramer publicly criticized the earnings release for failing to mention EPS, lamenting the lack of traditional per-share profitability commentary.