Klarna Group (NYSE:KLAR) Issues Earnings Results, Beats Expectations By $0.12 EPS

Posted by Francis Steltz on May 14th, 2026

Klarna Group (NYSE:KLAR – Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.12, Zacks reports. Klarna Group had a negative net margin of 8.41% and a negative return on equity of 11.62%. The company’s revenue for the quarter was up 42.7% compared to the same quarter last year.

Here are the key takeaways from Klarna Group’s conference call:

Klarna said Q1 was a strong quarter, with revenue up 44% to $1.012 billion, transaction margin dollars up 44% to $389 million, and net income turning positive.
The company reported broad-based growth in GMV and merchant adoption, including GMV up 33% to $33.7 billion and merchant count rising 49% to 1.07 million, helped by its push to be a default payment service provider across markets.
Financing is scaling rapidly, with volume up 138% year over year to $4.1 billion and more merchants offering the product, while management said credit trends remain healthy and delinquency metrics are improving in the U.S.
The Klarna Card crossed 5 million active users globally, and the company said card users are significantly more engaged, with higher transaction frequency and higher revenue per user as the product matures.
Klarna reiterated its full-year 2026 guidance, including GMV above $155 billion, while guiding Q2 revenue of $960 million to $1 billion and adjusted operating income of $30 million to $50 million.

Klarna Group Price Performance

NYSE KLAR traded up $2.70 during mid-day trading on Thursday, hitting $16.39. The company’s stock had a trading volume of 27,154,804 shares, compared to its average volume of 4,702,477. The firm has a market capitalization of $6.19 billion and a P/E ratio of -21.29. The stock’s fifty day simple moving average is $13.98 and its two-hundred day simple moving average is $23.02. Klarna Group has a 52-week low of $12.06 and a 52-week high of $57.20.

Institutional Trading of Klarna Group

Hedge funds have recently made changes to their positions in the company. US Bancorp DE purchased a new stake in shares of Klarna Group during the third quarter valued at approximately $30,000. Global Retirement Partners LLC raised its stake in shares of Klarna Group by 800.0% during the fourth quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock valued at $26,000 after purchasing an additional 800 shares during the period. Legal & General Group Plc purchased a new stake in shares of Klarna Group during the third quarter valued at approximately $148,000. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in shares of Klarna Group during the third quarter valued at approximately $153,000. Finally, National Bank of Canada FI purchased a new stake in shares of Klarna Group during the third quarter valued at approximately $182,000.

More Klarna Group News

Here are the key news stories impacting Klarna Group this week:

Positive Sentiment: Klarna reported its first-ever quarterly net profit, with adjusted operating profit of $68 million, signaling a major step toward sustainable earnings. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
Positive Sentiment: Revenue rose about 44% year over year to roughly $1.0 billion, while gross merchandise volume climbed 33% to $33.7 billion, showing strong consumer demand and platform usage. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
Positive Sentiment: The company beat earnings estimates, reporting a small loss of $0.01 per share versus expectations for a larger loss, which likely reassured investors about margin improvement. Klarna (KLAR) Reports Q1 Loss, Beats Revenue Estimates
Positive Sentiment: Management highlighted expansion in deposits, debit usage, and point-of-sale financing, suggesting Klarna is broadening beyond pure BNPL and deepening customer engagement. Klarna Expands Deposits and Debit Push as GMV Hits $33.7 Billion
Neutral Sentiment: Unusually heavy call option activity points to heightened trading interest, but it does not by itself explain the move in the shares. Klarna Q1 Earnings Beat Estimates on Strong GMV & Network Expansion
Neutral Sentiment: Klarna also updated second-quarter guidance, but the details provided were incomplete in the feed, so its impact is unclear. Klarna Group Trading Page

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on KLAR shares. Keefe, Bruyette & Woods decreased their target price on shares of Klarna Group from $45.00 to $26.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. TD Cowen started coverage on shares of Klarna Group in a research report on Monday. They issued a “hold” rating and a $16.00 target price on the stock. BMO Capital Markets started coverage on shares of Klarna Group in a research report on Wednesday, April 22nd. They issued a “market perform” rating and a $16.00 target price on the stock. Morgan Stanley decreased their target price on shares of Klarna Group from $39.00 to $23.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 18th. Finally, Bank of America started coverage on shares of Klarna Group in a research report on Thursday, March 5th. They issued a “buy” rating and a $21.00 target price on the stock. Eleven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Klarna Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $35.71.

Get Our Latest Stock Analysis on Klarna Group

About Klarna Group

(Get Free Report)

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.