Klarna’s Record Revenue Quarter Fails to Stem Stock Decline
Klarna (KLAR) posted its first billion-dollar revenue quarter in Q4 2025, with $1.08 billion topping estimates of $1.07 billion. Active users grew to 118 million while gross merchandise volume reached $38.7 billion—both exceeding forecasts. Yet shares plunged 22% as transaction margins of $372 million missed expectations for the second consecutive quarter.
The buy-now-pay-later firm's U.S. revenue surged 58% year-over-year, outpacing global growth of 38%. But weaker-than-expected Q1 2026 guidance and margin pressures overshadowed these milestones. Market reaction highlights how fintech valuations now prioritize profitability metrics over top-line growth.