Zacks Investment Research·4 days ago
PAGS or KLAR: Which Is the Better Value Stock Right Now?Investors with an interest in Financial Transaction Services stocks have likely encountered both PagSeguro Digital Ltd. (PAGS) and Klarna (KLAR).
Klarna Group plc(KLAR)Earnings, Financials & Key Ratios
KLAR•NYSE
$20.44
Price updated Jul 2, 2026
AboutKlarna Group plc operates as a technology-driven payments company in the United Kingdom, the United States, Germany, Sweden, and internationally. The company offers advertising and marketing solutions, consumer services, digital financial services, and personal shopping and money assistance services. In addition, it provides digital retail banking solutions, such as fixed-term deposits, savings, and bank accounts; digital loyalty cards; and customer and merchant support services, as well as manages personal finances. Klarna Group plc was formerly known as Klarna UK II plc and changed its name to Klarna Group plc in December 2023. The company was founded in 2005 and is based in London, United Kingdom.Show more
- Revenue$3.51B+31.6%
- EBITDA-$103M-251.5%
- Net Income-$294M-9900.0%
- EPS (Diluted)-0.79-11891.0%
- Gross Margin35.33%-54.5%
- EBITDA Margin-2.93%-215.1%
- Operating Margin-6.5%-43.2%
- Net Margin-8.38%-7545.4%
- ROE-11.9%-8934.7%
KLAR Price & Volume
Klarna Group plc (KLAR) stock price & volume — 10-year historical chart
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Accelerating Revenue Growth Masks Persistent Cash Volatility
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Accelerating
Profitability:Strained
Financial:Adequate
Cash Flow:Mixed
Primary Risk:Credit loss volatility
Key Thesis Takeaways
- Klarna is undergoing a strategic pivot toward a retail media and shopping ecosystem, evidenced by a robust 51.3% year-over-year revenue growth in 2026Q1.
- While the company has achieved a significant milestone with a positive operating income of $188.0M, the durability of these gains remains uncertain given historical margin volatility and erratic free cash flow patterns.
- Investors should monitor the firm's ability to maintain its current 73.7% gross margin while managing the liquidity risks inherent in its $1.4B debt load and seasonal working capital requirements.
Verdict Logic
while the company has achieved a positive operating margin of 18.6% in 2026Q1, the extreme volatility in working capital and the $952.0M free cash flow deficit suggest that operational sustainability is not yet fully proven.
KLAR Growth Metrics
Klarna Group plc (KLAR) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years21.36%
3 Years22.96%
TTM50.88%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM-15.55%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM-52.34%
Return on Capital
10 Years-5.06%
5 Years-9.68%
3 Years-5.51%
Last Year-6.3%
KLAR Recent Earnings
Klarna Group plc (KLAR) EPS & revenue vs analyst estimates — last 3 quarters
●Beat EPS 2/3 qtrs (67%)●Beat Revenue 2/3 qtrs (67%)
Q2 2026Latest
May 14, 2026Metric
Actual
Est
EPS
$0.01+94.6%
$0.18
Rev
$1.0B+5.9%
$944M
Q1 2026
Feb 19, 2026Metric
Actual
Est
EPS
$0.12-300.0%
$0.03
Rev
$1.1B+0.0%
$1.1B
Q4 2025
Nov 19, 2025Metric
Actual
Est
EPS
$0.25+0.1%
$0.25
Rev
$903M+1.7%
$888M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 14, 2026 | $0.01vs $0.18+94.6% | $1.0Bvs $944M+5.9% |
| Q1 2026 | Feb 19, 2026 | $0.12vs $0.03-300.0% | $1.1Bvs $1.1B+0.0% |
| Q4 2025 | Nov 19, 2025 | $0.25vs $0.25+0.1% | $903Mvs $888M+1.7% |
Based on last 3 quarters of dataView full earnings history →
Latest KLAR News
Recent stock market news and headlines for Klarna Group plc (KLAR)
Barrons·5 days ago
What Klarna's $2 Billion Antitrust Suit Victory vs. Google Means for the BNPL StockA Swedish court determines the Alphabet-owned tech giant favored its own shopping service in search results.
WSJ·5 days ago
Google Must Pay Nearly $2 Billion to Klarna in Antitrust CaseA Swedish court ruled that the search giant favored its own price-comparison service over Klarna's.
PYMNTS·5 days ago
Klarna's PriceRunner Awarded $1.9 Billion in Google Antitrust CaseKlarna-owned price comparison website PriceRunner has prevailed in its antitrust lawsuit against Google. A Swedish court on Wednesday (July 1) awarded PriceRunner $1.9 billion, Klara said in a news release, calling it compensation for lost revenue from “Google's preferential treatment” of its comparison-shopping service over similar, independent services.
Benzinga·5 days ago
Klarna Stock Rises After Swedish Court Awards $1.97 Billion in Antitrust Damages Against GoogleKlarna Group plc (NYSE:KLAR) shares are trading higher Wednesday after a Swedish court ruled in favor of the company's PriceRunner unit, awarding $1.97 billion in damages in an antitrust case against Alphabet Inc. (NASDAQ:GOOG)‘s Google.
Peers Comparison
Key metrics vs top competitors for Klarna Group plc (KLAR)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $20.44 | $7.72B | -25.87 | 31.61% | -8.38% | -11.9% | — | |
| $83.85 | $27.93B | 559.00 | 38.8% | 11.95% | 11.17% | — | |
| $175.18 | $5.89B | 47.09 | 66.08% | 30.83% | 90.93% | — | |
| $102.71 | $36.8B | 21.00 | 16.88% | 27.03% | 45.13% | — | |
| $49.22 | $3.41B | 45.57 | 25.5% | 2.29% | 5.13% | — | |
| $44.06 | $38.87B | 8.14 | 4.32% | 15% | 25.08% | — |
Compare KLAR vs Peers
Klarna Group plc (KLAR) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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KLAR Frequently Asked Questions
Klarna Group plc (KLAR) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Klarna Group plc's revenue?
Klarna Group plc (KLAR) reported $3.82B in revenue for fiscal year 2025. This represents a 880% increase from $389.6M in 2016.
How fast is Klarna Group plc growing?
Klarna Group plc (KLAR) grew revenue by 31.6% over the past year. This is strong growth.
Is KLAR profitable?
Klarna Group plc (KLAR) reported a net loss of $199.0M for fiscal year 2025.
Dividend & Returns
What is KLAR's return on equity?
Klarna Group plc (KLAR) has a return on equity (ROE) of -11.9%. Negative ROE indicates the company is unprofitable.
What is Klarna Group plc's free cash flow?
Klarna Group plc (KLAR) had negative free cash flow of $2.60B in fiscal year 2025, likely due to heavy capital investments.