# Klarna Group (KLAR.US)

Canonical: https://gigainvestors.com/s/KLAR

Analysis as of: 2026-10-16T07:29:38.205Z. Financial observations: FY2017–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $13.51 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- positive earnings in fewer than 9 of 10 years

- Financial history: 10 years

- Profitable years in the last ten: 3

- Required profitable years: 9

Chart: Net income; fiscal year observations.

- FY2017: $42M

- FY2018: $12M

- FY2019: -$92M

- FY2020: -$154M

- FY2021: -$776M

- FY2022: -$1.0B

- FY2023: -$249M

- FY2024: $3.0M

- FY2025: -$294M

- LTM to Mar 2026: -$199M

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- median return on common equity below threshold

- return on tangible common equity below 5% in more than one year

- Bank / P&C ROTE, median of available years: -12.5%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: -37.1%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2017: 13.0%

- FY2018: 3.3%

- FY2019: -11.0%

- FY2020: -10.1%

- FY2021: -37.1%

- FY2022: -79.0%

- FY2023: -25.1%

- FY2024: 0.3%

- FY2025: -20.4%

- LTM to Mar 2026: -13.9%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 20.2%

- Book return interval: 8 years

- Starting book value per share: $0.89

- Ending book value per share: $3.88

Chart: Annual book + dividend return; fiscal year observations.

- FY2018: 8.5%

- FY2019: 138.5%

- FY2020: 81.2%

- FY2021: 37.6%

- FY2022: -39.3%

- FY2023: -21.3%

- FY2024: 9.9%

- FY2025: 29.0%

### management: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.4%

- Share growth excluding flagged crisis recapitalisations: 0.2%

- Five-year share growth excluding flagged crisis recapitalisations: 0.4%

- Flagged crisis recapitalisations: 0

- Book value created per share: $2.99

- Earnings retained per share after dividends and buybacks: -$7.00

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

Down 64% since Oct 2025 · "Klarna posts Q2 profit, revenue growth, trims volume outlook" (finance.yahoo.com, Aug 2026) · net income USD -199M

Story as of 2026-10-16T09:59:01.185Z; price observation 2026-10-15.

- 2025-11-18: Klarna Revenue Surges Yet Longer Loans Trigger Provisions ([finance.yahoo.com](https://finance.yahoo.com/news/klarna-revenue-surges-longer-term-123000828.html))

- 2026-02-19: Stock Market Today, Feb. 19: Klarna Group Shares Plunge After Q4 Results Miss Forecasts ([finance.yahoo.com](https://finance.yahoo.com/news/stock-market-today-feb-19-223707102.html))

- 2026-05-14: Klarna shares surge as it swings to first net profit ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/klarna-shares-surge-swings-first-151600634.html))

- 2026-06-29: Klarna Group PLC (KLAR) Fell Amid Management’s Cautious Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/klarna-group-plc-klar-fell-153638089.html))

- 2026-08-18: Klarna stock plunges 22% on trimmed guidance as German retail sales slow ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/article/klarna-stock-plunges-22-on-trimmed-guidance-as-german-retail-sales-slow-141517463.html))

### Net income · FY2026

net income USD -199M; source https://www.sec.gov/Archives/edgar/data/2003292/000200329226000007/klar-20251231.htm; observed 2026-02-26.

- FY2017: $42M 

- FY2018: $12M 

- FY2019: -$92M 

- FY2020: -$154M 

- FY2021: -$776M 

- FY2022: -$1.0B 

- FY2023: -$249M 

- FY2024: $3.0M 

- FY2025: -$294M 

- FY2026: -$199M 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in credit services; annual sales are USD 3.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/2003292/000200329226000007/klar-20251231.htm#000200329226000007 (filed 2026-02-26); FY2025: revenue 3509000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KLAR.US: Klarna Group plc operates as a digital bank and flexible payments provider in the United Kingdom, the United States, Germany, Sweden, and internationally. The company offers payment solutions, such as pay in full solution that settles purchases at time of the transaction; pay later solution that enables customers to purchase goods and services at the time of the transaction and pay the full amount at a later date; and fair financing that allows consumers to pay for their purchase over a long duration. It also provides advertising solutions that include sponsored search, affiliate programs, and brand advertisement; digital retail banking solutions, such as deposit and saving account, financial insights, and Klarna balance that allow consumer to hold monetary balance with Klarna balance solutions; and payment channels, including Klarna payment, Klarna app, Klarna card, and Klarna in-store. In addition, the company offers membership programs, product search and price comparison, cashback offers and merchant deals, loyalty cards, wish lists, delivery tracking and returns, AI-enabled support, Klarna memberships, Klarna merchant portal, and on-site messaging solutions. The company was formerly known as Klarna UK II plc and changed its name to Klarna Group plc in December 2023. Klarna Group plc was founded in 2005 and is based in London, United Kingdom.

### Why customers stay

It lost 12.5% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on tangible equity observations [[2017,0.1297008658058258],[2018,0.03310071660466198],[2019,-0.1102612889151582],[2020,-0.10138807376470772],[2021,-0.3713877416319456],[2022,-0.7902536900869412],[2023,-0.25100806451612906],[2024,0.0027347310847766638],[2025,-0.20430854760250175],[2026,-0.13925822253324002]]; median -0.12475975572419912. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 21.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KLAR.US SharesStats.PercentInsiders = 21.849 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 13.51 USD; reporting-to-trading FX 1; FY2025 annual sales per share 9.467048013066135; price multiple 1.427055189891707. FY2025 cash earnings/share -0.464044530706006. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2025-09: $36.65 per share

- 2025-10: $37.57 per share

- 2025-11: $31.47 per share

- 2025-12: $28.91 per share

- 2026-01: $23.07 per share

- 2026-02: $13.56 per share

- 2026-03: $13.09 per share

- 2026-04: $13.92 per share

- 2026-05: $18.29 per share

- 2026-06: $20.24 per share

- 2026-07: $18.94 per share

- 2026-08: $14.69 per share

- 2026-09: $12.39 per share

- 2026-10: $13.51 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:22.669Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/2003292/000200329226000007/klar-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.