Post-IPO Stock Performance
Klarna debuted strongly — first-day pop to $57.20 (all-time high) — but declined sharply after reporting elevated credit losses in its November 2025 earnings. As of May 7, 2026, KLAR trades at ~$14.64 (~74% below its IPO-day peak). 52-week range: $12.06–$57.20. Q1 2026 earnings: May 14, 2026.
IPO Price
$40.00
September 9, 2025 — priced above $35–$37 range
First Day High
$57.20
All-time high, September 10, 2025
First Day Close
~$46
+15% from IPO price; market cap ~$17B
Price (May 7, 2026)
~$14.64
Down ~63% from IPO price · 52-wk: $12.06–$57.20
Market Cap (May 2026)
~$5.52B
vs. $15B at IPO / $17B first-day close
Capital Raised
$1.37B
34.3M shares sold at $40/share
⚠️ Post-IPO Decline: What Happened
Klarna's stock fell sharply after its November 18, 2025 Q3 earnings report — its first as a public company. Revenue beat at $903M, but the company posted a $95M net loss and disclosed $235M in credit loss provisions, far above expectations. Shares dropped 21%+ that day. By December 2025 securities class actions were filed (Faruqi & Faruqi, Rosen Law). The 52-week low hit $12.06. As of May 7, 2026, KLAR trades at ~$14.64 — down 63% from IPO price. Q1 2026 earnings scheduled for May 14, 2026.
Key Financial Metrics
Klarna generated $3.5 billion in 2025 revenue — strong topline growth — but profitability remains a challenge post-IPO after elevated credit losses erased the profitability narrative that drove the listing.
$40
IPO Price Per Share
NYSE: KLAR, listed September 10, 2025
$3.5B
2025 Revenue
Full-year; ~25% YoY growth
Net Loss
Profitability (2025)
Q3: $95M net loss; credit provisions surged
$235M
Q3 Credit Loss Provisions
Higher-than-expected; key investor concern
111M
Consumers
26 countries as of 2026
May 14
Q1 2026 Earnings
First full post-lockup quarter
500K+
Merchant Partners
H&M, IKEA, Nike, Sephora, Walmart & more
What Is Klarna?
Klarna was founded in 2005 in Stockholm by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson. What started as an invoicing tool evolved into the world's leading Buy Now Pay Later (BNPL) platform, and ultimately a publicly traded fintech company.
Today, Klarna is more than BNPL. Its app serves 111M consumers across 26 countries as a full shopping platform — product discovery, price comparison, loyalty rewards, and AI-powered customer service. On the merchant side, Klarna's payment infrastructure processes billions of transactions per year for 500,000+ retailers, including a major Walmart partnership that expanded in 2025.
Post-IPO, Klarna is navigating a difficult balance: accelerating revenue through longer-duration installment loans while managing the credit losses that come with that expansion. The company's AI efficiency narrative remains intact, but credit risk has become the dominant story for public market investors.
📉 From $45B to $6.7B to $15B IPO — and Back Down
Klarna peaked at a $45.6B private valuation in 2021, crashed to $6.7B in a 2022 down round, then rebuilt toward a $15B IPO in September 2025. The listing was seen as a BNPL comeback story. But elevated credit losses post-IPO have pushed the public market cap to ~$5.52B by May 2026 — a sobering result for shareholders who bought at the IPO price, though analysts maintain a Buy consensus with an average price target of $38, implying +165% upside from the ~$14.64 current price.
IPO & Post-IPO Timeline
2005
Klarna Founded in Stockholm
Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson launch payment startup
June 2021
Peak Private Valuation — $45.6B
Europe's most valuable private fintech at the height of BNPL mania
July 2022
Down Round — $6.7B (−85%)
Rising interest rates and credit risk concerns force brutal valuation reset; ~700 staff cut
2023
Return to Profitability
Reports first profitable half since 2018; AI cost-reduction strategy announced
March 2025
F-1 Filed with SEC
Public F-1 registration statement filed; initial IPO target for spring 2025
April 2025
IPO Paused — Tariff Volatility
Trump tariff announcements rattle markets; Klarna delays offering to wait for stability
September 9–10, 2025
🟢 IPO: Listed on NYSE at $40/Share
Prices above range at $40; raises $1.37B at ~$15B valuation. First day: opens $52, peaks $57.20, closes ~$46 (+15%). Ticker: KLAR
November 18, 2025
Q3 2025 Earnings — Credit Loss Shock
Revenue beats at $903M but $95M net loss and $235M credit provisions disappoint. Stock drops 21%+ below IPO price
December 2025
Securities Class Action Filed
Lawsuit alleges IPO materials understated credit risks. Stock closes at $31.31 by Dec 22, 2025 — down 21.7% from IPO
March 2026
Lockup Expiration — Insider Selling
180-day post-IPO lockup expires; additional selling pressure pushes stock to ~$12–$14 range
May 2026
Stock at ~$14.64 — Q1 Earnings May 14, Analyst Buy Consensus
KLAR trading ~$14.64 (52-wk: $12.06–$57.20); market cap ~$5.52B. Sell-side consensus: Buy, avg target $38 (+165% upside). Q1 2026 earnings: May 14, 2026. Class action suits: Faruqi & Faruqi + Rosen Law pending.
Klarna vs. BNPL Competitors
| Company |
Market Cap (May 2026) |
Revenue (2025) |
Customers |
Status |
| Klarna (KLAR) |
~$5.52B |
$3.5B |
111M |
🟢 Public — NYSE (Sep 2025) |
| Affirm (AFRM) |
~$12B |
~$2.7B |
21M+ |
Public (AFRM) |
| Afterpay (Block / SQ) |
Part of Block (~$30B) |
~$1.5B GMV |
20M+ |
Public (SQ) |
| Sezzle (SEZL) |
~$500M |
~$220M |
3M+ |
Public (SEZL) |
| Zilch |
~$2B |
~$175M |
4M+ |
Private |
Data as of May 2026. Valuations approximate. Klarna now trades at a significant discount to Affirm despite larger revenue base.
Frequently Asked Questions
When did Klarna IPO?
Klarna went public on September 10, 2025 on the New York Stock Exchange (NYSE) under the ticker symbol KLAR. The IPO priced at $40 per share — above the initial $35–$37 marketing range — raising $1.37 billion and valuing the company at approximately $15 billion.
What is Klarna's current stock price and valuation in 2026?
As of May 7, 2026, Klarna (NYSE: KLAR) trades at approximately $14.64 — about 63% below its $40 IPO price and 74% below its all-time high of $57.20 reached on its first day of trading. The 52-week range is $12.06–$57.20. This implies a market cap of roughly $5.52 billion, compared to $15 billion at IPO. The decline was driven by higher-than-expected credit losses reported in November 2025 and a broader post-IPO lockup expiration in March 2026. Q1 2026 earnings are scheduled for May 14, 2026.
What is Klarna's ticker symbol and exchange?
Klarna trades on the New York Stock Exchange (NYSE) under the ticker symbol KLAR. The company listed on September 10, 2025 — the largest fintech IPO of the year. Goldman Sachs and JPMorgan served as lead underwriters.
What were Klarna's 2025 revenues?
Klarna generated approximately $3.5 billion in full-year 2025 revenue, representing strong year-over-year growth. Q3 2025 alone hit $903 million in revenue — a record quarter — though the company also posted a $95 million net loss driven by $235 million in credit loss provisions. The divergence between revenue growth and credit costs is the central tension investors are watching in 2026.
What do analysts forecast for Klarna stock in 2026?
Despite the sharp post-IPO decline, Wall Street analyst consensus on KLAR is Buy, with an average price target of ~$38 as of May 2026 — implying roughly +165% upside from the ~$14.64 current price. The bull case centers on Klarna's $3.5B revenue run rate, 111M consumers across 26 countries, Walmart partnership, and AI-driven cost efficiency. Bears point to ongoing credit risk, pending class action lawsuits (Faruqi & Faruqi and Rosen Law), and the challenge of achieving profitability with a rapidly expanding loan book. Q1 2026 earnings on May 14 will be a key catalyst.
Is there a class action lawsuit against Klarna?
Yes. Multiple federal securities class actions have been filed against Klarna Group plc (NYSE: KLAR), including suits by Faruqi & Faruqi LLP and Rosen Law Firm, alleging that the company's September 2025 IPO registration statement materially understated credit risks and the likelihood of increased loan loss provisions. The class period covers September 7 through December 22, 2025. Cases are pending in the Eastern District of New York. This is a litigation risk investors should factor into their assessment of the stock.
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