NEW YORK, Feb 20, 2026, 05:10 (EST) — Premarket
Shares of Klarna Group plc (NYSE: KLAR) are due to resume trading Friday, following a rough session that saw them tumble 26.9% to $13.85—marking one of the steepest drops the stock has seen since its New York debut. 1
Klarna’s still new to public markets, making this shift significant. Investors are rethinking what “growth” really looks like as borrowing and credit get pricier.
Klarna is moving its focus away from “buy now, pay later,” the short-term installment loans at checkout, and is leaning into a more traditional set of banking products. That pivot reshuffles the profit timeline, putting guidance and credit trends squarely under the microscope.
Klarna posted a net loss of $26 million for the fourth quarter, compared to a $40 million profit during the same period last year, falling short of average analyst estimates for a narrower loss, Reuters reported. CEO Sebastian Siemiatkowski pointed to rapid expansion putting pressure on results, since expenses hit the books early: “As growth comes down a little bit, that will start to play out very favourably.” JPMorgan flagged the company’s move toward more engagement and lending as a drag on headline metrics, and noted higher costs tied to processing and funding. 2
Klarna reported fourth-quarter revenue up 38% to $1.082 billion, with gross merchandise volume jumping 32% to $38.7 billion. Processing and servicing costs reached $250 million, and the company put aside $250 million for credit losses. Funding costs came in at $210 million. For the first quarter, Klarna is projecting revenue between $900 million and $980 million and expects GMV in the $32 billion to $33 billion range. The forecast banks on minor drops in short-term benchmark rates and a stepwise launch of “default-on” partnerships, like those with Worldpay and JPMorgan Payments. 3
There’s a risk here: Should consumer delinquencies rise or funding remain constrained, margin pressure might persist beyond what bulls are hoping for—even if transaction volumes don’t slip. And if longer-term lending or new partner launches stall, those 2026 goals management has set could come under strain.
Klarna hit the NYSE in September 2025, debuting at $40 per share for its IPO. 4
Eyes turn to February 26. That’s when Klarna plans to release its full-year financials. Market watchers want clarity on credit costs, funding sources, and if Klarna maintains its 2026 guidance after Thursday’s slide. 5
