Klarna Group plc

NYSE:KLAR Stock Report

Market Cap: US$7.1b

Klarna Group Future Growth

Future criteria checks 4/6

Klarna Group is forecast to grow earnings and revenue by 52.6% and 15.5% per annum respectively. EPS is expected to grow by 53.3% per annum. Return on equity is forecast to be 15.4% in 3 years.

Key information

52.6%

Earnings growth rate

53.27%

EPS growth rate

Diversified Financial earnings growth8.5%
Revenue growth rate15.5%
Future return on equity15.40%
Analyst coverage

Good

Last updated21 Jul 2026

Recent future growth updates

Recent updates

Seeking Alpha • Jul 14

Klarna: Priced As BNPL, Should Trade As A Neobank

Summary Klarna Group plc is transitioning from a BNPL platform to a full-scale neobank, trading at a deep discount to peers. Q1 2026 showed a profitability inflection: $1.01B revenue (+44% YoY), $389M TMD (38% margin), and a return to positive net income. Management targets 50% TMD and 25% AOI margins at maturity, with US neobank expansion and a pending Utah ILC charter as key catalysts. We rate KLAR a Buy with a $35 price target, citing margin expansion, neobank re-rating, and strong operating leverage. Read the full article on Seeking Alpha
Narrative Update • Jul 10

KLAR: Google Ruling Is Expected To Reshape Future Earnings Power

The updated Klarna Group analyst price target moves to $24.10 per share as analysts incorporate a series of higher Street targets in the $18 to $27 range and factor in the potential financial impact of the $1.97b Google antitrust ruling, along with ongoing views on growth, profitability, and valuation multiples. Analyst Commentary Recent research on Klarna Group reflects a mix of optimism around execution and profitability, set against ongoing questions about competition, credit risk, and how much of the Google ruling is already reflected in the stock.
Narrative Update • Jun 26

KLAR: Credit And Execution Risks Will Challenge Optimistic Medium Term Expectations

The analyst fair value estimate for Klarna Group has been raised from $14.00 to $17.00, reflecting broadly higher Street price targets as analysts cite Q1 transaction margin beats, improving unit economics in key markets, and a larger global BNPL opportunity. Analyst Commentary Street research on Klarna Group highlights a mix of optimism around recent Q1 results and transaction margin disclosures, alongside a more cautious tone from some bearish analysts who are focused on execution risks, credit quality, and how current valuation lines up with future growth expectations.
New Narrative • Mar 05

Banking Mix And Credit Costs Will Ultimately Define A Fair Outlook

Catalysts About Klarna Group Klarna Group operates a global payments and retail banking platform across 26 markets, offering buy now, pay later, Fair Financing, cards and deposit products to consumers and merchants. What are the underlying business or industry changes driving this perspective?

Earnings and Revenue Growth Forecasts

NYSE:KLAR - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20286,26851742127515
12/31/20275,30430654259521
12/31/20264,424551,9692,80821
3/31/20263,820-198-2,622-2,591N/A
12/31/20253,509-294-1,062-1,032N/A
9/30/20253,209-2241,5101,541N/A
6/30/20253,010-1181,2601,296N/A
3/31/20252,869-67-2219N/A
12/31/20242,8113542587N/A
9/30/20242,724-521,5661,619N/A
6/30/20242,677-951,9161,978N/A
3/31/20242,456-163N/AN/AN/A
12/31/20232,276-249723808N/A
9/30/20231,889-384349440N/A
6/30/20231,759-557-298N/A
3/31/20231,731-808N/AN/AN/A
12/31/20221,904-1,038231336N/A
9/30/20221,453-1,00456148N/A
6/30/20221,507-1,171-788N/A
3/31/20221,599-1,010-227-128N/A
12/31/20211,619-776-464-365N/A
9/30/20211,570-521-697-611N/A
6/30/20211,500-245-936-864N/A
3/31/20211,363-193-392-330N/A
12/31/20201,333-154141198N/A
9/30/20201,130-144-263-208N/A
6/30/2020995-141-630-574N/A
3/31/2020871-110-745-698N/A
12/31/2019850-92N/A-903N/A
9/30/2019756-46N/A-476N/A
6/30/2019747-4N/A-99N/A
3/31/20196963N/A-11N/A
12/31/201867812N/A82N/A
9/30/201863016N/A5N/A
6/30/201858321N/A-72N/A
3/31/201858332N/A-194N/A
12/31/201754842N/A-317N/A
12/31/201639012N/A48N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.5%).

Earnings vs Market: KLAR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KLAR is expected to become profitable in the next 3 years.

Revenue vs Market: KLAR's revenue (15.5% per year) is forecast to grow faster than the US market (12.6% per year).

High Growth Revenue: KLAR's revenue (15.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KLAR's Return on Equity is forecast to be low in 3 years time (15.4%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/21 21:26
End of Day Share Price 2026/07/21 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Klarna Group plc is covered by 27 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshita RawatBernstein
null nullBMO Capital Markets Equity Research
Andrew BauchBMO Capital Markets Equity Research