Klarna Analysts Slash Their Forecasts After Q3 Earnings

Author: Avi Kapoor | November 19, 2025 02:31pm

Klarna Group PLC (NASDAQ:KLAR) reported upbeat third-quarter earnings before the market open on Tuesday.

Klarna reported quarterly losses of 25 cents per share, which beat the market estimate for a loss of 33 cents per share. The company also reported quarterly revenue of $903 million, which beat the market estimate of $881.898 million.

Looking ahead, Klarna set fourth-quarter revenue guidance of $1.065 billion to $1.08 billion, which is higher than the $1.058 billion estimate. Despite the better-than-expected results, shares were down almost 10% at last check, according to Benzinga Pro.

"Q3 was our strongest quarter ever — proof that our AI-driven model is working at scale, with U.S. revenue up 51% and GMV up 43%," said CEO Sebastian Siemiatkowski. "While accounting timing creates a short-term profitability lag, we expect transaction margin dollars to increase by over $100 million in Q4 as revenue compounds."

Klarna Group shares fell 3.2% to trade at $30.62 on Wednesday.

These analysts made changes to their price targets on Klarna Group following earnings announcement.

• Morgan Stanley analyst James Faucette maintained Klarna with an Equal-Weight rating and lowered the price target from $43 to $39.
• JP Morgan analyst Tien-Tsin Huang maintained Klarna with an Overweight rating and lowered the price target from $50 to $45.
• Wolfe Research analyst Paul Obrecht maintained Klarna with an Outperform rating and lowered the price target from $50 to $45.

Considering buying KLAR stock? Here’s what analysts think:

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Posted In: KLAR