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Klarna Set to Report Q4 Earnings: Key Factors Investors Should Watch
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Key Takeaways
Klarna is set to report Q4 results Feb. 19, with revenues expected at $1.07B and GMV within $37.5-$38.5B.
KLAR expects transaction margin dollars of $390-$400M and benefits from rising users and partnerships.
Klarna faces higher credit loss provisions, AI-driven efficiency and sequential EPS improvement.
Klarna Group plc (KLAR - Free Report) is set to report fourth-quarter 2025 results on Feb. 19, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at a loss of 3 cents per share, and the same for revenues is pinned at $1.07 billion.
The fourth-quarter earnings estimate witnessed one upward revision over the past month against no downward movements. The bottom-line prediction indicates a sequential improvement of 88%. The Zacks Consensus Estimate for quarterly revenues implies growth of 18.5% from the previous quarter.
Image Source: Zacks Investment Research
For the full-year 2025, the Zacks Consensus Estimate for Klarna’s revenues is pegged at $3.51 billion, implying a rise of 24.9% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at a loss of 48 cents, a massive decline from year-ago earnings of a penny per share.
Klarna beat the consensus estimate for earnings in the last quarter by 24.2%.
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Klarna has an Earnings ESP of -20.65% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KLAR’s top line is expected to be supported by growing transaction and service revenues and rising interest income. New partnerships are likely to have contributed towards global expansion efforts, which supported growth in consumer and merchant numbers and transactions. Consumer receivables are likely to have increased on higher usage of KLAR’s products.
Gross merchandise volume (GMV) growth momentum is expected to have continued in the fourth quarter for both U.S. and global operations. The company expects GMV to be within $37.5-$38.5 billion in the fourth quarter.
It expects transaction margin dollars to be within $390-$400 million in the quarter under review. New signups for its Klarna Card remained a tailwind in the fourth quarter.
AI-enabled productivity and cost discipline efforts are expected to have supported operational efficiency, upholding bottom-line improvement. However, provisions for credit losses are likely to have increased in the fourth quarter, driven by the upfront provisions related to Fair Financing portfolio growth.
How Did Peers Perform?
Companies in the payments space like Affirm Holdings, Inc. (AFRM - Free Report) and American Express Company (AXP - Free Report) have already reported their results for the December quarter. Here’s how they have performed:
Affirm posted second-quarter fiscal 2026 earnings of 37 cents per share, which beat the Zacks Consensus Estimate by 32.1% and rose 60.9% year over year. Net revenues were $1.1 billion, representing a 30% year-over-year jump. Higher network revenues and servicing income, transactions, and repeat customer engagement boosted Affirm’s performance. The results were partly offset by an elevated expense level and rising provision for credit losses.
American Express reported fourth-quarter 2025 EPS of $3.53, which missed the Zacks Consensus Estimate by 0.3%. However, the bottom line climbed 16% year over year. Total revenues, net of interest expense, amounted to $19 billion, which improved 10% year over year. Elevated customer engagement and operating cost levels affected the bottom line. Nevertheless, the downside was partly offset by rising Card Member spending. Higher revolving loan balances and continued strong card fee growth aided AXP’s performance.
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Klarna Set to Report Q4 Earnings: Key Factors Investors Should Watch
Key Takeaways
Klarna Group plc (KLAR - Free Report) is set to report fourth-quarter 2025 results on Feb. 19, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at a loss of 3 cents per share, and the same for revenues is pinned at $1.07 billion.
The fourth-quarter earnings estimate witnessed one upward revision over the past month against no downward movements. The bottom-line prediction indicates a sequential improvement of 88%. The Zacks Consensus Estimate for quarterly revenues implies growth of 18.5% from the previous quarter.
For the full-year 2025, the Zacks Consensus Estimate for Klarna’s revenues is pegged at $3.51 billion, implying a rise of 24.9% year over year. Meanwhile, the consensus mark for full-year EPS is pegged at a loss of 48 cents, a massive decline from year-ago earnings of a penny per share.
Klarna beat the consensus estimate for earnings in the last quarter by 24.2%.
Klarna Group plc Price and EPS Surprise
Klarna Group plc price-eps-surprise | Klarna Group plc Quote
Q4 Earnings Whispers for Klarna
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Klarna has an Earnings ESP of -20.65% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What is Shaping Klarna’s Q4 Results?
KLAR’s top line is expected to be supported by growing transaction and service revenues and rising interest income. New partnerships are likely to have contributed towards global expansion efforts, which supported growth in consumer and merchant numbers and transactions. Consumer receivables are likely to have increased on higher usage of KLAR’s products.
Gross merchandise volume (GMV) growth momentum is expected to have continued in the fourth quarter for both U.S. and global operations. The company expects GMV to be within $37.5-$38.5 billion in the fourth quarter.
It expects transaction margin dollars to be within $390-$400 million in the quarter under review. New signups for its Klarna Card remained a tailwind in the fourth quarter.
AI-enabled productivity and cost discipline efforts are expected to have supported operational efficiency, upholding bottom-line improvement. However, provisions for credit losses are likely to have increased in the fourth quarter, driven by the upfront provisions related to Fair Financing portfolio growth.
How Did Peers Perform?
Companies in the payments space like Affirm Holdings, Inc. (AFRM - Free Report) and American Express Company (AXP - Free Report) have already reported their results for the December quarter. Here’s how they have performed:
Affirm posted second-quarter fiscal 2026 earnings of 37 cents per share, which beat the Zacks Consensus Estimate by 32.1% and rose 60.9% year over year. Net revenues were $1.1 billion, representing a 30% year-over-year jump. Higher network revenues and servicing income, transactions, and repeat customer engagement boosted Affirm’s performance. The results were partly offset by an elevated expense level and rising provision for credit losses.
American Express reported fourth-quarter 2025 EPS of $3.53, which missed the Zacks Consensus Estimate by 0.3%. However, the bottom line climbed 16% year over year. Total revenues, net of interest expense, amounted to $19 billion, which improved 10% year over year. Elevated customer engagement and operating cost levels affected the bottom line. Nevertheless, the downside was partly offset by rising Card Member spending. Higher revolving loan balances and continued strong card fee growth aided AXP’s performance.