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3h ago

Klarna Draws Mostly Upbeat Initiation Calls as Analysts Warn on Near-Term Margin Pressure

Shares remain well below their first-day highs following the U.S. listing, reflecting investor focus on rising costs in newer financing products.

A screen displays the company logo for Swedish fintech Klarna,during the company’s IPO on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 10, 2025. REUTERS/Brendan McDermid
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Overview

  • At least 14 analysts have launched coverage since late Sunday, with 10 issuing buy-equivalent ratings and the rest taking neutral positions.
  • Citigroup highlighted rising expenses in Klarna’s Fair Financing segment as a headwind to short-term profitability and projected margin recovery by full-year 2026.
  • Klarna shares rose about 2% Monday to roughly $41.50, leaving the stock about 10% above its $40 IPO price yet roughly 22% below its Sept. 10 open after a $35.60 low.
  • The company priced its Sept. 10 U.S. offering at $40 and opened at $52, with Goldman Sachs, J.P. Morgan and Morgan Stanley among the underwriters.
  • Klarna reported $3 billion in revenue for the year ended June 30, up 17% year over year, and a $100 million net loss tied to expansion in the U.S. and newer financing products.