Klarna Group plc Ordinary Shares (KLAR)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business that earns consistent profits and generates cash. Klarna operates in digital banking and flexible payments, a competitive field where scale and trust matter, but the reported figures show little durable earning power. In the latest reported quarter, fiscal Q1 2026, revenue was $1.0B yet net income was -$5.0M, a -0.49% margin. EPS was -$0.52. FairStock calculations show ROE of -4.29% and ROCE of -0.08%; trailing free cash flow was -$2.6B, an FCF yield of -49.5%. That cash burn is not a margin of safety; it is a warning. The balance sheet has debt-to-equity of 0.66, and FairStock's Altman Z-Score of 0.50 and Piotroski F-Score of 3/9 suggest financial fragility. On the positive side, revenue growth was 44.37%, profit growth was 95.05%, and EV/EBITDA was 5.48. At the close on 2026-10-13, the price was $13.38, market cap $5.3B, and FairStock-calculated P/E was -25.73 and P/B 2.08. That P/B is not obviously cheap for a loss-making lender, though the shares are far below the $40.05 52-week high. FairStock score 34/100, and no Lynch category exists because only 0 years of filed annual results are available - need 3. I need more evidence of durable profits, positive cash flow, and a stronger competitive moat before the numbers would look compelling.

In plain English: Klarna is a digital bank and payments company that lets shoppers pay later or over time. Its sales are growing quickly, but it is still losing money and burning cash. At $13.38 on 2026-10-13, the price is far below its past-year high, but the numbers do not show an obviously cheap, profitable business.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer