(Part 2 of 5) Earnings Calendar - Klarna (BNPL)?
Earnings Calendar (16Feb2026) - Klarna (BNPL)
I am interested in the recent earnings reports and performance of Moody’s, Klarna, DoorDash, John Deere, and Walmart.
Klarna: Leading Buy Now Pay Later Platform
Let us look at Klarna, the leading buy now, pay later (BNPL) platform.
Over the past year, Klarna’s stock price has experienced a significant decline, falling by 60.5%.
According to technical analysis, Klarna currently holds a strong sell rating. However, analyst sentiment remains positive, with a buy recommendation. The price target is set at $42.59, which suggests a potential upside of 135.16%.
Revenue Growth
Klarna demonstrated robust revenue growth, increasing from $2.2 billion in 2023 to $3 billion on a trailing twelve-month (TTM) basis. This positive trajectory highlights the company’s ability to expand its top line despite overall market challenges.
Operating Income
Despite higher revenues, Klarna continued to report operating losses. The company ended 2023 with an operating loss of $322 million, while the TTM figures show a reduced loss of $225 million, indicating some improvement in operational efficiency.
Earnings Per Share (EPS)
EPS trends over the past three years have fluctuated. Klarna posted an EPS of -$0.66, followed by a slight positive at $0.01, and then a return to negative territory with -$0.30. These figures reflect ongoing volatility in profitability.
Total Debt
Klarna’s total debt has risen notably, going from $472 million in 2024 to $791 million on a TTM basis. This increase suggests that the company has taken on more financial obligations, potentially to support growth or manage operational needs.
Free Cash Flow
Free cash flow showed significant improvement, rising from $723 million in 2023 to $1,260 million TTM. This positive movement indicates stronger liquidity and cash generation capabilities, which may help offset the company’s losses and increased debt.
Klarna is seen as the leader of the BNPL sector with strong revenue growth over recent years. The earnings can be used to “project” the outlook of this growing sector.
For the next quarter, analysts expect -0.02 USD in earnings per share and 1.07 B USD in revenue (TradingView). From the above data, I prefer to stay away from the company till it demonstrates stable profitability.
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