Klarna Stock Crashes: Klarna shares dropped sharply by 27% to around $13.80, marking their lowest level ever. This big fall came even though the company just reported its first quarter with more than $1 billion in revenue.
The fintech firm posted $1.08 billion in revenue for the quarter. That beat the expected $1.07 billion. Total value of purchases processed through its platform, called gross merchandise volume, reached $38.7 billion. This figure came in a little above forecasts.
Klarna now has 118 million active users, slightly more than analysts had predicted. However, the average revenue earned from each user stayed flat at $30. This shows that new customers are joining, but the company is not making more money from each person.
The company reported a pretax loss of $241 million. This was its second straight quarterly loss since it went public. While investors often accept losses during fast growth, many get worried when losses keep growing.
The main reason for the stock drop was Klarna’s outlook for the next quarter. The company guided revenue between $900 million and $980 million. The middle of that range is $940 million, below the $965 million that most analysts expected.
Guidance for gross merchandise volume was set at $32 billion to $33 billion. This also came in lower than what the market had hoped for. This measure is very important because it shows the scale of Klarna’s buy-now-pay-later business.
Transaction margin income missed targets for the second quarter in a row. The adjusted operating margin came in at 4.4%, well below the 6.4% that had been forecast. These signs point to shaky progress toward making steady profits.
Since going public, Klarna’s shares have lost more than 50% from the IPO price. The early excitement around the company has disappeared. Investors now want clear proof of stronger margins, steady growth, and better results per user instead of just adding more accounts.
The steep 27% drop was the biggest single-day fall in the company’s history. Market mood now depends heavily on future guidance. Until Klarna shows it can lift revenue per user and improve profitability, pressure on the stock is likely to continue.
