Added to YB: 2026-03-05
Pitch date: 2026-03-03
KLAR [bullish]
Klarna Group plc
+0.52%
current return
Author Info
P14 Capital is a former buy-side research analyst who uncovers undervalued opportunities in SMID-cap equities. Long-biased and generalist. Sign up for the newsletter.
Company Info
Klarna Group plc operates as a digital bank and flexible payments provider in the United Kingdom, the United States, Germany, Sweden, and internationally.
Market Cap
$5.0B
Pitch Price
$13.50
Price Target
41.00 (+206%)
Dividend
N/A
EV/EBITDA
2.94
P/E
-16.72
EV/Sales
0.41
Sector
Financial Services
Category
value
LONG $KLAR - 4Q25 ER Update
KLAR: Q4 GMV beat, rev $1.08B (+0.88% vs est), but TMD missed 5.8% at $372M (2nd consecutive miss). FY26 guide: >$155B GMV (+21.2% YoY), >$4.34B rev (+23.7%), >$1.61B TMD (+30.1%), >6.9% adj op profit margin. TMD weakness from Fair Financing accounting (165% YoY growth creates upfront provisions). Card users 4.2M (2x QoQ), banking consumers 15.8M (2x YoY). Credit quality stable: provisions 0.65% of GMV (-7bps QoQ), Gini 0.78. Balance sheet strong: $5.3B cash (106% of mkt cap), -$2B net debt. Lock-up 3/9 likely priced in. Trading 0.7x EV/FY26 sales vs AFRM 7x. PT $31-41 (133-211% upside) on 6-8x FY27 TMD multiple in 2yrs as margins normalize post-FF ramp.
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