Klarna’s IPO generated excitement, but shares later lost over half their value. The buy-now-pay-later company aims to recover, with shares up 5.5% in premarket trading on Thursday after stronger-than-expected first-quarter earnings. Investors are hopeful for the first time since the IPO. Let’s examine the numbers to determine if this marks a real turnaround or just a fleeting boost.
Klarna’s revenue rose 44% to $1 billion this quarter, beating the $944.1 million estimate. The loss narrowed to 1 cent per share, well below the expected 18-cent loss. Klarna processed $33.7 billion in transactions, ahead of the $32.7 billion forecast.
These results come at a critical moment. Klarna’s IPO was among the largest of 2025, with shares rising 15% on their first day and valuing the company at over $17 billion. That enthusiasm faded; shares have since dropped, trading well below the IPO price, and the market value stood at $9.97 billion Wednesday, a fall of more than $7 billion since the debut.
Thursday’s results don’t erase concerns but shift the conversation. A 44% jump in revenue and near-breakeven loss show growth outpacing share performance. Sustained profitability in the coming quarters will determine momentum.
