Klarna IPO: what you need to know and how to buy shares

Klarna IPO: what happened

Klarna completed its initial public offering on the New York Stock Exchange on 10 September 2025, trading under the ticker symbol KLAR. The company priced its offering at $40 per share on 9 September — above the initial guidance range of $35 to $37, reflecting strong investor demand with the book reportedly oversubscribed approximately 25 times.

The IPO raised $1.37 billion from the sale of 34.3 million shares, valuing Klarna at $15.1 billion at the issue price. The share sale was led by Goldman Sachs, JP Morgan and Morgan Stanley. Klarna itself sold 5.56 million shares, with the remaining 28.8m sold by existing shareholders.

Shares opened on debut at $52 — a 30% premium to the offer price — before paring gains and closing at $45.82, up 14.6% on the day. It was the largest IPO of 2025 at the time of listing, according to Renaissance Capital.

The $15.1 billion valuation at IPO represented a significant reset from Klarna's $45.6 billion peak in 2021, reflecting the broader repricing of high-growth fintech and consumer credit businesses as interest rates rose and profitability timelines extended.

Where is the Klarna share price now?

As of 18 June 2026, Klarna shares are trading at approximately $17.66 on the NYSE — down approximately 56% from the $40 IPO price and down approximately 66% from the $52 opening trade.

The 52-week range is $12.06 to $57.20, reflecting significant volatility since listing. The stock hit its post-IPO low in early 2026 as broader risk-off sentiment and concerns about BNPL credit quality weighed on the sector, before recovering partially through Q2 2026 following better-than-expected Q1 results.

Analysts maintain an average 12-month price target of approximately $23.06, with a high estimate of $45 and a low of $17. Of 12 analysts covering the stock, all 12 rate it a buy, suggesting the market consensus is that the current price represents a reasonable entry point relative to growth expectations.

Klarna's business model and financials

Klarna is a Swedish-headquartered digital bank and flexible payments provider, operating in 26 countries and serving 111 million active consumers. It is best known for its buy now, pay later (BNPL) products but has evolved into a broader payments and banking platform.

Revenue is generated primarily through merchant fees — retailers pay Klarna to offer flexible payment options at checkout. Klarna also earns interest income on its longer-duration credit products and subscription fees from its premium services.

Q1 2026 results were materially better than expected:

• Revenue of $1.01 billion, up 44% year on year, beating estimates by approximately 5.9%
• Gross merchandise volume (GMV) of $33.7 billion, up 33% year on year
• Positive operating income of $17 million versus a $90 million operating loss in Q1 2025
• Adjusted operating income of $68 million, improving $65 million year on year
• EPS of -$0.01, dramatically better than the -$0.20 consensus estimate
• Merchant network expanded to 1.07 million partners

The company projects EPS to turn positive by full year 2027. Q2 2026 guidance calls for revenue of $960 million to $1 billion. Revenue is forecast to grow approximately 26% for the full year.

What drives the Klarna share price?

Several factors influence Klarna's valuation and share price movements:

• GMV growth is the most closely watched operational metric — it measures the total value of transactions processed through Klarna's platform. Consistent GMV growth signals merchant adoption and consumer usage are both expanding.
• Credit quality is critical for a BNPL lender. Rising consumer defaults or deteriorating credit metrics would significantly damage sentiment. So far Klarna's credit metrics have held up well despite macroeconomic pressures.
• US expansion is the key growth narrative. The US is Klarna's primary growth market, and its partnership with Stripe has been a meaningful accelerant for merchant adoption. US-specific metrics are watched closely each quarter.
• Competition from PayPal, Affirm, Apple Pay Later, and bank-issued BNPL products is intensifying. Klarna's ability to differentiate and maintain merchant relationships as competition grows is a key long-term question.
• Interest rates affect both Klarna's funding costs and consumer appetite for credit products. A lower rate environment generally supports BNPL adoption.
• AI integration — Klarna has been vocal about using AI to reduce costs, with AI reportedly handling approximately two-thirds of customer enquiries. Continued cost reduction from AI would improve the path to profitability.

Analyst views and price targets

As of June 2026, 12 analysts cover Klarna with an aggregate buy rating and an average price target of $23.06 — approximately 30% above the current price of $17.66. The high estimate of $45 reflects the most bullish case for US expansion and profitability delivery. The low estimate of $17 is broadly in line with the current price, suggesting the downside case involves little further decline from here.

Revenue is forecast to grow 26% in the next 12 months. Earnings are forecast to grow 82% over the same period, reflecting the improving operating leverage evident in Q1 2026.

The bear case centres on the valuation relative to profitability — Klarna is still loss-making on a reported EPS basis and is yet to prove it can generate sustainable net income at scale. The bull case is that the Q1 2026 results show the operating leverage inflecting positively and that the stock has been oversold relative to its growth trajectory.

Key risks

• Post-IPO overhang. Existing shareholders who sold at IPO have already realised gains, but pre-IPO investors with lower cost bases may continue to sell as lock-up periods expire. Selling pressure from insiders can weigh on the share price regardless of underlying performance.
• BNPL regulatory risk. Regulators in the UK, EU, and US are all tightening oversight of BNPL products. Stricter affordability checks or interest caps could materially affect Klarna's economics.
• Consumer credit cycle. If unemployment rises and consumers default on BNPL purchases at higher rates than expected, Klarna's credit losses would increase and its profitability timeline would extend.
• Competition. The BNPL market is attracting increasing competition from banks, card networks, and big tech. Klarna's merchant relationships and consumer loyalty are its moat — both can erode.
• Currency risk for UK investors. Klarna is US-listed and reports in US dollars. UK investors buying KLAR shares take on USD/GBP exposure alongside the stock itself.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with us. Past performance is not a reliable indicator of future results.

How to trade or invest in Klarna shares with us

Klarna (NYSE: KLAR) is available to trade or invest in through us. You can:

1. Log in to your account or open a share dealing account or ISA
2. Search for Klarna or ticker KLAR
3. Choose to buy outright or trade via spread bet or CFD
4. Select your size and place your deal

With our share dealing account, US shares including KLAR are available at £0 commission online. You can also hold KLAR within a stocks and shares ISA, sheltering any gains from capital gains tax up to the annual £20,000 allowance.

For those who want to trade on KLAR's price movements using leverage, spread bets and CFDs are available. Spread betting profits are free from CGT and stamp duty for most UK retail traders. Note that leveraged products are not suited for long-term investing — they carry overnight funding costs and amplify both gains and losses.

For context on other fintech and IPO opportunities, see our upcoming IPOs guide, our Monzo IPO guide, and our AI stocks and ETFs guide.