Share count
371Mpeak FY2025
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KLAR, Klarna Group plc
Revenue is led by Transaction revenue (60%) and Interest income (27%), with 2 more lines behind.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$3.5B
+24.8% YoY
Vital signs · TTM, with 3-yr average
Revenue $3.5B 3-yr avg $2.9B
The business in brief
What this business is and what moves its needle, from its own SEC filings.
- What it is
- A balance-sheet business, read on book value, net interest margin and credit losses rather than an earnings multiple.
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
- What moves the needle
- Net interest margin, loan losses, and book value. A lender is read on the quality of its balance sheet, not an earnings multiple, and the worst year of credit losses matters more than the best.
- Is it a good business?
- Return on equity has sat below the cost of equity (median -11%, above 12% in only 0 of 3 years). The cycle and the loan book decide this one; weigh the recession years in the record, not the average, and read the 10-K.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Transaction revenue is 60% of revenue, with Interest income the other meaningful line at 27%.
Revenue by product line, FY2025
- Transaction revenue60%$2.1B
- Interest income27%$937M
- Consumer service revenue11%$397M
- Gain on sale of consumer receivables2%$73M
By geographyUnited States35%Other countries28%Germany24%United Kingdom13%
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2023–2025
realized figures from each filing · older years to the left| 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|
| Income statement | ||||
| $2.3B | $2.8B | $3.5B | $3.5B | RevenueRevenue |
| $211M | $172M | $270M | $270M | Net interest incomeNet int. |
| ($244M) | $21M | ($273M) | ($273M) | Net incomeNet inc. |
| Cash flow & returns | ||||
| — | 0.2% | -1.5% | -1.5% | Return on assetsROA |
| -11% | 1% | -11% | -11% | Return on equityROE |
| −11% | 1% | −11% | −11% | Retained to equityRetained/eq |
| -11% | 2% | -19% | -19% | Return on tangible equityROTCE |
| Balance sheet | ||||
| — | $13.8B | $18.8B | $18.8B | Total assetsAssets |
| — | $613M | $685M | $685M | GoodwillGoodwill |
| $2.2B | $2.1B | $2.5B | $2.5B | Shareholders’ equityEquity |
| Per share | ||||
| 362M | 364M | 371M | 371M | Shares out (diluted)Shares |
| $-0.67 | $0.06 | $-0.74 | $-0.74 | EPS (diluted)EPS |
| $6.07 | $5.73 | $6.76 | $6.76 | Book value / shareBVPS |
| $6.07 | $3.01 | $3.88 | $3.88 | Tangible book / shareTBVPS |
The record, charted
FY2023–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$3.5Blow FY2023
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Is it a good business?
- Return on equity -11%Loss on equityNet income ($273M) ÷ equity $2.5BIndustry peers: median 5%
What this means
The bank's north star, what it earns on shareholders' capital. Cost of equity is roughly 10%, so a return durably above that builds value and below it destroys it. One year is noisy; the durability across a full credit cycle is what counts.
- LossNet income ÷ (equity − goodwill $685M − intangibles $383M)Industry peers: median 13%
What this means
The cleaner return, stripping out the goodwill paid for past acquisitions. This is the number a buyer of the whole bank actually earns on the hard capital.
- Not enough dataIndustry peers: median 47%
What this means
Noninterest expense or revenue missing.
Is it sound?
- Capital (equity / assets) 13.3%Well capitalizedEquity $2.5B ÷ assets $18.8B
What this means
A plain-English leverage read: how much of the balance sheet is the owners' own money. This is a rough proxy; the regulatory figure is the CET1 ratio, which is risk-weighted and reported in the filing. The point is the same, how much loss the bank can absorb before depositors are at risk.
- Funding —Not enough data
What this means
Deposits or total assets missing.
- Credit cost —Not enough data
What this means
Provision or net interest income missing.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Peers, Capital Markets & Asset Management
The same industry, side by side on the bank lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | ROE | ROTCE | Efficiency | NII / assets |
|---|---|---|---|---|---|
| KLARKlarna Group plc | $3.5B | -11% | -11% | — | 1.4% |
| BKKTBakkt Inc. | $2.3B | -146% | -252% | — | 0.5% |
| GDOTGreen DOT Corp | $2.0B | 5% | 13% | — | -0.1% |
| ATLCAtlanticus Holdings Corporation | $2.0B | 42% | 42% | 55% | 21.3% |
| UPSTUpstart | $1.0B | -7% | -8% | — | 0.0% |
| SOFISoFi Technologies | $3.6B | -6% | -9% | 85% | 3.6% |
| OMFOneMain Holdings Inc. | $4.9B | 23% | 48% | 39% | 15.3% |
| SYFSynchrony Financial | $19.0B | 21% | 25% | 27% | 15.5% |
| Group median | — | -0% | 2% | — | 2.5% |
The price
What a price has to assume.
What the price implies
price / tangible bookEnter the home-market price, not the US ADR quote. Klarna Group plc reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.
A bank is worth a multiple of its tangible book value, and the multiple it deserves is set by the return it earns on that book. Type today’s price; we show what you would be paying against what Klarna Group plc’s record justifies.
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The assumptions
The justified multiple is (return on tangible equity − growth) ÷ (cost of equity − growth). A bank earning exactly its cost of equity is worth about one times tangible book; the premium above that prices each point of durable excess return. A higher cost of equity lowers the justified multiple for a bank.
Enter a price above to run it.
Price / tangible book—
Justified by the return—
Normalized return on tangible equity−11%
Price / book—
Earnings yield—
P/E (3-yr avg ’23–’25)—
Graham’s price gate—
Graham applied the same standards to financial enterprises (Intelligent Investor ch.14): the 15× multiple cap on averaged earnings, and P/E times price-to-book at most 22.5. The gate marks the bargain-hunter’s floor, not a verdict.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Tangible book $1.4B on 378M shares, a −11% normalized return on it. The dials set the multiple such a return would justify; your price sets the multiple you are paying. It assumes the bank keeps earning that return; a credit cycle, a rate shock or a bad acquisition changes it, which is what the record and the 10-K are for.
Cite: Owner Scorecard, "Klarna Group plc (KLAR), the owner's record," https://ownerscorecard.com/c/KLAR, data as of 2026-07-09.
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Industry order: ← KKRS the Capital Markets & Asset Management chapter LAZ →