Fintech / Buy Now Pay Later (BNPL) / Digital Banking
Strategic Profile
Klarna is the leading provider of buy now, pay later services in the US and Europe. The company works with top brands including being the sole BNPL provider for Walmart. The company is transforming into a global digital bank, leveraging high-margin subscriptions and diversified financial products for long-term growth.
Cyborg Score Rationale
The business is thriving with revenue increased 26% year over year in the third quarter and 23% increase in gross merchandise volume. Klarna reported its first annual profit in 2024 of $21 million after being loss-making since 2019. However, Klarna stock is down 56% since its September 2025 IPO first-day closing price, reflecting near-term investor concerns despite strong operational metrics.
Top Insights
Klarna made $2.8 billion revenue in 2024, a 22.8% year-on-year increase, and generated $105 billion in gross merchandise volume
Klarna announced several strategic initiatives including support for Google's Universal Commerce Protocol, OnePay post-purchase financing partnership, and expansion of digital banking with peer-to-peer payments in 13 European countries
Klarna is trading at only 2 times trailing-12-month sales, appearing as quite a bargain for an industry-leading company
Named Competitors
Afterpay — BNPL alternative with second-highest merchant adoption