(Part 2 of 5) - Earnings Calendar: Is Klarna worth a look? (17Aug2026)
Earnings Calendar (17Aug2026)
Next week’s earnings calendar includes Home Depot, Baidu, Klarna, Walmart and Alibaba. This section focuses on Klarna, given its relevance to consumer finance, digital payments and credit risk. Klarna offers Buy Now Pay Later (BNPL) services, a reference for consumer debt.
Business and Credit Relevance
Klarna is a digital bank and payments provider offering pay-in-full, buy-now-pay-later, longer-term financing, banking products and merchant tools across major international markets. Its credit relevance lies in its consumer financing model: it extends payment terms, manages repayment risk and depends on customer credit quality, funding costs and merchant transaction volumes.
For credit assessment, the key areas to monitor are underwriting discipline, loan performance, funding resilience, profitability and the company’s ability to scale responsibly. (Summary by Grok)
Market View of Klarna
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Technical analysis: Strong buy
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Analyst sentiment: Buy
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Price target: $24.55, implying potential upside of 18.09%
Profitability and Valuation
Despite positive market signals, Klarna remains unprofitable, with a P/E ratio of -32.4 and EPS of -0.53. This makes earnings quality, margin improvement and the path to sustainable profitability important areas to watch.
Financial Performance: 2022–2025
Klarna’s financial year ends on 31 December. Over the 2022–2025 period, total revenue increased from $1.9 billion to $3.5 billion, while gross profit rose from $0.8 billion to $1.9 billion. Despite this growth, earnings per share remained negative throughout the period. Net losses narrowed, improving from a $1.0 billion loss in 2022 to a $0.24 billion loss in 2025.
Balance Sheet Trends
Between 2023 and 2025, total assets grew from $13.7 billion to $18.7 billion. Total liabilities also increased, rising from $11.5 billion to $16.1 billion, while total debt expanded from $0.47 billion to $1.42 billion. Working capital remained relatively stable, fluctuating between $1.3 billion and $1.34 billion over the three years.
Cash Flow and Liquidity
Cash flow performance weakened over the period. Operating cash flow was positive at $0.33 billion in 2022 but turned negative by more than $1.0 billion in 2025. Free cash flow followed a similar trend, moving from a positive $0.23 billion in 2022 to a negative figure of more than $1.0 billion in 2025. This deterioration is a concern, although Klarna’s ending cash position increased from $1.69 billion in 2022 to $3.8 billion in 2025. Financing cash flow also rose steadily, reaching $0.98 billion in 2025.
Klarna’s top Q2 2026 news (April–June)
In early April, Klarna closed a $1.7 billion Significant Risk Transfer deal (its largest) covering euro-denominated loans, freeing capital to support over $40 billion in lending capacity.
On May 14, it reported strong Q1 results (revenue $1.012 billion, +44% YoY; GMV $33.7 billion, +33%; adjusted operating profit $68 million) and issued Q2 guidance of $960 million–$1 billion revenue, $35.5–$36.5 billion GMV, and $30–$50 million adjusted operating income, citing seasonality. Shares rose on the profitability inflexion.
In May, it launched an AI-powered Shopping Search app inside ChatGPT for real-time product discovery across millions of listings, and partnered with Arrive for parking payments in 15 markets.
June saw a high-yield savings account launch (turning everyday spend into savings), a partnership with Bolt for “pay in full” on rides/scooters, and celebrations of five years in France, alongside other merchant integrations.
Klarna upcoming earnings
Analyst estimates have moved closer to the company’s outlook:
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Revenue: Approximately $996 million (average of ~15 analysts; range roughly $980M–$1.03B). (Source: beta.finance.yahoo.com)
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EPS: Consensus loss of roughly –$0.04 to –$0.07 per share (narrower than the year-ago loss of about –$0.14). (Source: Tipranks)
Given the above performance, I prefer to monitor Klarna for this season.
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