Klarna swings to $26mn loss in fourth quarter

Klarna reported a $26mn loss in the fourth quarter despite surpassing $1bn in quarterly revenue, as the Swedish buy-now-pay-later firm increased provisions for souring loans. The results highlight tension between Klarna’s rapid growth, particularly in the US, and rising credit risk on its lending book, which is material for investors tracking fintech credit quality and consumer demand. The shift back into loss-making territory may influence Klarna’s funding conditions and valuation ahead of any potential capital markets activity.