Is KLAR a good stock to buy? We came across a bullish thesis on Klarna Group plc on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on KLAR. Klarna Group plc’s share was trading at $16.57 as of May 25th. KLAR’s forward P/E was 28.57 according to Yahoo Finance.
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Klarna is a leading Buy Now Pay Later (BNPL) fintech evolving into a digital banking platform positioned at the center of the shift toward AI-driven financial services and embedded payments. Serving over 118 million active consumers and nearly one million merchants, Klarna has a two-sided network that processed $128 billion in BNPL volumes in 2025, growing at a mid-teens CAGR and supporting brands including Walmart and Nike.
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The company’s core BNPL model generates merchant-funded revenues with a 2.7% take rate while its expanding Klarna Card and savings products are accelerating its transition into a high-frequency banking ecosystem. Banking customers, now over 15 million, are worth more than three times a standard user, reflecting higher engagement and revenue per user. Klarna has strengthened funding base through $13 billion in deposits and forward-flow agreements, enabling capital-light expansion.
Despite temporary accounting losses driven by upfront credit provisioning, underlying credit performance is improving with declining loss rates and rising transaction margins. Revenue reached $3.5 billion in 2025, supported by 25% growth, Q4 delivering $1.08 billion and $38.7 billion GMV. The stock has fallen 69% since IPO, leaving it valued at just 1.6x sales versus Affirm at 5.5x, reflecting pessimism around lending model.
Analysts see 12-month price target of $27.27, implying 104% upside, while five-year scenario assigns $51.32 per share, representing 383% upside as Klarna scales into a profitable digital bank with 22% operating margins by 2030. Klarna represents a mispriced fintech transitioning into a durable banking platform with significant re-rating potential.
Previously, we covered a bullish thesis on Sezzle Inc. (SEZL) by Next’s Substack in May 2025, which highlighted its transformation into a highly profitable BNPL compounder with strong margins, disciplined capital allocation, and asymmetric upside driven by rapid EPS growth. SEZL’s stock price has appreciated by approximately 14.09% since our coverage. Ray Myers shares a similar view but emphasizes Klarna’s scale-driven shift into a digital banking platform with broader ecosystem expansion and re-rating potential.
