Top-Line Strength Calms NT Concerns

研报英文原文证据摘录

Top-Line Strength Calms NT Concerns

May 14, 2026 | 23:40 ET~

Klarna Group Plc

KLAR-NYSE Rating Price: May-14 Target ↑ Total Rtn Payments, Processors, & FinTech

Market Perform $16.47 $17.00 3%

Andrew Bauch, CFA, CPA Analyst

andrew.bauch@bmo.com (929) 594-1731

Conan Leon VP Associate

Top-Line Strength Calms NT Concerns conan.leon@bmo.com (212) 671-8003

Andrew Estes Associate

andrew.estes@bmo.com (646) 438-3717

Bottom Line: Legal Entity: BMO Capital Markets Corp.

While the 1Q beat was encouraging, we remain cautious on potential credit risk and

2YR Price Volume Chart

earnings volatility as the Fair Financing portfolio scales under the current macro 50

environment. We look for further evidence in quarterly results to alleviate medium- 4540

term concerns on Klarna's fundamentals. We maintain our Market Perform rating on 35

shares and raise our target price to $17. 30 6050

25 40

20 30

15 10Key Points 20

10 0

Nov May

TM$ Growth Surges. The key highlight in 1Q was the strong outperformance of TM$ LHS: Price ($) / RHS: Volume (mm) Source: FactSet

($389mm or +44% y/y vs. Street and midpoint of guidance at $320mm). Management

Company Data in $

detailed this growth as a function of compounding effects of its fair financing ramp,

Dividend $0.00 Shares O/S (mm) 705.6wherein upfront provisioning costs are absorbed (timing) and revenues are earned

on prior origination (interest income up 56% in 1Q). While revenue and TMD growth Yield 0.0% Market Cap (mm) $11,622

grew in parallel in 1Q, management expects TMD growth (~30%) to outpace Book Value/Shr $6.64 Wkly $Vol (000s) 1,596,055

revenue growth (+22-23%) through the remainder of the year. BMO Estimates in $

Provisions Better Than Feared. Given the rapid scaling of Fair Financing and mixed 4Q (FY-Dec.) 2025A 2026E 2027E