Klarna Group CFO Niclas Neglén fielded questions on Thursday regarding the impact of loan growth on transaction margin dollars, as reported during a Q4 2025 earnings call. The inquiry, posed by Sanjay Sakhrani, a Managing Director at KBW, centered on differentiating between provisions for credit losses and those related to growth, and the potential effects on Klarna’s 2026 performance.
Neglén attributed Q4 2025 results to robust growth and seasonal trends in buy now, pay later volumes, particularly those facilitated through Forward Flow programs. He explained that fair value adjustments were offset by reductions in provisions. He anticipates similar trends continuing into 2026, forecasting moderately stronger growth than observed in the fourth quarter of 2025.
Klarna CEO Sebastian Siemiatkowski added commentary on the rollout of Klarna’s services within Walmart stores, expressing satisfaction with the initial performance and the broader strategy of integrating third-party networks, including Stripe and Adyen, to broaden payment options and the availability of fair financing.
Sanjay Sakhrani, who leads consumer finance and payments research at KBW, has consistently ranked highly in industry assessments, including six years as the top analyst on Institutional Investor’s All-America Research Team, according to KBW’s website. MarketBeat data indicates Sakhrani has issued 65 stock ratings in the past year, covering 32 publicly traded companies.
Recent ratings maintained by Sakhrani, as of February 6, 2026, include a “Market Perform” rating for BILL Holdings, with a price target adjusted from $60 to $49. He also maintained a “Market Perform” rating for The Western Union Company, adjusting the price target from $9 to $10. A “Synchrony Financial” rating was maintained at “Outperform” with a price target increase from $95 to $98. Sakhrani also maintained an “Outperform” rating for Pagaya Technologies, adjusting the price target from $38 to $35.
Sakhrani also recently maintained a “Market Perform” rating for Nayax, adjusting the price target from $47 to $52. He maintained a “Market Perform” rating for Marqeta, adjusting the price target from $6 to $5.50. Klarna Group received a maintained “Outperform” rating with a price target adjustment from $52 to $45. Shift4 Payments also received a “Market Perform” rating, with a price target adjustment from $84 to $72.
Capital One Financial received a maintained “Outperform” rating with a price target increase from $260 to $290. Bread Financial Holdings also received a maintained “Outperform” rating with a price target increase from $82 to $92.
Further questions stemming from the Q4 2025 earnings call, as documented by Fintool, requested a detailed breakdown of provision for credit losses versus fair value adjustments in Q3 2025, a comparison of fair financing volume to total GMV in the first three quarters of 2025, and the year-over-year growth rate of fair financing volumes in the U.S. For Q3 2025. Klarna’s response to these follow-up questions has not been publicly released.
