Klarna’s One of the Newest Public Buy Now Pay Later Firms
Thaddius Gamueda
Head Finance Editor
Klarna’s planned U.S. listing first ran into trouble in April 2025, when turbulent market conditions, triggered in large part by sweeping tariff announcements that rattled global trading and pushed volatility higher, pushed the company to pause its IPO. That move surprised many investors as Klarna had been widely expected to test public markets after filing earlier in the year. The pause joined a string of delayed listings and became a talking point about how geopolitics can feed straight through to IPO windows. But as markets began to stabilize, Klarna has finally gone public, and investors are buying in.
What Changed So Klarna Could Launch?
Between April and September, the status of the market drastically improved. A combination of cooling tariff-panic headlines, a stale but resurgent IPO market, and a string of successful tech listings re-engaged Klarna with bankers and investors alike. Management also leaned into showing better operational metrics for the IPO. The changes in the market helped persuade investors and underwriters to take the deal back onto the market. Under the ticker KLAR, the company ultimately priced shares above its marketed range and moved forward with a U.S. listing on September 10th, 2025, selling roughly 34.3 million shares at $40 apiece and raising roughly $1.37 billion according to Reuters.
How has KLAR Performed in the First Few Weeks?
Klarna’s debut was volatile but generally constructive. The IPO was priced at $40.00 per share; when trading opened the shares popped pooped up to $52 a share. By the end of the first session the share price closed roughly in the mid-$40s (Bloomberg reports a close of $45.82, about +15% versus the IPO price). Over the next several sessions the stock pulled back and settled into a range in the low $40 range with a price of $43.01 as of 8:00 PM on September 19th. The sequence of oversubscribed offerings, early aftermarket enthusiasm, then consolidation at a reasonable price is typical for large, heavily marketed offerings that price at a conservative valuation but prompt heavy aftermarket demand.
Current Rating and Outlook of KLAR
Analyst coverage as of now is positive-to-cautious. Several banks and independent shops-initiated coverage shortly after listing with Buy or Hold stances and price targets modestly above the IPO level. Compass Point, for example, initiated coverage with a ~$53 target, while other platforms have a $57.20 high in the next 52-week range. The broader market commentary is balanced. Outlets and analysts point out the bright spots like strong brand recognition, global user base, accelerating revenue and product diversification. Although these are strong, the hard realities of still-material quarterly losses, higher credit provisions in parts of 2025, and the BNPL model’s sensitivity to funding costs and consumer stress are still found within the company. The consensus from reputable outlets is that Klarna’s listing is a constructive sign for fintech IPOs, but that the company will be judged quickly on whether it converts revenue growth into durable profitability while keeping credit losses under control. For investors debating to invest, the decision comes down to a few researchable points:
1. Is growth possible for Klarna?
2. What is the trajectory of profitability and credit-loss trends that will be seen in quarterly results?
3. What are the macro and funding risks that Klarna may face in the future?
4. Will there be new regulatory exposure across markets?
5. Can Klarna still showcase they are one of the premier BNPL firms as other fintech companies begin to IPO?
Investors need to be wise with their investing and ensure they are comfortable with investing in this new security. New or inexperienced investors should look at articles and headlines as well as listening to advice from certified financial planners to see if Klarna is a fit for them.
Contact Thaddius at gamuedth@shu.edu