Klarna had a lackluster market debut, losing 24% of its value since its IPO, while the S&P 500 rose 7%. The BNPL specialist offers “Pay in 4” and longer-term payment options, with $903 million in revenue in Q3 2025 and a 28% increase year over year.

The U.S. market is a key focus for Klarna, with a 43% increase in Gross Merchandise Value (GMV) to $32.7 billion. The company saw a 38% increase in merchants and a 32% increase in active customers, emphasizing growth and expansion beyond BNPL services.

Klarna’s stock performance is mixed, with high valuations but expectations of future growth. The company faces competition in the BNPL sector, with rising expenses impacting profitability. Despite challenges, strategic partnerships and innovative initiatives position Klarna for success in the expanding BNPL market.

The BNPL sector shows strong potential for growth, with significant market share captured during key retail events. Analysts forecast robust growth in the U.S. BNPL market, with Klarna poised to benefit from consumer interest in flexible payment options. Klarna’s stock, while expensive, could offer long-term value for investors.

Read more at Yahoo Finance: Is Klarna Stock a Bargain Right Now?