Shares of Klarna Group (NYSE:KLAR | KLAR Price Prediction) are up roughly 15% intraday in Thursday morning trading, changing hands near $15.80 after a prior close of $13.69. The pop comes against an otherwise quiet session for the broader buy now, pay later (BNPL) group.
By contrast, Affirm Holdings (NASDAQ:AFRM) stock is up 2% at $64.61, and Sezzle (NASDAQ:SEZL) stock is up 1% to $103.48. On a single-day basis, Klarna stock is decisively leading the BNPL pack.
Yet, the headline question deserves a more honest answer once the timeframe expands. Today’s leadership doesn’t undo what has been a difficult stretch for Klarna stock since its NYSE debut.
Reaction to Klarna’s Earnings
Today’s move in Klarna stock is a reaction to the company’s Q1 2026 report. Klarna delivered a strong quarter with revenue of $1 billion (up 44% year-over-year) and adjusted operating profit of $68 million, a massive swing from $3 million in the year-ago quarter. Gross Merchandise Volume reached $33.7 billion (up 33% YoY), with US GMV up 39% and international up 31%.
Furthermore, Klarna turned the bottom line positive: operating income of $17 million versus a $90 million loss a year ago, and net income of $1 million versus a $99 million net loss. Active consumers grew to 119 million (up 21% YoY) and merchants surpassed 1 million (up 49% YoY).
The “Fair Financing” big-ticket installment product was a standout, with GMV up 138% YoY, while the Klarna Card reached 5 million active users across 16 countries. Klarna’s management reiterated full-year 2026 guidance and issued Q2 guidance of $35.5-36.5 billion GMV, $960 million to $1 billion in revenue, and adjusted operating income of $30-50 million.
Peers Tell a Very Different YTD Story
Zoom out, however, and Klarna stock isn’t outperforming its peers as it’s down 46% year to date (YTD). Sezzle shares are up 59% YTD, following Sezzle’s Q1 2026 beat-and-raise that lifted its FY2026 EPS guide to $5.10.
Affirm sits in the middle. AFRM stock is down 15% YTD but up 22% over the past month following a Q3 FY2026 report that showed $1.04 billion in revenue and 35% gross merchandise volume (GMV) growth. The spread between Sezzle’s gain and Klarna’s loss YTD is quite wide — one of the widest intra-category gaps in fintech.
That divergence reflects very different business profiles. Klarna carries IPO overhang and broad European exposure, while Affirm has emerged as a focused U.S. pure-play operator.
What to Watch Next
For Klarna stock, the immediate question is whether today’s bid holds into the close or fades like prior bounces. With the stock trading well below its 200-day moving average of $26.25 and a 52-week low of $12.06 still nearby, technical follow-through matters.
The bull case for KLAR stock rests on stabilizing credit costs, banking conversion progress, and a forward P/E ratio of 25x that looks reasonable if growth holds. The bear case centers on continued regulatory scrutiny and the simple fact that AFRM and SEZL are executing better right now.
Prudent investors looking at the BNPL space should weigh whether they want category exposure or operator exposure. Today’s pop in Klarna stock is real, but it doesn’t yet rewrite a YTD ranking where Sezzle remains the clear leader and Affirm the steadier middle ground. The next Klarna earnings update will be the more meaningful test.
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