Klarna losses spook Wall Street as shares in buy-now-pay-later agency crash 25%

Shares in buy-now, pay-later firm Klarna crashed after it dived into the red.

On a brutal day for investors, the stock fell 26 per cent, meaning it has now lost two-thirds of its value since listing in New York in September with a valuation of £11billion.

The latest slump came after the Swedish group posted annual losses of £203million, having made a £15.6million profit in 2024.

And the loss took place despite a 38 per cent rise in revenues to £820million in the final three months of 2025.

Klarna now has 118m active users, which is a 28 per cent increase compared with this time last year.

Chief executive and co-founder Sebastian Siemiatkowski said: ‘We’ve been executing on a clear plan – acquire customers through seamless payments, then deepen those relationships into banking.’

Dumped: On a brutal day for investors, Klarna shares fell 25%, meaning it has lost two-thirds of its value since listing in New York in September with a value of £11bn

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