Klarna

Klarna redefined buy-now-pay-later lending, listing on the NYSE in September 2025 at a $15B valuation, targeting $4.34B in revenue for 2026. However, its stock has dropped 62% since IPO, reflecting execution risk. Compared to #3 Chime, Klarna faces steeper margin pressures, with a net loss ratio of 8% versus Chime's 5%. Despite this, its BNPL model anchors a $7.3 trillion consumer credit market, overshadowing the average rival's 2% growth. The thesis holds if Klarna tightens underwriting, reducing charge-offs by 15%.