Klarna is a $5 billion digital bank growing at 38%, but the market is pricing it like a broken subprime lender 🤷♂️🏦; Robinhood’s listed VC fund is a Trojan horse for the entire private market 😳📈
FinTech is Eating the World, 24 February
Hey Everyone,
Good morning & happy Tuesday! Today, all eyes are on Klarna and why this digital bank is being priced as a broken subprime lender (deep dive into Klarna’s latest financials, breaking down the most important facts & figures, what they mean & why Klarna might be worth your time and money this year + bonus deep dives into Klarna’s AI plays inside), and Robinhood, which is about to allow every investor to invest in the most promising startups (why Robinhood Ventures Fund I is a Trojan horse for the private markets, what to expect next + bonus deep dive into Robinhood’s latest financials inside). So let’s jump straight into the interesting stuff 🌶️
Klarna is a $5 billion digital bank growing at 38%, but the market is pricing it like a broken subprime lender 🤷♂️🏦
Following the money 💸 Buy Now, Pay Later (BNPL) pioneer Klarna KLAR 0.00%↑ recently posted its latest Q4 2025 financials, and it presents one of the more compelling risk/reward asymmetries I have encountered lately.
The stock currently trades at ~$13, down roughly 67% from its $40 IPO price in September 2025, implying a market capitalization of less than $5 billion 😳
Sure, the stock price chart doesn’t look inspiring at all, but consider what that valuation buys: a company that generated $3.5 billion in revenue in FY2025 (up 25% YoY), processed $127 billion in GMV across 26 markets, serves 118 million active consumers, and just delivered its first billion-dollar revenue quarter.
The market is pricing Klarna at 1.5x trailing revenue for a business compounding topline at 25-38% with demonstrable operating leverage. Something is fundamentally mispriced, and we believe it is the stock, not the business.
Let’s dive deeper into Klarna’s latest financials, break down the most important facts & figures, understand what they mean, and see why you should be bullish on KLAR 0.00%↑.
