Klarna: Valuation Gap Should Close As Profitability Improves

Klarna remains a Buy as GMV grew 33% year-over-year and revenue rose 44%. Adjusted EBIT improved to $68 million from $3 million, with net income turning positive. Fair Financing GMV surged 138%. A $12.3 billion deposit base reduces funding risk. Valuation sits at 0.7x forward sales.