Klarna Group plc (KLAR.US), the Swedish "buy now, pay later" (BNPL) giant, reported its fourth-quarter financial results on Thursday. While the company announced its first-ever quarter with revenue surpassing $1 billion, the capital market reacted coolly, leading to a sharp decline in its stock price. The report showed Klarna's quarterly revenue reached $1.08 billion, slightly exceeding the Wall Street consensus estimate of $1.07 billion. Gross Merchandise Volume (GMV), a measure of transaction scale on the platform, was $38.7 billion, also coming in modestly above the analyst forecast of $38.1 billion. By the end of the fourth quarter, the number of active users reached 118 million, marginally better than the market expectation of 117 million. However, the average revenue per active user remained flat at $30, showing no growth. Regarding profitability, Klarna recorded a pre-tax loss of $241 million for the quarter, marking the second consecutive quarter of losses since its initial public offering. Influenced by these results, the company's stock price plummeted nearly 27% during the day, closing at $13.85. This not only represented the largest single-day decline since its market debut but also set a new record low closing price. Market observers believe that Klarna's cautious forward guidance exacerbated investor disappointment. The company projected first-quarter revenue for this year to be between $900 million and $980 million, with the midpoint of this range notably below the analyst consensus of $965 million. GMV is forecast to be between $32 billion and $33 billion, also falling short of the market's general expectation of $33.4 billion. An analysis of the financial report structure reveals a performance characterized by "superficial strength but underlying pressure." J.P. Morgan analysts pointed out that although both revenue and GMV exceeded expectations, adjusted operating profit and the transaction margin indicator (TMD) fell short of market predictions. Data indicated that Klarna's transaction profit revenue for the quarter was $372 million, missing the analyst estimate of $395 million and marking the second consecutive quarter below expectations. The adjusted operating profit margin was only 4.4%, significantly lower than the market's anticipated 6.4%. Management attributed the pressure on transaction profit primarily to the faster-than-expected growth of "expanded banking products," particularly installment-based financial products, which have incurred higher processing and funding costs as they scale. J.P. Morgan suggested that this change in cost structure led to the related metrics falling below their model forecasts. Looking ahead to 2026, Klarna expects full-year GMV to exceed $155 billion, whereas the Wall Street consensus estimate is approximately $159 billion. The company anticipates revenue growth to exceed 24%, which is below the 31% and 29% growth rates forecast by J.P. Morgan and the broader market, respectively. Analysts noted that Klarna's full-year guidance falls short of market expectations for most key metrics, reflecting a strategic shift from a "scale expansion" phase to a focus on "enhancing user engagement and credit growth." This transition is reportedly exerting a drag on some key operational indicators. Analysts at KBW expressed a similar view, acknowledging that while quarterly revenue benefited from transaction income and gains on asset sales to exceed expectations, the transaction profit metric still fell short of their forecasts and did not meet the company's own guidance. Furthermore, investors are still awaiting Klarna's first quarterly net profit since its IPO. The financial report showed that the company's adjusted operating expenses for the quarter increased by 18% year-over-year to $352 million, further intensifying profitability pressures. Klarna listed on the New York Stock Exchange last September. On its first day of trading, the stock price surged as much as 15% above the IPO price of $40, but the upward momentum quickly faded. Since the beginning of this year, against the backdrop of overall pressure on the fintech sector, Klarna's stock has accumulated a decline of over 34%. Beyond performance factors, industry-level uncertainties continue to impact valuation. Market concerns exist that artificial intelligence could potentially reshape payment and fintech business models, posing challenges to various fintech companies, including BNPL providers. Additionally, since January, policy discussions regarding a potential "10% cap on credit card interest rates" have also weighed on related stocks. However, some institutions, such as Mizuho Securities, suggest that such a policy could actually benefit the BNPL industry, as BNPL services might become a substitute option if banks tighten credit availability for lower-income groups.