Free cash flow remains highly erratic, characterized by a $952.0M outflow in 2026Q1 and a significant decoupling from net income, as evidenced by an OCF/NI ratio of 190.40.
| Cash from Operations | -2.59B | -1.03B | 587M | 808M | 336M | -365.47M | 198.24M | -902.92M | 81.72M | -316.54M | 47.65M |
| Operating CF Margin % | - | -29.4% | 22.01% | 36.71% | 17.8% | -22.57% | 14.87% | -106.28% | 12.06% | -57.81% | 12.23% |
| Operating CF Growth % | -256.84% | -275.81% | -27.35% | 140.48% | 191.94% | -284.36% | 121.96% | -1204.91% | 125.82% | -764.37% | - |
| Net Income | -199M | -294M | 33M | -304M | -1.04B | -775.71M | -153.95M | -92.41M | 11.63M | 42.01M | 12.43M |
| Depreciation & Amortization | 116M | 125M | 189M | 227M | 162M | 82.47M | 48.73M | 31.94M | 16.08M | 15.47M | 12.4M |
| Stock-Based Compensation | 26M | 0 | 92M | 43M | 56M | 58.48M | 10.88M | 511.27K | 868.75K | -63.63K | 2.28M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.83B | 1.62B | 438M | 475M | 1.07B | 233.15M | 18.84M | 34.65M | 28.66M | 51.83M | 17.98M |
| Working Capital Changes | -4.37B | -2.49B | -165M | 367M | 88M | 36.15M | 273.73M | -877.62M | 24.48M | -425.79M | 2.56M |
| Change in Receivables | -3.61B | -3.61B | -1.18B | -1.72B | -1.76B | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -31M | -30M | 154M | -83M | -459M | -489.4M | -57.29M | -147.27M | -34.31M | -68.39M | -10.3M |
| Capital Expenditures | -31M | -30M | -1M | -1M | -11M | -27.08M | -7.77M | -19.89M | -6.04M | -4M | -2.72M |
| CapEx % of Revenue | 0.81% | 0.85% | 0.04% | 0.05% | 0.58% | 1.67% | 0.58% | 2.34% | 0.89% | 0.73% | 0.7% |
| Acquisitions | 0 | 0 | 199M | 0 | -354M | -245.2M | -17.32M | -104.55M | -5.64K | -48.8M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -44M | -82M | -94M | -217.12M | -32.2M | -22.83M | -28.27M | -15.59M | -7.57M |
| Cash from Financing | 1B | 988M | 312M | -62M | 18M | 2.14B | 535.19M | 976.68M | 82.86M | 372.46M | 43.3M |
| Debt Issued (Net) | 829M | 817M | 170M | -78M | -782M | 481.77M | -193.97M | 371M | 33.59M | 243.08M | 32.59M |
| Equity Issued (Net) | 191M | 191M | 0 | 39M | 799M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -16M | -20M | 142M | -23M | 1M | 1.66B | 729.15M | 605.68M | 49.26M | 129.39M | 10.72M |
| Net Change in Cash | -1.3B | 560M | 852M | 697M | -377M | 1.23B | 667.77M | -82.87M | 124.61M | 3.04M | 128.65M |
| Free Cash Flow | -2.6B | -1.03B | 542M | 723M | 231M | -392.56M | 190.47M | -922.81M | 75.68M | -320.54M | 44.92M |
| FCF Margin % | -68.06% | -29.49% | 20.32% | 32.85% | 12.24% | -24.25% | 14.29% | -108.62% | 11.17% | -58.55% | 11.53% |
| FCF Growth % | -190.07% | -290.96% | -25.03% | 212.99% | 158.85% | -306.1% | 120.64% | -1319.3% | 123.61% | -813.56% | - |
| FCF per Share | -6.88 | -2.78 | 1.49 | 2.00 | 0.69 | - | - | - | - | - | - |
| FCF Conversion (FCF/Net Income) | 13.07x | 3.51x | 195.67x | -3.24x | -0.32x | 0.47x | -1.29x | 9.77x | 7.03x | -7.54x | 3.83x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial statements, Klarna's operating cash flow frequently decouples from net income, evidenced by a 2026Q1 OCF/NI ratio of 190.40, which suggests that non-cash accruals and working capital adjustments remain the primary drivers of cash movement rather than core operational profitability.
The extreme variance between net income and operating cash flow indicates that the company's reported earnings are not yet a reliable proxy for cash generation. Investors should monitor whether this divergence persists as the company attempts to stabilize its operating margins, as it may imply significant reliance on accounting adjustments.
Based on historical data, Klarna's free cash flow trajectory remains highly erratic, swinging from a $3.0B outflow in 2025Q4 to a $952.0M outflow in 2026Q1, highlighting the sensitivity of the company's cash position to seasonal retail cycles and credit-related liquidity requirements.
The lack of a consistent positive FCF trend suggests that the business model is still in a capital-intensive growth phase rather than a mature cash-harvesting stage. The sharp fluctuations warrant caution, as they indicate that cash availability is subject to rapid shifts in consumer payment behavior.
According to quarterly filings, working capital changes are the dominant force behind cash flow volatility, with a massive $3.8B outflow in 2025Q4 followed by a $1.5B outflow in 2026Q1, suggesting that the company's cash position is heavily tethered to the timing of merchant settlements and consumer repayments.
These swings in working capital imply that Klarna's liquidity is highly sensitive to the velocity of its loan book and the timing of its payment cycles. Analysts should interpret these movements as a reflection of the inherent friction in the BNPL model rather than purely operational efficiency.
As indicated by the company's financial disclosures, Klarna maintains a low capital intensity, with CapEx/Revenue ratios consistently below 2% across recent periods, suggesting that the firm's primary investments are directed toward software and platform development rather than heavy physical infrastructure or asset-intensive operations.
The low level of capital expenditure relative to revenue suggests that the company is not burdened by significant maintenance requirements for physical assets. This capital-light structure may provide a path to scalability, provided the company can successfully manage its underlying credit risk and funding costs.
Quick answers to the most common questions about buying KLAR stock.
Klarna Group plc (KLAR) generated $-1032.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Klarna Group plc (KLAR) reported negative free cash flow of $1.03B in 2025, indicating capital requirements exceeded cash from operations.
Klarna Group plc (KLAR) spent $30.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.