Klarna Vs. Sezzle: Buy Now, Pay Later At A Materially Low Multiple

Sezzle is up nearly 90% this year, with Klarna down 50% in a price return divergence that reflects a gap in profitability between the two firms. SEZL will report an adjusted EPS of $5.25 per share for its full year 2026 and is trading at a modest price-to-earnings multiple of 22.7x. KLAR's profitability is early stage. KLAR grew subscribers 8x versus a year ago to 2 million, with its Klarna Card reaching 6.5 million active users. SEZL realized a 76.4% year-over-year increase in active subscribers. Credit quality for both firms remains healthy, with KLAR's provision for credit losses at $192 million, around 0.52% of GMV. SEZL's provision for credit losses came in at 2.4%. Buy now, pay later companies Sezzle ( SEZL ) and Klarna ( KLAR ) could not have had a more different 2026, with KLAR down 50% and SEZL up 88% in movements that have opened up the question