Klarna is taking a beatdown today, down over 26% after reporting Q4 earnings. Revenue actually looked good, hitting $1.08 billion which is up 38% year-over-year. The issue was profitability and guidance. They posted a $0.12 loss per share and missed overall profit expectations. Costs are rising due to a pivot into banking services and longer-term loans, with credit losses jumping 59% to $250 million. Investors also didn't like that the 2026 GMV guidance came in below consensus. The CEO also mentioned they expect to reduce headcount by a third by 2030 by relying more on AI.