FinTech IPO Index Loses 6.6% as Klarna Sinks After Earnings

The tech stock doldrums that marked broader markets this week also swayed the FinTech IPO Index, to the downside, as our names lost 6.6% collectively.

The past week was especially notable for the fact that it marked the earnings “debuts” for two names in the Index, which have recently gone public; the earnings reports garnered a mix reaction from the Street.

Among the most notable declines, Klarna shares gave up 18.9% through the week, sliding in the wake of its first quarterly report as a publicly traded company. PYMNTS reported that Klarna’s third-quarter earnings showed that the company has 114 million active consumers, up 32% from a year ago, and 850,000 merchants, up 38% during the same period, where a trailing 12-month GMV base at $118 billion was up 23% from 2024’s levels.

Klarna reported that average revenue per active consumer is $28, rising to $90 among users who leverage the in-app shopping features and to $130 among Klarna Card users. Fair financing grew 139% year over year, supported by an increase in merchants offering it from 79,000 to 151,000. The Klarna Card now counts 3.2 million global active users and 1.4 million U.S. users. Revenue growth in the fourth quarter is projected to be more than 30%.

Nu Holdings said in its own report that it added 4.3 million customers in its most recent quarter, up 16% year on year for a global total of 127 million users, with a monthly activity rate above 83%. Monthly average revenue per active customer (ARPAC) reached US$13.40, up 20%. The Brazilian cohort stood at ~110.1 million customers (over 60% of that country’s adult population). In Mexico the customer base reached 13.1 million (~14 % of adults). Revenues were $4.2 billion, up 39% year on year. Shared declined 1.7%.

In its own third quarter dLocal processed Total Payment Volume (TPV) of US$10.4 billion, up 59% year on year and up 13% sequentially. The top line increased 52% to $282.5 million. The stock was off by 11%.

Figure’s Stock’s In the Green

In other earnings news, and also in its first post-IPO earnings call, Figure Technology Solutions illuminated a broadening of blockchain-based lending beyond mortgages and home equity to private and consumer credit. Consumer loan marketplace volumes reached roughly $2.5 billion, up 70%.

CEO Michael Tannenbaum said during an earnings call that the consumer loan growth reflected “continued expansion across our origination partner network and increased utilization of Figure Connect for liquidity. As more partners leverage the platform to fund and sell loans, we’re seeing meaningful gains in both scale and efficiency.” Adjusted net revenues were 42% higher year over year, to $156 million, according to an earnings presentation.

Figure Technology shares were up 3%, showing one of the few gains in the FinTech IPO Index through the week.

In non-earnings news, PYMNTS reported that Robinhood is teaming with delivery platform Gopuff to let customers withdraw cash from their Robinhood bank accounts and have it brought to their homes. For a delivery fee of $6.99, or $2.99 for users with over $100,000 in assets in their Robinhood accounts, customers can have cash delivered to their homes in a sealed paper bag. The feature is available in New York and there are plans to bring it to other cities including San Francisco, Philadelphia and Washington, D.C.

Robinhood shares sank 12.6%.