Klarna Inches Closer to Profitability as Public Debut Nears

Klarna Group Plc almost broke even in the first nine months of the year as the European buy now, pay later fintech continues to ready itself for an initial public offering.

The Stockholm-based fintech said Monday its pretax loss shrank to 2 million kronor ($180,000) in the three quarters through September, compared to 1.77 billion kronor in the same period a year ago. Total revenue rose 23% to 20.3 billion kronor.

Earlier this month, Klarna confidentially submitted a draft registration statement to the US Securities and Exchange Commission for an IPO. The number of shares it will offer and ...