Klarna went public at $40. The stock is now around $19.

What's publicly reported

The post-IPO decline: why Klarna employees face a different problem

Most post-IPO planning content is written for the happy problem: the stock went up, you can't sell yet, how do you plan a diversification. Klarna employees face the more painful scenario: the tax bill already arrived, and the shares it was based on are now worth less than the tax.

Here is what the math looks like for a US employee whose RSUs settled at the IPO:

• RSU settlement income was recognized on the IPO date (or shortly after, when shares were released). If 1,000 RSUs settled at $46/share (approximate first-day price), that's $46,000 of ordinary income on your W-2 — taxed at your marginal federal rate (up to 37%), plus state income tax, plus any FICA not yet capped.
• Federal withholding on supplemental wages is typically 22% (the IRS mandatory flat rate for supplemental wages under $1 million).¹ On $46,000, Klarna likely withheld about $10,120 federal. If your real marginal rate is 35–37%, you owe an additional $5,980–$6,900 — and that estimated payment was due by September 15, 2025 (Q3) or January 15, 2026 (Q4) depending on when you became aware of the gap.
• Current value of those 1,000 shares: approximately $19,000–$20,000 as of June 2026.
• Net position: you recognized $46,000 of income, owed roughly $16,000–$17,000 in total federal and California state tax on it, and the shares that generated the income are now worth about $19,500. The tax was on the income — not on the current stock price — so the obligation doesn't change with the stock. This is the arithmetic Klarna employees need to internalize.

Your equity type matters — two very different situations

If you held RSUs (most US employees)

Your RSUs settled as ordinary income. You now hold shares with a cost basis equal to the price on settlement day ($40–46 range, depending on exact timing). The shares are currently trading at roughly $19–20. You have an unrealized capital loss of approximately $20–26 per share.

That loss is real and usable — but its character depends on when you sell:

• Short-term capital loss (sell before one year from settlement). RSUs that settled in September 2025 cross the one-year mark in September 2026. If you sell before then, the loss is short-term. Short-term capital losses offset short-term capital gains first; any excess offsets long-term gains; any remaining excess offsets up to $3,000 per year of ordinary income ($1,500 if married filing separately), with the rest carried forward.
• Long-term capital loss (sell after one year from settlement). Holding until September 2026+ converts the loss to long-term. Long-term capital losses offset long-term gains first, then short-term gains, then $3,000/year of ordinary income. If you have significant long-term capital gains elsewhere — from a concentrated stock position you're diversifying, appreciated real estate, or other investments — a long-term loss is more tax-efficient to deploy there.

Neither is clearly better without knowing your full tax picture. If you have short-term equity gains from other sources (options exercises, short-term trades), harvesting the Klarna loss now is efficient. If your gains are mostly long-term (other appreciated stocks, real estate), waiting for the one-year mark maximizes offset efficiency.

Important: the wash-sale rule prohibits recognizing the loss if you repurchase KLAR, or any instrument substantially identical to it, within 30 days before or after the sale. Selling KLAR and buying it back the next day disallows the loss — the disallowed amount gets added to your new cost basis.

If you held phantom shares (some international and early-tenure employees)

Phantom shares are cash-settled instruments — you never held actual Klarna stock. At the IPO, you received a cash payout tied to the IPO-day price. That payout was ordinary income in the year received (2025), and the tax was owed with no ongoing equity exposure. You are not holding depreciated shares. Your planning questions are different: what to do with the after-tax cash, whether you have remaining unvested phantom units, and how to invest or deploy the windfall.

Ongoing RSU vests and quarterly trading windows

For employees with unvested RSUs at the time of the IPO, vesting continues on the original schedule. Each vest date triggers ordinary income at the then-current market price. At $19–20/share, that's a lower income event than the $40–46 IPO settlement — smaller tax bill per share, but still ordinary income, still subject to the 22% supplemental withholding shortfall if your bracket is 35%+.

Klarna reportedly moved to a quarterly trading-window structure after the IPO, similar to most public companies. Employees subject to Klarna's insider trading policy trade only during open windows (typically the period after earnings releases) and with pre-clearance. If you are considering a loss-harvesting sale, confirm you are in an open window and that you are not in possession of material nonpublic information. A 10b5-1 plan, adopted during an open window, can let you schedule sales in advance and execute them even if you later receive MNPI — the 10b5-1 guide explains the structure and the SEC's 2023 cooling-off requirements.

Key decisions for Klarna employees in mid-2026

1. Quantify your tax gap from the IPO settlement. Pull your 2025 W-2. Box 1 includes RSU settlement income; Box 14 or a separate statement may show RSU income separately. Compare what was withheld (Klarna's 22% supplemental withholding) to your actual 2025 marginal rate. If there's a gap, it showed up as either a balance-due on your 2025 return or an underpayment penalty if quarterly estimates weren't paid. Knowing the actual number changes whether the current unrealized loss is meaningful in your overall tax picture.
2. Decide on the loss: harvest now (short-term) or hold to one year (long-term). September 2026 is the crossing point for IPO-era lots. If you have a clear use for a short-term capital loss this year — offsetting short-term gains from options exercises, RSU sales at other companies, or other trading activity — selling before the anniversary is rational. If your gains are long-term or you're unsure, consider waiting. Either way, do not wait past the crossing point without a plan.
3. Revisit quarterly estimates. Ongoing RSU vests each quarter add ordinary income. If Klarna is still withholding at 22% supplemental rate and your bracket is higher, the gap accumulates. Underpayments lead to IRS penalties if you don't pay enough through withholding or quarterly estimates to cover 90% of current-year liability or 100% of last year's (110% if last year's AGI was over $150K). Calculate safe-harbor payment amounts for each quarter.
4. Assess concentration level. Even after the stock decline, Klarna may still represent a significant portion of your liquid net worth if your position is large. The concentration glidepath calculator models a systematic sell-down plan: how much to sell each year, after-tax proceeds by year (using 2026 LTCG rates, NIIT, and state tax), and the date you'd reach a target allocation. Use it to see whether staying concentrated in a single volatile stock is consistent with your financial plan.
5. Charitable planning for any lots with gains. If any RSUs vested at prices below the current level (creating an unrealized gain), donating shares directly to a donor-advised fund (DAF) before selling avoids the capital gains tax entirely. At $19-20/share this applies to unvested RSUs that vest after any further stock recovery — plan the mechanism in advance.

Just want to buy KLAR?

Klarna is a public stock on NYSE — any retail brokerage works. This page is for current and former Klarna employees managing equity they already hold. For pre-IPO planning context, the IPO lockup playbook covers the general framework, and the CoreWeave post-IPO guide shows how employees navigated a high-volatility single-stock position after their listing.

Navigating a post-IPO decline on your own equity?

Get matched with a fee-only fiduciary who works post-IPO equity — loss harvesting, holding-period timing, quarterly estimated taxes, and a concentration plan that accounts for the full picture. Free, no obligation.