APR
Apria, Inc. Common Stock
stock NASDAQ

well considering mortgage rate is APR I'm pretty sure we're talking per year. 400k remaining at that monthly payment gives us like what, 10-15 years remaining? I think you can hit 6% p.a. for the next 10 years, like its theoretically possible, but add a crash or some sideways running markets into that and it isn't looking so hot anymore

Idk man, mortgage rates going up from 5 to 8% is a hell of a lot bigger pill to swallow than credit card interest going from 25 to 28%. Variable APR is still based on a spread at the end of the day

It seems silly to “save money” in a CD or Savings Account for 2% APR when the Principle is being debased at the rate of 6% APR.

Last Oct-Dec, I full ported and[ called $SEZL at $50-80](https://www.reddit.com/r/wallstreetbets/comments/1orfs7w/dd_subprime_split_purchases_sezl/). It has since peaked at $180 and is now trading at around $110 - my thesis points all came true.

As fintech/BNPL is popular to hate on, feel free to counter my points in the comments.

$KLAR is fundamentally mis-priced at $12.50/sh and will be re-rated to **$20-25 around release of Q4 earnings (Feb 2027) as my base case, and bear case re-rating will take place around Q1 earnings (May 2027).** Price action in the next month might be dog poop though.
# Five main THESIS POINTS, and some RISKS at end of page.
**1. Growth is great, valuation is quite depressed.**
Revenue growing 25-30% YoY, TMD growing at 35-45% YoY. In Q2, adjusted operating income reached 91M & 27M GAAP OI, 9M GAAP NI.
P/S of 1.1, and 2027 EPS multiple of around 15-25 depending on what model you look at.
$AFRM, the closest competitor to $KLAR, was trading at the same P/S when they were burning 200M cash per quarter in 2022. $KLAR is already at breakeven with double the revenue (compared to AFRM back then), and in the acceleration stage of US penetration.
(LIKELY) $2B cash coming in from Google/Pricerunner lawsuit which already settled in Klarna's favour (ofc Google appealed, could be $1-3B payout upon appeal). Market cap of 4.7B currently.

**2. Focus on Fair Financing in November 2025,** which is basically longer-term APR loans on higher ticket items like dishwashers, laundry machine etc.
This follows the same path as Affirm's loan issuance style, and carries MUCH higher margins than the standard BNPL model Klarna runs. Affirm has 8% take rate doing mostly this type of loan - Klarna is currently at 2.85%, because they are still ramping up on FF.

Fair Financing makes up 13% of GMV as of Q2, growing at 82% YoY. As this loan issuance grows rapidly so will TMD, OI, and profitability.

**3. US Expansion being a key driver of higher margins** \- launch of JPM & Apple are some of the largest signings this year, and they are driving usage aggressively in US (37% YoY rev growth in USA, at 36% of total revenue). Note that US is responsible for 36% of total rev DESPITE only being 22% of GMV (as of Q2). Expecting continual 35-40% rev growth in US (consistent with Affirm's growth rates).

**4. Flywheel of 120M active users and other financial products** \- they have fee credit cards, debit cards, chequing/savings accounts, etc. which serve as additional, higher margin line of revenue & even with weak penetration of total active users, generates incremental revenue growth as more users are introduced to these products. They have around 6.5M Klarna Card users, generating interchange, APR & monthly fees. Not a major contributor to growth but still likely 10M rev/qtr, along with stickier all-in-one finance product.

**5. Open Market Insider Buys:** CEO $10M of shares, Chairman of the Board (Michael Moritz, Sequoia) 50M of shares, both at $14 range. No reason for them to add to large existing positions unless belief of severe valuation disconnect relative to what THE INSIDERS SEE happening. Moritz bought in March 2026, CEO bought in Aug 2026 after large earnings drop.
# Risks

**Rate Hikes:** 1-2 rate hikes will not meaningfully affect bottom line. Short-term duration loan length, using consumer deposits, and selling loans insulates them from much of this shock

**Poor execution:** Execution has been great in 2026 so far - guidance adjustment (3% less GMV & revenue) due to weak Germany general consumer spending as of 2026 (thx war & oil prices). Macro, not execution caused slight guidance adjustment. This is also assuming Germany stays soft.

**CFO/CMO departure:** US-focused executives needed for better capital markets communication & US-focus marketing strategy focus. Not a negative IMO, old CFO was making clown slides on their quarterly earnings.

**Profitability**: yes i want to see scaling of GAAP NI, will improve starting Q4. Q3 is an "investment" Q as stated by mgmt, highest SBC of year and investment into launch of Apple/JPM integration.

**Positions:** 50K in 2028/01 10C/12.5C/15C leaps that are underwater.

It’s like they entirely overlook that someone can have a credit card young, be responsible, get in a car accident, and then suddenly the APR matters. Wow. Imagine that.

When I bought my house 30 years ago the APR on a 30 year loan was over 9%.