Why did Klarna stock crash after earnings?

Klarna's stock dropped 27% after Q4 earnings missed on transaction margin dollars. The company posted $372 million versus guidance of $390-$400 million. The miss wasn't from weak GMV, which actually grew 32% and beat estimates, but from a surge in upfront credit loss provisions driven by rapid growth in its "Fair Financing" loans, where costs get booked immediately even though interest income comes in over the life of the loan. Fair Financing GMV grew 154% year-on-year to $4.5 billion, which is a long-term positive but a near-term drag on margins. On top of that, 2026 GMV guidance of $155 billion came in below Wall Street's $158.9 billion expectation, which added to the selloff.