Flat Capital held its annual general meeting on 19 March 2026 in Stockholm, with physical participation and postal voting, according to research from nine sources. The AGM approved the income statement and balance sheet for 2025, discharged board members and the CEO from liability for the year, and re-elected Sebastian Siemiatkowski, Charlotte Runius, Amaury de Poret, and Marcelo Carvalho de Andrade as board members, while electing Johan Söör as a new member. Siemiatkowski was re-elected as chairman of the board, and BDO Mälardalen AB was re-elected as auditor with Thomas Näsfeldt as auditor in charge. Board remuneration was set at SEK 100,000 for the chairman and each other member. A Nomination Committee was established with Siemiatkowski, Fredrik von der Esch, and Cecilia Brinck Larsson as members, conditional on the listing of class B shares on Nasdaq Stockholm. Guidelines for remuneration to senior executives were also adopted, conditional on that listing. The board was authorized to issue new shares, warrants, and/or convertibles until the next AGM. The most significant decision was the approval of a merger with Siemiatkowski's holding company, which holds his Klarna shares, making Klarna 95% of Flat Capital's net asset value, as reported by Safir Communication.
Retail investors criticized the merger, telling www.safircommunication.se that it was not the journey they invested in, according to the same source. Sebastian Siemiatkowski responded to the criticism through interviews and a thread on X, as reported by research from nine sources. The specific terms and valuation of the merger proposal have not been disclosed, and the timeline for completion and regulatory approvals remains unclear.
Klarna's stock performance since its IPO has been volatile. The company's shares opened at $52 on the first trading day, up 15% from the IPO price of $40, according to research from nine sources. The IPO raised about $1.58 billion and was oversubscribed. However, Klarna's stock later fell 7.7% to close at $38.31, below its IPO price. A Q4 report that missed analyst expectations caused a 22% drop at the NYSE opening, as reported by research from nine sources.
Flat Capital's stock fell 11% in tandem with Klarna's drop, according to research from nine sources. The company has invested heavily in software companies facing difficulties, which has been profitable so far, according to major media reports, but the details of those investments have not been disclosed.
This is not the journey we invested in.
Klarna faces competition from Stripe, Revolut, and Checkout.com, which have valuations of $106.7 billion, $75 billion, and $12 billion respectively, according to research from nine sources. To differentiate itself, Klarna has expanded its 'fair financing' product, which has increased provisions for credit losses, as reported by research from nine sources.
Approximately 335 million Klarna shares are subject to lock-up restrictions expiring on March 9, 2026, according to Klarna Group plc. Of those, about 97 million shares are held by affiliates subject to Rule 144 volume restrictions, about 62 million shares are held by non-affiliate depositary receipt holders retaining Class B voting rights, and about 177 million shares are held by non-affiliate pre-IPO shareholders whose lock-up expires on that date. Pre-IPO ordinary shares must be converted via Computershare before they can be sold through a US broker-dealer, according to Klarna Group plc. The exact impact of the lock-up expiration on Klarna's stock price is unknown.
Affirm Holdings fell 1.4% on Friday, its fifth consecutive day of losses, and Block Inc. slipped 0.5%, extending its weekly decline to a fourth straight session, according to research from nine sources. These declines occurred amid broader weakness in the fintech sector.
Flat Capital's annual report is prepared in accordance with the Annual Accounts Act (1995:1554), and its interim report is prepared in accordance with IAS 34 and IFRS as adopted by the EU, according to research from nine sources.