Klarna, the global digital bank and flexible payments provider, reported fourth quarter 2025 results. The company delivered its first billion-dollar revenue quarter, with GMV reaching $38.7 billion, above the top end of the guidance range, while revenue grew 38% to $1.082 billion, also beating guidance.
However, Swedish „buy now, pay later” services provider and online bank Klarna swung to a net loss in the fourth quarter and gave weaker-than-expected guidance for 2026 as fast growth also hiked costs, sending the U.S.-listed group’s shares down 23% in early trade on Thursday. „Klarna’s net loss for the October to December period stood at $26 million against a profit of $40 million a year earlier, missing an average forecast loss of $9.8 million expected in an LSEG poll of analysts.” – according to Reuters.
Klarna CEO Sebastian Siemiatkowski said that the company’s rapid growth weighed on results as costs were booked up front while the revenue and profit would come later.
„As growth comes down a little bit, that will start to play out very favourably,” Siemiatkowski told Reuters.
„We’ve been executing on a clear plan: acquire customers through seamless payments, then deepen those relationships into banking,” said Sebastian Siemiatkowski, CEO & Co-Founder of Klarna. “Q4 showed that people want a bank that works for them, not against them. The number of our banking consumers has doubled in the past year, generating more than three times the revenue of our average consumers. Consumers are moving away from predatory revolving credit and we’re building the transparent alternative they deserve.”
Q4 2025 Highlights
. Revenue $1.082 billion (+38% YoY, +58% U.S.) – first billion-dollar quarter, above guidance
. GMV $38.7 billion (+32% YoY, +43% U.S.) – above top end of guidance
. 4.2 million active Klarna Card users
. 15.8 million banking consumers, up 101% YoY
. Fair Financing +165% increase in GMV – taking market share from revolving credit
. 118 million active consumers (+28% YoY) and 966,000 merchants (+42% YoY, record 115,000 added in Q4)
. Provisions for credit losses declined to 0.65% of GMV in Q4 from 0.72% in Q3
Banking consumers double with revenue per consumer tripling
„Klarna’s banking consumers, our most engaged consumers who actively use Klarna’s financial services beyond payments such as the card, Fair Financing, or savings, grew 101% year-over-year to 15.8 million users, generating $107 in revenue per user compared to $30 of the average consumer. Klarna now has 4.2 million active card users, up 1.9 million quarter-over-quarter.” – according to the press release.
Klarna keeps taking market share with Fair Financing, with growth accelerating from 139% year-over-year in Q3’25 to 165% in Q4’25, reaching 193% in December, as consumers continue to move away from revolving credit cards.
The U.S. led Klarna’s growth with revenue up 58% year-over-year, accelerating from 51% in Q3. Klarna now serves 29 million U.S. consumers, with 11% of the population having used Klarna in the last 12 months.
Lowered loss rates and AI-led efficiency expand operating leverage
„While GMV grew by 32%, provisions for credit losses declined from 0.72% of GMV in Q3 to 0.65% in Q4, further demonstrating the strength of our underwriting, refined over more than 20 years and across half a trillion USD in total volume.” – the company said.
Klarna continues to transform its cost structure through AI-enabled productivity. Since Q4 2022, revenue has grown 104% while operating expenses declined 8%. Revenue per employee reached $1.24 million, up 3.6 times since 2022 as headcount declined 49% proving that with the right technology and the right talent, you can do more with less.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
