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Dec 31, 2025
Klarna Group plc Q4 2025 Earnings Report
Klarna reported its first billion-dollar revenue quarter with strong GMV growth and improved credit metrics in Q4 2025.
Key Takeaways
Klarna delivered record quarterly revenue of $1.082 billion and GMV of $38.7 billion in Q4 2025, driven by rapid adoption of Fair Financing and Klarna Card. U.S. growth accelerated, banking consumers doubled year-over-year, and credit loss provisions improved sequentially.
Revenue increased 38% year-over-year to $1082000000, marking the first billion-dollar quarter.
GMV rose 32% year-over-year to $38700000000, exceeding guidance.
Active Klarna Card users reached 4200000, up 1900000 quarter-over-quarter.
Provision for credit losses declined to 0.65% of GMV, improving from 0.72% in Q3.
Forward Guidance
For Q1 2026, Klarna guided GMV of $32000000000 to $33000000000 and revenue of $900000000 to $980000000, with continued growth in banking products and partnerships.
Positive Outlook
- Q1 2026 GMV expected between $32000000000 and $33000000000.
- Q1 2026 revenue guided to $900000000–$980000000.
- Adoption of Fair Financing and Klarna Card expected to remain key growth drivers.
- Expansion of default-on partnerships with Worldpay and JP Morgan Payments.
- Additional forward-flow agreements planned to support capital-light growth.
Challenges Ahead
- Transaction margin dollars growth expected to moderate due to comparables.
- Gradual merchant activation in new partnerships.
- Profitability may fluctuate due to timing of receivable offloading.
- Assumes modest declines in benchmark interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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