NYSE$KLAR

Klarna Group plc · Q4 2025 earnings

Q4 2025 earnings · · Before market open

Briefing

Klarna reported its first billion-dollar revenue quarter with strong GMV growth and improved credit metrics in Q4 2025.

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.

Headline financials

Total Revenue

$1.08B

No prior period
EPS (adj)

-$0.12

No prior period
Gross Merchandise Volume

$38.7B

No prior period
Active Klarna Card users

4.2M

No prior period
Fair Financing GMV

$4.5B

No prior period
Transaction margin dollars

$372M

No prior period
Total merchants

966.0K

No prior period
Merchants added in Q4

115.0K

No prior period
Provision for credit losses (% GMV)

0.7%

No prior period
Net Income

-$26M

No prior period
Operating Income

-$11M

No prior period

Revenue & EPS history

Klarna Group plc · Revenue · Quarterly

$1.08B

Q4 2025
Beat estimate in 2 of 2 quarters(100%)
ActualEstimate

Revenue by segment

Klarna Group plc · $903M total across 2 segments · Q3 2025

  • Transaction and service revenue
    $634M
  • Interest income
    $269M

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • FX fluctuations may impact reported results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

-18.1%

Avg return

Earnings day

-21.3%

Avg return

5 days after

-23.0%

Avg return

30 days after

0%

0 / 2 earnings

Positive

-9.3%

Q3 2025

Best reaction

-26.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-26.9%-26.0%-33.5%
Q3 2025-9.3%-16.7%-12.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro