Klarna Group plc reports strong 2025 performance with revenue growth, expanding global partnerships, and continued progress toward sustainable profitability.
Klarna Group plc has released its full-year financial results for the period ended December 31, 2025, delivering a year marked by strong growth, expanding global adoption, and continued progress toward sustainable profitability. The detailed results and supporting materials are available on the company’s Investor Relations website.
Strong Financial Performance in 2025
Klarna reported Gross Merchandise Volume (GMV) of $127.9 billion for full year 2025, representing a 22% year-over-year increase. This substantial growth reflects rising consumer demand for flexible payment solutions and expanding merchant partnerships across key global markets. GMV growth remains one of the most important indicators of Klarna’s marketplace strength, highlighting both increased transaction volume and greater average order values across its ecosystem.
Total revenue for the year reached $3.5 billion, up 25% compared to 2024, demonstrating the company’s ability to scale monetization alongside platform growth. Revenue expansion was driven by higher transaction volumes, deeper merchant integrations, increased cross-selling of financial services, and continued investment in AI-driven commerce tools.
Klarna delivered an Adjusted Operating Profit of $65 million, translating into an adjusted operating margin of 1.9%. Achieving profitability at the adjusted operating level underscores the company’s disciplined cost management strategy and improving unit economics. Over recent years, Klarna has focused heavily on operational efficiency, leveraging automation, artificial intelligence, and platform consolidation to reduce overhead while maintaining customer experience standards.
Despite the adjusted profitability milestone, the company reported a basic and diluted earnings per share (EPS) of $(0.79) for the full year 2025. In the fourth quarter, EPS stood at $(0.12), reflecting ongoing investments in growth initiatives, regulatory compliance, infrastructure modernization, and strategic market expansion. Management has indicated that long-term value creation remains the priority, balancing profitability improvements with continued ecosystem development.
Rapidly Expanding Global User Base
One of Klarna’s most significant achievements in 2025 was the continued acceleration of its consumer network. Active consumers reached 118 million globally, marking a 28% year-over-year increase. This rapid adoption demonstrates the growing mainstream acceptance of flexible payment options and Klarna’s success in positioning itself as more than just a buy-now-pay-later (BNPL) provider.
Klarna has steadily evolved into a digital financial ecosystem offering payments, shopping discovery, banking services, and AI-powered commerce tools. Its consumer app and checkout integrations provide seamless payment flexibility, allowing users to pay immediately, in installments, or over time.
The company now processes approximately 3.4 million transactions per day, reflecting both scale and strong repeat engagement. High transaction frequency indicates customer trust and habitual usage, key drivers for long-term platform sustainability.
Merchant Network Expansion
Merchant adoption also saw exceptional growth in 2025. Klarna ended the year with 966,000 merchant partners, a 42% increase compared to the prior year. This expansion demonstrates the value retailers see in Klarna’s ability to drive sales conversion, increase basket size, and improve customer loyalty.
The merchant ecosystem includes global brands and digital-first retailers across diverse sectors such as fashion, travel, electronics, and home goods. Prominent partners include companies like Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike, and Airbnb.
Through these partnerships, Klarna delivers value beyond payments. Retailers benefit from enhanced customer acquisition tools, targeted marketing campaigns, data-driven insights, and AI-based personalization that improves conversion rates. Klarna’s commerce network increasingly functions as a growth engine rather than simply a payment processor.
AI-Powered Commerce and Innovation
A defining theme of 2025 for Klarna has been its continued investment in artificial intelligence. The company has embedded AI capabilities across customer service, fraud detection, underwriting, marketing automation, and merchant analytics.
AI-driven underwriting models have improved credit decision accuracy while reducing losses. Automated customer service tools have increased response efficiency and lowered support costs. Meanwhile, AI-powered product discovery and personalized shopping recommendations have strengthened consumer engagement within the Klarna app.
These technology investments have not only enhanced user experience but also contributed to improved operating leverage. Automation and AI efficiencies were key drivers behind the company’s return to adjusted operating profitability.
Strategic Positioning as a Digital Bank
Klarna continues to position itself as a global digital bank and flexible payments provider. Its evolution reflects broader changes in consumer behavior, where shoppers expect seamless, integrated financial solutions embedded directly within their shopping journeys.
The company’s ability to operate across online and in-store environments further differentiates its offering. Consumers can use Klarna at checkout on e-commerce platforms, in physical retail locations, and through digital wallets such as Apple Pay and Google Pay. This omnichannel flexibility strengthens Klarna’s ambition to be “available everywhere for everything.”
Regulatory alignment and compliance have also been focal points in 2025, as global regulators continue refining oversight of digital lending and BNPL services. Klarna has invested significantly in governance, transparency, and consumer protection standards, reinforcing trust among users, merchants, and investors.
Path Toward Sustainable Profitability
While net income remains negative, the shift to positive adjusted operating profit marks meaningful progress. Klarna’s management has emphasized disciplined growth, cost optimization, and enhanced credit performance as key pillars moving forward.
The company’s scale advantages—118 million consumers and nearly one million merchants—create powerful network effects. As more consumers join, merchants gain greater incentive to integrate Klarna, and vice versa. This virtuous cycle enhances revenue potential while spreading fixed costs over a broader transaction base.
With revenue growing faster than operating expenses, margin expansion is expected to continue if current trends persist. Klarna’s focus on automation, AI efficiency, and responsible lending should further improve cost-to-income ratios in coming years.
