Klarna Group (KLAR) Q2 2025 earnings summary

Executive summary

• Achieved fifth consecutive quarter of operational profitability, with Q2 2025 revenue reaching $823 million and 111 million active consumers, up 31% year-over-year, and 790,000 merchants, up 34% year-over-year.

• GMV reached $31 billion in Q2 2025, a 19% year-over-year increase, with U.S. GMV up 37% and U.S. revenue up 38% year-over-year.

• AI-first strategy drove efficiency, achieving $1 million in revenue per employee, nearly triple from two years ago.

• Strategic partnerships with Stripe, Walmart, eBay, Worldpay, Nexi, and JPMorgan Payments are driving growth and network effects.

• Expanded merchant network by 202,000 in the past 12 months, with four of the top five U.S. merchants now partnered.

Financial highlights

• Q2 2025 total revenue: $823 million (20% YoY growth); transaction & service revenue: $604 million (17% YoY); interest income: $219 million (28% YoY).

• Adjusted operating income reached $29 million, up from $3 million in Q1 and $28 million in Q2 2024.

• Transaction margin dollars before provisions for credit losses grew 19% year-over-year to $489 million; including provisions, margins grew 4%.

• Transaction margin: 38% in Q2 2025, down from 45% in Q2 2024.

• U.S. revenue increased by 38% year-over-year in Q2 2025.

Outlook and guidance

• Additional launches with Worldpay, Nexi, and JPMorgan Payments, and expansion of Fair Financing and Klarna Card, are expected to drive future growth.

• Continued investment in AI-powered efficiency and next-generation digital financial services.