Klarna Group (KLAR) Q4 2025 earnings summary

Executive summary

• Achieved first billion-dollar revenue quarter in Q4 2025, with revenue up 38% year-over-year to $1.082 billion, surpassing guidance and reflecting robust demand and operational execution.

• GMV reached $38.7 billion, up 32% year-over-year and above guidance, with full-year GMV exceeding $127 billion across 26 markets.

• Active consumers reached 180 million, up 28% year-over-year; merchants grew 42% to 966,000, with 115,000 merchants added in Q4.

• U.S. market led growth, with revenue up 58% year-over-year and 29 million U.S. consumers served.

• Accelerated adoption of banking products, including Klarna Card and Fair Financing, with compounding consumer engagement and 15.8 million banking consumers, up 101% year-over-year.

Financial highlights

• Revenue reached $1.082 billion in Q4 2025, up 38% year-over-year and 10% sequentially, beating guidance.

• GMV totaled $38.7 billion, up 32% year-over-year and 17% sequentially, exceeding expectations.

• Transaction margin dollars before provisions grew 31% to $622 million; after provisions, $372 million, up 17% year-over-year and 28% sequentially.

• Adjusted operating income was $47 million, a notable turnaround from prior periods.

• Revenue per employee reached $1.24 million in 2025, a 3.6x increase since 2022 as headcount declined 49%.

Outlook and guidance

• 2026 guidance expects continued revenue and GMV growth in line with 2025, with transaction margin growth accelerating in the second half as fair financing cohorts mature.

• Adjusted operating income margin expected to exceed 6.9% in 2026.

• Transaction margin dollars as a percentage of GMV expected to remain broadly consistent with Q4 2025 in the near term.

• Forward-looking statements highlight growth objectives, market opportunities, and disciplined cost management, with caution regarding risks and uncertainties.