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London, August 14, 2025 - Klarna, the global digital bank and flexible payments provider, today reported its financial results for the second quarter of 2025. Klarna delivered its fifth consecutive quarter of operational profitability and reached major milestones, including $823m in revenue, 111 million active Klarna consumers, 790,000 merchant partners, and $1 million in revenue per employee, nearly triple the figure from two years ago ($369,000).
Sebastian Siemiatkowski, CEO and co-founder, said: "As we celebrate 20 years of Klarna, we're hitting milestones I once only dreamt of; $823m in revenue, 111 million active Klarna consumers, 790,000 merchants, and $1 million in revenue per employee. The Klarna Card is becoming a preferred payment method across our most mature European markets, and we're now rolling out an enhanced version in the U.S. Strategic integrations with leading PSPs and our partnerships with some of the world's largest merchants are expanding Klarna's reach and accelerating our growth. At the same time, our growing consumer base remains healthy, with more customers paying on time than ever before."
Continued profitability and growth
Q2 2025 marked Klarna's fifth consecutive quarter of operational profitability, with adjusted operating income reaching $29 million, up more than $26 million from the previous quarter. Group GMV rose 19% year over year in the quarter and 24% year over year in June, while revenue growth accelerated to 20% like-for-like, up from 15% in Q1. In the U.S., Klarna saw particularly strong performance, with revenue increasing by 38% YoY.
Klarna's momentum is fueled by its expanding merchant ecosystem and growing relevance in everyday financial lives. In the past 12 months, 202,000 new merchant partners have joined Klarna's network, including strategic integrations through Stripe, now ramping up globally. As was announced earlier this year, Klarna is now powering OnePay Later at Walmart, which went live this quarter to bring Fair Financing options to millions of consumers. OnePay Later Powered by Klarna is set to become the exclusive provider of term financing at Walmart once the rollout is complete. Meanwhile, eBay expanded its partnership with Klarna to millions of U.S. consumers following multiple successful European rollouts-with the launch already outperforming early expectations, according to eBay. With additional launches expected in the coming quarters with Worldpay, Nexi, and JPMorgan Payments-whose combined networks process over $5 trillion annually-Klarna is well-positioned for further long-term growth.
State of the consumer
A record number of transactions were paid on time or early in Q2, and overall provision for credit losses remain low (0.56% of GMV), as realized losses fell from 0.48% in Q2 2024 to 0.45% in Q2 2025. Klarna's delinquency rate also dropped in the period, highlighting the healthy, stable behavior of Klarna's global consumer base.
Pay Later (BNPL): Klarna's global delinquency rate on BNPL loans dropped to 0.89% in Q2 2025, a 14 basis point improvement from 1.03% in Q2 2024-underscoring the continued strength and responsible usage of short-term credit by its customers.
Fair Financing: Delinquencies on Klarna's fixed-term product fell slightly to 2.23% in Q2 2025, down from 2.34% a year prior. This product, used for higher-value purchases over 6-12 months, continues to show stable performance as Klarna scales it across additional categories like homeware and appliances.
Additional products for everyday spending and saving
In Q2, Klarna launched the U.S. pilot of the enhanced Klarna Card, bringing Klarna's flexible functionality into consumers' pockets, without the revolving debt and interest fees of traditional credit cards. Accepted at over 150 million merchants worldwide, the card is already becoming a primary payment method for consumers across Klarna's mature European markets, both online and in-store. The Klarna Card also builds naturally on the foundation laid by our Balance accounts launched last year and our growing suite of savings products in Europe.
Notes
Unless otherwise indicated, all figures, including period-over-period changes, give effect to the disposal of KCO (completed 31st October 2024). Like-for-like changes, transaction margin dollars and adjusted operating income are non-IFRS measures. For more details, including reconciliations to the most comparable IFRS measure, see our report.
