Klarna Group (KLAR) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic priorities and business model

• Focus remains on a spend-centric rather than lend-centric model, driving strategy and product development.

• Merchant network expanded to 1 million, up 49% year-over-year, with 119 million users, up 21%.

• Product breadth includes Pay Later, Fair Financing, and a card, supporting every vertical and consumer need.

• Operates in 26 markets, with significant growth in the U.S. and Europe, and a regulated banking license supporting funding.

• 90% of activities funded through deposits, providing stability and cost efficiency.

Financial performance and guidance

• Q1 revenues and transaction margin dollars both grew 44% year-over-year, with OpEx up only 3%, showing strong operating leverage.

• Achieved break-even with $1 million net income in Q1, expanding network and engagement.

• Credit metrics remain stable, with provisions for credit loss at 55 basis points on GMV, expected to hold through the year.

• GMV guidance for Q2 reflects typical seasonality, not underlying weakness.

• Full-year guidance maintained despite Q1 outperformance, citing seasonality and a focus on transaction margin dollar growth over revenue.

Geographic and product expansion

• U.S. transaction margin dollars rose to 27%, up from 6% in Q3 2025, with 11% population penetration, leaving room for growth.

• Ex-U.S. transaction margin at 46%, with established markets targeting 60% over time.

• Southern Europe and mature European markets show strong, ongoing growth, with diversified portfolios and expanding card reach.

• Fair Financing installment product drove nearly a third of growth last year, with strong unit economics and maturing cohorts.

• Klarna Card has 5.4 million users, driving 4x higher average revenue per user and significant membership fee growth.