Klarna Group (KLAR) Q1 2026 earnings summary

Executive summary

• Revenue reached $1.012 billion in Q1 2026, up 44% year-over-year, with GMV of $33.7 billion, up 33% year-over-year.

• Net income turned positive at $1 million, a $100 million improvement from the prior year, with adjusted operating profit at $68 million versus $3 million a year ago.

• Active consumers grew 21% to 119 million, and merchant partners increased 49% to over 1 million.

• Klarna Card surpassed 5 million active users globally, driving higher engagement and revenue per user.

• GMV growth was broad-based across geographies and products.

Financial highlights

• Transaction margin dollars (TMD) rose 44% to $389 million, with a 38.4% margin on revenue.

• Adjusted operating income improved by $65 million year-over-year to $68 million.

• Transaction costs increased 45% to $623 million, mainly due to scaling Financing and card products.

• Operating income swung from a $90 million loss to a $17 million profit year-over-year.

• Provision for credit losses was $186 million (0.55% of GMV), remaining stable and declining sequentially.

Outlook and guidance

• Full-year 2026 guidance reiterated: GMV >$155 billion, revenue >2.8% of GMV, TMD >1.04% of GMV, adjusted operating income >6.9% of revenue.

• Q2 2026 guidance: GMV $35.5–$36.5 billion, revenue $960 million–$1 billion, TMD $375–$395 million, adjusted operating income $30–$50 million.

• Transaction margin dollars expected to grow ~30% for the year, outpacing revenue growth.