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 for Q4 was $38.7 billion, up 32% year-over-year and above guidance, with annual volume surpassing $127 billion across 26 markets.

• Active consumers reached 118 million (+28% YoY), merchants grew 42% to 966,000, and banking consumers surged 101% to 15.8 million.

• Rapid adoption of banking products, including Klarna Card and Fair Financing, drove compounding growth and higher engagement.

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

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.

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

• Adjusted operating expenses declined by 8% since 2022, while revenue grew 104%.

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

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.

• Loan sales (forward flow) to continue, supporting capital efficiency and profitability improvement.

• Forward-looking statements highlight continued focus on expanding consumer base, merchant partnerships, and disciplined cost management.