Klarna Hits $823M Q2 Revenue, Marks Fifth Straight Quarter of Profit

Digital banking giant Klarna has released its financial performance report for the second quarter of 2025, revealing impressive results. With $823 million in revenue, the company celebrated its fifth straight quarter of operational profitability. Other notable achievements include serving 111 million active users and partnering with 790,000 merchants. Perhaps most remarkable, Klarna achieved $1 million in revenue per employee—almost triple the $369,000 figure recorded two years earlier.

CEO and co-founder Sebastian Siemiatkowski remarked: “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.”

Profits on the Rise with Expanding Operations

Klarna sustained operational profit for the fifth quarter running, with adjusted operating income soaring to $29 million—an increase of over $26 million from the prior quarter. Group Gross Merchandise Volume (GMV) grew by 19% year-over-year in Q2 and surged 24% in June alone. Revenue growth also accelerated to a 20% like-for-like increase, up from 15% in Q1.

Klarna’s growth momentum is backed by a widening merchant network—adding 202,000 new partners in the past 12 months. Noteworthy integrations include global expansion through Stripe. This quarter also saw the launch of OnePay Later Powered by Klarna at Walmart, offering Fair Financing options to a myriad of consumers. Klarna is slated to become Walmart’s exclusive term financing provider after full rollout.

Meanwhile, its partnership with eBay in the U.S. is exceeding expectations following successful European deployments. Upcoming integrations with Worldpay, Nexi, and JPMorgan Payments—whose networks collectively process over $5 trillion annually—promise further expansion.

Responsible Growth and Healthy Consumer Behavior

Klarna noted that Q2 saw a record number of transactions completed on or before their due date, with provision for credit losses remaining minimal at 0.56% of GMV. Realized losses improved from 0.48% in Q2 2024 to 0.45% in Q2 2025. The delinquency rate declined as well, reflecting strong consumer financial health.

Diving deeper:

• Pay Later (BNPL): The global delinquency rate fell to 0.89% in Q2 2025, down 14 basis points from 1.03% the previous year.
• Fair Financing: Delinquencies dropped modestly to 2.23%, compared with 2.34% in Q2 2024—an encouraging trend as this product expands across high-ticket categories like homeware and appliances.

Product Innovation and U.S. Market Expansion

During Q2, Klarna began piloting an upgraded version of the Klarna Cardin the U.S. This enhanced payment card enables consumers to pay flexibly, without revolving debt or interest—mirroring credit-card usability without the usual pitfalls. Accepted at over 150 million merchants globally, the card has already become a preferred payment option in Klarna’s most mature European markets, both online and in-store. The new card builds upon Klarna’s existing Balance accounts and evolving European savings offerings.

Source:

“Klarna grows Q2 revenue to $823m, reports continued operating profitability and highest number of on-time payments”, klarna.com, August 14, 2025.