Klarna shares fell in early trading after the fintech lender reported a wider annual loss, even as revenue and user growth accelerated across its platform.
The stock was recently indicated at 12.12, down 0.44 points or 3.50% from the previous close of 12.56. The move came after Klarna released full-year 2025 results that highlighted strong top-line expansion but renewed pressure from rising credit provisions.
Revenue Climbs 25% as GMV Surges
Klarna generated $127.9 billion in gross merchandise volume, up 22% year over year. Total revenue rose 25% to $3.5 billion, reflecting higher transaction volumes and increased merchant integration globally.
The company now serves 118 million active consumers, a 28% increase, while merchant partnerships expanded 42% to 966,000 retailers. Klarna continues to broaden its footprint across digital commerce, positioning itself as both a payments provider and an expanding consumer finance platform.
Adjusted operating profit reached $65 million, representing an adjusted operating margin of 1.9%, signaling progress toward operational efficiency despite a challenging credit environment.
$273 Million Net Loss Raises Investor Caution
Despite the revenue gains, Klarna posted a net loss of $273 million for 2025. Basic and diluted earnings per share came in at $(0.79) for the full year, with Q4 EPS of $(0.12).
The deterioration at the bottom line was largely driven by elevated provisions for expected credit losses. Investors have grown increasingly sensitive to repayment risk across buy now, pay later and short-term consumer credit models, particularly in an environment marked by tighter household budgets.
Market participants appeared focused less on transaction growth and more on the sustainability of earnings, given the volatility tied to credit performance.
Daily Engagement Accelerates
Klarna said daily app users climbed to 9 million, up 53% year over year, underscoring deeper engagement beyond checkout financing.
The company has been expanding into broader banking-style services, including debit cards, cashback programs and peer-to-peer transfers in select European markets. Banking customers — defined as users engaging with non-payment financial tools — reached 15.8 million in the fourth quarter, roughly doubling over the past year.
The strategy reflects management’s ambition to position Klarna as a digital banking platform rather than solely a point-of-sale installment provider.
Valuation Reset Reflects Profitability Focus
Shares remain well below their 52-week high of 39.33, compared with the lower bound of 10.84, highlighting the volatility fintech names have experienced as investors recalibrate expectations around growth and credit normalization.
While revenue expansion remains robust, equity markets are demanding clearer earnings consistency and more predictable credit performance. Klarna’s ability to balance customer growth with disciplined underwriting will likely determine near-term stock direction.
Full financial statements and supplemental materials were published through Klarna’s Investor Relations platform.
