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Revenue Surges and Profitability Continues
Klarna, the global digital bank and flexible payments provider, announced financial results for the second quarter of 2025, reporting revenue of $823 million and extending its streak of operational profitability to five consecutive quarters.
The company achieved adjusted operating income of $29 million, marking an increase of more than $26 million from the prior quarter. Klarna also highlighted revenue per employee of $1 million, nearly triple the $369,000 achieved two years earlier.
Strong Consumer and Merchant Growth
The company now serves 111 million active consumers worldwide, supported by a network of 790,000 merchant partners. Over the past 12 months, Klarna added 202,000 new partners, strengthening its role in global commerce.
Growth has been fueled by strategic collaborations with payment service providers and major retail partners. Klarna’s integration with Stripe is now scaling globally, and the company is powering OnePay Later at Walmart, offering financing options to millions of U.S. shoppers. Walmart plans to make Klarna the exclusive provider of term financing as the rollout expands.
At the same time, eBay extended its partnership with Klarna to millions of U.S. consumers, following earlier European launches. Partnerships with Worldpay, Nexi, and JPMorgan Payments—whose combined networks process more than $5 trillion annually—are also expected to drive momentum in the quarters ahead.
U.S. Market Shows Rapid Expansion
Klarna reported particularly strong performance in the United States. Revenue in the market increased 38% year over year, outpacing growth in other regions.
The company’s card product has become a preferred payment method in Europe and is now being introduced in the U.S. with additional features. With demand rising among American consumers and merchants, Klarna is positioning itself to compete more directly in a key payments market.
Healthy Consumer Behavior
The quarter was also marked by improved consumer payment performance. A record number of transactions were paid on time or early, while credit provisions remained low at 0.56% of gross merchandise volume (GMV).
Realized losses fell to 0.45% of GMV, down from 0.48% in the same quarter last year. Klarna’s overall delinquency rate declined as well, underscoring the stable financial behavior of its customer base.
For its “Pay Later” buy now, pay later (BNPL) product, the delinquency rate fell to 0.89% in Q2 2025 from 1.03% in Q2 2024. The company’s fixed-term financing product also showed resilience, with delinquencies dropping to 2.23% from 2.34% a year earlier. These trends highlight what the company describes as responsible use of short-term credit among its customers.
GMV and Growth Acceleration
Klarna’s group gross merchandise volume rose 19% year over year in the quarter. Growth accelerated further in June, with GMV up 24% compared with the previous year.
Revenue growth also picked up pace, reaching 20% on a like-for-like basis, compared with 15% in the first quarter of 2025. These figures demonstrate continued demand for Klarna’s services and the scalability of its model across both established and emerging markets.
CEO Reflects on 20 Years of Klarna
Chief Executive Officer and co-founder Sebastian Siemiatkowski reflected on the company’s progress as Klarna marked its 20th anniversary. He noted that milestones such as $823 million in revenue, 111 million active users, and nearly $1 million in revenue per employee were once distant goals but are now a reality.
Siemiatkowski emphasized that the Klarna Card is increasingly favored across Europe and is now rolling out in the U.S. He added that partnerships with leading payment service providers and large global merchants are accelerating growth, while consumer repayment behavior remains healthy.
