Klarna Posts First Billion-Dollar Revenue Quarter as Banking Services Drive Growth

Klarna has posted its first ever billion-dollar revenue quarter, reporting $1.08 billion in revenue for Q4 2025 — a 38% increase year-over-year — as the Swedish fintech's banking services drive rapid adoption across its 118 million global users.

The company's gross merchandise volume reached $38.7 billion in the quarter, up 32% year-over-year, while its merchant partner network expanded 42% to 966,000 participating retailers.

Banking services drive growth

Banking has emerged as Klarna's critical revenue engine. The company's banking customer base doubled to 15.8 million users over the past year, with banking customers generating three times the revenue of non-banking users — $107 per banking user compared to roughly $30 for the average consumer.

The Klarna Card continues to gain traction, with active cardholders reaching 4.2 million — up 1.9 million quarter-over-quarter. Card spending now accounts for 15% of total transactions, with in-store card usage representing 25% of US card spending.

US market acceleration

The United States led Klarna's growth with revenue up 58% year-over-year, accelerating from 51% growth in Q3. Interest-bearing loans demonstrated 193% year-over-year growth as consumers increasingly adopt Klarna's lending products beyond its traditional buy-now-pay-later offering.

Outlook

Despite the record quarter, the company posted a $26 million net loss. Investors have also flagged rising credit stress indicators, with provisions for credit losses reaching 0.65%, up from 0.53% in Q4 2024.

Klarna went public on the New York Stock Exchange in 2025 and continues to position itself as a full-service digital bank rather than solely a payments provider.