Klarna Group Q4 Earnings Call Highlights

2 weeks ago 10

MarketBeat

Mon, February 23, 2026 astatine 11:07 AM CST 7 min read

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Klarna outperformed guidance successful Q4, reporting 180 cardinal progressive consumers (+28% YoY), 966,000 merchants (+42%), GMV of $38.7 billion and gross up 38% to implicit $1 billion, portion processing implicit $127 billion successful 2025 crossed 26 markets.
Rapid lending maturation pressured near‑term profitability owed to upfront provisioning: transaction borderline dollars were $622M earlier provisions and $372M after, and a Q4 U.S. cohort illustration showed $2.5B originations with $80M successful provisions booked upfront versus $40M gross recognized.
Banking merchandise adoption and superior efficiency accelerated—card users roseate to 4.2M (+288%), deposits reached $13B, banking customers deed 15.8M (+101%), and Klarna sold astir $1.6B of loans successful Q4 (recognizing $73M gain) portion guiding for continued GMV/revenue maturation and borderline betterment into H2 2026.
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Klarna Group (NYSE:KLAR) reported what absorption described arsenic an accelerating adoption of its expanded acceptable of “banking services” successful Q4 2025, including the Klarna Card, deposit accounts, and “fair financing,” alongside its halfway bargain now, wage aboriginal (BNPL) offering. On the company’s net call, CEO Sebastian Siemiatkowski said maturation successful these products outpaced interior expectations during the quarter, portion the institution besides emphasized that accelerated lending maturation tin unit near-term reported profitability owed to upfront provisioning mechanics.

Siemiatkowski said progressive consumers reached 180 million, up 28% year-over-year, and merchants grew to 966,000, up 42%. Gross merchandise measurement (GMV) was $38.7 billion, which absorption said was supra the apical extremity of guidance. Revenue grew 38% to over $1 billion, which besides bushed guidance.

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For full-year 2025, Siemiatkowski said Klarna processed over $127 billion of measurement crossed 26 markets and three continents, positioning the concern arsenic “a slope with an exceptional network” that is expanding crossed cardinal top-line metrics.

Klarna highlighted maturation successful transaction borderline dollars earlier and aft provisions, portion acknowledging that 1 profitability metric fell abbreviated of its guidance. Siemiatkowski said transaction borderline dollars before provisions grew 31% year-over-year to $622 million. After provisions, transaction borderline dollars were $372 million, up 17% year-over-year and up 28% sequentially from Q3.