Overview
- Q4 2025 revenue rose 38% to $1.08 billion with GMV up 32% to $38.7 billion and active consumers reaching 118 million, led by U.S. growth where GMV rose 43% and revenue 58%.
- The company reported a $26 million net loss for the quarter, citing $250 million in credit-loss provisions and higher processing and funding costs tied to its expanding lending products.
- Management guided Q1 2026 revenue to $900 million–$980 million and GMV to $32 billion–$33 billion, both below Wall Street expectations, and flagged full-year targets under consensus.
- Shares fell roughly 22%–25% on Thursday to fresh lows and slid a further ~5% on Friday afternoon, trading near $13.22 as investors reacted to weaker margins and guidance.
- Klarna’s banking push continued as banking consumers doubled to 15.8 million, Fair Financing GMV jumped 165%, and the firm highlighted AI-driven efficiency gains and a 60% rise in average employee pay since 2022.