Klarna Bank Reports Q4 2025 Financials

Klarna's global commerce network continues to grow, with GMV up 20% year-over-year

Published on Feb. 27, 2026

Got story updates? Submit your updates here. ›

Klarna Bank AB has reported its financial results for the fourth quarter of 2025, with the company's global commerce network continuing to expand. Klarna's GMV grew by 20% year-over-year after adjusting for the sale of KCO and foreign currency fluctuations, reaching SEK 1,255 billion. Total net operating income increased 11% year-over-year to SEK 28.1 billion, driven by growth in commission income and interest income. However, the company reported a loss before taxes of SEK 0.5 billion and a net loss of SEK 1.3 billion, primarily due to an increase in share-based compensation expenses and credit losses.

Why it matters

Klarna's strong performance in 2025 highlights the continued growth and importance of its global commerce network, which enables merchants to boost conversion, average order value, and customer retention. The company's ability to innovate and adapt its financial services to consumer needs has been a key driver of its success. However, the increase in credit losses and share-based compensation expenses have put pressure on Klarna's profitability, underscoring the need for the company to balance growth with operational efficiency.

The details

Klarna's commission income, primarily the fees merchants pay to boost conversion, average order value, and retention, increased 8% to SEK 22.0 billion. This was driven by higher consumer adoption and the expansion of global merchant partnerships, now exceeding 966,000. Interest income rose 29% year-over-year to SEK 9.2 billion, driven by growth in Klarna's term loan product (Fair Financing) and higher returns on liquid assets. Total operating expenses before credit losses increased 5% to SEK 20.7 billion, primarily due to higher share-based compensation expenses and foreign exchange fluctuations. Credit losses as a percentage of GMV increased from 0.49% to 0.63%, reflecting the rising share of the maturing US market and the expansion of Fair Financing.

  • Klarna Bank AB issued SEK 1.5 billion of senior unsecured bonds in June 2025.
  • Klarna Holding AB subscribed for 5,941,418 newly issued shares in Klarna Bank AB for SEK 3.0 billion in June 2025.
  • Klarna Group plc completed its initial public offering in September 2025, raising net proceeds of $169 million.
  • Klarna Holding AB subscribed for 1 newly issued share in Klarna Bank AB for SEK 2,258,110,059 in September 2025.

The players

Klarna Bank AB

An authorized bank under the supervision of the Swedish Financial Supervisory Authority, operating as a global digital bank and flexible payments provider.

Klarna Holding AB

The parent company of Klarna Bank AB and part of the Klarna Group.

Klarna Group plc

The ultimate parent company of the Klarna Group, which completed an initial public offering in September 2025.

Got photos? Submit your photos here. ›

The takeaway

Klarna's strong performance in 2025 demonstrates the continued growth and importance of its global commerce network, which enables merchants to boost conversion, average order value, and customer retention. However, the increase in credit losses and share-based compensation expenses have put pressure on the company's profitability, underscoring the need for Klarna to balance growth with operational efficiency as it works to become a personalized, trusted financial assistant for consumers.