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Sep 30, 2025
Klarna Group plc Q3 2025 Earnings Report
Klarna reported record-breaking Q3 2025 results, with revenue reaching $903 million and strong performance driven by AI-powered efficiency and U.S. growth.
Key Takeaways
Klarna achieved its strongest quarter ever in Q3 2025, generating $903 million in revenue, with significant U.S. growth, a surge in Klarna Card signups, and operational efficiencies from AI. Although it posted a net loss, expectations are high for a billion-dollar revenue quarter in Q4.
Revenue hit $903 million, the highest quarterly result to date
The Klarna Card saw 4 million signups in four months, now accounting for 15% of transactions
U.S. revenue grew 51%, with GMV up 43%
Realized credit losses dropped to 0.44% of GMV, reflecting improved underwriting through AI
Revenue by Geographic Location
Forward Guidance
Klarna anticipates an even stronger Q4 2025 with revenue projected to surpass $1 billion and significant growth in GMV and transaction margins.
Positive Outlook
- Expected Q4 revenue between $1.065B and $1.080B
- GMV forecasted to reach $37.5B–$38.5B
- Transaction margin dollars projected to rise by ~$100M
- $1.2B in receivables sales expected to add capital-light flexibility
- Continued AI-led gains in operational efficiency
Challenges Ahead
- Short-term profitability lag due to upfront credit loss provisions
- Operating loss of $83 million in Q3
- Impact of KCO divestment affecting comparison metrics
- No reported improvement in EPS or net income QoQ
- Macroeconomic conditions could influence consumer lending behaviors
Historical Earnings Impact
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Avg. Return Before/After Earnings
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