Klarna processed $128 billion in gross merchandise volume for the year ended December 31, 2025, and reported total revenue of $3,509 million, according to its annual report as a New York Stock Exchange-listed company. The Swedish payments group ended that year with approximately 118 million active consumers, and by the second quarter of the following year more than 1.2 million merchants were live on its network.
It also booked a net loss of $273 million for 2025. Scale and profitability have moved on different clocks at Klarna, and the gap between them is the most useful thing in the filings. The Klarna statistics below come from the Form 20-F and Form 6-K that Klarna Group plc files with the SEC, and from the Financial Conduct Authority and the Consumer Financial Protection Bureau, which now measure the same lending from the outside.
Key Takeaways
- Klarna reports average revenue per active consumer slipped to $29 in 2025 from $30 in 2024, a move the annual report attributes to “the transition of our former Stocard customers into our network”.
- Provisions for credit losses rose from 0.47% to 0.63% of GMV between 2024 and 2025, after the Form 20-F shows them growing as a percentage of GMV from 0.38% to 0.47% the year before.
- Klarna reports United States revenue of $1,243 million for 2025, against $609 million in 2023.
- Full-time headcount fell to approximately 2,831 from 4,352 over two years, which Klarna attributes to an AI-led efficiency program.
- Klarna reported that 97% of all its 2025 transactions were interest-free.
- The Consumer Financial Protection Bureau, drawing on its 2022 Making Ends Meet survey data, found that eighteen percent of Buy Now, Pay Later borrowers had at least one reported delinquency in another account, compared to 7% of non-borrowers.
Editor’s Choice
- Gross merchandise volume of $128 billion in 2025.
- Total revenue of $3,509 million in 2025.
- Approximately 118 million active Klarna consumers at the end of 2025.
- Second-quarter 2026 GMV of $36.6 billion, up 18% year over year.
- Second-quarter 2026 revenue of $1.042 billion.
- Consumer deposits of $13,003 million as of December 31, 2025.
According to Klarna’s own annual report, credit-loss provisioning grew as a percentage of GMV from 0.38% to 0.47% across 2023 and 2024, then rose from 0.47% to 0.63% of GMV in 2025, while the June 2026 quarter printed 0.52% of GMV. The direction of Klarna’s credit trend depends entirely on which window a reader picks, and the company publishes both.
Klarna Statistics for GMV and Revenue
- Klarna reports gross merchandise volume of $127,862 million for 2025, a 22% year-over-year change on the annual report’s own basis.
- Klarna reports that total revenue grew 25% year over year, or 24% on a like-for-like basis.
- The annual report shows take rate increased from 2.5% in 2023 to 2.7% in 2025 as the product mix shifted toward financing.
- Klarna reports an average order value of $103 in the year ended December 31, 2025, up 2% from 2023.
- Klarna’s transaction margin dollars, a non-IFRS measure, equaled $1,238 million in 2025, stable year over year.
- Klarna reports adjusted operating profit of $65 million, a $116 million reduction year over year, a non-IFRS measure.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| GMV ($ millions) | 92,465 | 105,015 | 127,862 |
| Total revenue ($ millions) | 2,276 | 2,811 | 3,509 |
| Active Klarna consumers (millions) | 84 | 93 | 118 |
| ARPAC ($) | 27 | 30 | 29 |
| Transaction margin dollars ($ millions) | 1,085 | 1,217 | 1,238 |
| Net profit (loss) ($ millions) | (244) | 21 | (273) |
Source: Klarna Group plc Form 20-F, year ended December 31, 2025
The full Form 20-F is the reason every annual figure on this page traces to an audited filing rather than to a market estimate.
| Metric | Q2 2025 | Q2 2026 | Year-over-year |
|---|---|---|---|
| GMV ($ millions) | 31,200 | 36,600 | 18% |
| Total revenue ($ millions) | 823 | 1,042 | 27% |
| Transaction margin dollars ($ millions) | 315 | 446 | 42% |
| Adjusted operating income ($ millions) | 29 | 91 | 214% |
| Operating profit (loss) ($ millions) | (46) | 27 | n.m. |
| Net income (loss) ($ millions) | (53) | 9 | n.m. |
| Provision for credit losses (% of GMV) | 0.56 | 0.52 | (4) bps |
Source: Klarna Group plc Form 6-K, Q2 2026 earnings release, August 2026
Klarna Revenue by Country
- Klarna reports United States revenue of $1,243 million in 2025, $850 million in 2024, and $609 million in 2023.
- Germany contributed $848 million in 2025, up from $620 million in 2023.
- United Kingdom revenue reached $442 million in 2025.
- All other markets combined produced $976 million, and the filing states that no individual country within other countries contributed more than 10% of revenues in 2025.
- In the second quarter of 2026, U.S. GMV increased 27% to $7.9 billion, taking the U.S. share of GMV up 2 percentage points year over year to 22%.
- Klarna attributes its guidance cut partly to “a more measured view of primarily German volumes, our largest market by volume, consistent with reported trend across German retail”, alongside roughly $600 million in currency translation.
The revenue map and the volume map no longer point the same way. America now pays Klarna the most while Germany still sends it the most goods to finance, and the guidance cut announced in August leaned on exactly that split, trimming the outlook on German volumes while leaving the U.S. assumptions unchanged. That divergence also shows up in point-of-sale payment volumes across the two regions.
Recent Developments
- July 1, 2026: Klarna announced a court ruling in PriceRunner’s favor, awarding $1.97 billion in damages and accrued interest in an antitrust case brought by PriceRunner against Google, while stating that any award remains subject to appeal by Google.
- July 6, 2026: The company submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to establish Klarna Bank USA, a proposed Utah-chartered industrial bank.
- July 15, 2026: UK rules bringing deferred payment credit under Financial Conduct Authority supervision came into force, and the government press notice cites Klarna as an example of a provider offering the products those rules cover.
- July 28, 2026: Klarna said it would be the leasing provider behind the Apple Upgrade program, a new hardware leasing option available from Apple in the United States.
- August 2026: Klarna reported that J.P. Morgan Payments, the largest U.S. merchant acquirer, processing $2.6 trillion in payments annually, went live during the month, switching Klarna on across its merchant base.
- August 18, 2026: Klarna reported second-quarter results and revised full-year 2026 GMV guidance to $149 billion to $151 billion, from greater than $155 billion previously.
Klarna Active Consumers and Merchant Network
- Active Klarna consumers increased 28% year over year, reaching approximately 118 million in 2025.
- Klarna attributes that growth partly to “the successful conversion of Stocard users into our active Klarna consumers”, alongside growth in the United States and the United Kingdom.
- On average, 46 million of the active consumers opened the Klarna app every month in 2025.
- Average revenue per active consumer was $29 in 2025 against $30 in 2024 and $27 in 2023.
- In the second quarter of 2026, the company reported average revenue per active consumer up 24% year over year.
- Merchants offering Fair Financing increased to 256,000, or 21% of merchants, up from 225,000 last quarter and 124,000 in Q2’25.
- The annual report states that the same count has doubled in two years, from approximately 61,000 merchants in December 2023 to 194,000 merchants in December 2025.
- Klarna Memberships reached 2 million paying subscribers, eight times the number a year ago, with subscription revenue up more than 600%.
- The Klarna Card reached 6.5 million active users across 16 countries, up from 1.3 million a year ago.
Two engagement numbers point in opposite directions, and both are Klarna’s own. The quarterly release leads with revenue per active consumer up 24%; the audited annual report shows the same metric down 3% across 2025, with a footnote crediting the Stocard migration for swelling the consumer count faster than the revenue it carried. Neither figure is wrong. Reading only one of them is. Merchants that switch Klarna on through a payment service provider now arrive in blocks rather than one integration at a time, which is a different acquisition curve from the one the earlier cohorts followed.
Klarna GMV by Payment Product
- Pay Later, Klarna’s charge-card equivalent, grew 13% and accounts for 77% of total GMV in the second quarter of 2026.
- Fair Financing, the point-of-sale installment product, grew 82% year over year to $4.7 billion and represents 13% of GMV.
- Pay in Full contributed $3.6 billion, representing 10% of the mix.
- Across the full year, 97% of all transactions in 2025 were interest-free.
- In the fourth quarter of 2025, Pay Later represented 77% of total transactions and 78% of GMV.
- Category mix is shifting: Events and Services reached 14% of GMV, from 9% in Q2’25, while Apparel and accessories’ share fell to 34%, from 41%.
The product split matters more than the headline volume, because interest-free instalments and longer-term financing carry different loss profiles. Readers comparing the two models against revolving credit will find the wider picture in how BNPL stacks up against credit cards.
Klarna Credit Loss Provisions
- Klarna reports provisions for credit losses of $794 million in 2025, $495 million in 2024, and $353 million in 2023.
- As a share of volume, provisions rose from 0.47% to 0.63% of GMV between 2024 and 2025.
- The prior step was similar: provisions increased by $143 million, or 40%, growing as a percentage of GMV from 0.38% to 0.47% between 2023 and 2024.
- Klarna attributes the 2025 increase to “changes in product mix, in particular growth in our Fair Financing product, which has higher upfront provisions in comparison to our Pay Later product”.
- In the second quarter of 2026, provisions were 0.52% of GMV versus 0.56% of GMV in Q2 2025.
- Klarna reported that Fair Financing delinquencies 30+ days past due fell approximately 20 basis points quarter over quarter, and Pay Later improved approximately 30 basis points on the same measure, comparing each vintage at the same point in its life.
- Since inception, the company says it has underwritten over $0.7 trillion, with provision for credit losses of around 0.6%.
By the numbers: Klarna’s annual provisioning moved from 0.38% of GMV in 2023 to 0.47% in 2024 and 0.63% in 2025, per its Form 20-F, while the June 2026 quarter printed 0.52%. The annual series and the quarterly series disagree on direction, and the company reports both.
Why are people not paying Klarna back?
One of Klarna’s measures of missed payments is provisioning, and it says the recent direction is downward: “delinquency rates continue to trend down as our underwriting models mature”. The company also notes the credit box is deliberate, and that it would “rather protect our risk-adjusted returns than chase marginal volume”.
Klarna Loan Duration and Receivables
- The weighted average loan life was approximately 39 days in 2025, including 27 days for Pay Later and 109 days for Fair Financing.
- Average consumer receivables were $9.3 billion, compared to GMV of $128 billion across the same year.
- Klarna funded 90% of its lending activities by utilizing consumer deposits in 2025.
- Average cost of funding was approximately 2.4% over that year.
- The company describes a book that turns over about 10 times per year, with an average consumer balance of $124.
| Measure | Value | Period |
|---|---|---|
| Weighted average loan life, blended | 39 days | Year ended December 31, 2025 |
| Weighted average loan life, Pay Later | 27 days | Year ended December 31, 2025 |
| Weighted average loan life, Fair Financing | 109 days | Year ended December 31, 2025 |
| Average consumer receivables | $9.3 billion | Year ended December 31, 2025 |
| Average consumer balance | $124 | Quarter ended June 30, 2026 |
| Average cost of funding | 2.4% | Year ended December 31, 2025 |
Source: Klarna Group plc Form 20-F 2025 and Q2 2026 earnings release
A 39-day average loan life is the single most underrated number in the filings. It means the balance sheet at any moment holds a fraction of the annual volume, so a credit shock reprices fast in both directions, and it explains why Klarna can change underwriting policy and see the result inside one quarter. Comparable BNPL loan-book detail sits in Affirm’s reported loan volumes.
Klarna Transaction Margin by Region
- Transaction margin dollars reached $446 million, up 42% year over year in the second quarter of 2026.
- Klarna reports U.S. transaction margin dollars of $88 million, up 126% year over year, more than three times the pace of U.S. revenue growth of 37%.
- That moved the U.S. margin from 14% of revenue a year ago to 23% this quarter.
- Outside the United States, transaction margin dollars reached $358 million, up 30%, at a 54% margin.
- Klarna says its most established markets run at approximately 60% transaction margin.
- Transaction costs were $596 million, up 17% year over year, which the company notes sits below revenue growth.
| Quarter | United States ($ millions) | Global excluding United States ($ millions) |
|---|---|---|
| Q2 2025 | 39 | 276 |
| Q3 2025 | 17 | 263 |
| Q4 2025 | 64 | 308 |
| Q1 2026 | 106 | 283 |
| Q2 2026 | 88 | 358 |
Source: Klarna Group plc Q2 2026 earnings release, five quarters to June 30, 2026
Transaction margin dollars is a non-IFRS measure, defined by Klarna as total revenue less processing and servicing costs, provisions for credit losses, and funding costs, so it is not comparable across companies without adjustment.
Klarna Quarterly Profitability
- Klarna reports net income of $9 million for the second quarter of 2026, reversing a net loss in the same quarter of 2025.
- Operating income reached $27 million, against a loss in the year-earlier quarter.
- Adjusted operating income, a non-IFRS measure, was $91 million, up 214% year over year.
- Earnings per share were $0.01 versus a loss per share of $0.14 in Q2 2025.
- Across the full year 2025, the group still recorded an operating loss of $230 million and a net loss of $273 million for 2025.
- Klarna guided full-year 2026 adjusted operating income to $280 million to $300 million, at 6.9% to 7.2% of revenue.
| Quarter | Net income (loss), $ millions |
|---|---|
| Q2 2025 | -53 |
| Q3 2025 | -95 |
| Q4 2025 | -26 |
| Q1 2026 | 1 |
| Q2 2026 | 9 |
Source: Klarna Group plc Q2 2026 earnings release, five quarters to June 30, 2026
Klarna Consumer Deposits and Funding
- Klarna reports consumer deposits of $13,003 million as of December 31, 2025, against $9,510 million a year earlier.
- Germany supplied $10,209 million of that balance, with the Netherlands next at $1,774 million.
- Sweden contributed $643 million, down from $1,114 million in 2023.
- The filing states that approximately 95% of deposits were covered by the Guarantee Scheme at the end of 2025, administered by the Swedish National Debt Office.
- Klarna states, “We do not collect any time deposits in the United States, and as such, our deposits are not subject to the FDIC insurance limits”.
- At the half-year point, the company reported “$11.7 billion of customer deposits, representing 88% of our funding”.
The takeaway: Klarna’s funding is a German retail deposit book wearing a Swedish banking licence. Germany alone supplied $10,209 million of the $13,003 million total at the end of 2025, and approximately 95% of the balance sat under the Swedish Deposit Guarantee Scheme rather than FDIC cover.
Klarna Headcount and Revenue per Employee
- Full-time employees numbered approximately 2,831, 3,422, and 4,352 at the end of 2025, 2024, and 2023, respectively.
- Klarna states the reduction “resulted from our strategic decision to reduce our overall headcount and drive operational efficiency by leveraging AI in our business”.
- The company adds that it expects the number of employees to continue to decrease in future periods.
- Engineering and data science accounted for over 1,500 of the positions, or approximately 53% of the entire organization at the end of 2025.
- Average annual revenue per employee at period end increased from approximately $344,000 in 2022 to approximately $1,240,000 in 2025.
| Measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Full-time employees (approximate) | 4,352 | 3,422 | 2,831 |
| Total revenue ($ millions) | 2,276 | 2,811 | 3,509 |
| Average annual revenue per employee (approximate) | n/a | n/a | $1,240,000 |
Source: Klarna Group plc Form 20-F, years ended December 31, 2023 to 2025
Who Uses BNPL, According to Regulators
- The CFPB found that eighteen percent of Buy Now, Pay Later borrowers had at least one reported delinquency in another account, compared to 7% of non-borrowers.
- Delinquency rates were substantially higher for credit (9%) and retail cards (8%) among Buy Now, Pay Later borrowers compared to non-borrowers (3% and 1%, respectively).
- Borrowers also typically had lower credit scores than non-borrowers, with the average borrower score in the sub-prime band and the average non-borrower score near-prime.
- Overall, 17% of consumers with a credit record used a Buy Now, Pay Later loan in the year prior to the survey, which drew on 2022 data.
- The bureau states its report cannot distinguish whether Buy Now, Pay Later usage leads to more delinquencies on other obligations or whether consumers who are already in distress are more likely to use Buy Now, Pay Later loans.
- The FCA reached a similar limit, finding UK users almost twice as likely to be in serious financial distress compared to the wider UK population but no consistent evidence that DPC borrowing itself causes medium-term indebtedness on other credit products.
| Measure | BNPL borrowers | Non-borrowers |
|---|---|---|
| At least one reported delinquency in another account | 18% | 7% |
| Delinquent on a credit card | 9% | 3% |
| Delinquent on a retail card | 8% | 1% |
| Holds a retail account | 62% | 44% |
| Holds a personal loan | 32% | 13% |
| Holds a student loan | 33% | 17% |
Source: Consumer Financial Protection Bureau, Consumer Use of Buy Now, Pay Later, 2022 Making Ends Meet survey data
Worth noting: Both regulators stop short of blaming the product. The CFPB says its data cannot separate cause from selection, and FCA Occasional Paper 69 found some evidence that DPC borrowing modestly increases future DPC missed payments while finding none for wider arrears. That distinction is doing a lot of work.
The bureau also measures the market from the supply side. Its Buy Now, Pay Later market report uses data provided by six large BNPL companies and covers late fees and charge-off rates, though the underlying document was not retrievable at the time of writing, so no figure from it appears here, and none is attributed to Klarna. Broader context on borrowing capacity sits in US consumer debt totals.
What UK Regulation Changes for Klarna
- From 15 July 2026, lenders who offer a DPC agreement to finance the purchase of goods or services from a merchant came under FCA regulation.
- The FCA reports that DPC lending has grown from £0.06 billion in 2017 to over £13 billion in 2024.
- The Government acted first, and the FCA records that “on 14 July 2025, the Government legislated to bring DPC lending under our regulation”.
- Under the new rules, providers must carry out affordability checks before offering credit.
- Consumers also gain access to the Financial Ombudsman Service, and the government said anyone in difficulty would be directed towards debt advice and support first, rather than being immediately handed to a debt collector.
- The FCA’s stated aim is that borrowers will miss fewer repayments and consequently be charged fewer late fees.
The commencement notice is published in full on gov.uk, and it cites Klarna as an example of a provider offering the products those rules cover. Regulation arriving in a company’s largest European growth corridor at the same moment it is applying for a US bank charter is a genuine test of whether the compliance cost is fixed or scales with volume. The filings do not yet answer that. Payment platforms carrying Klarna into new merchants, including Adyen’s merchant-acquiring footprint, sit on the other side of that same perimeter.
What is the downside to using Klarna?
The measurable downsides sit in the data rather than in the marketing. Regulators on both sides of the Atlantic find that people who use Buy Now, Pay Later (BNPL) products are more financially stretched than those who do not. The CFPB records delinquency on another account among eighteen percent of borrowers against 7% of non-borrowers, and the FCA finds UK users almost twice as likely to be in serious financial distress compared to the wider UK population. Neither regulator establishes that the product caused those outcomes, and both say so explicitly.
Klarna’s own disclosure adds a second consideration: 97% of transactions in 2025 were interest-free, which means the remaining slice carries interest. Fair Financing is the product line that carries it.
Will Klarna show up on my credit report?
The filings reviewed for this article do not set out a credit-reporting policy, so the honest answer is that it depends on the market and the product, and the position is changing. In the United Kingdom, deferred payment credit now sits inside the regulated perimeter, and the Economic Secretary to the Treasury, quoted in the government’s commencement notice, named the Financial Ombudsman Service as the route for a consumer whose credit file is wrongly marked.
That wording implies UK deferred payment credit agreements can appear on a credit file. In the United States, the CFPB’s market work covers charge-off rates across six large BNPL providers.
Conclusion
Klarna’s public filings put $128 billion in gross merchandise volume and total revenue of $3,509 million against a net loss of $273 million. The company then reported net income of $1 million in the first quarter and $9 million in the second, while GMV reached $36.6 billion in that June quarter alone. The credit trend depends on the window: provisioning climbed from 0.38% of GMV in 2023 to 0.63% in 2025, then printed 0.52% in the latest quarter. Both figures are the company’s own.
What the filings cannot settle is the question regulators keep asking. The CFPB and the FCA both find that people using these products are more financially stretched than people who do not, and both decline to say the product caused it. With UK supervision now live, a Utah bank charter application pending, and full-year GMV guidance revised to $149 billion to $151 billion, from greater than $155 billion, the next four quarters will produce the first data set where Klarna’s growth and its supervision are measured on the same clock.