Klarna Revenue Beats Estimates Amid U.S. Growth Surge, But Losses Weigh on Shares
Klarna's quarterly revenue surged 26% year-over-year to $882 million, exceeding analyst expectations. The Swedish fintech firm's U.S. expansion drove gross merchandise volume up 43% domestically and 25% globally, fueled by adoption of its Klarna Card and flexible payment options.
Despite top-line growth, investors punished the stock with a 9% drop after earnings revealed a stark reversal from profitability. Klarna posted a $95 million net loss compared to last year's $12 million profit, as aggressive U.S. market penetration continues weighing on margins.
The four million-strong Klarna Card adoption since July demonstrates American consumers' appetite for payment flexibility. This product now represents 15% of all transactions, while fair financing tools saw GMV triple year-over-year—clear indicators of shifting consumer behavior in Klarna's fastest-growing market.
