Sebastian Siemiatkowski, CEO and Co-Founding father of Swedish fintech Klarna, offers a thumbs up throughout the firm’s IPO on the New York Inventory Trade in New York Metropolis, U.S., Sept. 10, 2025.
Brendan McDermid | Reuters
Klarna topped Wall Avenue third-quarter income expectations in its first earnings report after debuting on the New York Inventory Trade in September.
Shares dropped 9%.
Here is how the corporate carried out in comparison with LSEG estimates
- Revenues: $903 million vs. $882 million anticipated
Revenues grew 26% from $706 million within the year-ago interval. The corporate reported a web lack of $95 million, or 25 cents per share, a drop from a yr in the past when it had web revenue of $12 million, or 5 cents a share.
The purchase now, pay later agency mentioned it is getting a lift from outsized U.S. progress, the place gross merchandise quantity grew 43% from a yr in the past. Gross merchandise quantity, which measures merchandise offered, rose 25% to $32.7 billion from $26.2 billion final yr.
The adoption of options such because the Klarna Card and honest financing, which provide longer installment choices for larger purchases, contributed to U.S. good points. The function presents various rates of interest and noticed gross merchandise quantity greater than triple from a yr in the past.
Since its July launch, the fintech agency mentioned its Klarna Card has reached greater than 4 million prospects and accounted for 15% of transactions by October.
CEO Sebastian Siemiatkowski mentioned honest financing has doubled the variety of customers from a yr in the past, however solely penetrated a couple of fifth of retailers. That creates “tons of alternative” for Klarna, he informed CNBC.
“We wish to be the one which helps you save time, lower your expenses, be accountable for your funds and that is clearly not essentially what we have been related to,” he mentioned, including that Klarna will proceed working to realize that status.
Klarna additionally mentioned Elliott Funding Administration agreed to purchase $6.5 billion of its honest financing loans so it will probably deal with the product’s U.S. progress.
Retailers grew 38% to 850,000 from 616,000 within the year-ago interval, however common income per lively buyer declined. Clients totaled $114 million.
For the fourth quarter, Klarna expects gross merchandise quantity to vary between $37.5 and $38.5 billion and revenues between $1.065 million and $1.08 million. Each topped FactSet estimates.
Transaction margin {dollars}, a profitability measure for its core enterprise, are forecasted to vary between $390 million and $400 million. The determine totaled $281 million within the third quarter.
In a be aware to purchasers, Financial institution of America mentioned the deal with honest financing weighed on Klarna’s anticipated transaction margin {dollars}, with the fourth quarter information in step with the road.
“Primarily based on our conversations, we expect traders stay cautious on credit-driven progress,” the financial institution mentioned.
JPMorgan referred to as fourth-quarter steerage for a “sequential improve” in transaction margins “encouraging.”
Klarna opened on the NYSE about two months in the past, after delaying its preliminary public providing plans in April as President Donald Trump’s aggressive tariff plans rattled monetary markets.
In latest weeks, shares have taken a tumble as issues mount over a possible AI bubble with stretched valuations. Worries of a slowdown in client spending have additionally grown.
Klarna shares have shed greater than one-third in worth from their highs.
Siemiatkowski mentioned the corporate is not but seeing “materials variations” in payback or spending habits as a result of microenvironment, however is monitoring the AI wave that’s slated to affect extra white collar careers.
Through the years, Klarna has guess large on synthetic intelligence. Siemiatkowski informed CNBC in Might that the know-how, together with attrition, has helped the fintech agency shrink its workforce by 40%.
He mentioned its pure attrition charge is as a lot as 20%.
Klarna is not alone. Palantir, Salesforce and Amazon have all warned that they plan to chop their workforces or gradual hiring on account of AI adoption.
Siemiatkowski mentioned AI ties into the corporate’s “customer-obsessed” mentality and has dropped the typical period of time to resolve a customer support difficulty to below two minutes.
Firms that solely use AI or robots to cope with prospects are making a “large mistake, since you wish to have a human connection,” Siemiatkowski mentioned. “There’s this super worth.”