What’s Next for Klarna After US$1bn in Revenue?

Klarna has officially crossed the billion-dollar quarterly revenue threshold, marking a definitive shift from its origins as a buy-now-pay-later (BNPL) provider to a global digital bank.

The company’s fourth-quarter 2025 results show revenue climbing 38% to US$1.08bn,  surpassing market guidance and demonstrating the scaling power of its integrated financial services model.

The growth was underpinned by a 32% year-on-year increase in Gross Merchandise Volume (GMV), which reached US$38.7bn. This momentum was particularly pronounced in the US market, where revenue jumped 58%.

Klarna now has 29 million US consumers, meaning 11% of the American population has used the platform in the last 12 months.

From payments to personal banking

The core of the strategy involves converting casual shoppers into high-engagement banking customers. Klarna’s banking consumers – those utilising services beyond simple checkout payments, such as the Klarna Card, savings, or Fair Financing – doubled over the past year to reach 15.8 million.

Crucially for the fintech’s bottom line, these users are significantly more profitable. Data reveals that banking consumers generate US$107 in revenue per user, compared to just US$30 for the average consumer.

Sebastian Siemiatkowski, CEO & Co-Founder of Klarna, says: “We've been executing on a clear plan: acquire customers through seamless payments, then deepen those relationships into banking,”

“Q4 showed that people want a bank that works for them, not against them. The number of our banking consumers has doubled in the past year, generating more than three times the revenue of our average consumers. Consumers are moving away from predatory revolving credit and we’re building the transparent alternative they deserve.”

Challenging traditional credit

Sebastian’s focus on transparent alternatives is reflected in the rapid adoption of “Fair Financing”. This segment saw a 165% increase in GMV during Q4, accelerating even further to 193% in December alone.

With consumers pivoting away from traditional revolving credit cards, Klarna is successfully capturing that market share.

The physical Klarna Card is also seeing rapid uptake, with 4.2 million active users.

This represents an addition of 1.9 million users in just one quarter, providing Klarna with a constant presence in the consumer’s wallet, both online and on the high street.

AI and operational efficiency

Perhaps the most striking aspect of the results is the expansion of operating leverage.

While revenue has doubled since Q4 2022, operating expenses have also declined by 8%. This has been achieved through a radical overhaul of the cost structure powered by AI-enabled productivity.

The company now reports revenue per employee of US$1.24m – a 3.6-fold increase since 2022 – even as total headcount has been reduced by 49%.

This lean approach to scaling a global bank appears to be paying off in risk management as well. Despite the surge in volume, provisions for credit losses fell to 0.65% of GMV in Q4, down from 0.72% in the previous quarter.

In addition to an impressive financial run, Klarna also adds a record 115,000 merchants in the final three months of the year, bringing its total network to 966,000 partners globally.

Its full annual financial statements are expected to be published on February 26.