Quarterly pre-tax losses at Klarna more than doubled year-on-year, according to financial results published on Thursday, despite a 25% increase in revenue.
According to results released today, Klarna is making a pre-tax loss of $46m for the second quarter of this year, compared to $19m in the same time period last year. Revenue grew from $661m in Q2 2024 to $823m in Q2 2025.
Founded in 2005, Klarna made its name with its buy-now-pay-later (BNPL) product, which enables shoppers to delay or split payments. More recently, the fintech has made efforts to expand beyond BNPL, pushing into banking services such as debit cards and cashback.
Last month, Klarna also obtained authorisation to operate as an Electronic Money Institution (EMI) in the UK, enabling the fintech’s customers to hold and manage money in a Klarna account.
Klarna’s topline was impacted by the growing money the company’s been putting aside in case of potential credit losses, which rose by 64% from $106m to $174m. Credit losses in the period remained low, however, at just over half a percentage point of gross merchandise volume.
“It’s important to clarify that a rise in provision for credit losses in absolute terms does not mean more people are unable to pay us back,” says Klarna CEO Sebastian Siemiatkowski. “In fact, the opposite is true — Klarna’s delinquency rates continue to fall.”
The financial results follow reports that Klarna is once again readying efforts to go public in September after market turbulence triggered by Donald Trump’s tariff regime derailed previous plans.
