Klarna surges on first quarter earnings beat

Investing.com -- Klarna Group plc (NYSE: KLAR) shares jumped 13.2% premarket after the digital payments provider reported first-quarter results that exceeded analyst expectations, driven by strong growth in gross merchandise volume and improved profitability.

The company posted an adjusted loss of -$0.01 per share for the quarter, significantly better than the analyst estimate of -$0.20. Revenue reached $1 billion, up 44% YoY and beating the consensus estimate of $944.43 million. Gross merchandise volume climbed 33% YoY to $33.7 billion, with U.S. GMV growing 39% and international markets up 31%.

Klarna swung to adjusted operating profit of $68 million from $3 million a year ago, while operating income turned positive at $17 million compared to a loss of -$90 million in the first quarter of 2025. Net income was $1 million versus a net loss of -$99 million in the prior-year period.

"In Q1 we executed well across all the business, driving every line of our P&L and compounding growth across our global network," said Sebastian Siemiatkowski, CEO and Co-Founder.

The company's active consumer base expanded 21% YoY to 119 million, while its merchant network surged 49% to over one million. Transaction margin dollars increased 44% YoY to $389 million. The Klarna Card reached five million active users across 16 countries, and Fair Financing GMV grew 138% YoY as consumers opted for installment options on larger purchases.

For the second quarter, Klarna issued guidance of $960 million to $1 billion in revenue. The midpoint of $980 million falls below the analyst consensus of $1.06 billion. The company expects GMV of $35.5 billion to $36.5 billion and adjusted operating income of $30 million to $50 million.

Klarna reiterated its full-year 2026 guidance and noted that revenue per employee reached nearly $1.4 million, four times the 2022 level.

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• Goldman cuts U.S. recession risk to 15% after Iran deal
• JPM identifies consumer sectors to buy for a 2H rebound