Klarna (NYSE:KLAR) posted fourth-quarter 2025 revenue of $1.082 billion, its first quarter surpassing the $1 billion mark, as strong expansion in the U.S. fueled overall growth. Revenue rose 38% year over year, ahead of company guidance, while gross merchandise volume (GMV) climbed 32% to $38.7 billion, exceeding the upper end of management’s forecast.
The United States remained a key driver, with revenue up 58% from a year earlier, accelerating from 51% growth in the prior quarter. Klarna now counts 29 million U.S. users, with 11% of the country’s population having used the platform over the past year.
The company said its strategy of converting payments users into broader banking customers continues to gain traction. The number of so-called banking consumers—those actively using Klarna’s financial services beyond payments—doubled year over year to 15.8 million. These customers generate average revenue of $107 per user, compared with $30 for the broader user base. Klarna also reported 4.2 million active Klarna Card users, up 1.9 million from the previous quarter.
“We’ve been executing on a clear plan: acquire customers through seamless payments, then deepen those relationships into banking,” said Sebastian Siemiatkowski, CEO and Co-Founder of Klarna. “The number of our banking consumers has doubled in the past year, generating more than three times the revenue of our average consumers.”
Klarna’s Fair Financing product, positioned as an alternative to traditional credit cards, posted rapid expansion, with GMV surging 165% year over year in the fourth quarter, up from 139% growth in the third quarter.
Credit metrics improved as well, with provisions for credit losses declining to 0.65% of GMV from 0.72% in the prior quarter.
Globally, Klarna reported 118 million active consumers, a 28% increase from a year earlier, and 966,000 merchant partners, up 42% year over year.