Klarna (KLAR) Q3 earnings report 2025

Klarna Rising to the top of Wall Street third quarter income expectations first earnings report After debuting on the New York Stock Exchange in September.

Shares fell 9 percent.

Here’s how the company performed compared to LSEG forecasts:

• Revenues: 903 million dollars, while the expectation was 882 million dollars

Revenues increased 26% from $706 million in the same period a year ago. The company reported a net loss of $95 million, down from a year ago when it had net income of $12 million.

The buy now, pay later firm said it was getting a boost from big growth in the US, where gross merchandise volume rose 43% from a year ago. Gross merchandise volume, which measures goods sold, rose 25% to $32.7 billion from $26.2 billion last year.

The adoption of features such as the Klarna Card and fair financing, which offers longer installment options for larger purchases, contributed to the US gains. The feature offers varying interest rates and has more than tripled gross product volume from a year ago.

Since its launch in July, the Klarna Card has reached more than four million customers, accounting for 15% of transactions by October, the fintech firm said.

CEO Sebastian Siemiatkowski said fair financing had doubled the number of users from a year ago, but only penetrated a fifth of traders. He told CNBC that this creates “tons of opportunity” for Klarna.

“We want to be the person that helps you save time, save you money, keep control of your finances, and frankly that’s not what we’re associated with,” he said, adding that Klarna will continue to work to earn that reputation.

Klarna is also owned by Elliott Investment Management. Agreed on $6.5 billion acquisition increased fair financing credits so it could focus on the product’s growth in the US.

The number of sellers increased 38% to 850,000 from 616,000 in the same period a year ago, but average revenue per active customer fell.

Klarna expects fourth-quarter gross product volume to range between $37.5 and $38.5 billion, with revenues to range between $1.065 million and $1.08 million.

The operating margin dollar, which measures the profitability of the core business, is estimated to range between $390 million and $400 million. This figure reached 281 million dollars in the third quarter

Klarna launched on the NYSE about two months ago after postponing its initial public offering plans in April as President Donald Trump’s aggressive tariff plans rattled financial markets.

Stocks have tumbled in recent weeks as concerns grow about a potential AI bubble that has strained valuations. Concerns about a slowdown in consumer spending have also increased.

Klarna shares are down more than a third from their highs.

Siemiatkowski said the company hasn’t yet seen “material differences” in payback or spending habits due to the microenvironment, but is watching the AI ​​wave that is set to impact more white-collar careers.

Over the years, Klarna has invested heavily in AI. Technology, along with attrition, helped the fintech firm reduce its workforce by 40%, Siemiatkowski told CNBC in May.

The natural attrition rate is about 20%, he said.

Klarna is not alone. palantir, sales force And Amazon all have warned that they plan to reduce workforces or slow hiring due to AI adoption.

Siemiatkowski said AI ties into the company’s “customer-obsessed” mindset and has reduced the average time it takes to resolve a customer service issue to under two minutes.

Siemiatkowski said companies that use only artificial intelligence or robots to deal with customers are “making a big mistake, because you want to make a human connection.” “There is tremendous value.”