Klarna Posts Strong Revenue in Q3 2025 But Posts Net Loss Amid Growth Push

Swedish fintech giant Klarna Group plc (NYSE: KLAR) reported third‑quarter 2025 revenue of US$903 million, representing a 26 % increase year‑on‑year and topping analyst expectations of around US$882 million. The company’s gross merchandise volume (GMV) reached US$32.7 billion, up 23 % globally and 43 % in the U.S., where revenue grew 51 %. Despite the strong top‑line, Klarna posted a net loss of US$95 million in the quarter, compared to a US$12 million profit in the same period last year. The swing into negative territory reflects higher provisions related to its growing “Fair Financing” loan portfolio and the impact of U.S. accounting standards after its recent IPO. Klarna continues its transformation from a “buy now, pay later” specialist into a broader digital‑banking player, with the newly launched Klarna Card already amassing over 4 million sign‑ups since July and accounting for around 15 % of all transactions. Looking ahead, the company expects Q4 2025 revenue of between US$1.065 billion and US$1.080 billion, with transaction margin dollars projected between US$390 million and US$400 million. CEO Sebastian Siemiatkowski highlighted that AI‑driven enhancements to underwriting and product rollout are helping improve efficiency, yet cautioned that the accounting treatment for the loan book creates a short‑term drag on profitability. In summary: Revenue is climbing and strategic initiatives are gaining momentum, but profitability remains elusive as Klarna invests heavily into growth, scale and expansion into conventional credit. #KlarnaQ3 #FintechEarnings #DigitalBanking #BuyNowPayLater #SlimScan #GrowthStocks #CANSLIM