Key Takeaways
- First quarter revenue climbed 44% year-over-year to $1 billion, surpassing Wall Street’s $944–945 million forecast.
- Klarna reported a per-share loss of only 1 cent, significantly better than the anticipated 18-cent shortfall.
- Total gross merchandise volume (GMV) reached $33.7 billion, exceeding analyst projections of $32.7 billion.
- Shares of KLAR surged 5.5% to $14.44 during premarket hours — though this remains far below its IPO debut price near $45.82.
- Second quarter revenue forecast of $960 million–$1 billion fell short of Wall Street’s $1.67 billion estimate.
The Swedish fintech company posted impressive first-quarter numbers, yet investors must now balance these positive results against a disappointing forward outlook.
KLAR shares climbed 5.5% to $14.44 during Thursday’s premarket session after releasing quarterly figures. Despite this gain, the stock remains significantly underwater from the approximately $45.82 level it reached following its 2025 initial public offering debut.
First-quarter revenue reached the $1 billion milestone, representing a 44% increase from the prior-year period and exceeding analyst projections hovering around $944–945 million. These figures demonstrate genuine business acceleration.
The company’s bottom line also outperformed expectations considerably. Klarna posted a minimal 1-cent-per-share loss, dramatically better than the consensus forecast calling for an 18-cent deficit.
Operating income turned positive at $17 million, a stark reversal from the $90 million loss recorded in the year-ago quarter. This result exceeded the projected $9 million figure. Adjusted operating profit jumped to $68 million from merely $3 million twelve months earlier.
Gross merchandise volume, which measures total transaction value flowing through Klarna’s payment platform, increased 33% to reach $33.7 billion. This surpassed the estimated $32.7 billion.
Strategic Shift Toward Profitability
These results represent a deliberate strategic recalibration by company management. Following a growth-focused fourth quarter strategy — which resulted in roughly 25% of market capitalization evaporating — Klarna pivoted back toward emphasizing profitability metrics.
“It obviously became clear to us that it was important to all the shareholders that they were supportive about the growth, but they also wanted to see the bottom line growing well,” CEO Sebastian Siemiatkowski told Reuters.
Expansion in the United States market contributed significantly to quarterly performance, as Klarna continues building its North American presence.
Weak Forward Guidance Dampens Enthusiasm
Despite the impressive first-quarter performance, management issued second-quarter revenue guidance ranging from $960 million to $1 billion. Wall Street had been anticipating $1.67 billion. This substantial gap likely explains why the premarket rally remained relatively modest.
Second-quarter GMV guidance was set at $35.5 billion to $36.5 billion, also trailing the $38.1 billion consensus estimate.
Klarna’s 2025 public offering ranked among the year’s most significant listings. However, the stock has faced persistent headwinds since going public, and with Wednesday’s closing market capitalization around $9.97 billion, the company trades at a fraction of its peak valuation.
The adjusted operating profit of $68 million, up sharply from $3 million in the comparable period, demonstrates meaningful financial improvement despite ongoing challenges.
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