Klarna swings back to profit after delivering second $1bn quarter
Klarna has sealed its first quarterly profit since its blockbuster IPO last year as the firm’s cost-cutting pays off.
The Swedish fintech unicorn booked a $17m profit in the first quarter of the year, marking a swing from a $90m loss in the prior year.
The return to the black was driven by a 44 per cent bump in revenue, hitting $1bn. It’s the second consecutive $1bn quarter for the fintech, which first sealed the milestone in the final quarter of 2025.
Total Gross Merchandise Volume (GMV) – which measures the total sales value of everything sold on a platform before any fees or costs are taken out – climbed 33 per cent to £33.7bn.
The veteran of the buy now, pay later industry has sought to transition into becoming a digital bank over the last year, but has paid the price with a litany of losses.
The firm has previously pointed to its growing fair financing product, which requires cash set aside for credit losses on day one of issuing a new banking loan. This division’s growth massively outpaced headline GMV with a 138 per cent surge year-over-year.
Klarna’s cost-cutting pays off
Klarna’s cost-cutting regime has also helped it return to profit, with revenue per employee rocketing to $1.4m – around four times higher than that in 2022.
It follows the firm’s aggressive adoption of AI, which has led to overall headcount being slashed 50 per cent since the beginning of 2022.
The company – famed for its hot pink branding – also reported a $2m gain from in restructuring efforts, a swing from an $8m expense in the previous year.
Klarna’s breaking even comes after a woeful time for its stock since its September float in New York.
Shares are down nearly 70 per cent since the IPO to $13.69 whilst its market price tag has sunk to just over $5.1bn from its $15bn float.