Slug: klarna
Date: 2026-10-07
Industry: BNPL / Shopping
Accent: #E0457B (logo tile uses Klarna pink #FFB3C7 from Simple Icons)
Status: Public (NYSE: KLAR, listed Sep 2025). Foreign private issuer reporting under IFRS in USD; fiscal year = calendar year. Figures come from the audited 2025 annual report on Form 20-F (filed Feb 26, 2026) and the unaudited Q2 2026 earnings release furnished on Form 6-K (Aug 18, 2026). Q3 2026 results had not been reported as of Oct 7, 2026.
| Metric | Value | Label | Source |
|---|---|---|---|
| GMV Q2'26 | $36.6B (+18% YoY, +15% LfL); U.S. $7.9B (+27%), 22% of GMV | FACT | Q2 release |
| GMV mix Q2'26 | Pay Later 77% (+13%); Fair Financing $4.7B, 13% (+82%); Pay in Full $3.6B, 10% | FACT | Q2 release |
| Category mix Q2'26 | Apparel & accessories 34% (41% Q2'25); Home & Electronics 20% (18%); Events & Services 14% (9%) | FACT | Q2 release |
| Revenue Q2'26 | $1,042M (+27%): transaction & service $707M; interest income $266M; gain on sale of consumer receivables $69M; take rate 2.84% (2.64%) | FACT | Q2 release |
| Transaction costs Q2'26 | $596M (+17%): processing & servicing $233M (0.64% of GMV); provision for credit losses $192M (0.52% of GMV vs 0.56%); funding costs $171M (0.47% of GMV) | FACT | Q2 release |
| TMD Q2'26 | $446M (+42%), 42.8% of revenue; U.S. TMD $88M (+126%) | FACT (non-IFRS) | Q2 release |
| IFRS opex Q2'26 | Non-transaction opex $419M (+16%): tech & product $130M; sales & marketing $128M; customer service & ops $58M; G&A $91M; D&A $12M | FACT | Q2 release |
| Profit Q2'26 | Adjusted operating income $91M (non-IFRS); operating profit $27M (vs −$46M); net income $9M (vs −$53M); EPS $0.01 | FACT | Q2 release |
| Network Q2'26 | 120M active consumers (+8%); 1,208K merchants (+54%; +133K QoQ); ARPAC $33.7 (+24%); 256K merchants offer Fair Financing | FACT | Q2 release |
| Engagement Q2'26 | Klarna Card 6.5M active users in 16 countries (1.3M a year earlier); Memberships 2M paying subscribers (8×), subscription revenue +600% | FACT | Q2 release |
| Distribution | J.P. Morgan Payments live Aug 6, 2026; Stripe + Nexi live; Adyen, Fiserv's Clover, Worldline, Worldpay expected H2'26; five PSPs across networks >$9.5T volume; Apple Upgrade program; Google Pay / Gemini; ChatGPT shopping app | FACT | Q2 release |
| Funding | Customer deposits $11.7B at Jun 30, 2026 = 88% of funding; book turns ~10×/yr; avg balance $124; ~40-day duration; >$0.7T underwritten since inception at ~0.6% provisions | FACT | Q2 release |
| Balance sheet Jun 30, 2026 | Total assets $17.77B; consumer receivables at amortized cost $8.83B; total equity $2.67B | FACT | Q2 release |
| FY2025 scale | GMV $128B; ~118M active consumers; ~966K merchants; 26 countries; ~3.4M transactions/day | FACT | 20-F |
| FY2025 P&L | Revenue $3,509M (T&S $2,500M; interest $937M; gain on sale $73M); processing $809M; provisions $794M; funding $667M; tech $486M; S&M $414M; CS&ops $207M; G&A $306M; D&A $55M; operating loss $(230)M; net loss $(273)M; TMD $1,238M (35.3%) | FACT | 20-F |
| Revenue composition 2025 | Merchant revenue 74% of T&S revenue; advertising 7% of T&S ($190M stated, 5% of total revenue); consumer service 15% of T&S, of which reminder fees 66%; interest income 27% of total revenue | FACT | 20-F |
| Credit | 97% of 2025 transactions interest-free; provision for credit losses 0.63% of GMV; avg balance $124; WAL ~39 days (Pay Later 27, Fair Financing 109) | FACT | 20-F |
| Interest policy | Since 2021, interest charged only on Fair Financing with duration of 3 months or longer; no revolving credit (company claim) | FACT | 20-F |
| Bank | Klarna Bank supervised by Swedish FSA; savings accounts in 14 countries; deposits also via Raisin | FACT | 20-F |
| Partners | Visa (Klarna Card), WebBank (U.S. Fair Financing / Klarna balance), Stripe, WooCommerce, AWS (primary cloud); $1.6B Fair Financing receivables sold in 2025 | FACT | 20-F |
| People | ~2,831 FTE at Dec 31, 2025 (3,422 in 2024; 4,352 in 2023) | FACT | 20-F |
| Markets | Germany, U.S., U.K. main revenue markets; Germany largest by volume; no merchant >10% of GMV in any major market; ~85% of Swedish adults active (company estimate) | FACT | 20-F / Q2 |
| FY2026 guidance (Aug 18) | GMV $149–151B; revenue $4.08–4.16B; TMD $1.62–1.65B; AOI $280–300M | FACT (forward-looking) | Q2 release |
| Merchant revenue 2025 | ≈$1.85B (74% × $2,500M); ≈53% of total revenue | INFERENCE | 20-F |
| FY2025 take rate | ≈2.74% ($3,509M ÷ $128B) | INFERENCE | 20-F |
Merchants pay most of the bill (merchant fees ≈74% of transaction & service revenue; 97% of 2025 transactions interest-free) → a Swedish bank funds the short loans with $11.7B of deposits (88% of funding) and a book that turns ~10× a year → PSPs (Stripe, J.P. Morgan Payments) switch Klarna on by default while the Klarna Card (6.5M users) and Memberships (2M) deepen use → Q2'26 revenue $1.042B (+27%), TMD $446M (+42%), operating profit +$27M, after a $230M operating loss in FY2025.
The lesson is "spend-centric, not lend-centric." Unlike a credit-card issuer, Klarna gets most revenue from merchants who pay for higher conversion and bigger baskets, and charges interest only on longer Fair Financing loans. Short, small balances (about $124 for ~40 days) plus cheap deposit funding keep credit and funding costs low per dollar of GMV. The risks: guidance was cut in August on soft German volumes and FX, Fair Financing growth raises credit exposure, and distribution increasingly depends on large PSP partners.
# Klarna — research brief **Slug:** klarna **Date:** 2026-10-07 **Industry:** BNPL / Shopping **Accent:** `#E0457B` (logo tile uses Klarna pink `#FFB3C7` from Simple Icons) **Status:** Public (NYSE: KLAR, listed Sep 2025). Foreign private issuer reporting under IFRS in USD; fiscal year = calendar year. Figures come from the audited 2025 annual report on Form 20-F (filed Feb 26, 2026) and the unaudited Q2 2026 earnings release furnished on Form 6-K (Aug 18, 2026). Q3 2026 results had not been reported as of Oct 7, 2026. ## Label key - **FACT** — Klarna's SEC filings (20-F, 6-K earnings release). Company descriptions or estimates inside them (e.g. "no revolving credit", "~85% of Swedish adults") are labeled FACT (company claim / estimate). - **SECONDARY** — none used on this canvas. - **INFERENCE** — teaching ratios computed from FACT figures (labeled; not reported metrics). ## Primary sources (FACT) 1. 2025 Form 20-F (filed Feb 26, 2026): https://www.sec.gov/Archives/edgar/data/2003292/000200329226000007/klar-20251231.htm 2. Q2 2026 earnings release (6-K Ex. 99.2, Aug 18, 2026): https://www.sec.gov/Archives/edgar/data/2003292/000162828026057573/q22026earningsrelease.htm 3. Q2 2026 results press release (6-K, Aug 18, 2026): https://www.sec.gov/Archives/edgar/data/2003292/000162828026057573/klarnareportssecondquart.htm ## Key figures used on canvas | Metric | Value | Label | Source | |---|---|---|---| | GMV Q2'26 | $36.6B (+18% YoY, +15% LfL); U.S. $7.9B (+27%), 22% of GMV | FACT | Q2 release | | GMV mix Q2'26 | Pay Later 77% (+13%); Fair Financing $4.7B, 13% (+82%); Pay in Full $3.6B, 10% | FACT | Q2 release | | Category mix Q2'26 | Apparel & accessories 34% (41% Q2'25); Home & Electronics 20% (18%); Events & Services 14% (9%) | FACT | Q2 release | | Revenue Q2'26 | $1,042M (+27%): transaction & service $707M; interest income $266M; gain on sale of consumer receivables $69M; take rate 2.84% (2.64%) | FACT | Q2 release | | Transaction costs Q2'26 | $596M (+17%): processing & servicing $233M (0.64% of GMV); provision for credit losses $192M (0.52% of GMV vs 0.56%); funding costs $171M (0.47% of GMV) | FACT | Q2 release | | TMD Q2'26 | $446M (+42%), 42.8% of revenue; U.S. TMD $88M (+126%) | FACT (non-IFRS) | Q2 release | | IFRS opex Q2'26 | Non-transaction opex $419M (+16%): tech & product $130M; sales & marketing $128M; customer service & ops $58M; G&A $91M; D&A $12M | FACT | Q2 release | | Profit Q2'26 | Adjusted operating income $91M (non-IFRS); operating profit $27M (vs −$46M); net income $9M (vs −$53M); EPS $0.01 | FACT | Q2 release | | Network Q2'26 | 120M active consumers (+8%); 1,208K merchants (+54%; +133K QoQ); ARPAC $33.7 (+24%); 256K merchants offer Fair Financing | FACT | Q2 release | | Engagement Q2'26 | Klarna Card 6.5M active users in 16 countries (1.3M a year earlier); Memberships 2M paying subscribers (8×), subscription revenue +600% | FACT | Q2 release | | Distribution | J.P. Morgan Payments live Aug 6, 2026; Stripe + Nexi live; Adyen, Fiserv's Clover, Worldline, Worldpay expected H2'26; five PSPs across networks >$9.5T volume; Apple Upgrade program; Google Pay / Gemini; ChatGPT shopping app | FACT | Q2 release | | Funding | Customer deposits $11.7B at Jun 30, 2026 = 88% of funding; book turns ~10×/yr; avg balance $124; ~40-day duration; >$0.7T underwritten since inception at ~0.6% provisions | FACT | Q2 release | | Balance sheet Jun 30, 2026 | Total assets $17.77B; consumer receivables at amortized cost $8.83B; total equity $2.67B | FACT | Q2 release | | FY2025 scale | GMV $128B; ~118M active consumers; ~966K merchants; 26 countries; ~3.4M transactions/day | FACT | 20-F | | FY2025 P&L | Revenue $3,509M (T&S $2,500M; interest $937M; gain on sale $73M); processing $809M; provisions $794M; funding $667M; tech $486M; S&M $414M; CS&ops $207M; G&A $306M; D&A $55M; operating loss $(230)M; net loss $(273)M; TMD $1,238M (35.3%) | FACT | 20-F | | Revenue composition 2025 | Merchant revenue 74% of T&S revenue; advertising 7% of T&S ($190M stated, 5% of total revenue); consumer service 15% of T&S, of which reminder fees 66%; interest income 27% of total revenue | FACT | 20-F | | Credit | 97% of 2025 transactions interest-free; provision for credit losses 0.63% of GMV; avg balance $124; WAL ~39 days (Pay Later 27, Fair Financing 109) | FACT | 20-F | | Interest policy | Since 2021, interest charged only on Fair Financing with duration of 3 months or longer; no revolving credit (company claim) | FACT | 20-F | | Bank | Klarna Bank supervised by Swedish FSA; savings accounts in 14 countries; deposits also via Raisin | FACT | 20-F | | Partners | Visa (Klarna Card), WebBank (U.S. Fair Financing / Klarna balance), Stripe, WooCommerce, AWS (primary cloud); $1.6B Fair Financing receivables sold in 2025 | FACT | 20-F | | People | ~2,831 FTE at Dec 31, 2025 (3,422 in 2024; 4,352 in 2023) | FACT | 20-F | | Markets | Germany, U.S., U.K. main revenue markets; Germany largest by volume; no merchant >10% of GMV in any major market; ~85% of Swedish adults active (company estimate) | FACT | 20-F / Q2 | | FY2026 guidance (Aug 18) | GMV $149–151B; revenue $4.08–4.16B; TMD $1.62–1.65B; AOI $280–300M | FACT (forward-looking) | Q2 release | | Merchant revenue 2025 | ≈$1.85B (74% × $2,500M); ≈53% of total revenue | INFERENCE | 20-F | | FY2025 take rate | ≈2.74% ($3,509M ÷ $128B) | INFERENCE | 20-F | ## Model read (teaching arc) **Merchants pay most of the bill (merchant fees ≈74% of transaction & service revenue; 97% of 2025 transactions interest-free) → a Swedish bank funds the short loans with $11.7B of deposits (88% of funding) and a book that turns ~10× a year → PSPs (Stripe, J.P. Morgan Payments) switch Klarna on by default while the Klarna Card (6.5M users) and Memberships (2M) deepen use → Q2'26 revenue $1.042B (+27%), TMD $446M (+42%), operating profit +$27M, after a $230M operating loss in FY2025.** The lesson is "spend-centric, not lend-centric." Unlike a credit-card issuer, Klarna gets most revenue from merchants who pay for higher conversion and bigger baskets, and charges interest only on longer Fair Financing loans. Short, small balances (about $124 for ~40 days) plus cheap deposit funding keep credit and funding costs low per dollar of GMV. The risks: guidance was cut in August on soft German volumes and FX, Fair Financing growth raises credit exposure, and distribution increasingly depends on large PSP partners. ## Do not invent - Q3 2026 results (not reported as of Oct 7, 2026) - Specific merchant fee rates or Fair Financing APRs - Share price, market cap, or valuation - Merchant-level concentration beyond the "no merchant >10% of GMV in any major market" disclosure