Klarna posts first post-IPO profit, breaks even

Klarna, the Swedish buy-now-pay-later firm, posted a $1 million net profit in the first quarter, its first quarterly profit since the company announced a $15 billion New York IPO in September. Revenue for the quarter was $1 billion, a 44% increase from the same period a year earlier.

The company reported more than 119 million active users, a 21% increase year on year. The result follows a fourth-quarter net loss that triggered a 25% decline in the share price in February.

Klarna recorded higher provisions in the quarter, including $186 million set aside for credit losses. The company attributed the provisions to adjustments in its risk management and capital allocation as it broadens its operating profile beyond merchant finance.

The firm is expanding its payments and banking services in the United States. Klarna reported about one million registrations for its U.S. debit card and said it is considering applying for a U.S. banking license.

Klarna introduced a stablecoin in November 2025 and announced plans to enter peer-to-peer payments in January 2026. The company has been adding new products and revenue streams alongside its core consumer finance operations.

Since listing last year, Klarna’s share price has fallen roughly 70% and the company’s market value sits near $5.2 billion. Management pointed to investment in new products and higher credit provisions as factors affecting recent results while revenue and user growth continued.

The company is also expanding its BNPL ecosystem through a new partnership that will bring Klarna’s payment options to Google Search, the Gemini app and Google Pay.

The Q1 result is Klarna’s first post-IPO quarterly net gain. The company continues to report higher provisions as it expands its product set and adjusts its risk approach.