Particle.news
Download on the App Store

Klarna Returns to Profit on 44% Revenue Jump as Soft Guidance Caps Gains

A cautious Q2 outlook tests a profit-first strategy built on cost cuts and AI.

Overview

  • Klarna, which reported results Thursday, said revenue rose to $1.0 billion as gross merchandise volume reached $33.7 billion and the business swung back to operating profit.
  • Operating income came in at $17 million with adjusted operating profit at $68 million, and net income ticked up to $1 million as the adjusted per‑share loss narrowed to about one cent.
  • The company forecast Q2 revenue of $960 million to $1.0 billion and GMV of $35.5 billion to $36.5 billion, which trailed analyst expectations even as it guided to adjusted operating profit of $30 million to $50 million.
  • Management reaffirmed its full‑year view that platform volume will top $155 billion and pointed to growth in financing and card products, a 21% rise in active consumers to 119 million, and more than one million merchants.
  • Shares jumped after Thursday’s release and then eased Friday, and Needham kept a Hold rating as it cited healthier credit and cost trends but a balanced risk‑reward with the stock still below its 2025 IPO level.