Klarna reported $1.08 billion in revenue for the fourth quarter of 2025. This 38% year-over-year increase surpassed analyst estimates. Gross Merchandise Volume rose 32% to $38.7 billion. The U.S. market drove results with a 58% surge in volume.
The company continues its transformation into a digital bank. Active banking consumers doubled to 15.8 million. However, upfront provisions for expanding loan products deferred profitability during the quarter.
Morgan Stanley reduced its price target on the stock ahead of the report. Analysts cited concerns regarding U.S. execution and an upcoming lock-up expiry. Shares declined in pre-market trading as investors assessed the recently listed fintech’s performance.