Klarna impresses stakeholders with record-breaking Q3 results, as an AI-powered digital bank boasts $903 million in revenue and 4 million card sign-ups in four months.
Klarna, the global digital bank and flexible payments provider, today reported its first quarter in an official status of a public company and achieved record results that exceeded expert expectations.
The company’s revenue for Q3 reached $903 million, up 26 % (like-for-like) and 28 % reported year-on-year. The company also reported gross merchandise volume (GMV) of $32.7 billion (+23 % LfL), with the U.S. market leading growth (+43 % GMV in the U.S.).
The Klarna Card registered 4 million sign-ups since July, and as of October, transactions via the card accounted for 15 % of all Klarna transactions.
Furthermore, Klarna added 27 million new users and 235,000 new merchants in the quarter, reaching 850,000 merchant partners globally.
The “Fair Financing” product in the U.S. saw GMV growth of 244 % year-on-year. The company said realised losses fell to 0.44% of GMV, indicating improved underwriting and operational efficiency. Klarna expects Q4 2025 revenue of around $1.07 billion and GMV of around $38 billion.
Klarna emphasised that while accounting timing creates a short-term profitability lag (due to upfront provisions), it expects transaction margin dollars to increase by over $100 million in Q4 as revenue compounds.
Once public, firms often benefit from significant additional equity capital, which can be used to invest in growth initiatives (product development, marketing, geographic expansion), to diversify offerings (e.g., the Klarna Card), and to strengthen the corporate balance sheet.
Besides, increased investor expectations make public companies sharpen their focus on metrics like revenue growth, operational leverage, margin improvement, user/merchant acquisition, and cost control. It ultimately often results in improved performance.
