AI-powered global payments and commerce network Klarna has reported a $3m adjusted operating profit for Q1 2025, a year-over-year improvement of $5m.
The company said Q1 2025 marks its fourth consecutive quarter of profitability.
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The company’s revenue rose by 15% to $701m, and its gross merchandise volume (GMV) increased by 13% to $25bn, compared to the same period last year.
In April 2025, Klarna’s active consumer count reached 100 million, marking the company’s expansion in two years, driven by the integration of Stocard users.
The Swedish firm’s merchant numbers grew by 27%, with adding 150,000 new retail partners, bringing the total to 724,000.
The company attributed this for a partnership with Stripe and forthcoming collaborations with JPMorgan Payments, Worldpay, and Nexi.
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By GlobalDataThe revenue take-rate for Klarna improved to 2.77%, a slight increase from 2.71% in the previous year, with transaction margin dollars also saw a 6% rise to $271m.
Since 2022, Klarna has reduced its workforce by around 40% while increasing the proportion of technology-focused employees from 36% to 52%.
The use of AI by 96% of its employees is claimed to be leading a 152% increase in revenue per employee since the first quarter of 2023.
In the US, Klarna’s revenue grew by 33% year-over-year.
The company secured a role as Walmart’s exclusive provider for fair financing through OnePay and collaborated with DoorDash and expanded tie up with eBay to the US.
In the UK, Klarna’s GMV increased by 35% year-over-year, with becoming a payment option at over 60,000 merchants.
Southern Europe has seen Klarna’s transaction margin dollars multiply by five times from the previous year, with GMV in Greece alone surging by 122%.
In Sweden, the use of the Klarna Card has risen by 44%, contributing to a 10% increase in purchase frequency.
Klarna co-founder and CEO Sebastian Siemiatkowski said: “The momentum is undeniable—and this is just Q1! Our AI-first strategy is driving exceptional returns, we’re outpacing competitors, our merchant network is scaling rapidly, and our next-gen products are reshaping money management for millions.”
Last month, Klarna has put its planned initial public offering on hold in response to tariffs introduced by the US administration.
