Klarna is expected to deliver its first billion dollar quarter in Q4, driven by explosive growth in the US, soaring card uptake and improved productivity from deployed artificial intelligence.
The buy now, pay later giant reported record results in its first quarter as a public company, surpassing analyst expectations.
For Q3, revenue was up by 26% over the previous year, hitting a record-high of $903 million. The firm says it attracted 27 million new users and 235,000 new merchants, reaching 850,000 in total.
Sebastian Siemiatkowski, CEO & co-founder says that he expects to exceed $1 billion in revenue in Q4 2025.
“Q3 was our strongest quarter ever — proof that our AI-driven model is working at scale, with US revenue up 51% and GMV up 43%," he says. "The Klarna Card has taken off with four million sign-ups in four months, and Fair Financing continues to gain market share. While accounting timing creates a short-term profitability lag, we expect transaction margin dollars to increase by over $100 million in Q4 as revenue compounds.”
The debit-first Klarna Card now accounts for 15% of all Klarna transactions, while another one million consumers joined Klarna’s membership programme for premium benefits without credit-card debt.
The US led Klarna’s growth with GMV +43%, revenue +51%. The company's Fair Financing product, which enables consumers to spread payments over a longer term, grew gross merchandise value by 244% in the US compared to a 139% global growth for Klarna.
Klarna is also reaping benefits from AI deployment, claiming that revenue per employee has tripled over the past two years, while operating expenses rose just two perent.