Klarna Reports $99M Q1 Loss (Pauses IPO Plans)
Swedish fintech Klarna reported a net loss of $99 million for the first quarter of 2025, more than doubling the $47 million loss from the same period last year.
The company attributed this increase to higher consumer credit defaults, with customer credit losses rising 17% year-over-year to $136 million.

Despite the losses, Klarna's revenue grew 15% year-over-year to $701 million, driven by a 33% increase in U.S. revenue, bolstered by partnerships with Walmart, DoorDash, and eBay.
Klarna's CEO, Sebastian Siemiatkowski, highlighted the company's focus on artificial intelligence to enhance efficiency.
He stated, "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."
CEO also shared how they were able to cut 40% of the staff in favor of AI, but then we heard the news of Klarna rehiring human employees.
Overall, the company is in trouble, but it also achieved an adjusted operating profit of $3 million, marking its fourth consecutive quarter of operational profitability.
However, Klarna (also famous as a Buy now, pay later (BNPL) company) has paused its planned U.S. IPO, citing economic uncertainty and potential tariff impacts. The company had filed for the IPO in March 2025 but decided to delay the listing amid market instability.
Klarna continues to monitor the macroeconomic environment closely and remains adaptable to changing market conditions. The company now serves 100 million active customers across 26 countries.