Klarna has reached a clear profitability inflection with accelerating revenue growth and strong operating leverage. The Q2 guidance implies a slight sequential revenue dip but continued TMD growth, suggesting the Fair Financing book is maturing. Watch for the pace of Fair Financing GMV growth moderation and the ramp of JPMorgan/Worldpay partnerships as key catalysts. The stock should re-rate on sustained profitability and guidance execution.
Price Chart
Executive Summary
Klarna reported Q1 2026 results with total revenue of $1,012 million (+44% YoY), GMV of $33.7 billion (+33% YoY), and net income of $1 million versus a net loss of $99 million in Q1 2025. The company reiterated full-year 2026 guidance and issued Q2 2026 guidance of $35.5-$36.5 billion GMV and $960-$1,000 million revenue. This marks a clear inflection to profitability with accelerating top-line growth and strong operating leverage.
Key Facts
- Total revenue of $1,012 million, up 44% YoY (36% like-for-like)
- Net income of $1 million vs net loss of $99 million in Q1 2025
- Operating profit of $17 million vs operating loss of $90 million in Q1 2025
- Adjusted operating profit of $68 million vs $3 million in Q1 2025
- GMV of $33.7 billion, up 33% YoY (22% like-for-like)
- Transaction margin dollars of $389 million, up 44% YoY (34% like-for-like)
- Active consumers reached 119 million, up 21% YoY
- Merchant partners exceeded 1 million, up 49% YoY
- Provision for credit losses at 0.55% of GMV vs 0.54% in Q1 2025
- Q2 2026 guidance: GMV $35.5-$36.5 billion, revenue $960-$1,000 million, TMD $375-$395 million, adjusted operating profit $30-$50 million
Financial Impact
Revenue grew 44% YoY to $1,012 million; net income swung from -$99 million to +$1 million; adjusted operating profit rose from $3 million to $68 million.
Risk Factors
- Fair Financing GMV growth of 138% may moderate as comparables normalize, potentially slowing revenue growth
- Provision for credit losses expected to rise in Q2-Q4 due to seasonality, which could pressure margins
- Q2 revenue guidance of $960-$1,000 million implies a sequential decline from Q1's $1,012 million
- Cash flow from operations was negative $952 million in Q1, driven by balance sheet growth in consumer receivables and reverse repos
- EPS remained slightly negative at $(0.01) due to AT1 coupon payments classified in non-controlling interests
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-034877 |
| Exhibit: exhibitno992q126earnings.htm | 0001628280-26-034877 |
| Exhibit: exhibitno995financialsta.htm | 0001628280-26-034877 |
| Exhibit: exhibitno991pressrelease.htm | 0001628280-26-034877 |
| Document: form6-kxklarnagroupplcxq126.htm | 0001628280-26-034877 |
| Document: 0001628280-26-034877-index-headers.html | 0001628280-26-034877 |
| Document: 0001628280-26-034877-index.html | 0001628280-26-034877 |
| Document: 0001628280-26-034877.txt | 0001628280-26-034877 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 8w ago | Insider Buy | $14.20 $14.41 | ▲ +1.48% | ▲ +1.37% | $12.62 (−11.13%) |
Aug 18, 2026 9w ago | 6-K | $15.06 $14.27 | ▼ −5.25% | ▼ −5.04% | $12.62 (−16.20%) |
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