Klarna's second quarter revenue of $1.04B beat estimates while GMV grew 18% to $36.6B

Klarna reported strong financial results for the second quarter 2026, with total revenue reaching $1.042 billion, significantly exceeding the analyst estimate of $842 million. The company achieved a transition to profitability, reporting net income of $9 million and a basic EPS of $0.01, compared to a net loss of $53 million in the prior-year period. Growth was driven by an 18% increase in Gross Merchandise Volume (GMV) to $36.6 billion, with the U.S. market remaining the fastest-growing region at 27% YoY growth.

Key Highlights

• Revenue surged 27% YoY to $1.042 billion, outpacing GMV growth as the product mix shifted toward higher-yielding offerings like Fair Financing.
• Transaction margin dollars expanded 42% YoY to $446 million, representing 42.8% of revenue, up 4.5 percentage points from the prior year.
• Credit quality improved with provisions for credit losses falling to 0.52% of GMV compared to 0.56% in the second quarter 2025.
• Average revenue per active consumer (ARPAC) increased 24% to $33.7, supported by the expansion of Klarna Card and paid memberships.