Overview
- Revenue rose 26% to $903 million, beating estimates, with gross merchandise volume reaching $32.7 billion and guidance for fourth-quarter revenue set at $1.065 billion to $1.08 billion.
- U.S. traction accelerated with GMV up 43% and revenue up 51%, while the July-launched Klarna Card surpassed 4 million users and accounted for about 15% of October transactions.
- The company posted a $95 million net loss versus a profit a year earlier as provisions for credit losses increased to $235 million, or 0.72% of GMV, tied to growth in longer-term loans and accounting timing.
- To fund loan growth, Klarna entered a two-year forward-flow agreement with Elliott Investment Management to sell up to $6.5 billion of fixed-term loans.
- Shares fell roughly 9–10% after the report and several analysts trimmed price targets, as management pressed its neobank strategy with broader distribution partnerships and expanded Apple Pay integration.