Klarna Group plc

Q2 total revenue was $1.042 billion, up 27% year over year. GMV/volume was $36.6 billion, up 18% year over year. Transaction margin dollars were $446 million, up 42% year over year, and transaction margin was 42.8% of revenue, up about 450 basis points. Adjusted operating income was $91 million, up $62 million year over year; operating income was $27 million; net income was $9 million; basic diluted EPS was $0.01 versus negative $0.14 a year ago. For the full year, Klarna now guides to GMV of $149 billion to $151 billion, revenue of $4.08 billion to $4.16 billion, transaction margin dollars of $1.62 billion to $1.65 billion, and adjusted operating income of $280 million to $300 million. For Q3, guidance is GMV of $35 billion to $36 billion, revenue of $940 million to $980 million, transaction margin dollars of $340 million to $360 million, and adjusted operating income of $5 million to $15 million.

Sebastian Siemiatkowski framed the quarter as evidence that Klarna is scaling with improving economics, saying the company delivered above the high end of guidance on every line for the second straight quarter. He emphasized the strategy of measuring progress in transaction margin dollars, highlighting growth across everyday spend, Pay Later, and Fair Financing, plus rising subscriptions and the card. His tone was confident and forward-looking, with repeated references to stronger U.S. momentum, broader merchant distribution, and more monetization per dollar of volume.

Niclas Neglen focused on operating leverage and mix. He cited $1.042 billion of revenue, $596 million of transaction costs, $446 million of transaction margin dollars, $419 million of non-transaction operating expenses, $27 million of operating income, $91 million of adjusted operating income, and $9 million of net income. He said provisions were $192 million and declined to 0.52% of GMV, processing and servicing was $233 million or 0.64% of GMV, and funding cost was $171 million or 0.47% of GMV. On capital efficiency and guidance, he said the company is moving to manage substantially all new U.S. and German Fair Financing originations with intent to sell, raising full-year TMD guidance to $1.62 billion to $1.65 billion and adjusted operating income to $280 million to $300 million while keeping full-year adjusted OpEx growth around 15%.

Analysts pressed on why second-half transaction margin growth guidance appears slower than the first half; management pointed to easier comparisons, FX headwinds, and the accounting effect of the fair value change, while saying underlying TMD is still growing about 23% year over year in the back half. Several questions focused on Germany, and management said the softness is coming from weaker discretionary spending rather than competition, with the guide assuming Germany stays softer rather than recovering. Analysts also asked about Apple Upgrade, forward-flow strategy, subscriptions, and the New York-based CFO search; management said Apple is expected to be accretive over time, loans may be offloaded opportunistically, subscriptions should become a significant revenue/TMD contributor, and a New York presence matters because the U.S. is now Klarna’s largest revenue market.