Klarna Group plc

Q1 2026 revenue was just over $1.0 billion, up 44% year over year; GMV was $33.7 billion, up 33%; transaction margin dollars were $389 million, up 44%; adjusted operating income was $68 million versus $3 million a year ago; operating income was $17 million versus a $90 million loss; net income was $1 million versus a $100 million year-over-year improvement; EPS improved from negative $0.26 to negative $0.01. Transaction costs were $623 million, up 45%; provision for credit losses was $186 million, or 55 basis points of GMV; non-transaction-related operating expenses were $373 million, up 3%. U.S. revenue grew 67% to $399 million; ex-U.S. revenue grew 33% to $613 million. By product, Pay Later GMV grew 29% and Fair Financing reached $4.1 billion, up 138%. For Q2 2026, guidance is GMV of $35.5 billion to $36.5 billion, revenue of $960 million to $1 billion, TMD of $375 million to $395 million, and adjusted operating income of $30 million to $50 million. Full-year 2026 guidance was reiterated: GMV greater than $155 billion, revenue greater than 2.8% of GMV, TMD greater than 1.04% of GMV, and adjusted operating income greater than 6.9% of revenue.

Sebastian Siemiatkowski framed the quarter as validation of Klarna’s strategy: being the default PSP partner across markets with a broad payment suite, staying spend-centric rather than lend-centric, and using deposits to fund originations. He said the card crossing 5 million active users and the merchant network reaching 1.07 million show the model is becoming more embedded in everyday spend. His tone was confident and strategic, emphasizing that the company’s priorities for the rest of 2026 are the same three areas it just executed on.

Niclas Neglen said the quarter showed strong operating leverage and that the company is on track for full-year guidance. He pointed to GMV of $33.7 billion, revenue just over $1 billion, TMD of $389 million, adjusted operating income of $68 million, and only 3% growth in non-transaction operating expenses. He also highlighted credit quality, with provisions at $186 million or 55 basis points of GMV, U.S. 30+ days past due improving sequentially, and 91% consumer deposits with an average duration of 270 days supporting funding stability. He reiterated that 2026 guidance is unchanged and said TMD should grow faster than revenue over the year as Fair Financing matures.

Analysts focused on Fair Financing growth, U.S. profitability, credit quality, merchant wins, and why second-half growth may look slower versus the strong first quarter. Management said the U.S. surprise was driven by stronger-than-expected volumes, a later asset sale that lifted interest income, and better-than-expected collections, especially in the U.S. On credit, Niclas said 30- and 60-day delinquency trends are improving in the U.S. and that cumulative net charge-offs are in line with expectations after model adjustments for the second-half 2025 cohorts. On merchant and PSP expansion, Sebastian said Klarna often wins because its payment methods are relevant across merchant types and that it tends to gain higher checkout share when side-by-side with other BNPL providers.