Klarna's top-line performance accelerated to 51.3% year-over-year growth in 2026Q1, while gross margins recovered to 73.7% from the 57.0% levels observed in late 2025.
| Sales/Revenue | 3.82B | 3.51B | 2.67B | 2.2B | 1.89B | 1.62B | 1.33B | 849.54M | 677.71M | 547.51M | 389.62M |
| Revenue Growth % | 50.88% | 31.61% | 21.17% | 16.58% | 16.62% | 21.42% | 56.95% | 25.36% | 23.78% | 40.53% | - |
| Cost of Goods Sold | 1.54B | 2.27B | 596M | 541M | 520M | 595.74M | 377.41M | 251.5M | 117.31M | 86.06M | 63.02M |
| COGS % of Revenue | - | 64.67% | 22.35% | 24.58% | 27.54% | 36.8% | 28.31% | 29.6% | 17.31% | 15.72% | 16.17% |
| Gross Profit | 2.28B | 1.24B | 2.07B | 1.66B | 1.37B | 1.02B | 955.93M | 598.04M | 560.4M | 461.45M | 326.6M |
| Gross Margin % | 59.71% | 35.33% | 77.65% | 75.42% | 72.46% | 63.2% | 71.69% | 70.4% | 82.69% | 84.28% | 83.83% |
| Gross Profit Growth % | - | -40.13% | 24.76% | 21.34% | 33.69% | 7.04% | 59.84% | 6.72% | 21.44% | 41.29% | - |
| Operating Expenses | 2.23B | 1.47B | 2.19B | 1.98B | 2.35B | 1.75B | 1.14B | 709.57M | 542.52M | 397.73M | 308.15M |
| OpEx % of Revenue | - | 41.82% | 82.19% | 90.1% | 124.36% | 108.23% | 85.72% | 83.52% | 80.05% | 72.64% | 79.09% |
| Selling, General & Admin | 1.56B | 720M | 609M | 651M | 851M | 1.67B | 1.06B | 649.71M | 490.97M | 357.67M | 283.83M |
| SG&A % of Revenue | - | 20.51% | 22.83% | 29.58% | 45.07% | 103.45% | 79.16% | 76.48% | 72.45% | 65.33% | 72.85% |
| Research & Development | 249M | 486M | 444M | 389M | 430M | 0 | 16.56M | 11.2M | 8.51M | 9.15M | 7.12M |
| R&D % of Revenue | - | 13.85% | 16.65% | 17.67% | 22.78% | - | 1.24% | 1.32% | 1.26% | 1.67% | 1.83% |
| Other Operating Expenses | 2M | 262M | 1.14B | 943M | 1.07B | 77.49M | 70.92M | 48.65M | 43.03M | 30.91M | 17.2M |
| Operating Income | 48M | -228M | -121M | -323M | -980M | -729.06M | -186.97M | -111.53M | 17.88M | 63.72M | 18.45M |
| Operating Margin % | 1.26% | -6.5% | -4.54% | -14.68% | -51.91% | -45.03% | -14.02% | -13.13% | 2.64% | 11.64% | 4.74% |
| Operating Income Growth % | - | -88.43% | 62.54% | 67.04% | -34.42% | -289.94% | -67.65% | -723.61% | -71.93% | 245.34% | - |
| EBITDA | 164M | -103M | 68M | -96M | -818M | -674.67M | -172.67M | -103.25M | 25.45M | 70.03M | 23.73M |
| EBITDA Margin % | 4.29% | -2.93% | 2.55% | -4.36% | -43.33% | -41.67% | -12.95% | -12.15% | 3.76% | 12.79% | 6.09% |
| EBITDA Growth % | 210.5% | -251.47% | 170.83% | 88.26% | -21.24% | -290.74% | -67.24% | -505.7% | -63.66% | 195.16% | - |
| D&A (Non-Cash Add-back) | 116M | 125M | 189M | 227M | 162M | 54.39M | 14.3M | 8.28M | 7.56M | 6.31M | 5.28M |
| EBIT | 160M | -228M | 238M | -101M | -849M | -656.65M | -130.49M | -78.45M | 54.01M | 89.61M | 31.69M |
| Net Interest Income | -285M | 0 | -359M | -222M | -131M | -73.62M | -61.41M | -35.17M | -26.18M | -16.91M | -12.81M |
| Interest Income | 0 | 0 | 144M | 75M | 16M | -73.62M | -61.41M | -35.17M | 0 | 0 | 0 |
| Interest Expense | 285M | 0 | 503M | 297M | 147M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -183M | -13M | 154M | 19M | -58M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -135M | -241M | 33M | -304M | -1.04B | -729.06M | -186.97M | -111.53M | 17.88M | 63.72M | 18.45M |
| Pretax Margin % | -3.53% | -6.87% | 1.24% | -13.81% | -54.98% | -45.03% | -14.02% | -13.13% | 2.64% | 11.64% | 4.74% |
| Income Tax | 39M | 32M | 12M | -60M | -3M | 58.37M | 28.34M | 18.88M | 6.22M | 21.71M | 6.02M |
| Effective Tax Rate % | -28.89% | -13.28% | 36.36% | 19.74% | 0.29% | -8.01% | -15.16% | -16.93% | 34.8% | 34.07% | 32.62% |
| Net Income | -199M | -294M | 3M | -249M | -1.04B | -775.71M | -153.95M | -92.41M | 11.63M | 42.01M | 12.43M |
| Net Margin % | -5.21% | -8.38% | 0.11% | -11.31% | -54.98% | -47.91% | -11.55% | -10.88% | 1.72% | 7.67% | 3.19% |
| Net Income Growth % | -15.55% | -9900% | 101.2% | 76.01% | -33.81% | -403.89% | -66.59% | -894.52% | -72.31% | 237.89% | - |
| Net Income (Continuing) | -174M | -273M | 21M | -244M | -1.03B | -787.43M | -158.63M | -92.64M | 11.66M | 42.01M | 12.43M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 176M | 177M | 171M | 5M | 6.04M | 8.07M | 7.91M | 6.51M | 6.78M | 0 | 0 |
| EPS (Diluted) | -0.53 | -0.79 | 0.01 | -0.69 | -3.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | -52.34% | - | 100.97% | 77.83% | - | - | - | - | - | - | - |
| EPS (Basic) | - | -0.79 | 0.01 | -0.69 | -3.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 378.04M | 372.15M | 364.41M | 362.09M | 335.56M | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 378.04M | 372.15M | 363.99M | 362.09M | 335.56M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Credit loss volatility
As reported in recent financial statements, Klarna achieved a 51.3% year-over-year revenue growth in 2026Q1, signaling a robust acceleration in top-line performance that suggests the company's transition toward a broader retail media and shopping ecosystem is gaining significant traction within its core operating markets.
The sharp revenue expansion indicates that the company is successfully capturing higher transaction volumes, likely driven by the integration of AI-driven discovery tools. Investors should monitor whether this growth trajectory remains sustainable as the firm balances aggressive customer acquisition with the need for long-term revenue quality.
Based on the provided income statement data, Klarna's gross margin reached 73.7% in 2026Q1, reflecting a notable recovery from the 57.0% levels observed in late 2025, which suggests improved efficiency in managing credit loss provisions and funding costs relative to total transaction volume.
The historical fluctuation in gross margins highlights the inherent sensitivity of the business model to credit cycles and provisioning requirements. While the recent expansion is encouraging, the structural reliance on variable costs necessitates a cautious outlook on margin stability during periods of macroeconomic uncertainty.
According to the 2026Q1 income statement, Klarna generated an operating income of $188.0M, marking a significant departure from the negative operating margins seen in previous quarters and suggesting that the company is finally achieving the scale necessary to leverage its fixed cost base effectively.
This shift toward positive operating income appears to be supported by disciplined expense management, particularly as the firm integrates generative AI to streamline customer service and operational overhead. Analysts should investigate whether this trend represents a permanent structural improvement or a temporary benefit from seasonal retail activity.
While the 2026Q1 results show a positive operating margin of 18.6%, historical data indicates that Klarna has frequently experienced sharp margin contractions, such as the -23.7% operating margin in 2022Q4, which warrants skepticism regarding the durability of current profitability improvements in a volatile credit environment.
Short-term gains in operating income may be masking underlying risks related to credit loss provisioning and the potential for increased regulatory oversight in key markets. Investors should remain wary of whether the current profitability trajectory can withstand a potential downturn in consumer discretionary spending or rising interest rates.
Quick answers to the most common questions about buying KLAR stock.
For fiscal year 2025, Klarna Group plc (KLAR) reported total revenue of $3.51B. This represents a 800.9% increase compared to $389.6M in 2016.
Klarna Group plc (KLAR) reported a net loss of $294.0M for the fiscal year ending 2025.
Klarna Group plc (KLAR) reported an operating income of $-228.0M, resulting in an operating profit margin of -6.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Klarna Group plc (KLAR) generated $1.24B in gross profit for the year, representing a gross profit margin of 35.3%. This demonstrates the company's core pricing power and production efficiency.