Revenue growth accelerated to 26.6% in Q2 2026, yet gross margin volatility and a net margin of only 0.4% in that quarter suggest that profitability challenges persist despite top-line gains.
Klarna Group plc (KLAR) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 4.04B | 3.51B | 2.67B | 2.2B | 1.89B | 1.62B | 1.33B | 849.54M | 677.71M | 547.51M | 389.62M |
| Revenue Growth % | 45.22% | 31.61% | 21.17% | 16.58% | 16.62% | 21.42% | 56.95% | 25.36% | 23.78% | 40.53% | - |
| Cost of Goods Sold | 1.54B | 1.6B | 596M | 541M | 520M | 595.74M | 377.41M | 251.5M | 117.31M | 86.06M | 63.02M |
| COGS % of Revenue | - | 45.67% | 22.35% | 24.58% | 27.54% | 36.8% | 28.31% | 29.6% | 17.31% | 15.72% | 16.17% |
| Gross Profit | 2.5B | 1.91B | 2.07B | 1.66B | 1.37B | 1.02B | 955.93M | 598.04M | 560.4M | 461.45M | 326.6M |
| Gross Margin % | 61.8% | 54.33% | 77.65% | 75.42% | 72.46% | 63.2% | 71.69% | 70.4% | 82.69% | 84.28% | 83.83% |
| Gross Profit Growth % | - | -7.92% | 24.76% | 21.34% | 33.69% | 7.04% | 59.84% | 6.72% | 21.44% | 41.29% | - |
| Operating Expenses | 2.38B | 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 | 1.68B | 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 | 259M | 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 | 121M | 439M | -121M | -323M | -980M | -729.06M | -186.97M | -111.53M | 17.88M | 63.72M | 18.45M |
| Operating Margin % | 3% | 12.51% | -4.54% | -14.68% | -51.91% | -45.03% | -14.02% | -13.13% | 2.64% | 11.64% | 4.74% |
| Operating Income Growth % | - | 462.81% | 62.54% | 67.04% | -34.42% | -289.94% | -67.65% | -723.61% | -71.93% | 245.34% | - |
| EBITDA | 237M | 564M | 68M | -96M | -818M | -674.67M | -172.67M | -103.25M | 25.45M | 70.03M | 23.73M |
| EBITDA Margin % | 5.87% | 16.07% | 2.55% | -4.36% | -43.33% | -41.67% | -12.95% | -12.15% | 3.76% | 12.79% | 6.09% |
| EBITDA Growth % | 480.13% | 729.41% | 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 | 108M | 426M | 238M | -101M | -849M | -656.65M | -130.49M | -78.45M | 54.01M | 89.61M | 31.69M |
| Net Interest Income | -155M | -667M | -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 | 155M | 667M | 503M | 297M | 147M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -183M | -680M | 154M | 19M | -58M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | -62M | -241M | 33M | -304M | -1.04B | -729.06M | -186.97M | -111.53M | 17.88M | 63.72M | 18.45M |
| Pretax Margin % | -1.54% | -6.87% | 1.24% | -13.81% | -54.98% | -45.03% | -14.02% | -13.13% | 2.64% | 11.64% | 4.74% |
| Income Tax | 50M | 32M | 12M | -60M | -3M | 58.37M | 28.34M | 18.88M | 6.22M | 21.71M | 6.02M |
| Effective Tax Rate % | -80.65% | -13.28% | 36.36% | 19.74% | 0.29% | -8.01% | -15.16% | -16.93% | 34.8% | 34.07% | 32.62% |
| Net Income | -143M | -294M | 3M | -249M | -1.04B | -775.71M | -153.95M | -92.41M | 11.63M | 42.01M | 12.43M |
| Net Margin % | -3.54% | -8.38% | 0.11% | -11.31% | -54.98% | -47.91% | -11.55% | -10.88% | 1.72% | 7.67% | 3.19% |
| Net Income Growth % | 31.51% | -9900% | 101.2% | 76.01% | -33.81% | -403.89% | -66.59% | -894.52% | -72.31% | 237.89% | - |
| Net Income (Continuing) | -112M | -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 | 225M | 177M | 171M | 5M | 6.04M | 8.07M | 7.91M | 6.51M | 6.78M | 0 | 0 |
| EPS (Diluted) | -0.38 | -0.79 | 0.01 | -0.69 | -3.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | 21.92% | - | 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 | 378.89M | 372.15M | 364.41M | 362.09M | 335.56M | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 378.69M | 372.15M | 363.99M | 362.09M | 335.56M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
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 $439.0M, resulting in an operating profit margin of 12.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Klarna Group plc (KLAR) generated $1.91B in gross profit for the year, representing a gross profit margin of 54.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Credit cycle vulnerability
US-Driven Revenue Surge Accelerates
As reported in Klarna's income statement, revenue growth accelerated to 26.6% in Q2 2026 from 10.0% in Q1 2025, driven by what appears to be strong performance in the US market, according to recent SEC filings.
This acceleration suggests that Klarna's strategic expansion into the US is gaining momentum, likely supported by increased Gross Merchandise Volume and user acquisition. However, the durability of this growth trajectory may depend on the company's ability to maintain competitive pricing while managing higher customer acquisition costs in a saturated BNPL landscape.
Gross Margin Volatility Reflects Credit Risk
According to recent financial data, Klarna's gross margin improved to 60.1% in Q2 2026 from 57.0% in the previous quarter, but the historical negative margin of -13.5% in Q4 2023 highlights the structural impact of credit risk on profitability.
The fluctuation in gross margin indicates that Klarna's profitability remains highly sensitive to credit loss provisions and funding costs, which can vary significantly with consumer economic conditions. This pattern implies that sustained margin expansion is contingent on disciplined underwriting and potentially a shift toward higher-margin revenue streams like marketing services.
Fixed Cost Leverage Kicks In at Scale
As shown in Klarna's income statement, operating leverage became evident in Q1 2026 when operating income reached $188 million alongside 51.3% revenue growth, implying that overhead efficiency is improving with scale, according to the data.
The emergence of positive operating income suggests that Klarna's SG&A and other fixed costs are being spread over a larger revenue base, creating economies of scale. This trend, if maintained, could lead to structural margin improvement, though it requires continuous revenue growth to offset high variable costs such as payment processing.
Below-the-Line Items Dilute Operational Gains
Despite achieving a net income of $4 million in Q2 2026, Klarna reported a net margin of only 0.4%, with stock-based compensation zero in that quarter, suggesting that below-the-line items still weigh heavily on bottom-line profitability per financial statements.
The minimal net profit relative to operating income highlights the drag from interest expenses, taxes, and non-operating costs, which continue to erode earnings quality. Investors should monitor the reduction in stock-based compensation as a signal of management's commitment to translating operational improvements into sustainable shareholder returns.
Net Losses Undermine Profitability Thesis
Based on reported figures, Klarna has posted net losses in nine of the last ten quarters, with Q2 2026's 0.4% net margin being the sole exception, indicating that revenue growth has not yet translated into sustainable bottom-line profits.
This persistent net loss pattern raises concerns about the company's ability to achieve durable profitability, as high operating expenses and credit costs appear to offset gross profit gains. Short-sellers might focus on the risk of a consumer downturn exacerbating these losses, given the business's inherent sensitivity to disposable income cycles.