The turnaround was visible across the income statement. Klarna moved from a $90M operating loss in Q1 2025 to $17M in operating income, while net income improved from a $99M loss to a $1M profit. Credit loss provisions remained broadly stable at 0.55% of GMV, compared with 0.54% a year earlier, suggesting growth did not come at the cost of materially weaker credit performance.

The network also continued to expand. Klarna now has 119 million active consumers, up 21% YoY, and more than 1 million merchants, up 49%. Its default PSP partnerships with Stripe and Nexi are already in place, with JPMorgan Payments and Worldpay expected to go live soon. Klarna also highlighted new merchant partnerships across categories including eyewear, furniture, gaming, auto parts, flights, and hotels.

The deeper story is consumer engagement. Klarna said the cohort that first used the platform in 2022 generated $12 in annual revenue per consumer in its first year, compared with $52 today. The Klarna Card has reached 5 million active users across 16 countries, while Fair Financing GMV grew 138% YoY. In January, Klarna also launched peer-to-peer payments across 13 European countries, expanding the account relationship beyond checkout.

For 2026, Klarna is guiding toward continued scale with tighter discipline. The company reiterated its full-year guidance and expects Q2 GMV of $35.5B to $36.5B, revenue of $960M to $1B, transaction margin dollars of $375M to $395M, and adjusted operating income of $30M to $50M.