Klarna reports Q2 revenue up 27%, net income positive

Klarna (NYSE: KLAR ) reported second-quarter financial results on Tuesday.

The transcript from the company's second-quarter earnings call has been provided below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Klarna Group PLC reported strong financial performance with revenue up 27% and transaction margin dollars up 42% year-over-year, leading to a positive net income of $9 million.

The company highlighted significant growth in its Fair Financing product with an 82% increase, and its Klarna Membership reaching 2 million subscribers, contributing to a 600% increase in subscription revenue.

Strategic partnerships, such as the recent launch with J.P.

Morgan Payments and a partnership with Apple for device leasing, are expected to drive future growth, particularly in the US market.

Guidance for 2026 was adjusted, reflecting a softer-than-expected German consumer market and FX changes, but transaction margin dollar outlook was raised due to improved economics.

Leadership transitions were announced, with plans for a new CFO based in New York, reflecting the company's focus on strengthening its presence in the US.

Full Transcript OPERATOR Hello everyone and welcome to Klarna Group PLC's second quarter 2026 earnings call.

During this call we will discuss our business outlook and make forward-looking statements.

These statements are based on our current expectations and assumptions.

As of today, actual results may differ materially due to various risks and uncertainties, including those described in our most recent filings with the SEC.

During this call we will present both IFRS and non-IFRS financial measures.

A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website, as well as filed with the SEC.

Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period in 2025.

During the question and answer portion of today's call, please limit yourself to one question.

To join the queue, participants should dial pound key five on their telephone keypad.

Before we move to Q&A, we will begin with a brief presentation.

Sebastian, please go ahead.

Sebastian, CEO Good morning everyone and thank you for joining.

This was a good quarter.

We delivered above the high end of our guidance on every line.

For the second consecutive quarter, revenue grew faster than volume and transaction margin dollars, which is our most important metric, grew faster than both.

Volume was up 18%, revenue up 27%, transaction margin dollars up 42%.

Adjusted operating income reached $91 million, up $62 million year on year, and net income was positive at $9 million.

Our operating cost grew just 16%.

We are investing in our business whilst delivering strong operating leverage, which is what we have been building toward.

As I said, we measure our progress in transaction margin dollars.

That number shapes how we build products, how we price, and how we underwrite.

And because operating cost grew far slower, growth in transaction margin dollars is what over time turns into earnings per share.

On our last call we told you what to expect for the year: transaction margin dollars compounding at roughly 30% ahead of revenue.

That is the shape we described in May and is the shape the year is taking.

I'd like to review our three business areas which cover the entire consumer wallet.

Everyday spend with the payment option of Pay in Full for purchases under $75 with high frequency.

In this business area we monetize through payment fees, subscriptions, and deposit interest transactions.