On September 10, 2025, Sebastian Siemiatkowski, CEO and Co-Founder of Swedish fintech company Klarna, celebrated the firm's initial public offering at the New York Stock Exchange in New York City with a positive gesture.
Since its launch in July, Klarna has reported that its Klarna Card has attracted over four million customers, contributing to 15% of the company’s transactions by October. The growing popularity of its services, including extended installment options for larger purchases, has fueled significant U.S. growth. The Klarna Card, offering varied interest rates, saw its gross merchandise volume more than triple compared to the previous year.
The buy now, pay later leader reported a 43% rise in U.S. gross merchandise volume from the prior year. Overall, gross merchandise volume increased 25% to $32.7 billion from $26.2 billion last year. Revenues showed a 26% growth to $706 million year-on-year, albeit offset by a net loss of $95 million (or 25 cents per share), down from a net income of $12 million (or 5 cents a share) the previous year.
Siemiatkowski noted that fair financing has doubled user numbers since last year but currently reaches only about a fifth of merchants, offering substantial room for further expansion. “We aim to help users save time and money while gaining control over their finances,” he shared with CNBC, emphasizing a shift in public perception of Klarna’s brand.
Klarna announced an agreement with Elliott Investment Management to purchase $6.5 billion of its fair financing loans to concentrate on U.S. expansion for this product. Merchant numbers grew by 38% to 850,000 from last year’s 616,000, though average revenue per active customer decreased. Customer numbers totaled $114 million.
For the fourth quarter, Klarna anticipates its gross merchandise volume to be between $37.5 and $38.5 billion, with revenue forecasts ranging from $1.065 million to $1.08 million, both surpassing FactSet estimates.
Despite transaction margin dollars, a core profitability measure, forecasted between $390 million and $400 million, Bank of America noted that the emphasis on fair financing slightly impacted expected margins, while JPMorgan called the expected sequential margin increase “encouraging.”
Klarna’s NYSE entry comes after a postponed IPO due to market volatility linked to President Donald Trump’s tariff strategies. Recent market declines amid concerns over an AI bubble and consumer spending slowdowns have affected stock values, with Klarna shares dropping by over a third from their peak.
Siemiatkowski stated that Klarna has not observed significant changes in repayment or spending patterns but remains vigilant about the rising AI influence on the workforce. Klarna leverages AI to enhance operational efficiency, which, alongside attrition, has reduced its workforce by 40%, according to Siemiatkowski, who also highlighted AI’s role in improving customer service efficiency.
The fintech firm aligns with industry practices seen at Palantir, Salesforce, and Amazon, all of which have adjusted workforce strategies due to AI advancements. Siemiatkowski emphasized the balance of AI and human interaction to maintain strong customer connections, cautioning against companies relying solely on automation for customer service.