Recession indicator? Klarna lost $99 million because shoppers aren’t paying back their loans, according to a report from the Financial Times.
The buy-now-pay-later company netted a loss of 110% in the first three months of 2025 compared to last year. Klarna lost $136 million in customer credit, up 17% from 2024.
Despite steep losses, the Swedish company — which allows users to split payments in up to four installments — says its “winning” in all of its 25 markets including the U.S. U.K., and Germany. Per an earnings report released on Tuesday, Klarna’s revenue increased 15% to $701 million while U.S. revenue increased 33% year-over-year. The company also reached 100 million active users and secured deals with major brands like Walmart, eBay, and DoorDash.
“The momentum is undeniable — and this is just Q1! Klarna has reached 100 million consumers and secured exclusive partnerships with major retailers like Walmart through One-Pay, teamed up with DoorDash, and expanded our partnership with eBay to the U.S. after multiple successful European launches,” said Sebastian Siemiatkowski, Klarna’s CEO and founder. “Our AI-first strategy is driving exceptional returns, we’re outpacing competitors, our merchant network is scaling rapidly, and our next-gen products are reshaping money management for millions.”
Klarna’s “AI-first” strategy” seems to be shifting. The company fired 700 workers and replaced them with AI, which saved Klarna nearly $1 million in per-employee revenue. Now, Klarna wants to re-hire human, remote workers as Siemiatkowski explained to Bloomberg earlier in the month. “I think it’s critical that you are clear to your customer that there will always be a human if you want.”
Season 9 