Swedish financial‑technology firm Klarna announced on Tuesday that it earned a net profit of $9 million in the second quarter, a turnaround from the $53 million loss recorded a year earlier. Analysts had projected a loss of $17.4 million, making the result a notable surprise.
Revenue and operating income surge
Adjusted operating income climbed to $91 million, up from $29 million in the comparable period last year. Revenue for the April‑June quarter grew 27% year over year, reaching $1.04 billion, surpassing the consensus estimate of $993.8 million.
Growth driven by U.S. market
Klarna highlighted robust performance in its United States operations, where gross merchandise volume (GMV) rose 27% during the quarter. Overall GMV increased 18% to $36.6 billion, reflecting continued consumer adoption of the company’s buy‑now‑pay‑later services.
Revised full‑year outlook
Despite the strong quarter, Klarna lowered its full‑year GMV guidance to a range of $149 billion to $151 billion, down from a prior expectation of more than $155 billion. The company attributed the adjustment to a more measured view of volumes in Germany, its largest market by transaction value.
Analyst perspective
Market analysts noted that the profit beat underscores Klarna’s ability to generate cash flow amid a competitive fintech landscape. However, the revised GMV forecast signals caution as the firm navigates regulatory scrutiny and evolving consumer credit preferences in Europe.
Looking ahead
Klarna’s management indicated that the company will continue to focus on expanding its U.S. footprint while managing growth in its core European markets. The firm plans to invest in product development and partnership initiatives aimed at enhancing the consumer experience and maintaining compliance with emerging financial regulations.
For investors and industry observers, Klarna’s second‑quarter performance provides a mixed signal: strong short‑term profitability and revenue growth, tempered by a more conservative outlook for the remainder of the year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
