Klarna Group F-1/A

Klarna Group F-1/A

Klarna Group Plc reported its second quarter financial results, revealing a widening net loss due to a significant increase in provisions for potentially souring loans. The company's provisions rose by 64% to $174 million, according to a statement. This increase, however, did not reflect an increase in credit losses, which remained low at less than 1% of gross merchandise volume. The company's pretax loss for the quarter was $53 million, compared to an $18 million loss in the same period a year ago, despite a 25% increase in revenue to $823 million [1].

The surge in provisions is attributed to a growing number of customers using Klarna's "fair financing" product, which allows for longer-term payment plans for larger-ticket items. Klarna's CEO, Sebastian Siemiatkowski, clarified that the rise in provisions does not indicate an increase in delinquency rates, which continue to fall [1].

Klarna is considering reviving its potential New York initial public offering (IPO) as soon as September, following recent market trends and successful US listings. The company had previously put its IPO plans on hold due to market turbulence caused by President Donald Trump's tariffs in April [1].

As of July 2025, Klarna has 111 million active customers and 790,000 merchant partners, representing a 31% year-on-year growth in active customers. The company also struck a deal to sell some of its US-originated buy-now-pay-later loans to free up capital ahead of its public debut [1].

Reference List:
[1] https://www.bloomberg.com/news/articles/2025-08-14/klarna-s-quarterly-net-loss-widens-after-64-surge-in-provisions