Klarna’s losses widened significantly in the first quarter of 2025, as the buy now, pay later giant puts the brakes on its much-hyped U.S. stock market debut.
Buy now pay later Klarna saw its losses double in Q1 after $136 million in customer debts went unpaid
5/20/2025
The Swedish fintech reported a net loss of $99 million for the first three months of the year—more than double the $47 million loss from the same period in 2024. The company attributed the deeper losses to a number of one-time expenses, including costs related to depreciation, stock-based compensation, and internal restructuring.
Despite the loss, Klarna saw revenue climb 13% year-over-year, reaching $701 million. The company also announced it now serves 100 million active users and partners with 724,000 merchants around the world.
The earnings report comes as Klarna continues to stall plans for a U.S. initial public offering that was once expected to value the company—backed by SoftBank—at more than $15 billion.
Klarna shelved its IPO ambitions last month, citing volatility in financial markets triggered by former President Donald Trump’s aggressive new tariff proposals. StubHub, an online ticketing platform, also pulled back on its IPO plans amid similar concerns.
Before pausing the IPO, Klarna had been aggressively promoting itself as a fintech leader powered by artificial intelligence. The company began working with OpenAI in 2023, and by the following year had launched an AI-based customer service tool built with OpenAI’s technology.
Last week, Klarna CEO Sebastian Siemiatkowski said that investments in AI had enabled the company to cut its workforce by roughly 40%.
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