Klarna Reports Strong Q3 Revenue Growth Amid Rising Losses and Strategic Credit Portfolio Sale

Klarna, the Swedish fintech giant, has reported a robust financial performance in the third quarter of 2025, showcasing a revenue increase to $903 million, marking a 26% growth compared to the same period last year. This quarter has been described by CEO Sebastian Siemiatkowski as the company's strongest ever, with notable growth in the United States market reaching 51%. The impressive revenue figures underscore Klarna’s effective scaling of its AI-driven business model on a global level.

However, alongside this remarkable revenue growth, Klarna is experiencing increasing losses. The company’s expanding losses indicate challenges that accompany its rapid growth trajectory. Despite this, CEO Siemiatkowski remains optimistic, suggesting that the losses are part of a broader growth strategy, stating, “We have only just begun.”

In a significant strategic financial move, Elliott Investment Management has announced plans to acquire outstanding loans from Klarna. This acquisition involves a credit portfolio valued at approximately 62 billion SEK, demonstrating investor confidence in Klarna’s financial assets and indicating a deeper recalibration of Klarna’s balance sheet and credit risk management.

These developments provide insight into Klarna’s dual approach to growth: aggressively expanding revenues and market presence while managing credit portfolios through strategic sales. The company's focus on leveraging AI technology has proven effective in revenue generation, especially in the US, positioning Klarna well for continued expansion despite the headwinds of growing losses.

Klarna's journey reflects both the opportunities and challenges fintech companies face in scaling globally. The sale of significant credit assets to Elliott Investment Management is expected to provide Klarna with greater financial flexibility and risk mitigation in its ongoing operations.