Klarna Group plc · NYSE:KLAR
Klarna — Q2 2025 Earnings Presentation
61 slides from Klarna's earnings presentation, Nov 4, 2025
Slide 1: Investor Presentation Q2 2025
Investor Presentation Q2 2025 Strictly Confidential
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements Safe Harbor. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and unc
Slide 3: Klarna: The next-generation commerce network
EVERYDAY Active Klarna Average number of transactions per year per consumer* 11x 111m Consumers Q2 2025 3x Year 1 Year 3 790k Merchants Q2 2025 Klarna The EVERYWHERE 26 Markets next-generation Online Mobile commerce Offline Global $112b GMV Q2 2025 TTM network EVERYTHING Retail Digital Everyday $3.0b
Slide 4: Our reach is global
Our reach is global Live Australia Czech Republic Germany Italy Norway Slovakia US Austria Denmark Greece Mexico Poland Spain United Kingdom Belgium Finland Hungary The Netherlands Portugal Sweden Canada France Ireland New Zealand Romania Switzerland 4 Strictly Confidential
Slide 5: Everyone is using Klarna
Everyone is using Klarna Balanced representation of consumers Klarna is much more than just BNPL 83% of the total adult population 58% Female in our most mature market 42% Male are Klarna users Pay later With no interest 21% Responsible credit users, with all educational backgrounds Pay in full 40%
Slide 6: The network
The network » € ua
Slide 7: Consumer behavior has changed
Consumer behavior has changed Digital payments Generational shift Low trust in Concerns about becoming the norm away from credit card banks data security debt 55% 50% 30% 62% of consumers used smaller credit card balances of US consumers had see fraud as an inevitable digital payments in the for Gen
Slide 8: A unique network
A unique network Products Consumers Merchants Payment Advertising Banking solutions solutions solutions 111m Channels 790k active Klarna merchants Q2 2025 consumers Q2 2025 31%Q2 2025 Online Mobile app Card In-store Apple Pay & Google Pay 34% Proprietary Tech Q2 2025 YoY YoY AI Data Underwriting Int
Slide 9: A unique formula for success
A unique formula for success Globally recognized At the checkout of Partnering with ~140k the worlds’ New users try and trusted brand leading global brands Klarna every day largest platforms on average Payments +200k New merchants … resulting in a global NPS … and many more across ... and many more
Slide 10: Massive opportunity to disrupt an industry while lowering cost to society
Massive $130b of interest paid by US consumers annually opportunity to Average merchant and consumer fees disrupt an Avg. cost to merchant Avg. cost to consumer industry while lowering cost to society USA Western Europe Note: Q1’25 TTM Klarna consumer fee excl. service & feature fee revenue for comp
Slide 11: Disrupting the industry with a unique and sustainable business model
Disrupting the industry with a unique and sustainable business model Consumer revenue Merchant revenue Advertising revenue Capital One Affirm American Express PayPal More diversified and sustainable revenue model Note: All figures are based on 2024. Estimates for comparable companies are from publicl
Slide 12: The network's growth
The network’s growth $112b 111m Active Klarna Consumers June 2025 2024 - Today $53b Significant AI efficiencies implemented 10% US population Number of Transactions across the penetration as of June 2025 2023 company, onboarded some First bank to of the world’s integrate largest IFRS Net Income posi
Slide 13: The consumer offering
The consumer offering
Slide 14: Critical insights of the US credit market
Critical insights of the US credit market Source: McKinsey, New frontiers in credit card segmentation: Tapping unmet consumer needs, 2014 14 Strictly Confidential
Slide 15: Our brand promise
Our brand promise Save time Save money Be in control A one-click experience based on A consumer-friendly model Payment options that grant shoppers your shopping preferences, channel built on full transparency and no full flexibility of when and how to pay agnostic but optimized for mobile hidden int
Slide 16: Klarna's consumer offering
Klarna’s consumer offering Find Pay Manage Follow brands Choose between Fully understand & creators debit & credit purchases Deals & Spread the cost Intuitive financial Cashback interest-free overviews AI-powered, No hidden fees or revolving credit End-to-end purchase personalized management recomme
Slide 17: Klarna's brand connects on multiple levels
Klarna’s brand connects on multiple levels Culture Personalization Human connection Purpose Note: NPS September 2024, average NPS of 8 markets 73 40% 54% Global NPS Global brand Global brand SE, UK, US, DE, FR, IT, ES and AU. Brand awareness December 2024. Brand trust December 2024. (net promoter sc
Slide 18: The merchant offering
The merchant offering”
Slide 19: Why do merchants choose Klarna?
Why do merchants choose Klarna? Consumer preference Global distribution Unmatched value for partners
Slide 20: Accelerating merchant growth
Accelerating merchant growth 2020 2021 2022 2023 2024 US expansion* Share of 12% 15% 35% 30% 32% checkout GMV 1x 2x 2x 3x 5x vs. 2020 Revenue 1x 2x 2x 4x 9x vs. 2020 *On's expansion to the United States impacted the share of checkout in 2023. Note: Share of checkout is calculated as Klarna's GMV sha
Slide 21: Globally, top merchants choose Klarna
Globally, top merchants choose Klarna Apparel & Accessories Top 100 merchants Fashion & Accessories Luxury & Premium Sports & Outdoor Everyday payments with * 2019 2025 United 5 33 States Germany 27 51 U.K. 17 55 Travel Health & beauty Home & electronics And much more Sweden 29 62 Italy 2 57 Spain 0
Slide 22: Opportunity to serve global merchants at scale
Opportunity to serve global merchants at Scale 0 Klarna aims to become the default Currently Klarna is opt-in as a payment payment option globally on all method with distribution partners. partners. Committed In to go live discussion Serviceable volume JP Morgan $2.4t We are working with Worldpay $2
Slide 23: Category expansion is key to network strength
Category expansion is key to network strength Expanding purchase frequency Category expansion Typical US credit card 2024 Q2’25 Q2’25 Q2’25 Klarna Card ~257 % of purchases by vertical Annual purchases per active consumer 125 Apparel & accessories 69% 58% 26% 18% Health & beauty 3% 3% 8% 18% 32 Home
Slide 24: Growth strategy
Growth strategy
Slide 25: Proven formula to grow engagement & adoption
Proven formula to grow engagement & adoption Trust Sign up for the Klarna Card Save time & money with the Klarna app, with deals, discounts & cashback Shop anywhere with the Klarna app Product cross-adoption accelerates frequency Incremental purchases Further purchases in more verticals per card use
Slide 26: Components of our future growth
Components of our future growth 111m active Trusted Unique GTM Recipe Track record Klarna brand strategy for driving of product consumers adoption innovation Note: Number of active Klarna consumers as of June 30, 2025. 2626 Strictly Confidential
Slide 27: Klarna's priorities to grow the network
Klarna’s priorities to grow the network Klarna at every checkout Klarna card in every wallet Next-generation digital financial services Klarna’s personal shopping and money assistant AI-powered efficiency 27 Strictly Confidential
Slide 28: The financial model
The financial model
Slide 29: A clear growth path
A clear growth path
Slide 30: Klarna addresses massive and growing TAMs
Klarna addresses massive and growing TAMs Payments Advertising +$400b1 Expansion into Potential New Markets +$165b4 +$100b2 Growth of $569b into $735b Growth in Existing Markets 0.03% 0.6% $520b3 $570b5 Serviceable Addressable Digital Advertising Market Note: (1) Based on 2027 global travel and reta
Slide 31: Klarna has consistently taken share of eCommerce in core geographies
Klarna has consistently taken share of eCommerce in core geographies Sweden Germany United Kingdom United States 2018 Q2’25 2018 Q2’25 2018 Q2’25 2018 Q2’25 eCommerce penetration % 22% 38% 8% 14% ~0% 4% ~0% 1% Population penetration % 80% 84% 24% 34% 4% 23% ~0% 10% GMV CAGR 87% Market Klarna GMV 55%
Slide 32: The network effect is visible in our cohort behavior
The network effect is visible in our cohort behavior New cohort purchase frequency accelerating faster GMV by merchant cohort than older cohorts Net dollar GMV retention rate GMV CAGR since Purchase frequency by consumer cohort inception* 120% Cohorts 334% 19x (2019) 112% 73% 17x (2020) 75% 15x (202
Slide 33: Compounding network effect accelerating growth
Compounding network effect accelerating growth Growth is accelerating Network effect + strong execution Gross merchandise volume (GMV) LfL growth 37% World’s largest merchants choosing Klarna US GMV YoY Q2’25 Reimagined partnerships with PSPs Fair Financing adoption across network Klarna Card in eve
Slide 34: Scaling the Klarna network through key strategic partnerships
Growth accelerator: Scaling the Klarna network through key strategic partnerships Partner ↑34% Number of merchants Q2’25 YoY Partner Status total GMV Stripe Live: ramping up +$1.4t Partnered with Ebay Live +$70b +202k 4 of the top 5 US eTailers OnePay Later Live: ramping up +$600b at Walmart Worldpa
Slide 35: Full suite of Klarna flexible payments at more merchants
Growth accelerator: Full suite of Klarna flexible payments at more merchants More Fair Enabled at more Accelerated Financing options + network merchants = Fair Financing GMV Number of merchants offering Fair Financing Fair Financing GMV Fair Financing GMV YoY growth 2x 3 payments 18 payments 35 Stric
Slide 36: Fair Financing has seen strong growth, while Pay Later remains most popular
Fair Financing has seen strong growth, while Pay Later remains our most popular product GMV split by payment option1 7% 98% 14% of transactions are interest free (LTM Jun-25) 80% Pay Later Pay in Fair Full Financing Note: (1) Q2’25 LTM GMV split by payment option. Pay in Full excludes KCO, External,
Slide 37: Growth accelerator: Card in every wallet
Growth accelerator: Card in every wallet Card now powering >10% of Klarna transactions Debit Flex launch brings the flexibility to even more people Klarna Card transactions (m) 42% 685k active users in the US since launch Transactions Launched YoY Q2 25 2025 VS ● Pay in full, Fair Financing, Pay in
Slide 38: A scalable model
A scalable model
Slide 39: The network's accelerating growth
The network’s accelerating growth Actuals Like for Like YoY Q2’25 Highlights Q2’25 Q2’25 vs Q1’25 Active Klarna Consumers 111m 31% ↑13 p.p. Merchants 790k 34% ↑7p.p. GMV $31b 19% ↑6 p.p. Total revenue $823m 20% ↑ 5 p.p. Transaction margin dollars $489m 19% ↑ 8 p.p. before Provision for credit losses
Slide 40: Broad based accelerating revenue growth in 2Q
Broad based accelerating revenue growth in 2Q Total Revenue (USDm) vs Metrics Q2’25 $m Q2’25 LfL Q1’25 LfL Total revenue $823m 20% ↑5 p.p. 38% US Revenue Q2’25 YoY Transaction & service revenue $604m 17% ↑3 p.p. Interest income 108% $219m 28% ↑9 p.p. Fair Financing GMV Q2’25 YoY Like-for-like (LfL)
Slide 41: Compounding transaction margin dollars growth
Compounding transaction margin dollars growth Transaction margins increase Transaction margin dollars as markets scale and cohorts mature Transaction margin % *Excluding funding costs $1,217m 75% Markets 75% launched 71% before 2015* 57% 53% All other 23% $687m markets 12% UK 2014 launch 30% if hold
Slide 42: Payment and processing fees decreasing as we scale
Payment and processing fees decreasing as we scale Higher Purchase frequency drives continued ability Processing and servicing fees as a % of GMV to support savings 1 Bundling 0.63% 0.59% 0.60% 0.57% 2 Klarna balance 3 Switch to ACH 2022 2023 2024 Q2-25 42 Strictly Confidential
Slide 43: Transaction margin before provisions growing in-line with GMV
Transaction margin before provisions growing in-line with GMV Transaction margin dollars ↑19% excl. Provision for credit losses Q2’25 LfL Growth in-line with GMV +19% LfL fully offsetting the geographic mix impact Strictly Confidential
Slide 44: High-frequency transaction model drives lower credit risk
High-frequency transaction model drives lower credit risk Klarna GMV growth coupled with reducing credit losses Underwriting continuously improves with additional data 5.2b transactions $83b $92b $105b since inception $80b Global GMV ($b) $53b $35b Low single consumer exposure limits potential loss
Slide 45: How Fair Financing growth impacts our P&L over time
How Fair Financing growth impacts our P&L over time Illustrative example Dynamics of Fair Financing Cumulative Revenue Per accounting rules Klarna books Provision for credit losses provisions for credit losses upfront while Month revenues are booked over the life of the loan*. 1 2 3 4 5 6 Therefore,
Slide 46: Provision for credit losses remain stable while US and Fair Financing share increases
Provision for credit losses remain stable while US and Fair Financing share of volume increases Provision for credit losses as (% of GMV) bridge Write-offs remain stable Write-offs as a percentage of 0.03% 0.56% 0.08% 0.00% GMV remain stable, with the increase in Provision for Credit 0.42% 0.01% Los
Slide 47: Delinquencies decline as underwriting improves
Delinquencies decline as underwriting improves Group US 60+ day delinquency rates 60+ day delinquency rates 4.6% 3.2% 2.9% 2.2% 2.1% 1.3% 1.1% 0.9% 60-day past due figures include delinquencies across all processed volume, regardless of whether the exposure is held on Klarna’s balance sheet. Delinqu
Slide 48: US charge-offs
US charge-offs US Pay Later US Fair Financing Cumulative net charge-off rate Cumulative net charge-off rate Note: Charge-off graphs reflect losses and volumes retained on Klarna’s U.S. balance sheet. 48 Strictly Confidential
Slide 49: Cost-effective: Stable funding through cycles
Cost-effective: Stable funding through cycles Trusted consumer savings platform Duration gap drives stability Low and stable cost of funding since 2013 318 days 2.87% Funding mix 68% Deposits are xIBOR fixed term 2.54% Klarna Cost of funding* ~40 days 0% $14b Deposits (95% share) Avg loan Avg fixed
Slide 50: AI accelerates our operating leverage
AI accelerates our operating leverage Total revenue Total Adjusted operating expenses revenue 20% Q2’25 LfL Adj. operating expenses 3% Q2’25 LfL Note: Adjusted operating expenses is calculated as IFRS operating expenses, excluding: (a) Depreciation and amortization; (b) Share-based payments; and (c)
Slide 51: Sustainable growth with high flow through margins
Sustainable growth with high flow through margins GMV ($b) Revenue ($b) Transaction Transactionmargin margindollars dollars($b) ($b) Adj Adjoperating operatingprofit profit(Loss) (loss)($m) ($m) Incremental Dollars: +$56m 20% 27% 16% Incremental Margin1: 70% Q2’23-25 CAGR Q2’23-25 CAGR Q2’23-25 CAGR 51
Slide 52: Compounding network effect accelerating growth
Compounding network effect accelerating growth Building blocks for future growth JP Morgan Growing the Klarna network Gross merchandise volume 37% through strategic partnerships Payments (GMV) LfL growth US GMV YoY Q2’25 Scaling with merchants Just across the world launched: Full suite of Klarna fle
Slide 53: Klarna's winning fundamentals
Klarna’s winning fundamentals Compounding network effects Trusted brand, global distribution Industry leading AI implementation Massive scale efficiencies Strong, sustainable business 53 Strictly Confidential
Slide 54: Thank you
Thank you
Slide 55: Appendix
Appendix
Slide 56: Glossary of Key Terms
Glossary of Key Terms Active Klarna Consumers: Consumers who have made a purchase or payment using a Klarna-branded product or logged into the Klarna app within the past 12 months AOV: Average order value GMV: Gross merchandise volume, measured for a period as the total monetary value of all complet
Slide 57: Appendix: non-IFRS financial measures
APPENDIX We use certain non-IFRS financial measures to supplement our consolidated financial statements, which are presented in accordance with IFRS, to evaluate our core operating performance. These non-IFRS financial measures include Adjusted operating income (loss), Transaction margin dollars and
Slide 58: IFRS accounting reconciliations (1/4)
IFRS accounting reconciliations (1/4) For Transaction Margin & Transaction Margin Dollars: 6 Months Ended $ in millions, except for percentages 2022 2023 2024 30-Jun-25 Total revenue 1,904 2,276 2,811 1,524 Operating loss (980) (323) (121) (136) Operating margin (51)% (14)% (4)% (9)% Adjustments: Te
Slide 59: IFRS accounting reconciliations (2/4)
IFRS accounting reconciliations (2/4) For Transaction Margin & Transaction Margin Dollars: $ in millions, except for percentages Q2'23 Q2'24 Q2'25 Total revenue 534 682 823 Operating loss (78) (4) (46) Operating margin (15)% (1)% (6)% Adjustments: Technology and product development 95 102 120 Sales
Slide 60: IFRS accounting reconciliations (3/4)
IFRS accounting reconciliations (3/4) For Adjusted Operating Loss Adjusted Operating Margin: 6 Months Ended $ in millions, except for percentages 2022 2023 2024 30-Jun-25 Total revenue 1,904 2,276 2,811 1,524 Operating loss (980) (323) (121) (136) Operating margin (51)% (14)% (4)% (9)% Adjustments:
Slide 61: IFRS accounting reconciliations (4/4)
IFRS accounting reconciliations (4/4) For Adjusted Operating Loss Adjusted Operating Margin: $ in millions, except for percentages Q2'23 Q2'24 Q2'25 Total revenue 534 682 823 Operating loss (78) (4) (46) Operating margin (15)% (1)% (6)% Adjustments: Depreciation, amortization, and impairments 38 38