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Sentiment · FY2026 Q2
Klarna's first quarter of 2026 marked a clean profitability inflection. Revenue grew 44% year over year to $1.012 billion (36% like-for-like) and Klarna delivered above the high end of every guided line, as adjusted operating income reached $68 million, up $65 million, and net income turned positive. Operating leverage was the story: transaction margin dollars rose 44% to $389 million while non-transaction operating expenses grew just 3%. Growth was broad, with U.S. revenue up 67% to $399 million, Fair Financing up 138% to $4.1 billion across 225,000 merchants, and the Klarna Card crossing 5 million active users. Credit quality improved, with provisions at 55 basis points of GMV, and management reiterated its full-year 2026 guidance.
Credit | Revenue Growth | Competitive Dynamics | Margin | Guidance Reliability | Product Launch | Demand | Subscriber Growth | |
|---|---|---|---|---|---|---|---|---|
| 2025Q3 | 4 | 3 | 4 | 2 | 4 | 1 | ||
| 2025Q4 | 4 | 2 | 2 | 4 | 3 | 3 | 3 | 1 |
| 2026Q1 | 3 | 5 | 3 | 3 | 6 | 1 | 2 | 1 |
| '25Q3 | '25Q4 | '26Q1 | |
|---|---|---|---|
| Credit | 4 | 4 | 3 |
| Revenue Growth | 3 | 2 | 5 |
| Competitive Dynamics | 4 | 2 | 3 |
| Margin | 2 | 4 | 3 |
| Guidance Reliability | 3 | 6 | |
| Product Launch | 4 | 3 | 1 |
| Demand | 3 | 2 | |
| Subscriber Growth | 1 | 1 | 1 |
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Op margin | Net margin |
|---|---|---|---|---|---|---|
| FY2025 Q1 | $669M | +10.0% | $-0.26 | -188.9% | -13.5% | -15.1% |
| FY2025 Q2 | $823M | +28.2% | $-0.14 | -600.0% | 12.3% | -6.3% |
| FY2025 Q3 | $903M | +28.0% | $-0.26 | — | -9.2% | -10.5% |
| FY2025 Q4 |
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Jason Kupferberg | Wells Fargo | 5 (40%) |
| Rob Wildhack | Autonomous Research | 4 (50%) |
| James Faucette | Morgan Stanley |
| $1.08B |
| +38.0% |
| $-0.12 |
| — |
| -1.0% |
| -4.3% |
| FY2026 Q1 | $1.01B | +51.3% | $-0.01 | +94.9% | 18.6% | -0.5% |
| FY2026 Q2 | $1.04B | +26.6% | $0.01 | +107.1% | 2.6% | 0.9% |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| 4 (0%) |
| Will Nance | Goldman Sachs | 4 (50%) |
| Sanjay Sakhrani | KBW | 3 (0%) |
| Darrin Peller | Wolfe Research | 3 (0%) |
| Harshita Rawat | Bernstein | 3 (0%) |
| Nate Svensson | Deutsche Bank | 3 (0%) |
| Mihir Bhatia | Bank of America | 2 (50%) |
| Bryan Keane | Citigroup | 2 (0%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Wells Fargo | 1 | 5 (40%) |
| Bank of America | 2 | 4 (25%) |
| Goldman Sachs | 1 | 4 (50%) |
| Autonomous Research | 1 | 4 (50%) |
| Morgan Stanley | 1 | 4 (0%) |
| Wolfe Research | 1 | 3 (0%) |
| Bernstein | 1 | 3 (0%) |
| Deutsche Bank | 1 | 3 (0%) |
What KLAR and other companies said about each other on FY2026 Q1 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“merchants that already had another BNPL provider like Affirm or whomever”
An analyst frames Affirm as an incumbent BNPL provider Klarna competes against for merchant volume, a competitive read-through for Affirm.
“Walmart is going very well from a volume expectation and in line with what we thought.”
Klarna says the Walmart relationship is performing in line with volume expectations, a positive read-through for Walmart's OnePay partnership.
“As you mentioned, this week's Google Pay launch Inside search in the Gemini app.”
Klarna cites its Google Pay launch inside search in the Gemini app, a positive agentic-commerce read-through for Alphabet's Google Pay and Gemini.
“JPMorgan Payments and Worldpay are signed, launching later this year.”
Klarna says JPMorgan Payments is a signed distribution partner launching later in the year, a read-through for JPMorgan's merchant-acquiring platform adding Klarna.
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
KLAR Klarna Group plc | 8 | +51.3% | |
| AFRM Affirm Holdings, Inc. | 10 | +32.6% | |
| AXP American Express Company | 8 | +10.3% | |
| COF Capital One | 6 | +44.2% | |
| MA Mastercard | 8 | +15.8% | |
| PYPL PayPal | 5 | +7.2% | |
| SOFI SoFi Technologies, Inc. | 9 | +35.8% | |
| SYF Synchrony Financial | 8 | +16.6% | |
| V Visa Inc. | 9 | +17.1% |