$KLAR

Klarna Group plc

CIK:0002003292|SEC Filings

Consolidated Statements of Profit or Loss - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Profit (loss) [abstract]
Transaction and service revenue	$ 2,500	$ 2,136	$ 1,768
Gain on sale of consumer receivables	73	0	0
Interest income	937	675	508
Total revenue	3,509	2,811	2,276
Processing and servicing costs	(809)	(596)	(541)
Provision for credit losses	(794)	(495)	(353)
Funding costs	(667)	(503)	(297)
Technology and product development	(486)	(444)	(389)
Sales and marketing	(414)	(328)	(381)
Customer service and operations	(207)	(203)	(240)
General and administrative	(306)	(281)	(270)
Depreciation, amortization and impairments	(55)	(82)	(128)
Operating expenses	(3,739)	(2,932)	(2,599)
Operating loss	(230)	(121)	(323)
Other income (expense)	(11)	154	19
Profit (loss) before taxes	(241)	33	(304)
Tax (expense) benefit	(32)	(12)	60
Net profit (loss)	(273)	21	(244)
Whereof attributable to:
Shareholders of Klarna Group plc	(294)	3	(249)
Non-controlling interests	21	12	0
Other equity holders	0	6	5
Net profit (loss)	$ (273)	$ 21	$ (244)
Net profit (loss) per share attributable to shareholders of Klarna Group plc
Basic earnings (loss) per share (in USD per share)	$ (0.79)	$ 0.01	$ (0.69)
Diluted earnings (loss) per share (in USD per share)	$ (0.79)	$ 0.01	$ (0.69)

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2025

Dec. 31, 2024

Dec. 31, 2023

Cash flow from operating activities

Profit (loss) before taxes

$ (241)

$ 33

$ (304)

Income taxes paid

(53)

(15)

(11)

Interest expense paid

(425)

(312)

(214)

Interest income received

1,022

558

412

Adjustments for non-cash items in operating activities

Depreciation, amortization and impairment

125

189

227

Share-based payments

157

Provisions excluding credit losses

Provision for credit losses

794

671

506

Net gain from divestment

^[1]

(190)

Net losses from divestment of shares in equity investments

Financial items including fair value effects

(282)

(219)

Changes in the assets and liabilities of operating activities

Change in consumer receivables at fair value through OCI

(378)

Change in consumer receivable at FV through P&L

(413)

(2)

Change in consumer receivables

(2,787)

(1,373)

(1,552)

Change in settlement and trade receivables

(32)

197

(172)

Change in notes payable and other borrowings

(32)

(16)

(115)

Change in consumer deposits

2,148

820

1,516

Change in bonds and treasury bills with maturity > 90 days

(852)

286

335

Change in other assets and liabilities

(140)

(77)

355

Cash flow from operating activities

(1,032)

587

808

Cash flow from investing activities

Investments in intangible assets

(27)

(44)

(84)

Investments in property and equipment

(3)

(1)

Sale of fixed assets

Divestment, net of cash disposed

188

Net purchase of equity investments

Cash flow from investing activities

(30)

154

(83)

Cash flow from financing activities

New share issuance

191

Share warrants

Other equity instruments issued

142

Other equity instruments redeemed

(24)

Convertible promissory notes redeemed

(32)

Subordinated debt issued

100

Subordinated debt redeemed

(33)

Notes payable and other borrowings issued

903

264

104

Notes payable and other borrowings redeemed

(86)

(169)

(150)

Principal payments of lease liabilities

(20)

(25)

(42)

Cash flow from financing activities

988

312

(62)

Cash flow for the year

(74)

1,053

663

Cash and cash equivalents at the beginning of the year

3,243

2,391

1,694

Cash flow for the year

(74)

1,053

663

Exchange rate difference in cash and cash equivalents

634

(201)

Cash and cash equivalents at the end of the year

$ 3,803

$ 3,243

$ 2,391

[1]	Includes reclassification of currency translation effects from other comprehensive income of $18 million in 2024.

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Assets
Cash and cash equivalents	$ 3,803	$ 3,243
Debt securities	1,518	454
Consumer receivables	10,459	8,141
Consumer receivables at fair value through OCI	386	0
Consumer receivables at fair value through profit and loss	400	2
Settlement and trade receivables	580	493
Property and equipment	60	85
Goodwill	685	613
Intangible assets	383	376
Deferred tax assets	36	33
Other assets	487	364
Total Assets	18,797	13,804
Liabilities
Accounts payable and accrued expenses	655	572
Consumer deposits	13,003	9,510
Payables to merchants	736	696
Notes payable and other borrowings	1,359	513
Deferred tax liabilities	2	1
Other liabilities	358	255
Total Liabilities	16,113	11,547
Equity
Share capital	0	0
Additional paid in capital	427	4,646
Other equity instruments	0	0
Reserves	(90)	(479)
Retained Earnings (Accumulated deficit)	2,170	(2,081)
Total equity excluding non-controlling interests	2,507	2,086
Non-controlling interests	177	171
Total equity	2,684	2,257
Total equity and liabilities	$ 18,797	$ 13,804