Klarna doubles losses in first quarter as IPO remains on hold

Klarna, the popular buy now, pay later firm, has reported a significant increase in losses for the first quarter of 2025. The Swedish payments startup saw its net loss soar to $99 million, compared to a $47 million loss in the same period last year. This spike in losses was attributed to several one-off costs related to depreciation, share-based payments, and restructuring.

Despite the increase in losses, Klarna also announced a 13% year-over-year growth in revenues, which totaled $701 million for the first quarter. The company now boasts 100 million active users and 724,000 merchant partners worldwide.

However, Klarna has decided to put its plans for a U.S. initial public offering on hold. The IPO, which was expected to value the SoftBank-backed company at over $15 billion, was paused due to market turbulence caused by President Donald Trump’s tariff plans. Other companies, such as StubHub, have also delayed their IPO plans in response to the uncertain market conditions.

Prior to the IPO delay, Klarna had been heavily promoting itself as an artificial intelligence-powered fintech company. In 2023, the firm partnered with OpenAI, the maker of ChatGPT, to leverage AI technology for customer service. Last week, Klarna’s CEO, Sebastian Siemiatkowski, revealed that the company had managed to reduce its headcount by 40% through investments in AI.

In light of these developments, Klarna remains focused on leveraging technology to streamline its operations and enhance customer experience. The company’s decision to delay its IPO reflects its commitment to navigating the evolving market landscape strategically.

For more insights into Klarna’s financial performance and strategic decisions, you can watch CNBC’s full interview with CEO Sebastian Siemiatkowski.