Core Insights - Klarna is a leading financial technology company specializing in flexible digital payment solutions and "buy now, pay later" (BNPL) services, serving over 100 million consumers and hundreds of thousands of merchants globally [1][4] - The company went public on the NYSE in September, raising $1.37 billion at a valuation exceeding $17 billion, although KLAR stock is currently down 9% post-IPO [3] - Klarna reported Q2 2025 revenue of $823 million, a 20% year-over-year increase, but narrowly missed analyst expectations of $840 million [4] Financial Performance - Earnings per share for Q2 stood at $0.14, with a net loss of $53 million, which is an improvement compared to Q2 2024 but below the anticipated breakeven [4] - The company achieved its fifth consecutive quarter of operational profitability, posting an adjusted operating profit of $29 million [4] - Free cash flow for Q2 reached $787 million, attributed to capital recycling from major asset sales and a resilient funding model [5] Market Position and Growth - Klarna now serves 111 million active consumers and 790,000 merchant partners globally, with gross merchandise volume rising 19% year-over-year [5] - The growth was driven by strong performance in the U.S. market and robust collaborations with major merchants like Stripe, Walmart, and eBay [5] - Looking ahead, Klarna forecasts Q3 revenue between $870 million and $920 million, with expectations for continued operational profits and growth in U.S. lending and merchant network expansion [6]