Klarna expects to report its first billion-dollar quarter in Q4 2025, after Q3 revenue hit a record $903 million. The buy now, pay later company added 27 million new users and 235,000 merchants in the quarter, bringing its total merchant base to 850,000.
Revenue rose 26% year-over-year, and the company pointed to US expansion, rapid card adoption, and productivity gains from artificial intelligence as the main growth drivers. The results arrived in Klarna's first quarter as a public company.
US growth and the Fair Financing surge
US revenue jumped 51% and gross merchandise volume (GMV) climbed 43%. The company's Fair Financing product - which lets consumers spread payments over longer terms - grew GMV by 244% in the US market, far outpacing the 139% global growth rate for Klarna overall.
Sebastian Siemiatkowski, CEO and co-founder, said the quarter shows the AI-driven model is working at scale. "Q3 was our strongest quarter ever - proof that our AI-driven model is working at scale, with US revenue up 51% and GMV up 43%," he said. "The Klarna Card has taken off with four million sign-ups in four months, and Fair Financing continues to gain market share."
The Klarna Card and membership momentum
The debit-first Klarna Card now represents 15% of all Klarna transactions. Another one million consumers joined the company's membership program, which offers premium benefits without credit-card debt.
Siemiatkowski noted a timing-related lag in near-term profitability but said transaction margin dollars will increase by over $100 million in Q4 as revenue compounds. He expects revenue to exceed $1 billion in the fourth quarter.
AI productivity gains
Klarna's investment in AI has produced measurable efficiency improvements. Revenue per employee has tripled over the past two years, while operating expenses rose only 2%. The company's deployment of artificial intelligence spans customer interactions and internal operations - areas where AI for Customer Support and AI for Finance are reshaping workflows across the industry.
Why this matters for customer support, finance, and sales professionals
Klarna's numbers put a concrete dollar figure on what AI-driven productivity looks like: tripling revenue per employee while keeping expense growth flat. For customer support teams, the automation of routine queries and payment workflows directly affects staffing models and service-level targets. Finance professionals can track how AI reshapes unit economics - not in theory, but in a publicly reported quarter where operating costs barely moved as volume surged. Sales teams selling into fintech or payments should note the 244% GMV growth in Fair Financing, a signal of where consumer credit demand is moving.
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