Klarna Group plc · 2026 Q2 call

We delivered above the high end of our guidance on every line for the second consecutive quarter. Revenue grew faster than volume and transaction margin dollars, which is our most important metric, grew faster than both. Volume was up 18%, revenue up 27%, transaction margin dollars up 42%. Adjusted operating income reached $91 million, up $62 million year-on-year, and net income was positive at $9 million. Our operating costs grew just 16%.

we're looking at around about 23% year-over-year growth on TMD in the second half, if you take the midpoint of our guide, that is compared to 42% in the first half of '26

When it comes in regards to New York, in particular, it's obviously the case that Klarna continues to perform extremely well in U.S. It's our largest market by revenue, not yet by volume, as we heard in regards to Germany, but largest by revenue. And it's where we have over 30 million consumers.

If you look to the U.S., we are growing extremely strongly. Fair Finance, for example, grew 114%. And I think to the comments we made earlier, we have a very, very strong pipeline in the U.S. today and a lot of things that we're going to be ramping into the second half of this year.

it in very simple terms is that this is really treated as a financing receivable for us, right? And that is practically what it is. So it's no different to how we treat the Fair Financing point-of-sale installment product that we have today from a perspective of accounting.

overarchingly for the full year, right, we're growing our adjusted -- our transaction margin dollars at around about 32% and our adjusted OpEx by about 15%.

Transaction margin dollars as a percentage of revenue went from 14% to about 23%, and we're expecting to see growth in that through the quarters as well on a sequential basis.

out of the over 1 million merchants that accept Klarna, we are now at about 250,000 offering Fair Financing. So there's still additional potential there to grow to make sure all of them offer all payment products.

our savings deposits are basically what consumers come and bring with us. We will alternate our rates depending on the needs as well. And so you will always see a cycle in the first half where you have a little bit of slowdown in the growth of deposits and then you see it accelerating towards the peak season.

in early '27, we will make two leadership transitions. Niclas Neglén, our CFO, after 6 years at Klarna and an extraordinary period of growth and transformation, he told me with plenty of runway, and I respect that. This is an early heads up, not a goodbye. Nothing changes tomorrow.

We, as you highlighted, have seen strong growth in it, 600% growth year-on-year. We've reached 2 million subscribers. ... those will obviously start merging into the same offering, which becomes the core of our financial partnership with the most engaged consumers.

what we saw towards the back end of 2Q was a softening in basically the consumer discretionary spend in Germany. Germany is our largest share of volume or our largest market from a volume perspective... And that's where we're playing out through the rest of the year, assuming that we're not seeing a recouping of that.

we have had very good success in building out these programs, and we are very focused, particularly on the Fair Financing forward flows. And I think as we've ramped them up to a certain level now, we've come to the point where basically all -- substantially all of our loans will be eligible to be sold in the second half of this year, and that's where we're making that fair value change.

Germany is more pronounced. We have seen some softness here and there in pockets, but we run in 26 markets... If you take the Nordics as an example, I mentioned before, we're getting double teen growth rates as we've expanded the Fair Financing and the card rollout there.

as we're expanding our feature set... we're actually now starting to generate more and more transaction margin dollars on every dollar of volume.