Klarna has reported a year-on-year rise in losses for Q2, with a net loss of $53 million due to a restructuring charge from reducing its office space. Earlier this year, the Swedish fintech company announced the closure of offices in Amsterdam, Mannheim, and the decision not to renew its Columbus office lease by year’s end.
Known for its BNPL product, Klarna recorded a one-time financial hit of $24 million in Q2 for a lease restructuring charge, with profits further affected by $26 million in share-based compensation expenses tied to employee and partner incentives. The net loss of $53 million contrasts with an $18 million loss the previous year.
Klarna, reportedly reviving its US IPO in September, generated $823 million in revenue for the quarter, up from $661 million the previous year. As the company intensifies its US efforts, it reported an increase in provisions for credit losses from $106 million to $174 million year-on-year in Q2.
CEO Sebastian Siemiatkowski commented, “It’s important to clarify that a rise in provision for credit losses in absolute terms does not mean more people are unable to pay us back. In fact, the opposite is true—Klarna’s delinquency rates continue to fall.”
Klarna’s credit losses were below one percent of gross merchandise volume during this period. The company, which recently obtained a UK EMI license, saw its customer base grow by 26 million to reach 111 million over the past year.