KLARNA GROUP PLC, 20-F filed on 2/26/2026
Annual and Transition Report (foreign private issuer)
v3.25.4
Cover Page
12 Months Ended
Dec. 31, 2025
shares
Document And Entity Information [Line Items]  
Document Type 20-F
Document Registration Statement false
Document Annual Report true
Current Fiscal Year End Date --12-31
Document Period End Date Dec. 31, 2025
Document Transition Report false
Document Shell Company Report false
Entity File Number 001-42832
Entity Registrant Name Klarna Group plc
Entity Address, Address Line One 10 York Road
Entity Address, City or Town London
Entity Address, Postal Zip Code SE1 7ND
Entity Incorporation, State or Country Code X0
Entity Address, Country GB
Title of 12(b) Security Ordinary shares, nominal value $0.0001 per share
Trading Symbol KLAR
Security Exchange Name NYSE
Entity Common Stock, Shares Outstanding 377,507,910
Entity Well-known Seasoned Issuer No
Entity Voluntary Filers Yes
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Non-accelerated Filer
Entity Emerging Growth Company false
ICFR Auditor Attestation Flag false
Document Financial Statement Error Correction [Flag] false
Document Accounting Standard International Financial Reporting Standards
Entity Shell Company false
Entity Central Index Key 0002003292
Document Fiscal Year Focus 2025
Document Fiscal Period Focus FY
Amendment Flag false
Business Contact  
Document And Entity Information [Line Items]  
Contact Personnel Name Niclas Neglén
Contact Personnel Email Address investorrelations@klarna.com
Entity Address, Address Line One 10 York Road
Entity Address, City or Town London
Entity Address, Postal Zip Code SE1 7ND
Entity Address, Country GB
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young AB
Auditor Firm ID 1433
Auditor Location Stockholm, Sweden
v3.25.4
Consolidated Statements of Profit or Loss - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Profit (loss) [abstract]      
Transaction and service revenue $ 2,500 $ 2,136 $ 1,768
Gain on sale of consumer receivables 73 0 0
Interest income 937 675 508
Total revenue 3,509 2,811 2,276
Processing and servicing costs (809) (596) (541)
Provision for credit losses (794) (495) (353)
Funding costs (667) (503) (297)
Technology and product development (486) (444) (389)
Sales and marketing (414) (328) (381)
Customer service and operations (207) (203) (240)
General and administrative (306) (281) (270)
Depreciation, amortization and impairments (55) (82) (128)
Operating expenses (3,739) (2,932) (2,599)
Operating loss (230) (121) (323)
Other income (expense) (11) 154 19
Profit (loss) before taxes (241) 33 (304)
Tax (expense) benefit (32) (12) 60
Net profit (loss) (273) 21 (244)
Whereof attributable to:      
Shareholders of Klarna Group plc (294) 3 (249)
Non-controlling interests 21 12 0
Other equity holders 0 6 5
Net profit (loss) $ (273) $ 21 $ (244)
Net profit (loss) per share attributable to shareholders of Klarna Group plc      
Basic earnings (loss) per share (in USD per share) $ (0.79) $ 0.01 $ (0.69)
Diluted earnings (loss) per share (in USD per share) $ (0.79) $ 0.01 $ (0.69)
v3.25.4
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of comprehensive income [abstract]      
Net profit (loss) $ (273) $ 21 $ (244)
Foreign currency translation differences      
Exchange differences on translation of foreign operations 369 (151) 58
Reclassification of cumulative translation adjustments 0 (18) 0
Consumer receivables at fair value through OCI      
Net changes in fair value for the year 11 0 0
Changes in expected credit losses 27 0 0
Reclassification to the statement of profit and loss (25) 0 0
Other comprehensive income (loss) for the year 381 (169) 58
Total comprehensive income (loss) 108 (148) (186)
Comprehensive income (loss) attributable to:      
Comprehensive income, attributable to owners of parent 87 (165) (191)
Non-controlling interests 21 11 0
Other equity holders 0 6 5
Total comprehensive income (loss) $ 108 $ (148) $ (186)
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Cash and cash equivalents $ 3,803 $ 3,243
Debt securities 1,518 454
Consumer receivables 10,459 8,141
Consumer receivables at fair value through OCI 386 0
Consumer receivables at fair value through profit and loss 400 2
Settlement and trade receivables 580 493
Property and equipment 60 85
Goodwill 685 613
Intangible assets 383 376
Deferred tax assets 36 33
Other assets 487 364
Total Assets 18,797 13,804
Liabilities    
Accounts payable and accrued expenses 655 572
Consumer deposits 13,003 9,510
Payables to merchants 736 696
Notes payable and other borrowings 1,359 513
Deferred tax liabilities 2 1
Other liabilities 358 255
Total Liabilities 16,113 11,547
Equity    
Share capital 0 0
Additional paid in capital 427 4,646
Other equity instruments 0 0
Reserves (90) (479)
Retained Earnings (Accumulated deficit) 2,170 (2,081)
Total equity excluding non-controlling interests 2,507 2,086
Non-controlling interests 177 171
Total equity 2,684 2,257
Total equity and liabilities $ 18,797 $ 13,804
v3.25.4
Consolidated Statements of Shareholders’ Equity - USD ($)
$ in Millions
Total
Equity excluding non-controlling interests
Share capital
Additional paid in capital
Reserves
Other equity instruments
[1]
Retained earnings
Non-controlling interests
[1]
Beginning balance at Dec. 31, 2022 $ 2,327 $ 2,321 $ 0 $ 4,577 $ (369) $ 61 $ (1,948) $ 6
Changes in equity [abstract]                
Net loss (244) (244)         (244)  
Exchange differences on translating foreign currencies 58 58     58      
Reclassification 0              
New share issue 47 47   47        
Share-based payments 47 47   1     46  
Redemption of other equity instruments (31) (31)       (24) (7)  
Changes in non-controlling interests (7) (6)         (6) (1)
Ending balance at Dec. 31, 2023 2,197 2,192 0 4,625 (311) 37 (2,159) 5
Changes in equity [abstract]                
Net loss 21 21         21  
Exchange differences on translating foreign currencies (151) (150)     (150)     (1)
Reclassification (18) (18)     (18)      
New share issue 21 21   21        
Share-based payments 64 64         64  
Issuance of other equity instruments 124 136       142 (6) (12)
Changes in non-controlling interests (1) (180)       (179) (1) 179
Ending balance at Dec. 31, 2024 2,257 2,086 0 4,646 (479) 0 (2,082) 171
Changes in equity [abstract]                
Net loss (273) (294)         (294) 21
Exchange differences on translating foreign currencies 369 379     379     (9)
Reclassification 0              
Consumer Receivables Fair Value through OCI 12 12     12      
Capital reduction [2] (1) (1)   (4,579)     4,579  
New share issue 192 192   360     (168)  
Share-based payments 135 135         135  
Tax effects on share based payments (18) (18)         (18)  
Other equity instruments coupons paid 0 21         21 (21)
Changes in non-controlling interests 12 (4)     (1)   (3) 16
Ending balance at Dec. 31, 2025 $ 2,684 $ 2,507 $ 0 $ 427 $ (90) $ 0 $ 2,170 $ 177
[1] Following the Group’s corporate reorganization in May 2024, AT1 securities are considered non-controlling interests as they are issued by subsidiaries of Klarna Group plc. For
further details refer to Note 21.
[2] During the year a capital reduction of $4.6 billion resulting in a reallocation from share capital and additional paid in capital to retained earnings. See Note 21
v3.25.4
Consolidated Statements of Shareholders’ Equity (Parenthetical) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Nov. 30, 2025
Dec. 31, 2025
Capital reduction [1]   $ 1
Retained earnings    
Capital reduction $ 4,600 (4,579) [1]
Additional paid in capital    
Capital reduction [1]   $ 4,579
[1] During the year a capital reduction of $4.6 billion resulting in a reallocation from share capital and additional paid in capital to retained earnings. See Note 21
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flow from operating activities      
Profit (loss) before taxes $ (241) $ 33 $ (304)
Income taxes paid (53) (15) (11)
Interest expense paid (425) (312) (214)
Interest income received 1,022 558 412
Adjustments for non-cash items in operating activities      
Depreciation, amortization and impairment 125 189 227
Share-based payments 157 92 43
Provisions excluding credit losses 0 1 1
Provision for credit losses 794 671 506
Net gain from divestment [1] 0 (190) 0
Net losses from divestment of shares in equity investments 0 7 0
Financial items including fair value effects 75 (282) (219)
Changes in the assets and liabilities of operating activities      
Change in consumer receivables at fair value through OCI (378) 0 0
Change in consumer receivable at FV through P&L (413) (2) 0
Change in consumer receivables (2,787) (1,373) (1,552)
Change in settlement and trade receivables (32) 197 (172)
Change in notes payable and other borrowings (32) (16) (115)
Change in consumer deposits 2,148 820 1,516
Change in bonds and treasury bills with maturity > 90 days (852) 286 335
Change in other assets and liabilities (140) (77) 355
Cash flow from operating activities (1,032) 587 808
Cash flow from investing activities      
Investments in intangible assets (27) (44) (84)
Investments in property and equipment (3) (1) (1)
Sale of fixed assets 0 0 1
Divestment, net of cash disposed 0 188 0
Net purchase of equity investments 0 11 0
Cash flow from investing activities (30) 154 (83)
Cash flow from financing activities      
New share issuance 191 0 39
Share warrants 0 0 1
Other equity instruments issued 0 142 0
Other equity instruments redeemed 0 0 (24)
Convertible promissory notes redeemed 0 0 (32)
Subordinated debt issued 0 100 75
Subordinated debt redeemed 0 0 (33)
Notes payable and other borrowings issued 903 264 104
Notes payable and other borrowings redeemed (86) (169) (150)
Principal payments of lease liabilities (20) (25) (42)
Cash flow from financing activities 988 312 (62)
Cash flow for the year (74) 1,053 663
Cash and cash equivalents at the beginning of the year 3,243 2,391 1,694
Cash flow for the year (74) 1,053 663
Exchange rate difference in cash and cash equivalents 634 (201) 34
Cash and cash equivalents at the end of the year $ 3,803 $ 3,243 $ 2,391
[1]   Includes reclassification of currency translation effects from other comprehensive income of $18 million in 2024.
v3.25.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of cash flows [abstract]      
Adjustment for currency translation differences from other comprehensive income $ 0 $ 18 $ 0
v3.25.4
Corporate information
12 Months Ended
Dec. 31, 2025
Corporate information and statement of IFRS compliance [abstract]  
Corporate information Corporate information
Klarna Group plc is a public company with limited liability incorporated under the laws of England and
Wales. The consolidated financial statements consist of Klarna Group plc and its direct and indirect
subsidiaries (collectively, “Klarna,” the “Company,” the “Group,” “we,” “us,” or “our”).
Klarna is a technology-driven payments company, with operations spanning multiple countries. We
connect consumers and merchants with comprehensive payment solutions and tailored advertising
solutions, both online and offline. Our payment solutions provide consumers with more control and
flexibility over their payments.
On September 10, 2025, the Company completed its initial public offering (“IPO”) of 5,000,000 ordinary
shares, completed the sale of additional 29,311,274 ordinary shares from “selling shareholders” and on
September 22, 2025, completed the sale of 5,146,691 of additional ordinary shares to the underwriters
pursuant to their option to purchase additional shares, at an offering price of $40.00 per share. The
Company raised net proceeds of $169 million through the IPO, net of underwriting discounts and other
offering costs of $22.41 million. Directly attributable transaction costs related to the issuance of new
ordinary shares of $8.5 million were deducted from equity. These costs, primarily underwriting fees, were
offset against the gross proceeds recognized in Additional paid in capital.
The Company’s registration statement on Form S-8 (File No. 333-290150) registering shares under its
employee equity plans, was declared effective by the Securities and Exchange Commission (“SEC”) on
September 10, 2025.
v3.25.4
Accounting principles
12 Months Ended
Dec. 31, 2025
Disclosure Of Significant Accounting Policies [Abstract]  
Accounting principles Accounting principles
1.Basis of preparation and consolidation
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) Accounting Standards as issued by the International Accounting Standards
Board (“IASB”) and have been prepared on a historical cost basis, except for equity investments,
derivatives and consumer receivables at fair value through profit and loss or at fair value through other
comprehensive income, which have been measured at fair value, and lease liabilities, which are measured
at present value. These consolidated financial statements are prepared on a going concern basis. All
amounts in the notes to the consolidated financial statements are stated in millions of United States
Dollars (“USD”), unless otherwise stated.
On May 23, 2024, Klarna Holding AB (publ) completed a reorganization which resulted in Klarna Group
plc becoming the new ultimate parent company of the Group. Through a series of share for share
exchange steps, the shareholders of Klarna Holding AB (publ) exchanged their shares for an equal number
of shares in Klarna Group plc. As a result of our corporate reorganization, Klarna Group plc became our
ultimate holding company and the parent company of Klarna Holding AB (publ). There was no change in
the legal ownership of any of the assets of Klarna Holding AB (publ), nor any change in the ultimate
controlling ownership of existing shares or securities of Klarna Holding AB (publ) or Klarna Group plc as a
result of the reorganization. The accounting predecessor of Klarna Group plc is Klarna Holding AB (publ).
The exchange has been presented on a retrospective basis as a reorganization transaction beginning in
the earliest period presented.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the
Group is exposed, or has right to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The consolidated subsidiaries of Klarna are
consolidated as from the date when control is transferred to Klarna and deconsolidated from the date that
control ceases. All intercompany accounts and transactions between members of the Group have been
eliminated on consolidation.
Share Split
In March 2025, Klarna Group plc’s board of directors approved a subdivision of ordinary shares of
Klarna Group plc on a 1-to-12 basis (the “Share Split”), which was effected on March 6, 2025. Refer to Note
21 for further details. Accordingly, all share data and per share data amounts for all periods presented in
the consolidated financial statements and notes thereto have been retrospectively adjusted to reflect the
effect of the Share Split.
2.New and amended standards and interpretations
Standards and amendments effective for the year
No significant new IFRS standards, amendments or interpretations applicable to the Group became
effective during the period.
New standards and amendments issued but not yet effective
In April 2024, the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements” that
replaces IAS 1 “Presentation of Financial Statements.” IFRS 18 introduces new requirements for
information presented in the primary financial statements and disclosed in the notes. IFRS 18 is effective
for annual reporting periods beginning on or after January 1, 2027, but earlier adoption is permitted. The
Group is currently evaluating the impact of this standard.
In May 2024, the IASB issued amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial
Instruments: Disclosures,” clarifying recognition and derecognition principles and introducing an exception
for the early derecognition of certain financial liabilities settled electronically. The amendments also
provide guidance on assessing contractual cash flow characteristics and introduce new disclosure
requirements. These amendments are effective for annual reporting periods beginning on or after January
1, 2026, with earlier adoption permitted. The Group is currently evaluating their impact.
The Group has not early adopted any issued standards, interpretations or amendments that are not
yet effective.
3.Significant accounting judgments, estimates and assumptions
The preparation of the consolidated financial statements in accordance with IFRS requires
management to make judgments, estimates and assumptions that affect the reported amount of revenues,
expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent
liabilities. On an ongoing basis, we evaluate our estimates, including those related to provisions for credit
losses, revenue recognition, income taxes, the evaluation for impairment of intangible assets and goodwill,
contingent liabilities, securitizations, leases, divestitures and share-based compensation, including the fair
value of restricted share units, options and warrants issued. We base our estimates on historical
experience and various other assumptions which we believe to be reasonable under the circumstances.
Actual results could materially differ from these estimates.
Macroeconomic and geopolitical developments may adversely impact consumer spending, merchant
performance and counterparty creditworthiness. These conditions may introduce additional uncertainties
that can affect the global economy and, consequently, the Group’s operations. These factors are
considered into credit loss estimates and other significant accounting estimates.
4.Foreign currency translation
Presentation currency and functional currency
The financial statements are presented in USD. In general, each entity within the Group uses the
currency of its primary economic environment as its functional currency. For Klarna Group plc, the
functional currency is USD.
The assets and liabilities of the Company and its subsidiaries are translated from the functional
currency of the operations to USD using the exchange rates at the reporting date. The revenues and
expenses are translated to USD using  average exchange rates, which approximate the exchange rates at
the date of the transaction. All resulting foreign exchange differences are recognized in other
comprehensive income (loss) and included in foreign exchange translation reserve in equity.
Foreign currency transactions
Transactions denominated in currencies other than the functional currency of the respective entity
are translated into the functional currency at the exchange rate on the date of the transaction. Monetary
assets and liabilities denominated in currencies other than the functional currency are remeasured using
the exchange rates prevailing at the end of the reporting period. Any foreign exchange gains or losses
arising from the remeasurement of these monetary assets and liabilities are recognized in other income
(expense) in the consolidated statement of profit or loss.
5.Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, demand deposits with banks, short-term treasury
bills and other short-term highly liquid investments with original maturities of three months or less.
6.Debt securities
Debt securities primarily comprise treasury bills chargeable at central banks with original maturities of
more than three months, mandatory deposits at central banks, and bonds and other interest-bearing
securities. The Group classifies investments as financial assets measured at amortized cost, with interest
recognized within interest income in the consolidated statements of profit or loss.
7.Consumer receivables
Consumer receivables represent unsecured amounts due from consumers that elect to pay over time
either through Pay Later or Fair Financing options as well as receivables related to other consumer fees as
discussed in our revenue recognition accounting principles. Pay Later consumer receivables arise from
transactions that enable consumers to purchase goods or services at the time of the transaction and defer
payment to a later date or in short-term installments (e.g., Pay in 30, Pay in 3, Pay in 4). Fair Financing
consumer receivables arise from transactions that enable consumers to pay for purchases over a longer-
term installment plan, typically ranging from three to 48 months.
Consumer receivables that Klarna has the objective of holding to collect contractual cash flows are
measured at amortized cost, including outstanding principal balances, accrued interest and net of
allowances for expected credit losses.
Consumer receivables which are managed within a business model whose objective is to originate and
sell or within a hold-to-collect-and-sell business model are measured either at fair value through profit or
loss (“FVTPL”) or fair value through OCI (“FVOCI”) and presented separately on the consolidated balance
sheet.
8.Settlement and trade receivables
Settlement and trade receivables primarily include receivables from payment solution providers
(“PSPs”), amounts due from merchants for services and receivables from third-party debt collection
agencies and financial institutions. Settlement and trade receivables are reported at amortized cost net of
an allowance for expected credit losses.
9.Allowance for expected credit losses
Klarna estimates allowances for expected credit losses (“ECL”) for debt securities, consumer
receivables and settlement and trade receivables. The ECL allowance is based on either 12-month
expected credit losses (“12m ECL”) or on lifetime expected credit losses (“Lifetime ECL”). The ECL
allowance is based on the latter if the simplified approach, as defined by IFRS 9, is applicable or if there
has been a significant increase in credit risk since initial recognition.
Lifetime ECL and 12m ECL are calculated on a collective basis at an asset class level. The asset class is
defined by shared credit risk characteristics, which are generally by market and geography.
Debt securities
Klarna invests in treasury bills issued by central banks, loans to highly rated financial institutions and
bonds issued by highly rated government entities. The credit rating status of issuing entities is monitored
throughout the investment holding period. The high credit quality of the issuers results in a low probability
of default, loss given default and exposure at default resulting in an immaterial ECL estimate for debt
securities.
Consumer receivables
To measure the ECL for consumer receivables, the Group assigns outstanding loans to one of three
stages with the stage corresponding to the individual loan’s estimated repayment performance. The
estimated repayment performance is informed by the Group’s records, including the customer’s history
with Klarna and purchase behavior from active Klarna consumers, merchant data, credit bureau reports
and open banking data. Klarna defines the stages as follows:
Stage 1: New loan origination that is not credit impaired at origination. A loan remains in Stage 1 unless
there is a significant increase in credit risk (“SICR”), such as when a loan becomes 30 days or more past
due or if the consumer has other loans that are in Stage 2 or 3. While a consumer could have a loan that
did not experience SICR, if they have a loan in Stage 2 or 3, Klarna applies a more prudent approach to all
loans for the consumer as part of its risk management practices. A loan may also be transferred back to
Stage 1 if credit risk has significantly improved and it is not delinquent 30 or more days. For Stage 1 loans,
the allowance is calculated based on 12-month ECL.
Stage 2: Loan with an observed significant increase in credit risk since origination. Klarna defines
significant increase in credit risk as a loan with an outstanding balance more than 30 days overdue. The
allowance for these loans is calculated based on Lifetime ECL. Stage 2 also includes loans that are
reclassified from Stage 3 because they are no longer considered credit impaired.
Stage 3: Loan considered credit impaired. A loan is defined as credit impaired if it is 90 days past due
or is classified as fraudulent. The allowance for Stage 3 loans is calculated based on Lifetime ECL. A loan
may be reclassified from Stage 3 if it is no longer considered credit impaired.
Settlement and trade receivables
For settlement and trade receivables, Klarna estimates credit losses using the Lifetime ECL model.
Each counterparty is subject to a credit risk assessment at onboarding and periodically throughout its
relationship with Klarna. Based on the credit risk assessment, a counterparty is assigned a risk
classification that correlates to a probability of default. For higher risk counterparties, Klarna extends
settlement windows for payments to the counterparties to serve as collateral for their non-performance if
a consumer returns products. 
When a settlement and trade receivable is determined to be uncollectible, the gross amount is written
off through the allowance for expected credit losses for settlement and trade receivables in general and
administrative on the consolidated statements of profit or loss. Recoveries of trade receivables that were
previously written off are recognized when received in general and administrative on the consolidated
statements of profit or loss. See Note 7 for information on written-off and recovered settlement and trade
receivables.
Significant inputs
Klarna utilizes a series of models to calculate allowance estimates, which depend on certain significant
inputs.
Definition of default
An asset is considered to be in default when it is 90 days or more past due on any payments, has
entered debt collection or is classified as fraudulent.
Probability of Default (“PD”) 
Historical balances as well as the proportion of those balances that have defaulted over time are used
as a basis to determine the PD. This approach provides values for 12-month and lifetime PDs applied over
different vintages for different countries and for days since origination. In cases where the maturity of the
loans is very short (i.e., less than 12 months), which is common for Klarna’s products, the 12-month PD and
lifetime PD have equal values.
Loss Given Default (“LGD”)
LGD is the magnitude of the likely loss if there is a default. The LGD is dependent on geographical
region, days past due, and, in some cases, recoveries from the sale of non-performing portfolios. The loss
given default is calculated using the historical balances over different vintages as a basis. Furthermore, the
LGD component is determined based on days past due.
Exposure at Default (“EAD”)
EAD represents the estimate of the exposure at a future default date, taking into account expected
changes in the exposure as of each reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise.
Measurement of ECL
Expected credit loss estimates are based on these key inputs: PD, LGD and the EAD, which are derived
from internal statistics and other external data. PD and LGD estimates are an accumulation of
segmentation, such as product and geography, within each asset class, which are used to calculate the
ECL on a collective basis. For unsecured assets, there is no collateral factored into the ECL calculations.
For quantitative information on the reported ECL amounts see Note 6 and Note 7.
Write-off of financial assets
Consumer receivables and settlement and trade receivables are written off when either the entire
outstanding amount or a proportion thereof are considered uncollectible, which is generally when an
outstanding balance is 180 days past due. For consumer receivables and settlement and trade receivables,
Klarna monitors significant counterparty relationships for current information and events to assess if there
is a risk the counterparty is experiencing financial difficulty or is in breach of contract.
If a loan or receivable is determined to be uncollectible, the gross amount will be charged off through
the allowance for expected credit losses. Charged-off balances may still be subject to enforcement
activities to attempt to recover the amounts due. When enforcement activities are exhausted or the loan
or receivable is sold to an external party, the loan or receivable is formally written off in Klarna’s systems. 
For information on the written-off consumer receivables and settlement and trade receivables,
including those subject to enforcement activities, see Note 6 and Note 7, respectively.
Sale of uncollectible consumer receivables
Klarna enters into agreements to sell certain uncollectible receivables to debt collection agencies to
maximize recovery and manage credit risk. These uncollectible receivables are sold on a non-recourse
basis, with the Group transferring substantially all risks and rewards of ownership to the debt collection
agencies meeting the derecognition criteria on the date of sale. When a receivable is deemed to be
uncollectible it is written down to the recoverable amount. 
Recoveries
Recoveries for consumer receivables that were previously written off are recognized when received in
provisions for credit losses on the consolidated statements of profit or loss. Recoveries of consumer
receivables that were previously written off were not material in 2025, 2024 and 2023.
10.Commitments
Klarna enters into certain arrangements that create commitments to purchase certain consumer loans
originated by partner banks in the United States (“Loan funding commitments”). Upon purchase of these
consumer loans, Klarna recognizes them on the consolidated balance sheet. Klarna may also provide
consumers with committed credit limits or other committed financing arrangements. Amounts drawn
under these commitments are recognized on the consolidated balance sheet. Amounts committed under
these arrangements that are not yet recognized are disclosed in Note 19.
11.Structured entities
A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding
who controls the entity, such as when any voting rights may relate to administrative tasks only, with the
relevant activities of the entity being directed by means of contractual arrangements. Structured entities
are generally created to achieve a narrow and well-defined objective with restrictions around their ongoing
activities.
Klarna consolidates such structured entities when we determine that we control the structured entity
in accordance with IFRS 10. In the case of structured entities, this determination involves judgment,
particularly as voting rights are often not the determining factor in decisions over the relevant activities.
This judgment involves assessing the purpose and design of the entity, and whether we have power over
the relevant activities and exposure, or rights, to variable returns, and the ability to use its power over the
investee to affect the amount of the  returns. In determining this, we also assess whether we are acting as
a principal or as an agent on behalf of others.
Warehouse financing facility and synthetic securitizations
Klarna enters into transactions with securitization vehicles (“SPVs”), where it economically transfers a
portion of credit risk for certain pools of consumer receivables (the “Referenced Pools”) with the primary
objective to lower the regulatory capital risk weights of the underlying assets.
In certain transactions, Klarna enters into synthetic securitizations with unconsolidated SPVs. in which
credit risk for each Referenced Pool is separated into three tranches: junior, mezzanine and senior. In
these structures, Klarna retains the junior and senior tranches and transfers the credit risk associated with
the mezzanine tranche to an unconsolidated SPV, which issues credit-linked notes (“CLNs”) to investors.
Klarna pays a fee to the SPVs for the transfer of credit risk, which is recognized as incurred in funding
costs, see Note 17. This fee provides for a guarantee from the SPV to reimburse the Company for any
credit losses incurred within transfers of the credit risk associated with the mezzanine tranche.
In other transactions, Klarna enters into arrangements with consolidated SPVs, typically through 
warehouse financing facilities with an institutional lender, as the funder, and Klarna Bank AB, a subsidiary
of Klarna Group plc, as the borrower. In these structures, the SPV issues CLNs to the funder and advances
the proceeds to Klarna, which in turn pledges Referenced Pools as collateral. Credit risk for the Reference
Pool is separated into two tranches: a junior tranche retained by Klarna and a senior tranche transferred to
the funder through the consolidated SPV.
The CLNs are recognized within Notes Payables and Other Borrowings and are classified and
measured at amortized cost using the effective interest method. Interest and senior expenses related to
the facility are recognized within funding costs, see Note 17.
In both structures, Klarna retains the contractual rights to the cash flows and substantially all of the
associated risks and rewards of ownership of the receivables within the Reference Pool. Accordingly, the
receivables are not derecognized and continue to be recognized in the statement of financial position.
Should the Company experience credit losses exceeding the retained tranche and fall within the
transferred tranche, it would be entitled to recoveries consistent with that contractual reimbursement
right. The Company’s estimated credit losses for the Reference Pools was below the contractual range of
the transferred tranches for the periods presented. Accordingly, no claims have been made against the
SPVs in respect of the reporting periods.
Forward flow securitization
Klarna enters into forward flow loan sale arrangements with unconsolidated SPVs whereby specified
pools of consumer receivables (“Eligible Receivables”) are transferred to the SPVs.
Klarna classifies the Eligible Receivables into either fair value through OCI (“FVOCI”), or fair value
through profit or loss (“FVTPL”) on the basis of both (a) Klarna’s business model for managing the assets,
and (b) the contractual cash flow characteristics of the financial assets.
Eligible Receivables classified and measured at FVOCI are subsequently remeasured at fair value and
changes therein are recognized in other comprehensive income, except for interest income, impairment,
and foreign exchange, until the assets are sold. Interest income is recognized using the effective interest
method, in the same manner as for financial assets measured at amortized cost, until derecognition
requirements are met. Eligible Receivables classified and measured at FVTPL are subsequently
remeasured at fair value and changes therein are recognized in the statements of profit or loss.
Expected credit losses (“ECL”) on Eligible Receivables measured at FVOCI do not reduce the carrying
amount of the financial assets, which remain at fair value. Instead, the ECLis recognized in other
comprehensive income as an accumulated impairment amount, with a corresponding charge to profit or
loss.
Klarna derecognizes receivables upon transferring the contractual rights to the cash flows and
substantially all associated risks and rewards. The transfers are deemed to occur on the sale date, at
which point, the derecognition criteria are satisfied.
Upon disposal of Eligible Receivables measured at FVOCI, the cumulative gains or losses previously
recognized in other comprehensive income, including the accumulated impairment amount are
reclassified from other comprehensive income to the statements of profit or loss. Upon disposal of Eligible
Receivables measured at FVTPL, gains and losses are recognized in the statements of profit or loss.
Gains and losses from disposals of Fair Financing receivables are recognized within revenue as Gain
on sale of consumer receivables, and losses from disposals of Pay Later receivables are recognized within
Funding costs, reflecting the nature and underlying characteristics of the sold eligible receivables. See
Note 4 and Note 17.
Klarna may continue to service certain sold receivables on behalf of the SPVs in exchange for
receiving a servicing income from providing professional services such as cash flow collection and credit
risk management in the event of customer defaults. We recognize this servicing fee within Transaction and
service revenue. The servicing fee is typically calculated daily by applying a fixed percentage to the
outstanding loan principal balance. The servicing fee represents a fair market fee, and no servicing asset
or liability is recognized in the financial statements. See Note 4.
12.Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the
most advantageous market to which Klarna has access at that date.
When available, Klarna measures fair value using the quoted price in an active market. If a quoted price
in an active market is not available, the Group uses valuation methods that maximize the use of relevant
observable inputs and minimize the use of unobservable inputs to determine fair value.
The fair value of a financial instrument on initial recognition is generally best evidenced by its
transaction price (i.e., the fair value of consideration paid or received). If Klarna determines that the
transaction price differs from the fair value and the fair value is not evidenced by a quoted price in an
active market for an identical asset or liability nor based on a valuation method where unobservable inputs
are considered to be insignificant in relation to the difference, then the financial instrument is initially
measured at fair value, adjusted to defer the difference between the fair value on initial recognition and
the transaction price. Subsequently, that difference is recognized in profit or loss on an appropriate basis
over the life of the instrument but no later than when the valuation is wholly supported by observable
market data or the transaction is settled.
All assets and liabilities for which fair value is measured or disclosed in these consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole.
Level 1
Level 1 in the fair value hierarchy consists of assets and liabilities where the inputs used in the
valuation are unadjusted quoted prices from active markets for identical assets or liabilities.
Level 2
Level 2 consists of assets and liabilities where the significant inputs used for valuation are derived
from directly or indirectly observable market data available over the entire period of the instrument’s life.
Such inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for
identical instruments in inactive markets and observable inputs other than quoted prices such as interest
rates and yield curves, implied volatilities and credit spreads.
Level 3
Level 3 includes estimated values based on assumptions and assessments where one or more
significant inputs are not based on observable market information.
Klarna recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Repurchase agreements
Repurchase agreements are used to obtain liquidity and fluctuate over time based on many factors,
including market conditions, consumer receivables and consumer deposit growth and balance sheet
management activities.
Treasury bills and other interest-bearing securities that are sold under agreements to repurchase at a
specified future date are not derecognized from the balance sheet as Klarna retains substantially all of the
risks and rewards of ownership. Assets under repurchase agreements are transferred to the counterparty,
and the counterparty has the right to sell or re-pledge the assets. Such securities are kept on the balance
sheet and pledged as collateral when the securities have been transferred and cash consideration has
been received. Payment received is recognized under notes payable and other borrowings. The difference
between the sale and repurchase price is accrued over the life of the agreement using the effective
interest method and recognized within funding costs in the consolidated statements of profit or loss.
14.Derivative instruments and hedge accounting
Derivative instruments are recognized in the balance sheet on their trade date and are measured at
fair value, both initially and in subsequent periods. Derivative instruments are presented in other assets or
notes payable and other borrowings. Changes in the fair value of derivative instruments are included in
funding costs in the consolidated statements of profit or loss.
The Group uses hedge accounting for fair value hedges to manage the interest rate risk of liabilities.
Changes in the fair value of derivatives that are designated and qualify as fair value hedging
instruments are included in funding costs, together with any changes in the fair value of the hedged
liability that are attributable to the hedged risk. Any residual mismatch between the hedging instrument
and the hedged item is recognized as ineffective.
When hedging interest rate risk, any interest accrued or paid on both the hedging instrument and the
hedged item is included in funding costs. If the hedge no longer meets the criteria for hedge accounting,
the adjustment to the carrying amount of a hedged item for which the effective interest method is used is
amortized to the consolidated statements of profit or loss over the period for which the item was hedged.
If the hedged item is sold or repaid, the unamortized fair value adjustment is recognized immediately in
funding costs.
15.Consumer deposits
Consumer deposits are initially recorded at fair value and then at amortized cost and with application
of the effective interest method. Where a consumer deposit is in a qualifying fair value hedge relationship,
its carrying value is adjusted for changes in fair value attributable to the hedged risk. All consumer
deposits are interest-bearing.
Klarna offers certain consumer deposit arrangements under which funds are held on behalf of
consumers by third-party financial institutions. Under these arrangements, consumer deposit balances
that are not controlled by Klarna are not recognized in the consolidated balance sheet.
16.Payables to merchants
Payables to merchants arise when Klarna facilitates payment transactions for merchants and holds the
corresponding funds on their behalf. The settlement cycle is dependent on the counterparty, but is usually
within a few working days of the transaction. As a result, Klarna records a liability towards the merchant,
representing the money owed to them. Payables to merchants are recognized at amortized cost. On
settlement, the Group derecognizes these amounts from the balance sheet.
17.Leasing
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. The length of a lease term includes options to extend or terminate the lease when it is
reasonably certain that the Group will exercise those options. The Group applies judgment in evaluating
whether it is reasonably certain to exercise extension or termination options. For most leases, the Group
has determined that the lease term does not include additional periods after the initial period.
A right-of-use asset and a lease liability are recognized at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
initial direct costs, incentive payments, restoration costs and lease payments before the commencement
date. The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the remaining lease payments that are
not paid at the commencement date. As most leases do not provide an implicit interest rate, the Group
uses the incremental borrowing rate at the lease commencement date in determining the present value of
lease payments.  
The lease liability is remeasured when there is a change in future lease payments arising, for example,
from a change in an index or rate, a reassessment of extension, termination or purchase options, or a
change in the amount expected to be payable under a residual value guarantee. If a remeasurement of the
lease liability occurs, a corresponding adjustment to the carrying amount of the right-of-use asset is made.
Lease payments included in the measurement of the lease liability are fixed payments, variable lease
payments that depend on an index or rate, amounts expected to be payable under a residual value
guarantee and the exercise price under a purchase option, if applicable. The Group excludes payments for
related services and other components of a lease. The Group presents right-of-use assets in property and
equipment and lease liabilities in other liabilities in the balance sheet.
The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases
and leases of low-value assets, primarily relating to IT equipment and short-term office rentals. Payments
for such leases are recognized as an expense on a straight-line basis over the lease term.
18.Business combinations
Business combinations are accounted for using the acquisition method. Identifiable assets acquired
and liabilities assumed are measured initially at their fair values at the acquisition date. The excess of the
consideration transferred and the acquisition-date fair value of any previous equity interest in the
acquiree, over the fair value of the identifiable net assets acquired is recognized as goodwill. Acquisition-
related costs, other than those incurred for the issuance of debt or equity instruments, are charged to the
consolidated statement of profit or loss as they are incurred.
19.Divestitures
Non-current assets or disposal groups are classified as held for sale when their carrying amount is
expected to be recovered principally through a sale transaction rather than through continuing use. The
classification is made when the asset or disposal group is available for immediate sale in its present
condition, and the sale is highly probable within one year. Upon such classification, the assets or disposal
group are measured at the lower of their carrying amount and fair value less costs to sell.
The gain or loss on divestment is determined as the difference between the consideration received,
net of transaction costs, and the carrying value of the net assets disposed of. The gain or loss is
recognized within other income (expense) in the statements of profit or loss. Where goodwill has been
allocated to the disposed operation, typically measured based on the relative values of the disposed
operation, such goodwill is included in the carrying amount of the operation when determining the gain or
loss on disposal.
An operation is classified as discontinued when it represents a separate major line of business or
geographical area of operations that either has been disposed of or is classified as held for sale.
For foreign operations, cumulative foreign currency translation differences previously recognized in
other comprehensive income are reclassified to the statements of profit or loss upon divestment. This
reclassification is included as part of the gain or loss on disposal.
20.Goodwill and intangible assets
Goodwill
Goodwill represents the excess of consideration paid over the fair value of the identifiable net assets
acquired in a business combination. Goodwill is not amortized but is reviewed for impairment annually and
more frequently if an event occurs or circumstances change that would more likely than not reduce the
fair value of a reporting unit below its carrying value. Impairment of goodwill is not reversed. The Group
monitors goodwill for impairment considerations at the operating segment level. In the event of a disposal
that qualifies as a business, or where there is a significant reorganization of the business, goodwill is
allocated based upon relative fair values.
Trademarks, tradenames, licenses and other customer-related intangible assets
Identifiable intangible assets following business combinations include trademarks, tradenames,
licenses, developed technology and customer relationships. Acquired intangible assets are recorded at
fair value on the date of acquisition and amortized over their estimated useful lives, generally 3-20 years.
The Group reviews the carrying amounts of intangible assets for impairment at the asset group level
whenever events or changes in circumstances indicate that the carrying amount of the asset group may
not be recoverable.
Capitalized development costs
Costs associated with IT systems, software and licenses, whether developed internally or acquired, are
recognized as intangible assets when the following criteria are met:
It is technically feasible to complete the intangible asset so that the asset will be available for use
or sale;
Adequate resources are available to complete the development;
There is an intention to complete and use the intangible asset for the provision of services;
Use of the intangible asset will generate probable future economic benefits; and
Expenditures attributable to the intangible asset can be measured reliably.
Depreciation is computed using the straight-line method over the estimated useful lives of the
depreciable capitalized development costs and licenses (generally, 3-5 years) and reported within
depreciation, amortization and impairments and in technology and product development in the
consolidated statements of profit or loss depending on the nature of the assets. Costs related to
development activities that do not satisfy the above criteria, including for maintenance, are expensed as
incurred.
Impairment
Goodwill is tested for impairment annually. This is tested by estimating the recoverable amount, which
is the higher of the fair value less costs of disposal and the value in use. If the recoverable amount is lower
than the carrying amount, the asset is written down. See Note 11 for further information on the
measurement of goodwill and significant assumptions used in the annual impairment test.
Intangible assets with finite useful lives undergo impairment testing whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
21.Property and equipment
Property and equipment is stated at historical cost less accumulated depreciation and impairment.
Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable
assets, generally, by applying the following useful lives to each class of property and equipment:
Equipment, tools and fixtures and fittings ...............................
5 years
Computers and other machinery ..............................................
3 years
Leasehold improvements............................................................
The shorter of lease term and useful life
If there is an indication that the recoverable value is less than the carrying amount, an impairment
review is completed and any impairment loss is recognized within depreciation, amortization and
impairments in the consolidated statements of profit or loss. The cost and accumulated depreciation for
property and equipment that is sold, retired or otherwise disposed of are derecognized and the resulting
gains or losses are recorded in the consolidated statements of profit or loss.
22.Treasury shares
Shares in the Company that are held by wholly owned subsidiaries or other Group entities are
classified as treasury shares. Amounts paid to repurchase the Company’s own shares, including any
directly attributable incremental costs (net of related income tax effects), are recognized as a deduction
from equity. The repurchased shares are presented as treasury shares and remain deducted from equity
until they are either cancelled or reissued. These shares are deducted from the issued and weighted
average number of shares in calculating earnings per share. Dividends received on treasury shares are
eliminated on consolidation, and no gain or loss is recognized in profit or loss or other comprehensive
income on the purchase, sale, reissue, or cancellation of such shares.
23.Revenue Recognition
Transaction and service revenue
Revenue is recognized when control of the promised goods or services is transferred to customers, in
an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods
or services. The product offerings from which revenues are recognized do not differ in any significant way
between geographical markets.
Transaction revenue
Transaction revenue includes merchant revenue and advertising revenue. Merchant revenue refers to
fees paid by our merchants, generated when consumers transact on our network. It includes merchant
fees, interchange revenue and fees for settling disputes. Merchant revenue is derived from the volume of
transactions we process multiplied by the fees we charge, which vary among our geographies. Our pricing
is a combination of value-based and fixed pricing, charged either ad valorem (proportional to the
estimated value of goods and services purchased on our network) or fixed fees on each transaction, or a
mix of both. Where consumers return merchandise or goods and merchants process a refund, merchant
fees charged for the original transaction are not returned to the merchant.
Our contracts with merchants consist of a master agreement including terms, conditions and pricing. 
We are not obligated to perform under the contract until a transaction occurs and thus each transaction
represents a separate performance obligation to the merchant as our customer. Our service offering
comprises a single performance obligation to merchants to facilitate transactions with consumers. The
transaction price is recognized at the point in time when the merchant successfully confirms the
transaction, which is when the terms of the contract are fulfilled. We provide a reduction of merchant fees
to certain merchants based on performance measures, including volume of processed transactions. The
nature of our contracts may give rise to variable consideration, which may be constrained. We estimate the
expected transaction volumes at the beginning of the period and include the estimated rebates in the
transaction price as a reduction of merchant revenue. We also enter into contracts with certain merchants
to expand our user base and market presence and for brand promotion through co-marketing activities, as
detailed in section Promotional and marketing arrangements below.
Advertising revenue is earned from merchants who place advertisements on our network, including
sponsored search, affiliate programs and brand ads. We enter into contracts for advertising either directly
with merchants or through other third parties. The transaction price is determined based on the
advertising model, with fees that may be fixed or variable, typically based on the number of impressions
delivered or actions taken by users, such as clicks or purchases. Revenue from impression-based ads is
recognized in the period when an ad is displayed to users. For action-based ads, revenue is generally
recognized at a point in time, when a specified action, such as a click or purchase, occurs.
Our contracts for advertising services are separate from other merchant contracts and include a single
performance obligation. For advertising revenue generated through other third parties, we recognize
revenue on a gross basis if we are the principal and on a net basis if we are the agent. This assessment is
based on whether we control the service before it is delivered to the customer.
Consumer service revenue
Consumer service revenue refers to revenue we earn from consumer fees, primarily consisting of
certain administrative fees, including reminder fees and fees for issuing one-time cards. Consumers may
be charged a fee, being a fixed amount that constitutes the transaction price and recognized at the point
in time that the consumer is charged. This fee income is earned in relation to the Company’s ordinary
activities.
Consumer service revenue also includes subscription revenue. Subscription revenue represents
monthly subscription fees related to a single performance obligation for a bundle of services and are
recognized over the subscription period as those services are provided.
Distribution partner referral arrangements
We enter into contracts with third-party partners to distribute our payment solutions to our merchants.
For these contracts, we evaluate who our customer is and if we are acting as the principal or agent in the
specific arrangement. Generally, our customer is considered to be the merchant and we are considered to
be the principal in these arrangements, while third-party partners are determined to be an agent in the
transaction. We recognize incremental costs of obtaining a contract in accordance with IFRS 15 “Revenue
from Contract with Customers” for the commission paid to these third-party partners. These expenses are
classified within sales and marketing expenses in the consolidated statements of profit or loss. During
2025, 2024 and 2023, the Company recognized $109 million, $81 million and $59 million, respectively,
related to these commissions within sales and marketing expenses.
Promotional and marketing arrangements
We enter into contracts with certain merchants and other partners to expand our user base and
market presence, and for brand promotion through co-marketing activities, in which Klarna provides cash,
share warrants, or both as consideration. We evaluate if the consideration payable is in exchange for a
distinct good or service. Where the payment is for a distinct good or service, it is recognized as sales and
marketing expenses. If a payment is not for a distinct good or service, it is recognized as a reduction of the
transaction price. We recognize the expense of such services as incurred.  When the consideration
represents a payment against which economic benefits are expected to be realized over a future period,
we recognize a commercial agreement asset. These assets are amortized over the period of the contract
for when the services are expected to be provided, which is typically between 3-5 years.
We also offer promotions to consumers, including cashback, with the purpose of acquiring new
consumers, promoting the Klarna brand, the use of the Klarna app and payment options. These promotions
typically represent a reduction on the total amount collected from consumers. Where we assess there is
no explicit or implicit expectation for promotions to be provided, we recognize within sales and marketing
expenses. Where we assess there is an expectation, the cost of the promotion is recognized as a reduction
in the revenue earned from the transaction, with any excess of the cost of the promotion above the
revenue recognized within sales and marketing expenses.
Interest income
Interest income includes interest earned when consumers choose to spread the cost of transactions
over time through one of our interest-bearing financing products or to delay the cost of transactions with
our payment flexibility features, such as “snooze.” We also recognize interest income related to
incremental fees earned from certain merchants for providing interest-free promotional loans to their
consumers.
Interest income on financial assets measured at amortized cost, as well as “snooze” fees charged, is
recognized in profit or loss using the effective interest method.
Interest income also includes interest from debt securities. See Note 8.
From time to time, we may enter into contracts with merchants under which we pay a fee for their role
as intermediary in arranging a consumer financing facility. We recognize such fees as a reduction of
interest income. During 2025, 2024 and 2023, the Group recognized $12 million, $10 million and $13 million
as a reduction of interest income, respectively.
24.Operating expenses
Processing and servicing costs
Processing and servicing costs primarily consist of the following and include cost of fulfilling a
contract: authentication costs to verify user identities, scoring costs related to purchasing credit and fraud
data from various bureaus, distribution costs related to direct communication with consumers,
commissions paid to third parties for debt collection and payment fees to credit card companies and
financial institutions. Processing and servicing costs are expensed as incurred. 
Provision for credit losses
Impairment losses from consumer receivables are reported as Provision for credit losses.
Provision for credit losses for the period consist of realized credit losses, provisions for credit losses
for granted credit, less reversal of provisions for credit losses made previously. Realized credit losses are
losses whose amount is, for example, determined via bankruptcy, a composition arrangement, a statement
by an enforcement authority or the sale of receivables.
Funding costs
Funding costs include interest that we pay on our consumer deposits, calculated using the effective
interest method, and securitization costs, including fair value adjustments on Pay Later receivables held at
fair value through profit and loss related to forward flow agreements, and premiums paid in connection
with our synthetic securitization transactions.
Technology and product development
Technology and product development expenses primarily consist of personnel-related costs for
technology functions as well as other expenses, including hosting, software licenses, external service
providers, hardware costs and amortization of internally developed and acquired technology assets.
Sales and marketing
Sales and marketing expenses primarily consist of personnel costs, general marketing and promotional
activities costs, referral commissions, costs related to sponsorships and partnerships, and costs related to
consumer promotional programs.
Customer service and operations
Customer service and operations expenses primarily consist of personnel costs for customer support
functions and outsourced assistance to help with purchases, account management, returns and merchant
disputes.
General and administrative
General and administrative expenses consist of personnel costs for directors and executives, legal and
human resources, and finance functions, lease expenses related to short-term leases, low-value assets,
and variable lease expenses, professional services costs and merchant and other losses.
25.Income taxes
Income taxes consist of current tax and deferred tax. Income taxes are reported directly in the
consolidated statement of profit or loss except when the underlying transaction is reported directly
against equity or other comprehensive income, in which case the accompanying tax also is reported in
equity or other comprehensive income. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted at the reporting date in the countries where the Group operates
and generates taxable income.
Deferred tax is reported according to the balance sheet method for all taxable temporary differences
between an asset’s or a liability’s tax base and its carrying amount in the balance sheet. Deferred tax
assets are reported for deductible temporary differences to the extent it is probable that the taxable profit
will be available against which the deductible temporary difference can be utilized. Deferred tax assets
and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
The Group assesses on an ongoing basis as well as at the end of the year the possibility of recognizing
deferred tax assets related to tax losses carried-forward. Deferred tax assets attributable to tax losses
carried forward are reported only if it is probable that they will be used towards taxable profits in the
foreseeable future. Significant management judgment is required to determine the amount of deferred tax
assets that can be recognized, based upon the probability of taxable profits being available in the future
and the quantum of taxable profits that are forecasted to arise. These judgments include management’s
expectations of the growth of profit before tax in different jurisdictions, forecasted revenues and
expenses and the timing of the reversal of taxable temporary differences.
Uncertain tax positions are measured on an ongoing basis, and the method is determined by taking all
known facts and circumstances into account.
26.Share-based payments
Klarna offers equity-based programs to employees and certain third-party contributors, including
merchants, partners and service providers.
Employee Restricted Share Unit Program and Individual Contributor Share Warrants and Share Options
The Group grants share-based awards in the form of restricted share units (“RSUs”), share warrants
and options, to certain individual contributors, including employees, executive officers and directors.
Restricted share units granted to employees generally vest on a graded vesting schedule over a four years
period. The share warrants and options are subject to graded vesting over a term of typically four to five
years. These arrangements are equity-settled and are accounted for as equity-settled share-based
payments.
For share-based awards granted to certain individual contributors, including employees as well as
executive officers and directors, the services rendered are measured with reference to the grant-date fair
value of the equity instruments using a Black-Scholes model. The cost of the share-based payments
granted to employees is recognized over the vesting period, which represents the period the service
conditions are fulfilled.
The Group also grants ordinary shares through direct share issuances to employees, executive officers
and directors. The shares are accounted for as equity-settled share-based payments. Typically there are
no vesting conditions or restrictions placed on the awards and, accordingly, the related share-based
compensation expense, based on the grant-date fair value of the awards, is recognized immediately.
The share-based payment expenses related to awards granted to individual contributors, including
employees, executive officers and directors are recognized under technology and product development,
sales and marketing, customer service and operations or general and administrative expenses depending
on the function of the related employee or individual contributor in the consolidated statements of profit
or loss. The employment vesting condition is a non-market based condition and a forfeiture estimate is
factored into the assumption of how many equity instruments are expected to vest.
Any related social security charges relating to share-based payments are recognized as an expense
during the corresponding period based on the fair value that serves as the basis for a payment of social
security charges. The expense is recognized under the function of the related employee or individual
contributor in the consolidated statements of profit or loss. In many jurisdictions, tax authorities levy taxes
on share-based compensation transactions with employees that give rise to a personal tax liability for the
employee. In some cases, Klarna is required to withhold the tax due and to settle it with the tax authority
on behalf of the employees. To fulfill this obligation, the terms of Klarna’s restricted share unit
arrangements permit the Group to withhold the number of shares that are equal to the monetary value of
the employee’s tax.
Partner Share Warrants
Klarna has granted share warrants to certain partners, including merchants and other service
providers, in return for services. Share-based payments to partners are generally measured at the fair
value of the goods or services received and measured at the time when such goods and services are
received. If the fair value of goods and services cannot be reliably measured, the fair value of the equity
instruments is used. We recognize commercial agreement assets where the consideration paid represents
a future economic benefit, and these assets are amortized over the relevant performance period within
the commercial agreement and recognized within sales and marketing expenses where the payment is in
exchange for a distinct service or as a reduction to transaction prices if in exchange for no distinct service.
Further information relating to share-based payment transactions is presented in Note 22.
27.Provisions
The Group recognizes provisions for present obligations arising from past events when payment of the
obligations is probable and can be reliably estimated. Refer to Note 15 for information regarding the
Group’s provisions.
Klarna operates in a regulatory and legal environment that involves an element of litigation risk
inherent to its operations, and from time to time Klarna may be party to litigation, arbitration and regulatory
investigations and proceedings arising during the ordinary course of business. When Klarna can reliably
measure the outflow of economic benefits in relation to a specific case and considers such outflow to be
probable, a provision is recorded. Given the subjectivity and uncertainty of determining the probability and
amount, a number of factors are assessed, including legal advice, the stage of the matter and historical
evidence from similar incidents. Judgment is required in concluding such assessments.
28.Employee Benefits
Employee benefits include all forms of consideration provided by the Group in exchange for services
rendered by employees, including post-employment pension plans. The Group’s pension plans are defined
contribution plans, which means that contributions are made to an independent legal entity according to a
fixed pension plan. These contributions are recognized as personnel costs in the period they apply to.
After the contributions are made, the Group has no legal or other obligations. Employee benefits expenses
are composed of:
2025
2024
2023
Salaries and other remuneration ..................................................................
$(417)
$(393)
$(379)
Statutory and contractual social security expenses ................................
(102)
(113)
(109)
of which: pension expenses ...........................................................................
(25)
(25)
(26)
Total employee benefits ....................................................................................
$(520)
$(506)
$(488)
v3.25.4
Risk management and management of capital
12 Months Ended
Dec. 31, 2025
Risk Management and Management of Capital [Abstract]  
Risk management and management of capital Risk management and management of capital
Klarna’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern and to comply with regulatory capital requirements.
Regulatory requirements
Within the Group, Klarna Holding AB and its subsidiary, Klarna Bank AB, are subject to the regulatory
capital requirements imposed by the SFSA. The regulatory capital framework requires Klarna to maintain a
minimum level of capital to cover its operational, credit and market risks. Klarna's regulatory capital is
composed of Tier 1 and Tier 2 capital, which include common equity, retained earnings, and subordinated
debt.
Capital adequacy
Klarna monitors its capital and liquidity adequacy ratios through the Internal Capital and Liquidity
Adequacy Assessment Process (“ICLAAP”) in accordance with the regulatory definition of these measures.
As of December 31, 2025, Klarna was in compliance with these requirements.
Capital structure
Klarna’s capital structure is regularly reviewed by the board of directors. The review involves assessing
the cost of capital and ensuring compliance with regulatory capital requirements. The key components of
Klarna’s capital structure include:
Equity: Common shares, additional paid-in capital, and retained earnings.
Debt: Debt obligations, including subordinated debt.
Risk descriptions
The Group categorizes the key risks it is exposed to in the sections below. These risk categories form
the basis of how Klarna identifies, assesses, manages and monitors risk. 
Credit risk 
Credit risk is the risk of financial loss due to a counterparty failing to meet its contractual obligations or
concentrations in exposure. Cash and cash equivalents, consumer receivables, other receivables, and
debt securities are potentially subject to concentrations of credit risk. To manage the Group’s credit risk,
cash and securities held are placed with financial institutions that management believes are of high credit
quality, and the quality of the Group’s lending is closely monitored through our underwriting process.
Klarna makes real-time underwriting decisions for each transaction, leveraging its records, including the
customer’s history with Klarna and purchase behavior from active Klarna consumers, merchant data,
credit bureau reports and open banking data to understand the financial position of the consumer at that
point in time. For further details on credit risk, refer to Note 2.
Market Risk
Market risk is the risk of movements in market prices impacting Klarna’s earnings or capital position.
Risk Measurement and Exposure
Currency exposure
The currency exposure is a result of transactions denominated in a currency other than the functional
currency. The table below shows the net average currency exposure and the effects of a 10% change in
foreign exchange rates on the exposure of the group as of the end of the period.
December 31, 2025
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
11
22
13
12
58
Effect of 10% change ......................................
(1)
(2)
(1)
(1)
(6)
December 31, 2024
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
18
14
10
22
63
Effect of 10% change ......................................
(2)
(1)
(1)
(2)
(6)
December 31, 2023
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
29
11
4
28
72
Effect of 10% change ......................................
(3)
(1)
(3)
(7)
Interest rate exposure
As a bank, Klarna is required to monitor exposures toward interest rate risks using the Economic Value
of Equity (EVE) approach according to the relevant EU regulations, EBA guidelines and SFSA
methodologies. The EVE approach measures interest rate driven changes to the net present value of
future cash flows generated by balance sheet items. The change to EVE is measured using various interest
rate scenarios,  including parallel shifts.
The table below shows the change in the EVE after applying a parallel shift to the yield curve.
December 31, 2025
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
10
(28)
10
6
1
(1)
200 bps parallel shift in interest
rates ......................................................
(10)
26
(9)
(6)
(1)
1
December 31, 2024
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
4
(34)
3
6
1
(20)
200 bps parallel shift in interest
rates ......................................................
(4)
32
(2)
(6)
(1)
19
December 31, 2023
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
5
(43)
5
4
(29)
200 bps parallel shift in interest
rates ......................................................
(5)
41
(5)
(4)
27
Liquidity Risk
The risk of the Group being unable to meet its financial obligations, as they fall due, or unable to fund
its operational needs without incurring unacceptable costs.
Risk Measurement and Exposure
The Group complies with all liquidity regulatory requirements, including Liquidity Coverage Ratio
(“LCR”) and Net Stable Funding Ratio (“NSFR”), and monitoring and management of Klarna’s liquidity
survival horizon.
Funding Obligations
The tables below show the undiscounted funding obligations including interest by contractual maturity:
December 31, 2025
<12 months
1-5 years
>5 years
Total
Consumer deposits ............................................................
$11,043
$2,294
$
$13,337
Notes payable and other borrowings .............................
450
876
240
$1,565
Lease liabilities ...................................................................
26
54
5
85
Total ......................................................................................
$11,518
$3,224
$245
$14,987
December 31, 2024
<12 months
1-5 years
>5 years
Total
Consumer deposits ............................................................
$7,681
$2,109
$
$9,790
Notes payable and other borrowings .............................
234
219
245
698
Lease liabilities ...................................................................
23
61
9
93
Total .......................................................................................
$7,938
$2,389
$254
$10,581
The Group’s commitments for loan funding are disclosed in Note 19.
v3.25.4
Operating segments
12 Months Ended
Dec. 31, 2025
Disclosure of operating segments [abstract]  
Operating segments Operating segments
Klarna determines operating segments based on how the Chief Operating Decision Maker (“CODM”)
manages the business, makes operating decisions around the allocation of resources and evaluates
Klarna’s operating performance.
Klarna’s CODM role is fulfilled by the executive officers as a group, who collaboratively assess financial
performance and make resource allocation decisions on a consolidated basis. Klarna operates as one
operating segment and has one reportable segment.
Geographic Information
Transaction revenue, consumer service revenue and interest income are presented by major
geographic regions based upon the billing address of the consumer. Interest income derived from the cash 
and liquidity management of the Group is based on the geographic location of the financial institution for
which financial instruments have been purchased.
2025
2024
2023
Geographical breakdown
United States .....................................................................................................
$1,243
$850
$609
Germany .............................................................................................................
848
755
620
United Kingdom .................................................................................................
442
348
268
Other countries .................................................................................................
976
858
779
Revenue ...............................................................................................................
$3,509
$2,811
$2,276
No individual country within other countries contributed more than 10% of revenues in 2025.
The following table presents Klarna’s revenue disaggregated by category:
2025
2024
2023
Transaction revenue ........................................................................................
$2,103
$1,792
$1,531
Consumer service revenue ............................................................................
397
344
237
Gain on sale of consumer receivables .........................................................
73
0
0
Interest income .................................................................................................
937
675
508
Revenue ..............................................................................................................
$3,509
$2,811
$2,276
Transaction revenue
Transaction revenue consists of merchant revenue and advertising revenue. Merchant revenue
primarily refers to fees paid by our merchants, generated when consumers transact on our network and
also includes interchange revenue and fees for settling disputes.
Advertising revenue is earned from merchants who place advertisements on our network, including
sponsored search, affiliate programs and brand ads. During 2025, 2024 and 2023, advertising revenue
amounted to $190 million, $180 million and $157 million.
Gain on sale of consumer receivables
During the year ended December 31, 2025, the Company entered into sales agreements of Fair
Financing receivables comprising both an initial sale of existing portfolio and additional forward flow
agreements. The total Fair Financing receivables sold during the year was $1.6 billion. These sales of
receivables resulted in a gain on sale $73 million, of which $25 million was reclassified from other
comprehensive income during 2025. There was no comparable revenue for the year ended December 31,
2024.
Consumer service revenue
Consumer service revenue refers to revenue we earn from consumer fees, primarily consisting of
certain administrative fees, including reminder fees of $261 million, $254 million and $198 million in 2025,
2024 and 2023, respectively, and other administrative fees, such as fees for issuing one-time cards.
Consumer service revenue also includes subscription revenue of $29 million and $6 million in 2025
and 2024, respectively.
Interest income
The following table presents Klarna’s interest income by category:
Interest income
2025
2024
2023
Fair Financing ....................................................................................................
$617
$383
$318
"Snooze" fees ....................................................................................................
161
128
96
Debt securities ..................................................................................................
134
144
75
Incremental merchant fees ............................................................................
25
20
19
Interest income ..................................................................................................
$937
$675
$508
Interest income includes interest earned when consumers choose to spread the cost of transactions
over time through one of our interest-bearing financing products or to delay the cost of transactions with
our payment flexibility features, such as “snooze.” We also recognize interest income related to
incremental fees earned from certain merchants for providing interest-free promotional loans to their
consumers. Interest income also includes interest from debt securities. See Note 8
Fair Financing includes interest income of $20 million attributable to consumer receivables originated
and measured at fair value through OCI during 2025.
Significant customers
For the year ended December 31, 2025, 2024 and 2023, there were no single customers that on an
individual level accounted for more than 10% of total revenue.
Klarna’s non-current assets, composed of property and equipment, goodwill, intangible assets and
other assets that are expected to be recovered more than twelve months after the reporting period: 
December 31,
2025
December 31,
2024
December 31,
2023
Non-current assets
Sweden ...............................................................................................................
$1,284
$412
$1,017
Germany .............................................................................................................
180
194
234
United States .....................................................................................................
100
101
155
United Kingdom .................................................................................................
199
167
151
Other countries .................................................................................................
232
326
200
Total non-current assets ...................................................................................
$1,995
$1,200
$1,757
No individual country within other countries made up more than 10% of non-current assets.
v3.25.4
Cash and cash equivalents
12 Months Ended
Dec. 31, 2025
Cash and cash equivalents [abstract]  
Cash and cash equivalents Cash and cash equivalents
The Group’s cash and cash equivalents consisted of:
December 31,
2025
December 31,
2024
Cash held at central banks ...........................................................................................................
$2,578
$2,466
Treasury bills held at central banks ............................................................................................
543
272
Other bank deposits .......................................................................................................................
682
505
Total cash and cash equivalents ....................................................................................................
$3,803
$3,243
Cash held at central banks consist of deposits in accounts with central banks under government
authority primarily where the (i) the central bank is domiciled and (ii) the balance is readily available.
v3.25.4
Consumer receivables
12 Months Ended
Dec. 31, 2025
Disclosure of financial assets [abstract]  
Consumer receivables Consumer receivables
Consumer receivables represent amounts due from consumers related to Klarna’s flexible payment
options, including Pay Later and Fair Financing solutions. Consumer receivables, except those which are
managed within a business model whose objective is to originate and sell or within a hold-to-collect-and-
sell business model (see Note 20), are measured at amortized cost, including outstanding principal
balances, unamortized deferred origination costs, accrued interest and net of allowances for expected
credit losses. The below table summarizes consumer receivables for the years ended December 31, 2025
and 2024:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ..............................................................................
$4,604
$(272)
$4,332
Pay Later receivables ......................................................................................
6,347
(220)
6,127
Total .....................................................................................................................
$10,951
$(492)
$10,459
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ........................................................................
$3,085
$(131)
$2,954
Pay Later receivables ................................................................................
5,388
(201)
5,187
Total ...............................................................................................................
$8,473
$(332)
$8,141
As detailed in Note 2, to measure the ECL of consumer receivables, Klarna assigns outstanding loans
to one of three stages based on repayment performance. See Note 2 for more information. The below
tables reconcile the Group’s classification of Fair Financing and Pay Later consumer receivables by stage
for the opening and closing balances:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$2,893
$140
$53
$3,085
New assets originated or purchased .............................
11,046
98
17
11,161
Assets repaid1......................................................................
(9,128)
(385)
(69)
(9,581)
Transfers to stage 1 ............................................................
473
(466)
(7)
Transfers to stage 2 ...........................................................
(1,151)
1,166
(15)
Transfers to stage 3 ...........................................................
(45)
(320)
364
Amounts written off ...........................................................
(26)
(21)
(203)
(249)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(2)
(11)
(23)
(36)
Other adjustments2 ............................................................
206
15
4
225
Gross carrying amount as of December 31, 2025 ............
$4,267
$216
$121
$4,604
____________
1  Assets repaid includes the sale of an existing portfolio of Fair Financing receivables within the period
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$5,059
$227
$102
$5,388
New assets originated or purchased .............................
55,477
69
13
55,559
Assets repaid ......................................................................
(53,591)
(1,049)
(183)
(54,823)
Transfers to stage 1 ............................................................
169
(164)
(5)
Transfers to stage 2 ...........................................................
(1,795)
1,797
(1)
Transfers to stage 3 ...........................................................
(25)
(623)
648
Amounts written off ...........................................................
(31)
(21)
(324)
(376)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(109)
(109)
Other adjustments1 ............................................................
673
27
8
708
Gross carrying amount as of December 31, 2025 ............
$5,936
$263
$149
$6,347
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2024 ..................
$7,753
$497
$144
$8,394
New assets originated or purchased .............................
55,836
163
18
56,017
Assets repaid ......................................................................
(52,841)
(1,730)
(242)
(54,813)
Transfers to stage 1 ............................................................
816
(799)
(17)
Transfers to stage 2 ...........................................................
(3,067)
3,080
(13)
Transfers to stage 3 ...........................................................
(19)
(784)
803
Amounts written off ...........................................................
(27)
(38)
(402)
(467)
Proceeds received from the sale of consumer
receivables ..........................................................................
(20)
(135)
(155)
Other adjustments .............................................................
(499)
(3)
(1)
(503)
Gross carrying amount as of December 31, 2024 ...........
$7,952
$366
$155
$8,473
The activity in the Group’s allowance for credit losses recognized for Fair Financing and Pay Later
consumer receivables, based on the above stage classifications, is detailed in the below table:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(69)
$(26)
$(36)
$(131)
New assets originated or purchased .............................
(318)
(20)
(11)
(349)
Assets repaid ......................................................................
227
66
52
345
Transfers to stage 1 ............................................................
(50)
46
4
Transfers to stage 2 ...........................................................
109
(117)
8
Transfers to stage 3 ...........................................................
1
182
(183)
Other movements in ECL allowance ..............................
(29)
(193)
(69)
(291)
Amounts written off ...........................................................
3
9
142
154
Other adjustments1 ............................................................
(1)
1
Allowance as of December 31, 2025 .................................
$(127)
$(52)
$(93)
$(272)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(77)
$(57)
$(67)
$(201)
New assets originated or purchased .............................
(383)
(19)
(7)
(409)
Assets repaid ......................................................................
455
126
116
697
Transfers to stage 1 ............................................................
(7)
3
4
Transfers to stage 2 ...........................................................
168
(169)
1
Transfers to stage 3 ...........................................................
1
345
(346)
Other movements in ECL allowance ..............................
(227)
(294)
(99)
(620)
Amounts written off ...........................................................
5
15
313
333
Other adjustments1 ............................................................
(8)
(6)
(6)
(20)
Allowance as of December 31, 2025 .................................
$(73)
$(56)
$(91)
$(220)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2024 .......................................
$(139)
$(87)
$(85)
$(311)
New assets originated or purchased .............................
(551)
(26)
(15)
(592)
Assets repaid ......................................................................
612
172
162
946
Transfers to stage 1 ............................................................
(54)
44
10
Transfers to stage 2 ...........................................................
178
(185)
7
Transfers to stage 3 ...........................................................
2
402
(404)
Impact on ECL from change in credit risk ....................
(215)
(419)
(143)
(777)
Amounts written off ...........................................................
4
20
365
389
Other adjustments .............................................................
19
(5)
(1)
13
Allowance as of December 31, 2024 .................................
$(144)
$(84)
$(104)
$(332)
Consumer receivables increased primarily as a result of growth in Klarna’s key markets. Loans with
contractual amounts of $173 million and $241 million that were written off during 2025 and 2024 are still
subject to enforcement activity. Other adjustments within consumer receivables during 2025 primarily
relate to the impact of movements in foreign exchange rates on consumer receivables during the year.
v3.25.4
Settlement and trade receivables
12 Months Ended
Dec. 31, 2025
Trade and other receivables [abstract]  
Settlement and trade receivables Settlement and trade receivables
Settlement and trade receivables primarily include receivables from payment solution providers (“PSP
receivables”), which arise from timing differences in the settlement process between the cash settlement
of a transaction and the derecognition of the associated receivable. Settlement and trade receivables are
initially measured at fair value and subsequently measured at amortized cost less an allowance for ECL.
Settlement and trade receivables are composed of:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables
454
(1)
453
Merchant receivables
92
(25)
67
Debt collection receivables
20
20
Other receivables
40
40
Total
606
(26)
580
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables ........................................................
$368
$
-
1
$368
Merchant receivables .......................................................................................
128
(17)
-
2
5
111
Debt collection receivables .............................................................................
8
0
8
Other receivables ...............................................................................................
6
0
6
Total .....................................................................................................................
$510
$(17)
$493
The Group applies the simplified approach to calculating the allowance for expected credit losses. The
Group’s provisions for expected credit losses related to merchant receivables are included within general
and administrative expense in the consolidated statements of profit or loss. The balances throughout
fiscal years 2025 and 2024 for the allowance for expected credit losses related to PSP receivables, debt
collection receivables and other receivables were immaterial due to the short-term nature of the
receivables and low credit risk associated with transacting with large PSPs, debt collection agencies and
other counterparties.
v3.25.4
Debt securities
12 Months Ended
Dec. 31, 2025
Debt Securities1 [Abstract]  
Debt securities Debt securities
Debt securities are composed of:
December 31,
2025
December 31,
2024
Treasury bills chargeable at central banks ...............................................................................
$1,365
$401
Mandatory deposits at central banks .........................................................................................
93
42
Bonds and other interest bearing securities ............................................................................
60
11
Total ...................................................................................................................................................
$1,518
$454
The Group monitors the credit ratings for the securities held throughout the investment holding period.
The allowance for expected credit losses is immaterial due to the credit quality of the issuers and low risk
of default.
Mandatory deposits at central banks are held with local central banks for the purpose of satisfying
regulatory requirements. These deposits are not available for immediate use to support the Company’s
day-to-day operations.
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Presentation of leases for lessee [abstract]  
Leases Leases
Klarna’s leases are primarily composed of office facilities and IT office equipment with various
expiration dates through December 2031. We have the option to renew or extend our leases, and certain
agreements also provide the option to terminate with prior written notice. As of December 31, 2025 and
December 31, 2024, we have not included these provisions in determining the lease term, as it is not
reasonably certain that these options will be exercised.
During 2025, 2024 and 2023, Klarna recognized impairment loss of $16 million, $6 million and $32
million, respectively, related to the early termination of certain lease agreements for office space. Refer to
Note 12 for additional information regarding right-of-use assets.
The following table presents lease expenses and expenses for short-term and low-value leases
recognized in 2025, 2024 and 2023:
2025
2024
2023
Depreciation of right-of-use assets ..............................................................
(15)
(16)
(28)
Impairments of right-of-use assets ...............................................................
(16)
(6)
(32)
Interest expense for lease liabilities .............................................................
(2)
(3)
(4)
Total right-of-use lease cost .............................................................................
(33)
(25)
(64)
Expenses relating to short-term leases .......................................................
(9)
(10)
(7)
Total short-term and low-value leases ............................................................
(9)
(10)
(7)
v3.25.4
Divestitures
12 Months Ended
Dec. 31, 2025
Divestitures [Abstract]  
Divestitures Divestitures
There were no divestitures in 2025.
On October 1, 2024, the Group completed the divestment of Klarna Checkout (“KCO”), its online
checkout solution, to a consortium of investors. This transaction allows Klarna to focus on its flexible
payment methods and partner more closely with payment service providers.
KCO was a shopping solution providing consumers and merchants with a personalized shopping
experience. KCO provided several different payment options as well as Klarna’s proprietary products and
other offerings from, or supported by, third-party payment option providers. KCO had approximately 24
thousand merchants. 
The Group received cash proceeds of $195 million and recognized a net gain of $171 million within
other income in our statements of profit and loss as a result of the sale in 2024.
In addition, further cash proceeds up to a maximum of $28 million may be receivable contingent upon
the disposed operation achieving certain performance criteria in 2026 and 2027. At the time of the sale
and through December 31, 2025, Klarna had not recognized any contingent consideration.
October 1, 2024
Consideration received or receivable: ......................................................................................................................
Cash ...............................................................................................................................................................................
$195
Fair value of contingent consideration ...................................................................................................................
Less: transaction costs ..............................................................................................................................................
(4)
Total disposal consideration ......................................................................................................................................
191
Carrying amount of net assets sold .........................................................................................................................
(20)
Gain on sale before income tax and reclassification of foreign currency translation reserve ..........................
171
Gain on sale after income tax .....................................................................................................................................
$171
The carrying amounts of net assets sold primarily consisted of goodwill of $20 million allocated to KCO
using a relative value approach, settlement and trade receivables of $4 million, other assets of $1 million,
cash and cash equivalents of $8 million, accounts payable and accrued expenses related to payment fees,
payroll, social charges among others of $2 million, payables to merchants of $56 million and other
liabilities of $4 million. In connection with the disposal, the former eliminated intercompany receivables
became external, impacting the consolidated financial net assets by $49 million.
Klarna determined that the operation of KCO did not meet the criteria to be classified as discontinued
operations under IFRS as it was not a major business line or a geographic area of operations and KCO’s
operations or cash flows have historically not been clearly distinguishable.
v3.25.4
Goodwill and Intangible assets
12 Months Ended
Dec. 31, 2025
Intangible assets and goodwill [abstract]  
Goodwill and Intangible assets Goodwill and Intangible assets
Klarna’s intangible assets include capitalized development expenses and assets acquired as a result of
its business combinations. As of December 31, 2025 and 2024, goodwill and intangible assets consisted of
the following:
Goodwill
Trademarks,
Tradenames
& Licenses
Capitalized
development
expenses
Other
intangible
assets
Total
Cost as of January 1, 2025 ...............................
$626
$117
$451
$287
$1,481
Additions ...........................................................
27
27
Sales/disposals ...............................................
Currency translation difference ..................
72
22
88
42
224
Cost as of December 31, 2025 .........................
$698
$139
$566
$329
$1,732
Amortization as of January 1, 2025 ................
$
$(32)
$(266)
$(112)
$(410)
Amortization for the year ..............................
(5)
(69)
(14)
(88)
Sales/disposals ...............................................
Currency translation difference ..................
(6)
(54)
(12)
(72)
Amortization as of December 31, 2025 ..........
$
$(43)
$(389)
$(138)
$(570)
Impairment as of January 1, 2025 ...................
$(13)
$(8)
$(47)
$(14)
$(82)
Impairment for the year ................................
(2)
(2)
Sales/disposals ...............................................
Currency translation difference ..................
(1)
(9)
(10)
Impairment as of December 31, 2025 ............
$(13)
$(9)
$(58)
$(14)
$(94)
Carrying amount as of December 31, 2025 ...
$685
$87
$119
$177
$1,068
Goodwill
Trademarks,
Tradenames
& Licenses
Capitalized
development
expenses
Other
intangible
assets
Total
Cost as of January 1, 2024 ................................
$680
$127
$468
$313
$1,588
Additions ............................................................
44
44
Sales/disposals ................................................
(20)
(21)
(5)
(46)
Currency translation difference ...................
(34)
(10)
(40)
(21)
(105)
Cost as of December 31, 2024 .........................
$626
$117
$451
$287
$1,481
Amortization as of January 1, 2024 .................
$
$(21)
$(226)
$(94)
$(341)
Amortization for the year ...............................
(13)
(71)
(26)
(110)
Sales/disposals ................................................
10
3
13
Currency translation difference ...................
2
21
5
28
Amortization as of December 31, 2024 ...........
$
$(32)
$(266)
$(112)
$(410)
Impairment as of January 1, 2024 ...................
$(13)
$(8)
$(25)
$(1)
$(47)
Impairment for the year .................................
(36)
(13)
(49)
Sales/disposals ................................................
11
11
Currency translation difference ...................
3
3
Impairment as of December 31, 2024 .............
$(13)
$(8)
$(47)
$(14)
$(82)
Carrying amount as of December 31, 2024 ....
$613
$77
$138
$161
$989
As of December 31, 2025, the Group’s goodwill primarily related to goodwill originated from
acquisitions in 2021 and 2022, including PriceRunner Group AB, Stocard GmbH and Sofort GmbH.
Impairment testing of Goodwill and Intangible assets
The Group conducted its annual goodwill impairment test as of October 1, 2025. No impairment losses
were identified, as the recoverable amount, measured as value in use, exceeded the carrying amount.
The impairment test is performed at the operating segment level, which is the lowest level at which
goodwill is monitored and assessed for internal management purposes, by comparing the carrying amount
of the net assets, including goodwill, with the recoverable amount.
In 2025 and 2024, the Group assessed impairment by calculating value in use, based on estimated
future financials from the operating segment. The Group uses a two-year forecast based on its business
plan which is extrapolated out to a five-year timeframe. Cash flows beyond the five-year period are
determined using an estimated terminal growth rate of 3.5% . Key assumptions and inputs include discount
rate, growth rate and profitability. The discount rate used in 2025 and 2024 was 11.2% and 12.5%,
respectively.
On October 1, 2024, the Group completed the divestment of KCO to a consortium of investors, to which
goodwill of $20 million was allocated using a relative value approach. See Note 10.
v3.25.4
Property and equipment
12 Months Ended
Dec. 31, 2025
Disclosure of detailed information about property, plant and equipment [abstract]  
Property and equipment Property and equipment
The Group’s property and equipment primarily includes equipment, tools, furniture and fittings,
computer equipment and leasehold improvements related to its office spaces. The Group includes its
right-of-use assets within property and equipment. Refer to Note 9 for additional information regarding the
Group’s leases.
Property and equipment is stated at cost less accumulated depreciation and impairment. Depreciation
is calculated using the straight-line method by applying various useful lives to each class of property and
equipment. At December 31, 2025 and 2024, property and equipment consisted of the following:
Leasehold
improvements
Equipment
Right-of-use
assets
Total
Cost value as of January 1, 2025 ........................................
12
53
178
243
Additions ..............................................................................
3
3
Sales/disposals ...................................................................
(2)
(7)
(9)
Remeasurement .................................................................
(3)
(3)
Currency translation difference ......................................
2
9
31
42
Cost value as of December 31, 2025 ..................................
14
63
199
276
Depreciation as of January 1, 2025 ...................................
(9)
(39)
(77)
(125)
Depreciation for the year .................................................
(3)
(15)
(18)
Sales/disposals ...................................................................
1
7
8
Currency translation difference ......................................
(1)
(7)
(16)
(24)
Depreciation as of December 31, 2025..............................
(10)
(48)
(101)
(159)
Impairment as of January 1, 2025 ......................................
(1)
(3)
(29)
(33)
Impairment for the year ....................................................
(3)
(2)
(16)
(21)
Sales/disposals ...................................................................
Currency translation difference ......................................
(1)
(2)
(3)
Impairment as of December 31, 2025 ................................
(4)
(6)
(47)
(57)
Carrying amount as of December 31, 2025 .......................
9
51
60
Leasehold
improvements
Equipment
Right-of-use
assets
Total
Cost value as of January 1, 2024 .........................................
$14
$60
$226
$300
Additions ...............................................................................
1
1
Sales/disposals ...................................................................
(1)
(4)
(31)
(36)
Remeasurement ..................................................................
(1)
(1)
Currency translation difference ......................................
(1)
(4)
(16)
(21)
Cost value as of December 31, 2024 ..................................
$12
$53
$178
$243
Depreciation as of January 1, 2024 ....................................
$(10)
$(38)
$(95)
$(143)
Depreciation for the year ..................................................
(1)
(7)
(16)
(24)
Sales/disposals ...................................................................
1
3
27
31
Currency translation difference ......................................
1
3
7
11
Depreciation as of December 31, 2024 ..............................
$(9)
$(39)
$(77)
$(125)
Impairment as of January 1, 2024 ......................................
$(2)
$(3)
$(30)
$(35)
Impairment for the year ....................................................
(6)
(6)
Sales/disposals ...................................................................
3
3
Currency translation difference ......................................
1
4
5
Impairment as of December 31, 2024 ................................
$(1)
$(3)
$(29)
$(33)
Carrying amount as of December 31, 2024 .......................
$2
$11
$72
$85
v3.25.4
Other assets
12 Months Ended
Dec. 31, 2025
Miscellaneous assets [abstract]  
Other assets Other assets
Other assets consisted of the following:
December 31,
2025
December 31,
2024
Current tax assets ...........................................................................................................................
$18
$21
VAT receivables ..............................................................................................................................
41
37
Commercial agreement assets ....................................................................................................
155
65
Derivatives ........................................................................................................................................
21
10
Accrued income ..............................................................................................................................
70
78
Prepaid expenses ...........................................................................................................................
49
28
Equity investments .........................................................................................................................
15
24
Collateral for derivatives ...............................................................................................................
14
69
Securitization partner receivable ................................................................................................
54
Other receivables ............................................................................................................................
50
32
Total ...................................................................................................................................................
$487
$364
During 2025, we granted warrants to certain partners in relation to the commercial agreements, of
which we recognized $85 million under commercial assets related to the fair market value of the service to
be amortized over the period of the agreement over which the related services are expected to be
received. As of December 31, 2025, $75 million of this balance was outstanding under commercial
agreement assets. Refer to Note 22 for details.
v3.25.4
Notes payable and other borrowings
12 Months Ended
Dec. 31, 2025
Notes Payable And Other Borrowings [Abstract]  
Notes payable and other borrowings Notes payable and other borrowings
As of December 31, 2025 and 2024, notes payable and other borrowings consisted of the following:
December 31,
2025
December 31,
2024
Liabilities to financial institutions ................................................................................................
$163
$132
Commercial papers ........................................................................................................................
84
13
Derivatives ........................................................................................................................................
13
61
Senior unsecured bonds ...............................................................................................................
326
136
Subordinated liabilities ..................................................................................................................
184
171
Warehouse financing facility ........................................................................................................
589
Total ...................................................................................................................................................
$1,359
$513
____________
The warehouse financing facility refers to issued credit-linked notes (“CLNs”), see Note 16.
Liabilities to financial institutions
Liabilities to financial institutions represent borrowings and financing arrangements with external
financial institutions. These liabilities primarily include a bilateral loan, prefunding agreements and
liabilities that arise from collateral or margin placed on derivative transactions.
Senior unsecured bonds
Klarna has established a Swedish Medium Term Note Program (the “SMTN”) and  Euro Medium Term
Note Program (the “EMTN”). Under both programmes Klarna Bank AB and Klarna Holding AB issue notes
that qualify as Senior Unsecured Bonds and Subordinated liabilities.
Under the terms of the SMTN, Klarna may issue up to an amount that is not to exceed SEK10 billion
which approximates $1.1 billion as of December 31, 2025.
Under the terms of the EMTN, Klarna may issue notes up to an amount that is not to exceed
EUR3 billion which approximates $3.1 billion as of December 31, 2025.
The medium term notes are initially recorded at fair value based upon proceeds received, net of
issuance costs and subsequently accounted for at amortized cost with interest expense recognized within
funding costs in the consolidated statements of profit or loss.
On March 21, 2024, the Group issued SEK500 million (equated to $49.5 million at the date of issuance)
of senior unsecured bonds due in 2026 under the SMTN. The notes have a floating coupon rate
corresponding to three-month STIBOR plus 2.5% per annum.
On June 24, 2024, the Group issued SEK750 million (equated to $74.2 million at the date of issuance) of
senior unsecured bonds due in 2026 under the SMTN. The notes have a floating coupon rate
corresponding to three-month STIBOR plus 1.8% per annum.
On June 24, 2024, the Group issued SEK250 million (equated to $24.7 million at the date of issuance) of
senior unsecured bonds due in 2027 under the SMTN. The notes have a floating coupon rate
corresponding to three-month STIBOR plus 2.1% per annum.
On June 18, 2025, the Group issued SEK600 million (equated to $65 million at the date of issuance) of
senior unsecured bonds due in 2027 under the SMTN. The notes have a floating coupon rate
corresponding to three-month STIBOR plus 1.6% per annum.
On June 18, 2025, the Group issued SEK900 million (equated to $98 million at the date of issuance) of
senior unsecured bonds due in 2028 under the EMTN. The notes have a floating coupon rate
corresponding to three-month STIBOR plus 1.8% per annum.
During 2025, 2024 and 2023, a total of nil, $34 million and $66 million, respectively, of notes issued
under the SMTN matured. In 2025, no notes were repurchased and in 2024, an aggregate of $8 million of
notes issued under the SMTN were repurchased.
The notes are senior unsecured obligations of Klarna and rank equally in right of payment to all of
Klarna’s existing and future senior debt and senior in right of payment to all of Klarna’s existing and future
subordinated debt. In 2025, 2024 and 2023, the Group recognized $10 million, $5 million and $4 million,
respectively, of interest expense related to senior unsecured bonds, which are included within funding
costs in the consolidated statements of profit or loss.
Subordinated liabilities
Subordinated liabilities consist of Tier 2 securities (“Tier 2 Notes” or “Subordinated liabilities”) which
are floating rate subordinated securities with a fixed redemption date. The securities rank senior in right of
payment to any liabilities or capital instruments of the issuer which constitute CET1 capital or Additional
Tier 1 capital, as defined in Note 21, and junior in right of payment to all of depositors, any unsubordinated
creditors or any subordinated creditors of the issuer whose rights are expressed to rank in priority to the
noteholders by statute or regulation. The securities rank pari passu with any liabilities or capital
instruments of the issuer which constitute Tier 2 capital and any other liabilities or capital instruments that
rank, or are expressed to rank, equally with the securities. As of December 31, 2025, all outstanding Tier 2
securities were issued by Klarna Holding AB.
The Tier 2 Notes bear a variable rate of interest consisting of a reference rate plus a margin ranging
from 7.0% to 7.5% until the redemption date. Interest on the securities is due and payable on a quarterly
basis. The securities are redeemable by the Company at any time during the initial call period, which is the
fifth anniversary from the initiation issue date, or at any interest payment date falling after the initial call
period, subject to permission from the SFSA. The Company is required to redeem all outstanding Tier 2
Notes on the final redemption date, as specified in the terms of the applicable agreement.
The Tier 2 Notes were determined to be liability classified under IAS 32 “Financial Instruments:
Presentation” and are initially recorded at fair value based upon proceeds received, net of issuance costs
and subsequently accounted for at amortized cost with interest expense recognized within funding costs
in the consolidated statements of profit or loss.
On May 16, 2023, Klarna Holding AB issued SEK 500 million (equated to $50 million at the date of
issuance) of subordinated notes due 2033. The notes have a floating coupon rate corresponding to three-
month STIBOR plus 7.5% per annum. The notes have a first call date of May 16, 2028.
On August 16 2023, Klarna Holding AB issued SEK 250 million (equated to $25 million at the date of
issuance) of subordinated notes due 2033. The notes have a floating coupon rate corresponding to three-
month STIBOR plus 7.5% per annum. The notes were issued in a private placement and have a first call
date of August 16, 2028.
On April 19, 2024, Klarna Holding AB issued $100 million of subordinated notes due 2034 under the
EMTN. The notes have a floating coupon rate corresponding to SOFR plus 7% per annum. The notes were
issued in a private placement and have a first call date of August 16, 2028.
v3.25.4
Other liabilities
12 Months Ended
Dec. 31, 2025
Miscellaneous liabilities [abstract]  
Other liabilities Other liabilities
The Group’s other liabilities as of December 31, 2025 and 2024 consisted of:
December 31,
2025
December 31,
2024
Lease liabilities ................................................................................................................................
$80
$87
Commercial agreement liabilities ................................................................................................
40
31
Income and payroll tax payables .................................................................................................
28
32
Provisions ..........................................................................................................................................
13
6
Card scheme liabilities ...................................................................................................................
54
46
Payable to SPV1 ...............................................................................................................................
44
15
Other liabilities .................................................................................................................................
99
38
Total ...................................................................................................................................................
$358
$255
____________
Refer to Note 16 for further details on payable to SPV.
Lease liabilities
For information on the contractual maturity of lease liabilities refer to Note 9.
Commercial agreement liabilities
Commercial agreement liabilities represent unpaid costs relating to commercial agreement assets.
Provisions
The Group recognizes provisions for present obligations arising from past events when payment of the
obligations is probable and can be reliably estimated. Provisions primarily consist of consumer refund
commitment, and pending legal and tax litigation. Changes in provisions were immaterial in 2025 and 2024.
Klarna offers a Buyer Protection Policy, pursuant to which the Group reimburses consumers in certain
circumstances, including where a merchant does not adequately resolve a purchase return for purchases
made using a Klarna payment method. The Group recognizes a provision for the expected unrecovered
portion of such reimbursements. The total gross transaction value covered by the Buyer Protection Policy
as at December 31, 2025 and 2024 was $889 million and $778 million, respectively, which, while not
representing a liability, contingent liability, or commitment, represents the underlying exposure used in
measuring the related provision.
From time to time, we are involved in various legal, arbitration, dispute and administrative proceedings
arising in the ordinary course of our business where the probability of an outflow is considered remote. If,
contrary to the Group’s expectations, a future obligation were to arise from such matters pending as of
December 31, 2025, the aggregate outcomes could total up to potential of $130 million.
Card scheme liabilities
Card scheme liabilities relate to card processing fees owed by the Company to card payment networks
or third parties for facilitating and processing transactions.
v3.25.4
Structured entities
12 Months Ended
Dec. 31, 2025
Structured Entities [Abstract]  
Structured entities Structured entities
Klarna enters into arrangements with structured entities, and consolidates such entities where it has
power over key activities and exposure and ability to influence its own returns, and does not consolidate
such entities where those conditions are not me.
Consolidated structured entities
Warehouse financing facility
During 2025 Klarna entered into a warehouse financing facility with an institutional lender, as the
funder, and Klarna Bank AB, a subsidiary of Klarna Group plc, as the borrower, under which the
consolidated SPV issues credit-linked notes (“CLNs”) to the funder and advances the proceeds to Klarna,
which in turn pledges specified pools of consumer receivables as collateral, see Note 19. Credit risk for the
Reference Pool is separated into two tranches: a junior tranche retained by Klarna and a senior tranche
transferred to the funder through the consolidated SPV. The CLNs are recognized within Notes Payables
and Other Borrowings, see Note 14, and are classified and measured at amortized cost using the effective
interest method. Interest and senior expenses related to the facility are recognized within funding costs.
Employee benefit trust
Klarna has established an employee benefit trust to facilitate and meet obligations to employees in
relation to share-based remuneration arrangements. See Note 22.
Unconsolidated structured entities
Synthetic securitizations
Klarna enters into synthetic securitization transactions with unconsolidated SPVs, where it
economically transfers a portion of credit risk for certain pools of consumer receivables (the “referenced
pools”) with the primary objective to lower the regulatory capital risk weights of the underlying assets.
Credit risk for each referenced pool is separated into three tranches: junior, mezzanine and senior. The
Company retains the risk for the junior and senior tranches and transfers risk for the mezzanine tranche
to the SPV. The SPV then issues credit-linked notes to investors.
While Klarna pays a fee, recognized as incurred in funding costs, see Note 18, Klarna is not exposed to
variability in the returns of the SPVs involved in the synthetic securitization transactions. The premiums
paid by Klarna are structured to mitigate, rather than introduce, variability of returns within the reference
portfolio. Furthermore, Klarna is not considered the sponsor of the SPVs, as their management and
operations are exclusively conducted by independent external service providers.
The Company incurred fees of $30.7 million, $32.3 million and $21.9 million for 2025, 2024 and 2023,
respectively, in connection with such transactions. The total consumer receivable pool was $1.3 billion, $2.1
billion and $1.7 billion as of December 31, 2025, 2024 and 2023, respectively.
Forward flow securitizations
Klarna entered into forward flow loan sale arrangements with unconsolidated SPVs whereby specified
pools of eligible consumer receivables were transferred to the SPVs. Klarna derecognized these
receivables upon transferring the contractual rights to the cash flows and substantially all associated risks
and rewards.
These agreements are fixed-term in nature, with commitment periods ranging from two to three years,
during which Klarna sells eligible Fair Financing and Pay Later receivables shortly after origination. The
purchasing counterparty is committed to purchase all eligible loans offered up to its commitment amount,
which varies between approximately $750 million and $1 billion measured by the outstanding balance of
purchased receivables.
The following table shows the carrying amount of Klarna’s recorded interest in its consolidated
balance sheet as at December 31, 2025 and 2024, and represented the maximum exposure to risk
associated with its interest in the unconsolidated structured entities. The maximum exposure reflects the
total potential loss the Group could incur from its involvement, regardless of the likelihood of that loss
being incurred.
December 31,
2025
December 31,
2024
Consumer receivables at fair value through OCI .....................................................................
$386
$
Consumer receivables at fair value through profit and loss .................................................
400
2
Pledged assets under forward flow arrangements1 .................................................................
2
Total assets .......................................................................................................................................
$786
$4
Payable to SPV2 ...............................................................................................................................
44
15
Total liabilities ...................................................................................................................................
$44
$15
____________
The pledged assets are included within bonds and other interest-bearing securities, see Note 19.
The Company’s payable to SPV are included within other liabilities, see Note 15.
The total consumer receivables originated at fair value through profit and loss or at fair value through
OCI during 2025 totaled $18 billion, of which $786 million was unsold as of December 31, 2025. During 2024,
$3.3 billion was originated, of which $2 million was unsold as of December 31, 2024. See Note 20.
Following the transfer of consumer receivables Klarna typically continues to service the sold
receivables on behalf of the SPVs for a servicing fee. The Company earned servicing income of $12.2
million and $1.6 million for 2025 and 2024, respectively, recognized within Transaction and service revenue
related to derecognized receivables. The servicing fees were commensurate with market rates and did not
expose Klarna to credit losses beyond its contractual entitlements. The servicing arrangement did not
constitute a form of retained interest that precluded derecognition.
As of December 31, 2025 and 2024, an aggregated balance of $2.94 billion and $867 million,
respectively, in sold receivables was recognized by the unconsolidated SPVs.
In addition, we may experience a loss due to future repurchase obligations resulting from breaches in
representations and warranties in our securitization and third-party sale agreements. This amount was not
material as of December 31, 2025 and 2024.
v3.25.4
Funding costs
12 Months Ended
Dec. 31, 2025
Expenses by nature [abstract]  
Funding costs Funding costs
The Group’s funding costs for the years ended December 31, 2025, 2024 and 2023 were as follows:
2025
2024
2023
Consumer deposits
$(330)
$(343)
$(190)
Fair value adjustment on loans sold and held for sale
(163)
(30)
Other cost of securitisations
(32)
(34)
(22)
Interest-bearing securities
(30)
(26)
(24)
Liabilities to credit institutions
(30)
(17)
(13)
Subordinated liabilities
(19)
(17)
(6)
Other funding costs
(63)
(36)
(42)
Total
$(667)
$(503)
$(297)
Fair value adjustment on loans sold and held for sale relates to Pay Later receivables originated within
the business model originate to sell and measured at FVTPL. See Note 16 .
v3.25.4
Derivatives
12 Months Ended
Dec. 31, 2025
Derivatives Instruments [Abstract]  
Derivatives Derivatives
The Group enters into derivative financial instruments to manage its interest rate and foreign
exchange risk. Derivative instruments are initially and subsequently measured at fair value with changes to
fair value recognized immediately within funding costs in the consolidated statements of profit or loss.
When the fair value of derivative instruments is positive, they are carried as assets and carried as liabilities
when their fair value is negative.
As of December 31, 2025 and 2024, Klarna had entered into derivatives with the gross nominal amount
of $8.3 billion and $7.4 billion, respectively. The Group’s derivatives are composed of:
December 31, 2025
Fair value
Nominal
amount
Derivatives designated in a hedged relationship
Positive
Negative
Interest rate swaps ...........................................................................................
$2
$(1)
$2,883
Total .....................................................................................................................
$2
$(1)
$2,883
Fair value
Nominal
amount
Derivatives not designated in a hedged relationship
Positive
Negative
Currency forwards ............................................................................................
$20
$(12)
$5,413
Total .....................................................................................................................
$20
$(12)
$5,413
December 31, 2024
Fair value
Nominal
amount
Derivatives designated in a hedged relationship
Positive
Negative
Interest rate swaps ...........................................................................................
$4
$(1)
$3,805
Total .....................................................................................................................
$4
$(1)
$3,805
Fair value
Nominal
amount
Derivatives not designated in a hedged relationship
Positive
Negative
Currency forwards ............................................................................................
$6
$(60)
$3,588
Total .....................................................................................................................
$6
$(60)
$3,588
Foreign exchange derivatives
Foreign exchange derivatives are not designated in a hedge accounting relationship and had
contractual maturities within six months of December 31, 2025 and four months of December 31, 2024,
respectively.
Derivatives designated in a hedge relationship
Fair value hedges
The Group holds short- and medium-term consumer deposits which are subject to changes in fair
value due to fluctuations in the underlying interest rate benchmark, which is typically the most significant
component of the overall fair value change. The Group uses interest rate swaps as the hedging instrument
to reduce the impact of fair value changes in the consumer deposits (hedged item) due to changes in the
underlying interest rate benchmark.
For hedges of interest rate risk, ineffectiveness can arise due to mismatches of critical terms and/or
the use of different curves to discount the hedged item and instrument, as in, for example, a mismatch
between the reset frequency of the swap and the benchmark frequency.
December 31, 2025
Carrying amount
Change in fair
value used to
calculate hedge
ineffectiveness
Ineffectiveness
recognized in
funding costs
Fair value hedges:
Hedging instrument and
ineffectiveness
Nominal
amount
Positive
Negative
Interest rate risk .........................
$2,883
$2
$(1)
$(3)
$
Total ..............................................
$2,883
$2
$(1)
$(3)
$
December 31, 2024
Carrying amount
Change in fair
value used to
calculate hedge
ineffectiveness
Ineffectiveness
recognized in
funding costs
Fair value hedges:
Hedging instrument and
ineffectiveness
Nominal
amount
Positive
Negative
Interest rate risk .........................
$3,805
$4
$(1)
$(5)
$
Total ..............................................
$3,805
$4
$(1)
$(5)
$
December 31,
2025
December 31,
2024
Fair value hedges: Designated hedged item
Consumer deposits .....................................................................................................................
$2,883
$3,805
Of which: the accumulated amount of fair value adjustment ..........................................
$(1)
$6
Maturity 2025
Maturity 2024
Within 3
months
> 3 months
and < 12
months
> 12
months
Within 3
months
> 3 months
and < 12
months
> 12
months
Fair value hedges: Maturity of the nominal
amount of the hedge instrument
Interest rate risk ..............................................
$898
$1,557
$428
$833
$2,000
$972
Average fixed interest rate ...........................
2.2%
1.9%
1.9%
3.5%
2.8%
2.2%
v3.25.4
Pledged assets, guarantees and commitments
12 Months Ended
Dec. 31, 2025
Disclosure of assets pledged, Guarantees And Commitments [Abstract]  
Pledged assets, guarantees and commitments Pledged assets, guarantees and commitments
Pledged assets
The Group pledges certain assets to be used as collateral to secure specific financial obligations. The
pledged assets include certain consumer receivables, other receivables, treasury bills and other interest-
bearing securities. These assets are subject to claims by creditors in the event of default on the
associated liabilities. The following table provides details of the Group’s pledged assets.
December 31,
2025
December 31,
2024
Pledged assets
Assets pledged for own liabilities
Pledged consumer receivables ....................................................................................................
$2,319
$
Pledged treasury bills chargeable at central banks, etc., and pledged bonds and
other interest-bearing securities .................................................................................................
2
2
Other pledged assets .....................................................................................................................
13
3
Total ...................................................................................................................................................
$2,334
$5
Assets pledged for own liabilities consists of consumer receivables which have been used to secure
the borrowings under the warehouse financing facility.
Commitments and guarantees 
December 31,
2025
December 31,
2024
Commitments for loan funding ....................................................................................................
$3,963
$1,655
Guarantees .......................................................................................................................................
Total ...................................................................................................................................................
$3,963
$1,655
Commitment to fund loans as at December 31, 2025 amounted to USD3,963m (1,655m). The Group’s
commitments for loan funding increased in 2025 compared with 2024, reflecting continued growth in the
Norwegian market. In Norway, regulation requires the Group to set and communicate an individual credit
limit to each customer. The undrawn portion of the approved limit constitutes a loan commitment.
The Company’s commitments were primarily classified as Stage 1 with immaterial impacts to provisions
as of December 31, 2025 and 2024. Refer to Note 15 for further details on the Company’s provisions.
v3.25.4
Fair value measurement of financial assets and liabilities
12 Months Ended
Dec. 31, 2025
Fair Value Measurement [Abstract]  
Fair value measurement of financial assets and liabilities Fair value measurement of financial assets and liabilities
The following table shows the Group’s financial assets and liabilities measured at fair value on a
recurring basis and identifies which of the three valuation levels the assets and liabilities have been
classified into as of December 31, 2025 and 2024. For description of the fair value levels, see Note 2. No
transfers between levels have been made during 2025 or 2024.
December 31, 2025
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through P&L ..
400
400
Consumer receivables at fair value through OCI ..
386
386
Derivatives .....................................................................
$
$21
$
$21
Equity investments .......................................................
7
8
15
Total financial assets .....................................................
$7
$21
$794
$822
Liabilities
Derivatives .....................................................................
$
$13
$
$13
Convertible notes .........................................................
Total financial liabilities .................................................
$
$13
$
$13
December 31, 2024
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through OCI ..
$
$
$
$
Consumer receivables at fair value through P&L ..
2
2
Derivatives .....................................................................
10
10
Equity investments .......................................................
9
15
24
Total financial assets .....................................................
$9
$10
$17
$36
Liabilities
Derivatives .....................................................................
$
$61
$
$61
Convertible notes .........................................................
Total financial liabilities .................................................
$
$61
$
$61
The Group’s methodology to measure fair value of these financial assets and liabilities is presented
below.
Consumer receivables at fair value through profit and loss or at fair value through other
comprehensive income (OCI)
Consumer receivables at fair value through profit and loss refers to specified pools of eligible
consumer receivables which are managed within a business model whose objective is to originate and
sell, as part of the Company’s forward flow transaction. See Note 16 .
Consumer receivables at fair value through other comprehensive income refers to specified pools
of eligible consumer receivables which are managed within a hold-to-collect-and-sell business model,
under which cash flows are realized through both the collection of contractual principal and interest
and the sale of receivables, as part of the Company’s forward flow transaction. See Note 16 .
Fair value is determined using a discounted cash flow methodology that projects  contractual cash
flows over the remaining life of the instruments. Cash flows are adjusted for unobservable inputs,
including a weighted-average lifetime probability of default, conditional loss given default, and
prepayment rates reflecting an average modeled probability, based on portfolio-level assumptions
applied at the reporting date are classified within Level 3 of the fair value hierarchy.. This consistent
with the overall policy outlined in Note 2. The cash flows are discounted using observable zero-coupon
rates, plus a portfolio-specific credit spread applied as a margin over the risk-free curve.
Derivatives
Derivatives fair value is estimated using third-party pricing models, which contain input parameters
based on readily observable market data sources when available.
Equity investments
Equity investments comprise investments in listed and unlisted companies. Equity investments fair
value is based on quoted market prices where available or valuation techniques using unobservable
data. Level 3 equity investments represented investment in unlisted shares for which limited
information was available. For these unlisted shares, the fair value is generally estimated using business
enterprise values based on market transactions or by applying market multiples to the projected
financial performance of the investments. The significant inputs to estimate fair value include the
identification of peer groups, discount rates and revenue projections.
Movements in Level 3
The following tables show a reconciliation of the opening and closing balances of Level 3 financial
assets and liabilities which are recorded at fair value.
Financial assets
Equity
investments
Consumer
receivables at
fair value
through P&L
Consumer
receivables at
fair value
through OCI
Balance as of January 1, 2024 .....................................................................
$26
$
$
Receivables originated to be sold ...........................................................
3,261
Gain/(loss) in statement of profit or loss (1) ..........................................
(11)
(30)
of which: unrealized gain/(loss) ...............................................................
(11)
of which: realized gain/(loss) ....................................................................
(30)
Receivables sold to third parties .............................................................
(3,229)
Balance as of December 31, 2024 ...............................................................
$15
$2
$
Receivables originated to be sold
17,246
1,147
Receivables sold to third parties .............................................................
(16,684)
(465)
Consumer receivables repaid ..................................................................
(333)
Gain/(loss) in statement of profit or loss1 ..............................................
(7)
(164)
37
of which: unrealized gain/(loss) ...............................................................
(7)
12
of which: realized gain/(loss) ....................................................................
(164)
25
Balance as of December 31, 2025 ...............................................................
$8
$400
$386
____________
Fair value gains and losses recognized in the statement of profit or loss are included in other income (loss).
Financial assets and liabilities measured at amortized cost
The following tables show the fair value of financial instruments carried at amortized cost. They do
not include financial assets and financial liabilities not measured at fair value where the carrying
amount approximates fair value, which includes cash and cash equivalents, loans to credit institutions
(included in debt securities), consumer receivables, settlement and trade receivables, payables to
merchants, repurchase agreement liabilities (included in notes payable and other borrowings) and other
liabilities.
Financial Instruments
December 31, 2025
Assets
Carrying
Amount
Level 1
Level 2
Level 3
Balance at Fair
Value
Treasury bills chargeable at
central banks .................................
$1,908
$1,909
$
$
$1,909
Bonds and other interest
bearing securities .........................
60
60
60
Total financial assets .....................
$1,968
$1,969
$
$
$1,969
Liabilities
Consumer deposits .......................
$13,003
$
$13,188
$
$13,188
Subordinated liabilities ................
184
206
206
Senior unsecured bonds .............
326
327
327
Commercial papers ......................
84
84
84
Total financial liabilities .................
$13,597
$
$13,806
$
$13,805
Financial Instruments
December 31, 2024
Assets
Carrying
Amount
Level 1
Level 2
Level 3
Balance at Fair
Value
Treasury bills chargeable at
central banks ..................................
$673
$668
$
$
$668
Bonds and other interest
bearing securities ..........................
11
11
11
Total financial assets ......................
$684
$679
$
$
$679
Liabilities
Consumer deposits ........................
$9,510
$
$9,671
$
$9,671
Subordinated liabilities .................
171
175
175
Senior unsecured bonds ..............
136
136
136
Commercial papers .......................
13
14
14
Total financial liabilities ..................
$9,830
$
$9,996
$
$9,996
Treasury bills chargeable at central banks and bonds and other interest-bearing securities, included
within debt securities in the consolidated balance sheet are valued in terms of the active market prices.
The calculation of fair value of consumer deposits is based on Level 2 input using observable
market data. Consumer deposits are grouped into maturity buckets and thereafter the net present
value is calculated based on the remaining maturity and the corresponding interest rate.
The table below represents net results from categories of the following financial instruments for the
years ending December 31, 2025 and 2024.
2025
2024
Financial instruments mandatory measured at fair value through profit or loss .......
$(127)
$(152)
Financial assets measured at amortized cost ....................................................................
$2,567
2,091
Financial liabilities measured at amortized cost ...............................................................
$(611)
(527)
Currency exchange gains/losses ..........................................................................................
$(102)
78
Total .............................................................................................................................................
$1,726
$1,490
v3.25.4
Issued capital and reserves
12 Months Ended
Dec. 31, 2025
Disclosure of classes of share capital [abstract]  
Issued capital and reserves Issued capital and reserves
Share capital
Share capital includes the nominal value of ordinary shares, Class B shares and deferred shares issued
and outstanding. The excess of the consideration received from issuance of shares over their nominal
value is recognized as additional paid in capital.
On May 23, 2024, Klarna Holding AB (publ) completed a reorganization, which resulted in Klarna Group
plc becoming the new ultimate parent company of the Group. Through a series of share for share
exchange steps, the shareholders of Klarna Holding AB (publ) exchanged their shares for an equal number
of shares in Klarna Group plc. As a result of our corporate reorganization, Klarna Group plc became our
ultimate holding company and the parent company of Klarna Holding AB (publ). There was no change in
the legal ownership of any of the assets of Klarna Holding AB (publ), nor any change in the ultimate
controlling ownership of existing shares or securities of Klarna Holding AB (publ) or Klarna Group plc as a
result of the reorganization.
As at December 31, 2025, our issued and outstanding share capital consists of 377,507,910 ordinary
shares and 328,136,589 Class B shares as per below table:
Ordinary
shares
Class B shares
Class C shares
Deferred
shares
Deferred
shares
Deferred
shares
Deferred
shares
Nominal value
$0.00010
$0.00010
$0.00010
$0.00073
$11.35013
$0.28000
$0.00010
As of January 01,
2024
364,018,908
364,018,908
Shares issued
1,277,664
1,277,664
1
As of December
31, 2024
365,296,572
365,296,572
1
Shares issued
12,211,338
369,911,294
257,772
369,911,294
Redesignation
(41,774,705)
41,774,705
Capital
reduction
(365,554,344)
(369,911,294)
(1)
(41,774,705)
As of December
31, 2025
377,507,910
328,136,589
On June 30, 2025, the board of directors of the Company was granted the authority from our
shareholders to allot new ordinary shares and other shares, and to grant rights to subscribe for, or to
convert any security into, new ordinary shares or other shares, up to a maximum aggregate nominal
amount (i.e., par value) of $367,502.51, for a period expiring (unless previously renewed, varied or revoked
by the Company in general meeting) at the conclusion of the Company’s annual general meeting to be held
in 2026 (or, if earlier, on June 30, 2026).
The holders of ordinary shares are entitled to one vote per share on all matters to be voted upon by
the shareholders, are entitled to receive ratably such dividends, if any, as may be approved from time to
time by the Board of Directors out of funds legally available for such dividends, and in the event of
liquidation, dissolution or winding-up of Klarna Group plc, the holders of ordinary shares are entitled to
share ratably in all assets remaining after payment of
Each Class B share will be entitled to ten votes per share but will have no dividend or other effective
economic rights. Class B shares are not transferable. Following certain transfers of interests in our
ordinary shares by holders of our Class B shares or their affiliates, a related number of their Class B shares
will automatically convert into deferred shares, which have no voting or effective economic rights.
Additionally, all Class B shares will automatically convert into deferred shares after 20 years from the initial
public offering and in certain other specified circumstances. Class B shares and deferred shares into
which Class B shares may convert will not have any effective economic rights because they will not have a
right to dividends and will participate in our liquidation, dissolution or winding up only after we distributed
to holders of our share capital $10.0 million for each ordinary share and $5.0 million for each Class C share
they hold, which we do not expect to occur.
In March 2025, Klarna Group plc’s board of directors approved a subdivision of ordinary shares of 
Klarna Group plc on a 1-to-12 basis, which was effected on March 6, 2025. The subdivision also resulted in
the issuance of 365,445,384 deferred shares with a nominal value per share of $0.0007333. This number
included 148,812 deferred shares in respect of ordinary shares that were issued in January 2025. Such
deferred shares had no voting rights and no effective economic rights, because such shares did not have a
right to dividends and would have only participated in a liquidation, dissolution or winding-up after the
Company distributed to its shareholders $10.0 million for each ordinary share ($5.0 million for each Class
C share) then in issuance, which the Company does not expect to occur.
During 2025, an aggregate of 12,211,338 ordinary shares was issued related to:
299,572 ordinary shares granted to employees, including our executive officer;
5,000,000 ordinary shares were issued under the initial public offering on September 10, 2025, with
directly attributable transaction costs related to the issuance of new ordinary shares of $8.5 million
deducted from equity. These costs, primarily underwriting fees, were offset against the gross
proceeds, with only the net proceeds recognized in Additional paid in capital;
2,563,600 ordinary shares were issued following exchanges of ordinary shares in a subsidiary of Klarna
Group plc pursuant to vesting of the Group’s Legacy RSU program;
1,948,166 ordinary shares were issued following an exchange of ordinary shares in a subsidiary of
Klarna Group plc pursuant the Group’s Employee Equity Program;
2,400,000 ordinary shares were issued following exercise of share warrants granted to certain
partners in exchange for services.
Immediately prior to the completion of initial public offering 369,911,294 Class B shares with a nominal
value of $0.0001 and 369,911,294 deferred shares with a nominal value of $11.35013 were issued to holders
of our ordinary shares at that time. These shares were issued by capitalizing the merger reserve,
recognized within additional paid in capital, that arose for statutory purposes under the Companies Act
2006 in connection with the incorporation of Klarna Group plc in 2024.
Upon ordinary shares being sold by selling shareholders in the IPO, including following the exercise of
the over-allotment option by the underwriters to purchase additional ordinary shares from selling
shareholders, and post-IPO transfers, 41,774,705 Class B shares were redesignated into deferred shares
with a nominal value of $0.0001.
In September 2025, Klarna Group plc capitalized the UK statutory merger reserve, reallocating $4.2bn
billion from additional paid-in capital to share capital. Subsequently, in November 2025, Klarna Group plc
completed a capital reduction under the UK Companies Act to create distributable reserves, cancelling the
balance standing to the credit of its share premium account and all of its then-existing deferred shares
resulting in a reallocation within equity with $4.6 billion reallocated from share capital and additional paid
in capital to retained earnings. This transaction resulted in no change to total equity, and had no impact on
profit or loss or cash flows.
Additional paid-in capital
In addition to the excess of the consideration received from issuance of shares over their nominal
value, additional paid-in capital also includes any other contributions made by the shareholders of the
Company, share-based payments and any incremental costs directly attributable to the issuance of shares
shown as a deduction from equity. During 2025, 2024 and 2023, the Company’s proceeds related to new
share issuances were recognized net of $8.5m, nil and nil of issuance costs, respectively.
Reserves
Reserves comprise foreign currency translation differences arising from the translation of the assets
and liabilities of foreign operations, and the cumulative net changes in fair value of debt instruments
classified as financial assets at fair value through other comprehensive income (“FVOCI”), including related
expected credit loss movements. Amounts recognized in other comprehensive income are subsequently
reclassified to profit or loss upon derecognition of the underlying financial assets.
Non-controlling interests
Non-controlling interests primarily consist of Additional Tier 1 (“AT1”) securities, issued by subsidiaries
of Klarna Group plc, which are floating rate perpetual subordinated securities with no fixed maturity or
redemption date. The securities rank behind the claims against Klarna’s unsubordinated creditors
including any instruments that constitute Tier 2 Notes and are pari passu with the claims of other holders
of AT1 securities issued by the Group in the event of a bankruptcy or liquidation. The securities bear a
variable rate of interest based on the three-month STIBOR rate until the redemption date. Interest on the
securities will be due and payable only at the sole discretion of Klarna, and the Company may at any time
elect to cancel any interest payment (or any part thereof) which would otherwise be payable on any
interest payment date. There are also certain restrictions on the payment of interest as specified in the
terms.
The notes are perpetual and have no fixed date for redemption. The AT1 securities are redeemable at
the option of the Company at any time during the initial call period, which is the fifth anniversary from the
initiation issue date, or at any interest payment date falling after the initial call period. In addition, Klarna
can redeem all outstanding AT1 securities on any interest payment date or vary their terms for certain
regulatory or tax reasons. Any repayments require the prior consent of the Swedish FSA.
If at any time the Group’s consolidated Additional Tier 1 ratio should fall below 7%, a write-down is
made as a reduction of the total nominal amount and considered to be an unconditional capital
contribution by the AT1 holders. Following a write-down of the total nominal amount, Klarna, at its
discretion but subject to obtaining relevant approval from its shareholders, can reinstate any portion of
the principal of the AT1 securities. Unless write-up of the principal of the AT1 securities is permitted and
possible in accordance with Central Security Depositories (“CSD”) regulations, reinstatement shall be
made by way of issuing new notes that qualify as AT1 capital.
During 2025, 2024 and 2023 the Company issued nil, $142 million and $27 million of AT1 securities,
respectively, and redeemed nil, nil and $24 million of AT1 securities, respectively. Following the Group’s
corporate reorganization in May 2024, AT1 securities are considered non-controlling interests as they are
issued by subsidiaries of Klarna Group plc.
Non-controlling interests also include equity interests arising from share-based payment arrangements
under which certain participants were granted ownership interests in subsidiaries of Klarna Group plc.
v3.25.4
Share-based payments
12 Months Ended
Dec. 31, 2025
Disclosure of terms and conditions of share-based payment arrangement [abstract]  
Share-based payments Share-based payments
This Note 22  provides an overview of the various share-based payment costs during the periods and
additional information on the different equity-based programs. Certain of the equity-based instruments
described below were issued by our subsidiaries and/or convert into ordinary shares of our subsidiaries.
The increase in share-based payment costs in 2025 compared to prior periods principally reflects the
establishment of the Company's equity compensation programs at the Klarna Group plc level in
connection with the Company's initial public offering, and the grant of share warrants to partners in
exchange for consumer acquisition services. The expense recognized during the year is based on grant-
date fair values and fair value of services received, in accordance with IFRS 2, for awards that are subject
to multi-year vesting schedules and exercise prices that may significantly exceed the current share price.
The following table presents share-based payment costs, inclusive of social security charges,
recognized in 2025, 2024 and 2023 in the consolidated statements of profit or loss:
Year Ended December 31,
2025
2024
2023
Employee restricted share unit program ....................................................
$(75)
$(40)
$(18)
Business acquisition-related awards ...........................................................
(2)
(4)
Share warrants and share options ................................................................
(72)
(45)
(22)
Direct share issuance ......................................................................................
(10)
(7)
Share-based payment costs ............................................................................
$(157)
$(94)
$(44)
less: amounts recognized as reduction of revenue ..................................
$1
1
1
Share-based payments expense .....................................................................
$(156)
$(93)
$(43)
Expense recognized in 2025, 2024 and 2023 was inclusive of social security charges of $9 million, $13
million and $0.3 million respectively. Excluding social security charges, share-based payment costs were
$148 million, $81 million and $44 million for 2025, 2024 and 2023, respectively.
The table below includes additional details regarding RSUs, share warrants and options, issued by
Klarna Group plc as of, and for the year ended, December 31, 2025.  The increase in instruments
outstanding during 2025 reflects the establishment of the Company's post-IPO equity incentive framework,
including the Omnibus Incentive Plan, the Klarna Group plc RSU Program, and the C Share Awards Plan,
each as described in Item 6. The Class C share options column relates exclusively to awards granted to Mr.
Siemiatkowski:
Klarna Group plc RSU
program
Share warrants and options
issued by Klarna Group plc
Share options to acquire C
Class shares issued by Klarna
Group plc
Number
Weighted
average fair
value at grant
Number
Weighted
average
exercise
price1
Number2
Weighted
average
exercise
price
January 1, 2023 .......................
$
$
$
Granted during the year ......
Exercised during the year ...
Forfeited during the year ....
December 31, 2023 .................
$
$
$
Granted during the year ......
6,100,140
46.0
Exercised during the year ...
Forfeited during the year ....
December 31, 2024 .................
$
6,100,140
$46.0
$
Granted during the year ......
1,026,951
34.2
24,909,751
57.0
17,505,672
45.9
Exercised during the year ...
(2,400,000)
Amended during the year3 ..
(1,477,164)
38.2
2,941,236
19.1
Forfeited during the year ....
(28,044)
34.0
December 31, 2025 .................
998,907
$34.2
27,132,727
$60.6
20,446,908
$42.0
____________
Where share options were granted in SEK, the input has been converted to USD using the average exchange rate for the period
for presentation purposes.
two Class C share options entitle the recipient to acquire, at the recipient's election, either one ordinary share or two Class C
shares on exercise. Weighted average exercise prices for Class C share options are expressed per Class C share; the equivalent
exercise price expressed per ordinary share is double the figures shown. All Class C share options outstanding as of December 31,
2025 were granted exclusively to Mr. Siemiatkowski under the C Share Awards Plan described in Item 6.
3 In 2025, the terms of 1,477,164 share options originally granted to Mr. Siemiatkowski in the fourth quarter of 2024 were
amended to allow such options to be exercised into 2,941,236 Class C shares (or 1,470,618 ordinary shares), reflecting the conversion
ratio under which two Class C share options correspond to one ordinary share. The amendment did not reduce the exercise price of
the underlying award; the weighted average exercise price of $19.1 per Class C share shown above is equivalent to $38.2 per ordinary
share, consistent with the original grant terms. The modification did not result  in an incremental share-based payment charge.
The table below includes additional details regarding RSUs and share warrants, issued by a subsidiary
of Klarna Group plc, as of, and for the year ended, December 31, 2025:
Legacy RSU program
Share warrants issued by a
subsidiary of  Klarna Group plc
Number
Weighted
average fair
value at grant1
Number
Weighted
average
exercise price2
January 1, 2023 ......................................................................
7,988,295
$6.0
1,933,083
$515.0
Granted during the year .....................................................
7,081,803
4.2
1,102,024
578.0
Released during the year ...................................................
(2,411,162)
6.3
Exercised during the year ..................................................
(65,346)
76.0
Forfeited during the year ...................................................
(2,450,832)
5.1
(417,518)
226.0
December 31, 2023 ...............................................................
10,208,104
$4.9
2,552,243
$538.0
Granted during the year .....................................................
22,659,832
4.4
360,590
515.0
Released during the year ...................................................
(3,164,977)
5.3
Exercised during the year ..................................................
(126,580)
162.0
Forfeited during the year ...................................................
(3,291,313)
4.7
(278,719)
505.0
December 31, 2024 ...............................................................
26,411,646
$4.5
2,507,534
$543.0
Granted during the year .....................................................
123,335
10.1
Released during the year ...................................................
(8,225,629)
5.3
Exercised during the year ..................................................
(90,000)
231.0
Repurchased during the year ...........................................
(105,646)
441.0
Amended during the year ..................................................
Forfeited during the year ...................................................
(3,712,137)
5.0
(84,367)
631.0
December 31, 2025 ...............................................................
14,597,215
$5.1
2,227,521
$605.0
Equivalent of Klarna Group plc Shares
3,649,304
$20.4
26,730,252
$50.4
____________
Legacy RSUs granted in SEK have been converted to USD using the average exchange rate for each period for presentation
purposes.
Where share warrants were granted in SEK, the input has been converted to USD using the average exchange rate for the
period for presentation purposes.
Employee Restricted Share Unit Programs
The Group operates two Restricted Share Unit programs: the Legacy RSU Program and Klarna Group
plc RSU Program.
The Legacy RSU Program was implemented in 2020. It is available to certain employees as well as
certain third-party contributors. Each participant is granted a set number of Legacy RSUs on the grant
date, which generally vest over a four years graded vesting schedule, with 25% of the total shares vesting
each year. Upon vesting, one Legacy RSU entitles the holder to receive one share in a subsidiary, reflected
as non-controlling interest in the consolidated financial statements. If the participant leaves Klarna,
unvested RSUs are forfeited. It is intended that at a future date shareholders will have the opportunity to
exchange their subsidiary company shares for Klarna Group plc shares. The number of Klarna Group plc
shares to be exchanged is dependent upon the value of Klarna Group at the time of the exchange. If an
exchange between subsidiary share and Klarna Group plc share would have taken place as at the end of
2025, 2024 and 2023, the exchange yield would have been 0.25, 0.25 and 0.24 shares of Klarna Group plc
share for one subsidiary share, respectively.
The number of equivalent Klarna Group plc shares is presented as if the Legacy RSUs program issued
by a subsidiary of Klarna Group plc had been exchanged into Klarna Group plc ordinary shares as of the
reporting date. If exchanged, the number of shares exchanged is dependent on the value of Klarna Group
plc at the time of exchange.
In 2025, a new RSU Program (the “Klarna Group plc RSUs”) was established as a separate share-based
payment program. Each participant is granted a set number of Klarna Group RSUs on the grant date, which
generally vest over a four-year staggered vesting schedule, with 25% of the total shares vesting each year. 
Upon vesting, one Klarna Group plc RSU entitles the holder to receive one ordinary share in Klarna Group
plc. If the participant leaves Klarna, unvested RSUs are forfeited.
The number of shares distributed to employees under both the Legacy RSU Program and the Klarna
Group plc RSU Program is approved by the board of directors of Klarna, and accounted for as equity-
settled share-based payments. The share-based compensation expense is based on the grant-date fair
value of the awards and recognized over the vesting period, in line with the graded vesting method. The
fair value of both RSU Programs is determined with reference to the Klarna Group plc share price.
Upon vesting, in accordance with certain countries’ tax laws, we are required to withhold an amount to
settle the employee’s tax associated with a share-based payment and transfer that amount in cash to
taxing authorities on the employee’s behalf. Such amounts are withheld from our employees in
accordance with applicable laws, either through deduction of salary or withholding a number of vested
shares.
Share Warrants and Share Options
In certain jurisdictions, the Group offers share warrants and options to certain individual contributors,
including employees as well as executive officers and directors. Prior to 2024, these were awarded in the
form of share warrants issued by a subsidiary of Klarna Group plc. In 2024, the Group also began granting
share options to acquire ordinary shares of Klarna Group plc ("Ordinary share options"). In 2025, the
Remuneration and Nomination Committee also approved the grant of options to acquire Class C shares
("Class C share options") to Mr. Siemiatkowski under the C Share Awards Plan, as described in Item 6.
The warrants and options are subject to graded vesting over a term of typically four to five years. The
awards are accounted for as equity-settled share-based payments, with the fair value determined at the
grant date and expensed over the vesting period, based on the Group’s estimate of the number of awards
that will eventually vest.
The Group has issued share warrants and options by both Klarna Group plc and subsidiaries of Klarna
Group plc. Each share warrant issued by a subsidiary of Klarna Group plc entitles the recipient to purchase
one ordinary share in Klarna Holding AB (publ) or a subsidiary at the agreed strike price. We anticipate
periodically facilitating the exchange of subsidiary shares acquired upon exercise of such warrants into
ordinary shares of Klarna Group plc. If exchanged, the number of shares exchanged is dependent on the
value of Klarna Group plc at the time of exchange. If such an exchange would have taken place at the end
of 2025, 2024 and 2023, the exchange yield would have been 12, 12 and 12 shares for one subsidiary share,
respectively.  The number of equivalent Klarna Group plc shares is presented as if the share warrants
issued by a subsidiary of Klarna Group plc had been exchanged into Klarna Group plc ordinary shares as of
the reporting date. Each ordinary share option or warrant issued by Klarna Group plc entitles the recipient
to purchase one ordinary share in Klarna Group plc at the agreed strike price. Two Class C share options
entitle the recipient to acquire either one ordinary share or two Class C shares, at the recipient's election.
As described in Item 6, Class C shares carry enhanced voting rights, subject to an annual acquisition limit
and an aggregate voting cap. All Class C share options outstanding were granted exclusively to Mr.
Siemiatkowski.
In 2025, the board of directors of the Company, acting on the recommendation of the Remuneration
and Nomination Committee, approved the grant of options to acquire 8,834,736 ordinary shares to
members of the Company's management team at a weighted average exercise price of $104 per share.
Additionally, the Remuneration and Nomination Committee granted options to acquire  17,505,672 Class C
shares to Mr. Siemiatkowski at a weighted average exercise price, expressed as the equivalent of one
ordinary share, of $91.8, as further described under "Equity Compensation paid to Mr. Siemiatkowski" in
Item 6. The Committee also amended the terms of options granted to Mr. Siemiatkowski in the fourth
quarter of 2024 to allow for such options to be exercised into  2,941,236 Class C shares (or 1,470,618
ordinary shares); this amendment did not reduce the exercise price of the underlying award. As of the date
of this report, all of these options remain substantially out of the money. Mr. Siemiatkowski may elect to
acquire, in his discretion, either ordinary shares or Class C shares upon the exercise of such Class C
options.
Certain warrants have been acquired by employees in exchange for a cash payment of the fair market
value at grant date. Since preemption rights related to these awards transfer over a specified period they
are accounted for as equity-settled share-based payments; however, no associated expense is
recognized.
Klarna has granted share warrants to selected partners, including merchants and other service
providers, in return for services. In 2025 and 2024, we entered into commercial agreements with certain
partners under which we granted warrants in exchange for consumer acquisition services to expand our
user base, which we determined to be distinct. These arrangements are equity-settled and are accounted
for as equity-settled share-based payments.
In 2025, we entered into commercial agreements with certain partners under which we granted
15,740,059 warrants, each warrant to acquire one ordinary share in Klarna Group plc, in exchange for
consumer acquisition services to expand our user base and brand awareness. We determined the fair
value of such services to be $233 million comprising consumer acquisition of $50 million and brand
awareness of $183 million, using the direct method, and recognized such costs as share-based payments
expense, included in sales and marketing, over the expected performance period within the commercial
agreement. During 2025, 3,910,393 warrants vested, of which 2,400,000 warrants were exercised. The
underlying services are expected to be provided over the five-year term of the agreement. We recognized
an expense of $27 million related to the fair value of the services in 2025, deferring $75 million of expense
to be recognized over the period of the agreement when the services are expected to be provided.
The grant of the warrants gives rise to a tax charge in the year of grant which is recoverable to the
extent warrants are exercised. We recognized a current tax liability of $48 million in connection with the
grant during the first quarter of 2025, with the associated tax charge recognized in equity. Upon exercise
of the 2,400,000 warrants during the second quarter of 2025, the related current tax liability was reduced
by $22 million. The remaining tax expense is expected to be recoverable when the warrants are exercised.
In 2024, 1,299,360 warrants were granted, each warrant to acquire one ordinary share in Klarna Group
plc, under such arrangements, in exchange for consumer acquisition services to expand our user base and
brand awareness. We determined the fair value of the  services to be  $17.9 million, using the direct
method for customer acquisition costs and this is recognized as share-based payments expense, included
in sales and marketing, over the relevant performance period within the commercial agreement.
We have also granted warrants to certain merchants for non-distinct services and the costs related to
these warrants are recognized as a reduction of revenue.
In 2025, the Company, through its indirectly wholly owned subsidiary, Klarna Bank AB, repurchased an
aggregate of 1,267,752 warrants to acquire Klarna Holding AB’s ordinary shares (such warrants, “KHAB
warrants”), which were issued prior to our corporate reorganization at various times under our legacy
equity incentive schemes. The repurchase price for the KHAB warrants was $17.2 million, based on the
initial public offering price of $40.00 per ordinary share, being the fair value of the equity instrument at the
date of repurchase. All KHAB warrants repurchased were fully vested at the repurchase date, except
6,456, for which an accelerated expense of less than $0.1 million was recognized at the repurchase date.
For warrants issued by a subsidiary of Klarna Group plc, the range of exercise prices for warrants
outstanding as of December 31, 2025, 2024, and 2023 is between$0.10 and $1,508. The weighted average
remaining contractual life is 1.9 years, 2.7 years and 3.5 years as of December 31, 2025, 2024, and 2023
respectively. The number of exercisable warrants was 40,000, and 51,500 as of December 31 2024 and
2023, respectively, and there is no new exercisable warrant of this category in 2025.
For warrants issued by Klarna Group plc, the range of exercise prices for warrants outstanding as of
December 31, 2025 and 2024 is between $34 and $51. The weighted average remaining contractual life is
4.2 years and 3 years as of December 31, 2025 and 2024, respectively. The number of exercisable warrants
and options is 2,145,590 and 1,299,360 as of December 31, 2025 and 2024, respectively.
For options issued by Klarna Group plc, the range of exercise prices for options outstanding as of 
December 31, 2025 and 2024 is between $38 and $114. The weighted average remaining contractual life for
share options was 3.4 years and 3.6 years as of December 31, 2025 and 2024, respectively. The number of
exercisable share options was 2,935,177 and 1,460,856 as of December 31, 2025 and 2024, respectively.
For C Class options issued by Klarna Group plc, the range of exercise prices for C Class options
outstanding as of December 31, 2025 is between $19 and $57. The weighted average remaining contractual
life is 3.7 years as of December 31, 2025. The number of exercisable C Class options is 9,523,581 as of
December 31, 2025. There were no C Class options outstanding prior to the year ended December 31,
2025.
Klarna uses the Black-Sholes model when calculating the fair value of share warrants and options
granted to individual contributors, as well as certain partners when the fair value of goods and services
cannot be reliably measured. The Company does not anticipate paying any cash dividends in the near
future and, therefore, uses an expected dividend yield of zero in the option valuation model. The expected
volatility is determined taking into consideration the historical volatility of the Company’s common share
and the historical volatility of comparable public companies. The risk-free rate for instruments issued by
subsidiary of Klarna Group plc is based on Swedish Central Bank (Sw. Sveriges Riksbank) bonds. The risk
free-rate rate for instruments issued by Klarna Group plc is based on U.S. treasury bonds.. The inputs used
within the model for the share warrants and options granted were:
Share warrants and share options
2025
2024
2023
Expected volatility (%) .......................................................................................
37% - 38%
37%
35% - 37%
Risk-free interest rate (%) ................................................................................
3.6% - 4.4%
2.0% - 2.8%
2.6% - 3.3%
Expected term (years) .......................................................................................
4.5 - 5.5
2.9 - 4.5
2.8 - 5.3
Weighted average share price for instruments issued by subsidiary of
Klarna Group plc (in USD)1 ................................................................................
N/A
337
216
Weighted average share price for instruments issued by Klarna
Group plc (in USD) ..............................................................................................
40
34
N/A
____________
Where share warrants in 2025, 2024 and 2023 were granted in SEK, the input has been converted to USD using the average
exchange rate for the year for presentation purposes.
The weighted average fair value of warrants issued by a subsidiary of Klarna Group plc granted during
2024 and 2023 was $17 and $16. The weighted average fair value of options issued by Klarna Group plc
granted during 2025 and 2024 was $53 and $9. The weighted average fair value of C Class Options issued
by Klarna Group plc granted during 2025 was $29.
Equity-Related Instruments Granted in Connection with Business Acquisitions
The Group issued equity in Klarna Holding AB (publ) to acquired employees in relation to several
business acquisitions in 2020, 2021 and 2022. The equity grant included a four-year vesting period and is
accounted for as equity-settled share-based compensation and recognized as a post-business
combination expense. When employees exited the Company during the periods, the future personnel
costs associated with the unvested equity were expensed in the statement of profit or loss on the last day
of employment. The instruments have been measured based on the fair market value of the underlying
ordinary shares at the date of grant.
In connection with the reorganization completed in May 2024, pursuant to which Klarna Group plc
became the ultimate parent company of the Group, all  remaining unvested equity-related instruments
under this program were accelerated and expensed, resulting in the release of 329,484 shares during
2024 at a weighted-average grant-date fair value of $51 per share. As of December 31, 2024, there were no
shares outstanding under this program.
Employee Equity Program
The Group had a restricted share award program in which some employees acquired restricted shares
in a group subsidiary entity that retains an ownership interest in Klarna Bank AB (publ), which became fully
vested in 2023. The restricted share awards were accounted for as an equity-settled share-based
payment. The restricted shares were acquired by employees in exchange for a cash payment at fair
market value, measured at the grant date, and therefore no associated expense was recognized. Upon
vesting, participants retained ordinary shares in one of our subsidiaries holding an ownership interest in
Klarna Bank AB (publ), reflected as non-controlling interest in the consolidated financial statements. The
number of ordinary shares held in the group subsidiary entity as of December 31, 2024 and 2023 was
28,762 and 31,122, respectively. In 2024 and 2023, 2,347 and 10,693 shares held by former employees were
exchanged for shares in Klarna Holding AB (publ), respectively. In April 2025, the 28,762 shares held by
participants were exchanged for the issuance of 1,948,166 ordinary shares in Klarna Group plc.
Direct Share Issuance
During 2025 and 2024, the Group granted 150,760 and 216,468 ordinary shares in Klarna Group plc,
respectively, to certain employees, including executive officers and Board of Directors. The shares were
accounted for as equity-settled share-based payments. There were no vesting conditions or restrictions
placed on the awards and, accordingly, the  related share-based compensation expense, based on the
grant-date fair value of the awards, was recognized immediately. The weighted average fair values of the
ordinary shares granted were $34 and $34, in 2025 and 2024, respectively.
v3.25.4
Information on related parties
12 Months Ended
Dec. 31, 2025
Disclosure of transactions between related parties [abstract]  
Information on related parties Information on related parties
Milkywire
In 2021, following a competitive selection process, Klarna engaged Milkywire AB ("Milkywire") to provide
sustainability related services, including the sourcing, vetting and monitoring of climate and nature
initiatives, as well as the facilitation of carbon credit purchases from third-party providers on Klarna's
behalf. Milkywire was founded in 2018 by Nina Siemiatkowski, who is the spouse of Sebastian
Siemiatkowski, our Co-Founder and Chief Executive Officer. Mrs. Siemiatkowski remains the chief
executive officer and majority owner of Milkywire.
Klarna paid Milkywire $0.9 million in 2025, $0.7 million in 2024 and $0.9 million in 2023 for
sustainability related services. Separately, Klarna transferred to Milkywire an additional $0.5 million in
2025 and $1.0 million in 2024 for the purchase of carbon credits on Klarna's behalf; these amounts were
paid in full by Milkywire to the third-party providers of the carbon credits and Milkywire did not retain any
margin on these transactions.
The engagement of Milkywire, including the fees paid, was approved by the board of directors with Mr.
Siemiatkowski recusing himself from the related deliberations and approval, in accordance with the
Company's conflicts of interest policies. The board believes the fees paid to Milkywire reflect competitive
rates for the services provided..
WRLD Foundation
The Company made charitable contributions of $2.3 million in 2025, $3.8 million in 2024 and $5.5
million in 2023 to the WRLD Foundation, a registered nonprofit organization in the United States and
Sweden. Nina Siemiatkowski is a board member of the WRLD Foundation. The WRLD Foundation
distributes all contributions received from Klarna to underlying recipient organizations that have been
sourced and vetted by Milkywire as part of Klarna's planet health initiative; the identity of all recipient
organizations has been reported to Klarna. These contributions were approved by the board of directors,
with Mr. Siemiatkowski recusing himself from the related deliberations and approval.
Compensation to the board of directors and senior management
The table below summarizes the compensation paid or payable to the board of directors and senior
management. The increase in total compensation from $14 million in 2023 to $99 million in 2025 principally
reflects the introduction of equity-based compensation programs at the Klarna Group plc level in
connection with the Company's initial public offering. The amounts reported for fixed and variable equity-
based compensation represent grant-date fair values calculated in accordance with IFRS 2 and do not
represent cash compensation paid to, or value currently received by, the recipients. A significant portion
of the equity-based compensation reported in 2025 relates to awards with exercise prices substantially
above the current share price, as further described in Note 22 and in Item 6:
Salaries and other remuneration to the board and senior management
2025
2024
2023
Basic salary/fee ................................................................................................
$13
$13
$10
Fixed equity-based compensation ...............................................................
36
32
Variable equity-based compensation ..........................................................
48
18
1
Other variable-based compensation ............................................................
1
1
2
Other benefits ...................................................................................................
1
1
Pension expenses .............................................................................................
1
1
1
Total .....................................................................................................................
$99
$65
$14
In December 2024, the Group granted 216,468 ordinary shares and 400,065 share options to certain
members of senior management. The shares were granted by the board of directors of Klarna Group plc
and were accounted for as equity-settled share-based payments.
During 2025, the Group granted 108,960 ordinary shares and 8,834,736 share options at a weighted
average exercise price of $104 to certain members of senior management. Additionally, the board of
directors, acting on the recommendation of the Remuneration and Nomination Committee, granted options
to acquire 17,505,672 Class C shares to Mr. Siemiatkowski, and amended the terms of options previously
granted to Mr. Siemiatkowski in the fourth quarter of 2024 to allow for such options to be exercised into
2,941,236 Class C shares (or 1,470,618 ordinary shares); this amendment did not reduce the exercise price
of the underlying award. Two Class C share options entitle the recipient to either one ordinary share or two
Class C shares, at Mr. Siemiatkowski's election. The weighted average exercise price, expressed as the
equivalent of one ordinary share, is $91.8, representing a significant premium to the initial public offering
price of $40.00. As of the date of this report, the share options granted to both senior management and
Mr. Siemiatkowski remain substantially out of the money. The options vest over a four-year period.
The shares and options described above were granted by the board of directors of Klarna Group plc,
acting on the recommendation of the Remuneration and Nomination Committee, and were accounted for
as equity-settled share-based payments, with the related expense recognized over the applicable vesting
periods in accordance with IFRS 2 based on grant-date fair values.
During 2025, the Company, through its indirectly wholly owned subsidiary, Klarna Bank AB,
repurchased an aggregate of 1,267,752 warrants as detailed in Note 22 – Share-Based Payments. Of the
total repurchased warrants, 17,500 were held by members of the Company’s management team.
v3.25.4
Income taxes
12 Months Ended
Dec. 31, 2025
Major components of tax expense (income) [abstract]  
Income taxes Income taxes
The table below represents income tax (expense) benefit, effective tax rate, deferred tax assets and
deferred tax liabilities for the years ending December 31, 2025, 2024 and 2023:
Income tax (expense) benefit
2025
2024
2023
Current tax
Tax expense for the year ................................................................................
$(25)
$(20)
$(16)
Adjustment of tax attributable to previous years ......................................
(1)
3
Total .....................................................................................................................
$(26)
$(20)
$(13)
Deferred tax
Deferred tax .......................................................................................................
$(6)
$8
$73
Total .....................................................................................................................
$(6)
$8
$73
Income tax (expense) benefit ...........................................................................
$(32)
$(12)
$60
Effective tax rate
2025
2024
2023
Profit (loss) before taxes .................................................................................
$(241)
$33
$(304)
Income tax calculated in accordance with national tax rates
applicable in each country .............................................................................
(21)
(7)
60
Non-taxable revenues .....................................................................................
27
3
2
Non-deductible expenses ...............................................................................
(15)
(37)
(39)
Taxable income not booked in profit or loss ..............................................
(6)
(2)
(7)
Deductible expenses not booked in profit or loss ....................................
7
11
4
Unrecognized taxable losses .........................................................................
(26)
12
(34)
Effect of change in tax rate ............................................................................
1
2
Losses carried forward recognized ..............................................................
5
6
72
Adjustments of tax attributable to previous years ....................................
(4)
2
Tax (expense) benefit ........................................................................................
$(32)
$(12)
$60
Effective tax rate ................................................................................................
13.4%
(36.7)%
(19.7)%
Deferred taxes
December 31,
2025
December 31,
2024
Deferred tax asset ..........................................................................................................................
$36
$33
Deferred tax liability .......................................................................................................................
(2)
(1)
Total ...................................................................................................................................................
$34
$32
Comprising: ......................................................................................................................................
Losses carried forward .................................................................................................................
71
55
Allowance for credit losses ..........................................................................................................
12
19
Intangible assets .............................................................................................................................
(78)
(57)
Other ..................................................................................................................................................
30
15
Total ...................................................................................................................................................
$34
$32
Deferred tax assets attributable to carryforward of unused tax losses or other deductible temporary
differences are recognized only to the extent that it is probable that future taxable profits will be available
against which the unused tax losses and unused tax credits can be utilized.
During 2025, 2024 and 2023, deferred tax assets and liabilities have been recognized resulting in a $6
million, $8 million and $73 million benefit in the consolidated statements of profit or loss, respectively.
Deferred tax assets have been recognized where the recognition criteria are met, of which $5 million,
$6 million and $72 million are in respect of tax losses for 2025, 2024 and 2023, respectively. The gross
deferred tax assets and liabilities have been set off on the balance sheet to the extent the requirements
for netting are met. 
Tax losses carried forward in the Group for which tax assets are not recognized in the balance sheet
amount to $2.1 billion and $1.4 billion gross for the years ending December 31, 2025 and 2024, respectively.
These carry forward tax losses primarily originated in Sweden and Germany, and there are no time
restrictions on the use of these losses. Other deductible temporary differences which have not been
recognized amount to $163 million and $0 million gross for the years ending December 31, 2025 and 2024,
respectively. Deferred tax assets have not been recognized in respect of these temporary differences as
they have not been assessed as likely to offset taxable profits elsewhere in the Group under the IAS 12
recognition criteria.
The Group has applied the exception, mandated by an amendment to IAS 12, to recognizing and
disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
v3.25.4
Net profit (loss) per share
12 Months Ended
Dec. 31, 2025
Earnings per share [abstract]  
Net profit (loss) per share Net profit (loss) per share
Basic loss per share is calculated by dividing the loss attributable to shareholders of Klarna Group plc 
by the weighted average number of ordinary shares outstanding during the period. Diluted profit (loss) per
share is calculated similarly but includes the effect of potential ordinary shares using the treasury stock
method, to the extent that the inclusion of these shares is dilutive. Potential ordinary shares consist of
incremental shares issuable in connection with warrants and share options. The Group has also granted
RSUs, restricted share awards and certain warrants in subsidiaries which are exercisable or convertible in
subsidiary company shares and are not considered potential ordinary shares in Klarna Group plc. However,
such instruments, which are potential ordinary shares in subsidiaries, may affect net profit (loss) per share
due to their impact on non-controlling interest for Klarna Group plc. 
Due to the net loss and the resulting anti-dilutive effect in 2025 and 2023, all potential ordinary shares
are excluded from the diluted loss per share calculation, and diluted loss per share equals basic loss per
share for these periods. Potential ordinary shares in subsidiaries have an insignificant impact on non-
controlling interest for purposes of the diluted profit per share for the year ended December 31, 2025.
The computation of loss per share for the respective periods is as follows:
2025
2024
2023
Numerator:
Net profit (loss) attributable to shareholders of Klarna Group plc ........
$(294)
$3
$(249)
Denominator:
Weighted average number of ordinary shares - basic .............................
370,654,083
363,993,690
362,090,644
Dilutive potential ordinary shares .................................................................
418,379
Weighted average number of ordinary shares - diluted ..........................
370,654,083
364,412,068
362,090,644
Net profit (loss) per share attributable to shareholders of Klarna Group
plc:
Basic ....................................................................................................................
$(0.79)
$0.01
$(0.69)
Diluted .................................................................................................................
$(0.79)
$0.01
$(0.69)
v3.25.4
Significant events after the end of the reporting period
12 Months Ended
Dec. 31, 2025
Disclosure of non-adjusting events after reporting period [abstract]  
Significant events after the end of the reporting period Significant events after the end of the reporting period
The Group has evaluated all events that have occurred subsequent to December 31, 2025, through the
date that the consolidated financial statements were approved on February 26, 2026 by the Board of
Directors. No significant events have occurred during the subsequent period.
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] At Klarna, cybersecurity risk management is an integral part of our risk management framework. Our
cybersecurity risk management program is based on industry best practices and provides a framework for
handling cybersecurity threats and incidents, including threats and incidents associated with the use of
services provided by third-party service providers, and facilitate coordination across different
departments . This framework includes assessing the severity of a cybersecurity threat, identifying the
source of a cybersecurity threat including whether the cybersecurity threat is associated with a third-
party service provider, implementing cybersecurity countermeasures and mitigation strategies and
informing management and our board of directors of material cybersecurity threats and incidents. Our
cybersecurity team also engages third-party security experts for risk assessment and system
enhancements.Our cybersecurity risk management program includes processes designed to identify and
mitigate digital‑asset‑specific risks, such as private‑key management, third‑party custody and service
provider dependencies.  In addition, all employees are required to complete mandatory training on our
cybersecurity framework
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] At Klarna, cybersecurity risk management is an integral part of our risk management framework. Our
cybersecurity risk management program is based on industry best practices and provides a framework for
handling cybersecurity threats and incidents, including threats and incidents associated with the use of
services provided by third-party service providers, and facilitate coordination across different
departments . This framework includes assessing the severity of a cybersecurity threat, identifying the
source of a cybersecurity threat including whether the cybersecurity threat is associated with a third-
party service provider, implementing cybersecurity countermeasures and mitigation strategies and
informing management and our board of directors of material cybersecurity threats and incidents.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] Our board of directors has overall oversight responsibility for our risk management, and delegates
cybersecurity risk management oversight to the Audit Committee (AuditCo) of the board of directors. The
AuditCo is responsible for ensuring that management has processes in place designed to identify and
evaluate cybersecurity risks to which the company is exposed and implement processes and programs to
manage cybersecurity risks and mitigate cybersecurity incidents.  The AuditCo also reports material
cybersecurity risks to our full board of directors. Management is responsible for identifying, considering
and assessing material cybersecurity risks on an ongoing basis, establishing processes to monitor such
potential cybersecurity risk, putting in place appropriate mitigation measures and maintaining
cybersecurity programs. Our cybersecurity programs operate under the direction of our Chief Information
Security Officer, or CISO who receives reports from our cybersecurity team and monitors the prevention,
detection, mitigation, and remediation of cybersecurity incidents. Our CISO and dedicated personnel are
certified and experienced information systems security professionals and information security managers .
Management, including the CISO, our cybersecurity team and our second line risk function, regularly
update the AuditCo on the company’s cybersecurity programs, material cybersecurity risks and mitigation
strategies and provide cybersecurity reports that cover, among other topics, third-party assessments of
the company’s cybersecurity programs, developments in cybersecurity and updates to the company’s
cybersecurity programs and mitigation strategies].
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our board of directors has overall oversight responsibility for our risk management, and delegates cybersecurity risk management oversight to the Audit Committee (AuditCo) of the board of directors.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Management, including the CISO, our cybersecurity team and our second line risk function, regularly
update the AuditCo on the company’s cybersecurity programs, material cybersecurity risks and mitigation
strategies and provide cybersecurity reports that cover, among other topics, third-party assessments of
the company’s cybersecurity programs, developments in cybersecurity and updates to the company’s
cybersecurity programs and mitigation strategies].
Cybersecurity Risk Role of Management [Text Block] Management is responsible for identifying, considering
and assessing material cybersecurity risks on an ongoing basis, establishing processes to monitor such
potential cybersecurity risk, putting in place appropriate mitigation measures and maintaining
cybersecurity programs. Our cybersecurity programs operate under the direction of our Chief Information
Security Officer, or CISO who receives reports from our cybersecurity team and monitors the prevention,
detection, mitigation, and remediation of cybersecurity incidents. Our CISO and dedicated personnel are
certified and experienced information systems security professionals and information security managers .
Management, including the CISO, our cybersecurity team and our second line risk function, regularly
update the AuditCo on the company’s cybersecurity programs, material cybersecurity risks and mitigation
strategies and provide cybersecurity reports that cover, among other topics, third-party assessments of
the company’s cybersecurity programs, developments in cybersecurity and updates to the company’s
cybersecurity programs and mitigation strategies].
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity programs operate under the direction of our Chief Information
Security Officer, or CISO who receives reports from our cybersecurity team and monitors the prevention,
detection, mitigation, and remediation of cybersecurity incidents.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO and dedicated personnel are certified and experienced information systems security professionals and information security managers
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Our cybersecurity programs operate under the direction of our Chief Information
Security Officer, or CISO who receives reports from our cybersecurity team and monitors the prevention,
detection, mitigation, and remediation of cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Accounting principles (Policies)
12 Months Ended
Dec. 31, 2025
Disclosure Of Significant Accounting Policies [Abstract]  
Basis of preparation Basis of preparation and consolidation
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) Accounting Standards as issued by the International Accounting Standards
Board (“IASB”) and have been prepared on a historical cost basis, except for equity investments,
derivatives and consumer receivables at fair value through profit and loss or at fair value through other
comprehensive income, which have been measured at fair value, and lease liabilities, which are measured
at present value. These consolidated financial statements are prepared on a going concern basis. All
amounts in the notes to the consolidated financial statements are stated in millions of United States
Dollars (“USD”), unless otherwise stated.
On May 23, 2024, Klarna Holding AB (publ) completed a reorganization which resulted in Klarna Group
plc becoming the new ultimate parent company of the Group. Through a series of share for share
exchange steps, the shareholders of Klarna Holding AB (publ) exchanged their shares for an equal number
of shares in Klarna Group plc. As a result of our corporate reorganization, Klarna Group plc became our
ultimate holding company and the parent company of Klarna Holding AB (publ). There was no change in
the legal ownership of any of the assets of Klarna Holding AB (publ), nor any change in the ultimate
controlling ownership of existing shares or securities of Klarna Holding AB (publ) or Klarna Group plc as a
result of the reorganization. The accounting predecessor of Klarna Group plc is Klarna Holding AB (publ).
The exchange has been presented on a retrospective basis as a reorganization transaction beginning in
the earliest period presented.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the
Group is exposed, or has right to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The consolidated subsidiaries of Klarna are
consolidated as from the date when control is transferred to Klarna and deconsolidated from the date that
control ceases. All intercompany accounts and transactions between members of the Group have been
eliminated on consolidation.
Share Split
In March 2025, Klarna Group plc’s board of directors approved a subdivision of ordinary shares of
Klarna Group plc on a 1-to-12 basis (the “Share Split”), which was effected on March 6, 2025. Refer to Note
21 for further details. Accordingly, all share data and per share data amounts for all periods presented in
the consolidated financial statements and notes thereto have been retrospectively adjusted to reflect the
effect of the Share Split.
Basis of consolidation Basis of preparation and consolidation
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) Accounting Standards as issued by the International Accounting Standards
Board (“IASB”) and have been prepared on a historical cost basis, except for equity investments,
derivatives and consumer receivables at fair value through profit and loss or at fair value through other
comprehensive income, which have been measured at fair value, and lease liabilities, which are measured
at present value. These consolidated financial statements are prepared on a going concern basis. All
amounts in the notes to the consolidated financial statements are stated in millions of United States
Dollars (“USD”), unless otherwise stated.
On May 23, 2024, Klarna Holding AB (publ) completed a reorganization which resulted in Klarna Group
plc becoming the new ultimate parent company of the Group. Through a series of share for share
exchange steps, the shareholders of Klarna Holding AB (publ) exchanged their shares for an equal number
of shares in Klarna Group plc. As a result of our corporate reorganization, Klarna Group plc became our
ultimate holding company and the parent company of Klarna Holding AB (publ). There was no change in
the legal ownership of any of the assets of Klarna Holding AB (publ), nor any change in the ultimate
controlling ownership of existing shares or securities of Klarna Holding AB (publ) or Klarna Group plc as a
result of the reorganization. The accounting predecessor of Klarna Group plc is Klarna Holding AB (publ).
The exchange has been presented on a retrospective basis as a reorganization transaction beginning in
the earliest period presented.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the
Group is exposed, or has right to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The consolidated subsidiaries of Klarna are
consolidated as from the date when control is transferred to Klarna and deconsolidated from the date that
control ceases. All intercompany accounts and transactions between members of the Group have been
eliminated on consolidation.
Share Split
In March 2025, Klarna Group plc’s board of directors approved a subdivision of ordinary shares of
Klarna Group plc on a 1-to-12 basis (the “Share Split”), which was effected on March 6, 2025. Refer to Note
21 for further details. Accordingly, all share data and per share data amounts for all periods presented in
the consolidated financial statements and notes thereto have been retrospectively adjusted to reflect the
effect of the Share Split.
Standards and amendments effective for the year Standards and amendments effective for the year
No significant new IFRS standards, amendments or interpretations applicable to the Group became
effective during the period.
New standards and amendments issued but not yet effective New standards and amendments issued but not yet effective
In April 2024, the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements” that
replaces IAS 1 “Presentation of Financial Statements.” IFRS 18 introduces new requirements for
information presented in the primary financial statements and disclosed in the notes. IFRS 18 is effective
for annual reporting periods beginning on or after January 1, 2027, but earlier adoption is permitted. The
Group is currently evaluating the impact of this standard.
In May 2024, the IASB issued amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial
Instruments: Disclosures,” clarifying recognition and derecognition principles and introducing an exception
for the early derecognition of certain financial liabilities settled electronically. The amendments also
provide guidance on assessing contractual cash flow characteristics and introduce new disclosure
requirements. These amendments are effective for annual reporting periods beginning on or after January
1, 2026, with earlier adoption permitted. The Group is currently evaluating their impact.
The Group has not early adopted any issued standards, interpretations or amendments that are not
yet effective.
Significant accounting judgments, estimates and assumptions Significant accounting judgments, estimates and assumptions
The preparation of the consolidated financial statements in accordance with IFRS requires
management to make judgments, estimates and assumptions that affect the reported amount of revenues,
expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent
liabilities. On an ongoing basis, we evaluate our estimates, including those related to provisions for credit
losses, revenue recognition, income taxes, the evaluation for impairment of intangible assets and goodwill,
contingent liabilities, securitizations, leases, divestitures and share-based compensation, including the fair
value of restricted share units, options and warrants issued. We base our estimates on historical
experience and various other assumptions which we believe to be reasonable under the circumstances.
Actual results could materially differ from these estimates.
Macroeconomic and geopolitical developments may adversely impact consumer spending, merchant
performance and counterparty creditworthiness. These conditions may introduce additional uncertainties
that can affect the global economy and, consequently, the Group’s operations. These factors are
considered into credit loss estimates and other significant accounting estimates.
Foreign currency translation Foreign currency translation
Presentation currency and functional currency
The financial statements are presented in USD. In general, each entity within the Group uses the
currency of its primary economic environment as its functional currency. For Klarna Group plc, the
functional currency is USD.
The assets and liabilities of the Company and its subsidiaries are translated from the functional
currency of the operations to USD using the exchange rates at the reporting date. The revenues and
expenses are translated to USD using  average exchange rates, which approximate the exchange rates at
the date of the transaction. All resulting foreign exchange differences are recognized in other
comprehensive income (loss) and included in foreign exchange translation reserve in equity.
Foreign currency transactions
Transactions denominated in currencies other than the functional currency of the respective entity
are translated into the functional currency at the exchange rate on the date of the transaction. Monetary
assets and liabilities denominated in currencies other than the functional currency are remeasured using
the exchange rates prevailing at the end of the reporting period. Any foreign exchange gains or losses
arising from the remeasurement of these monetary assets and liabilities are recognized in other income
(expense) in the consolidated statement of profit or loss.
Cash and cash equivalents Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, demand deposits with banks, short-term treasury
bills and other short-term highly liquid investments with original maturities of three months or less.
Debt securities Debt securities
Debt securities primarily comprise treasury bills chargeable at central banks with original maturities of
more than three months, mandatory deposits at central banks, and bonds and other interest-bearing
securities. The Group classifies investments as financial assets measured at amortized cost, with interest
recognized within interest income in the consolidated statements of profit or loss.
Consumer receivables Consumer receivables
Consumer receivables represent unsecured amounts due from consumers that elect to pay over time
either through Pay Later or Fair Financing options as well as receivables related to other consumer fees as
discussed in our revenue recognition accounting principles. Pay Later consumer receivables arise from
transactions that enable consumers to purchase goods or services at the time of the transaction and defer
payment to a later date or in short-term installments (e.g., Pay in 30, Pay in 3, Pay in 4). Fair Financing
consumer receivables arise from transactions that enable consumers to pay for purchases over a longer-
term installment plan, typically ranging from three to 48 months.
Consumer receivables that Klarna has the objective of holding to collect contractual cash flows are
measured at amortized cost, including outstanding principal balances, accrued interest and net of
allowances for expected credit losses.
Consumer receivables which are managed within a business model whose objective is to originate and
sell or within a hold-to-collect-and-sell business model are measured either at fair value through profit or
loss (“FVTPL”) or fair value through OCI (“FVOCI”) and presented separately on the consolidated balance
sheet.
Settlement and trade receivables Settlement and trade receivables
Settlement and trade receivables primarily include receivables from payment solution providers
(“PSPs”), amounts due from merchants for services and receivables from third-party debt collection
agencies and financial institutions. Settlement and trade receivables are reported at amortized cost net of
an allowance for expected credit losses.
Allowance for expected credit losses Allowance for expected credit losses
Klarna estimates allowances for expected credit losses (“ECL”) for debt securities, consumer
receivables and settlement and trade receivables. The ECL allowance is based on either 12-month
expected credit losses (“12m ECL”) or on lifetime expected credit losses (“Lifetime ECL”). The ECL
allowance is based on the latter if the simplified approach, as defined by IFRS 9, is applicable or if there
has been a significant increase in credit risk since initial recognition.
Lifetime ECL and 12m ECL are calculated on a collective basis at an asset class level. The asset class is
defined by shared credit risk characteristics, which are generally by market and geography.
Debt securities
Klarna invests in treasury bills issued by central banks, loans to highly rated financial institutions and
bonds issued by highly rated government entities. The credit rating status of issuing entities is monitored
throughout the investment holding period. The high credit quality of the issuers results in a low probability
of default, loss given default and exposure at default resulting in an immaterial ECL estimate for debt
securities.
Consumer receivables
To measure the ECL for consumer receivables, the Group assigns outstanding loans to one of three
stages with the stage corresponding to the individual loan’s estimated repayment performance. The
estimated repayment performance is informed by the Group’s records, including the customer’s history
with Klarna and purchase behavior from active Klarna consumers, merchant data, credit bureau reports
and open banking data. Klarna defines the stages as follows:
Stage 1: New loan origination that is not credit impaired at origination. A loan remains in Stage 1 unless
there is a significant increase in credit risk (“SICR”), such as when a loan becomes 30 days or more past
due or if the consumer has other loans that are in Stage 2 or 3. While a consumer could have a loan that
did not experience SICR, if they have a loan in Stage 2 or 3, Klarna applies a more prudent approach to all
loans for the consumer as part of its risk management practices. A loan may also be transferred back to
Stage 1 if credit risk has significantly improved and it is not delinquent 30 or more days. For Stage 1 loans,
the allowance is calculated based on 12-month ECL.
Stage 2: Loan with an observed significant increase in credit risk since origination. Klarna defines
significant increase in credit risk as a loan with an outstanding balance more than 30 days overdue. The
allowance for these loans is calculated based on Lifetime ECL. Stage 2 also includes loans that are
reclassified from Stage 3 because they are no longer considered credit impaired.
Stage 3: Loan considered credit impaired. A loan is defined as credit impaired if it is 90 days past due
or is classified as fraudulent. The allowance for Stage 3 loans is calculated based on Lifetime ECL. A loan
may be reclassified from Stage 3 if it is no longer considered credit impaired.
Settlement and trade receivables
For settlement and trade receivables, Klarna estimates credit losses using the Lifetime ECL model.
Each counterparty is subject to a credit risk assessment at onboarding and periodically throughout its
relationship with Klarna. Based on the credit risk assessment, a counterparty is assigned a risk
classification that correlates to a probability of default. For higher risk counterparties, Klarna extends
settlement windows for payments to the counterparties to serve as collateral for their non-performance if
a consumer returns products. 
When a settlement and trade receivable is determined to be uncollectible, the gross amount is written
off through the allowance for expected credit losses for settlement and trade receivables in general and
administrative on the consolidated statements of profit or loss. Recoveries of trade receivables that were
previously written off are recognized when received in general and administrative on the consolidated
statements of profit or loss. See Note 7 for information on written-off and recovered settlement and trade
receivables.
Significant inputs
Klarna utilizes a series of models to calculate allowance estimates, which depend on certain significant
inputs.
Definition of default
An asset is considered to be in default when it is 90 days or more past due on any payments, has
entered debt collection or is classified as fraudulent.
Probability of Default (“PD”) 
Historical balances as well as the proportion of those balances that have defaulted over time are used
as a basis to determine the PD. This approach provides values for 12-month and lifetime PDs applied over
different vintages for different countries and for days since origination. In cases where the maturity of the
loans is very short (i.e., less than 12 months), which is common for Klarna’s products, the 12-month PD and
lifetime PD have equal values.
Loss Given Default (“LGD”)
LGD is the magnitude of the likely loss if there is a default. The LGD is dependent on geographical
region, days past due, and, in some cases, recoveries from the sale of non-performing portfolios. The loss
given default is calculated using the historical balances over different vintages as a basis. Furthermore, the
LGD component is determined based on days past due.
Exposure at Default (“EAD”)
EAD represents the estimate of the exposure at a future default date, taking into account expected
changes in the exposure as of each reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise.
Measurement of ECL
Expected credit loss estimates are based on these key inputs: PD, LGD and the EAD, which are derived
from internal statistics and other external data. PD and LGD estimates are an accumulation of
segmentation, such as product and geography, within each asset class, which are used to calculate the
ECL on a collective basis. For unsecured assets, there is no collateral factored into the ECL calculations.
For quantitative information on the reported ECL amounts see Note 6 and Note 7.
Write-off of financial assets
Consumer receivables and settlement and trade receivables are written off when either the entire
outstanding amount or a proportion thereof are considered uncollectible, which is generally when an
outstanding balance is 180 days past due. For consumer receivables and settlement and trade receivables,
Klarna monitors significant counterparty relationships for current information and events to assess if there
is a risk the counterparty is experiencing financial difficulty or is in breach of contract.
If a loan or receivable is determined to be uncollectible, the gross amount will be charged off through
the allowance for expected credit losses. Charged-off balances may still be subject to enforcement
activities to attempt to recover the amounts due. When enforcement activities are exhausted or the loan
or receivable is sold to an external party, the loan or receivable is formally written off in Klarna’s systems. 
For information on the written-off consumer receivables and settlement and trade receivables,
including those subject to enforcement activities, see Note 6 and Note 7, respectively.
Sale of uncollectible consumer receivables
Klarna enters into agreements to sell certain uncollectible receivables to debt collection agencies to
maximize recovery and manage credit risk. These uncollectible receivables are sold on a non-recourse
basis, with the Group transferring substantially all risks and rewards of ownership to the debt collection
agencies meeting the derecognition criteria on the date of sale. When a receivable is deemed to be
uncollectible it is written down to the recoverable amount. 
Recoveries
Recoveries for consumer receivables that were previously written off are recognized when received in
provisions for credit losses on the consolidated statements of profit or loss. Recoveries of consumer
receivables that were previously written off were not material in 2025, 2024 and 2023.
Commitments Commitments
Klarna enters into certain arrangements that create commitments to purchase certain consumer loans
originated by partner banks in the United States (“Loan funding commitments”). Upon purchase of these
consumer loans, Klarna recognizes them on the consolidated balance sheet. Klarna may also provide
consumers with committed credit limits or other committed financing arrangements. Amounts drawn
under these commitments are recognized on the consolidated balance sheet. Amounts committed under
these arrangements that are not yet recognized are disclosed in Note 19.
Structured entities Structured entities
A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding
who controls the entity, such as when any voting rights may relate to administrative tasks only, with the
relevant activities of the entity being directed by means of contractual arrangements. Structured entities
are generally created to achieve a narrow and well-defined objective with restrictions around their ongoing
activities.
Klarna consolidates such structured entities when we determine that we control the structured entity
in accordance with IFRS 10. In the case of structured entities, this determination involves judgment,
particularly as voting rights are often not the determining factor in decisions over the relevant activities.
This judgment involves assessing the purpose and design of the entity, and whether we have power over
the relevant activities and exposure, or rights, to variable returns, and the ability to use its power over the
investee to affect the amount of the  returns. In determining this, we also assess whether we are acting as
a principal or as an agent on behalf of others.
Warehouse financing facility and synthetic securitizations
Klarna enters into transactions with securitization vehicles (“SPVs”), where it economically transfers a
portion of credit risk for certain pools of consumer receivables (the “Referenced Pools”) with the primary
objective to lower the regulatory capital risk weights of the underlying assets.
In certain transactions, Klarna enters into synthetic securitizations with unconsolidated SPVs. in which
credit risk for each Referenced Pool is separated into three tranches: junior, mezzanine and senior. In
these structures, Klarna retains the junior and senior tranches and transfers the credit risk associated with
the mezzanine tranche to an unconsolidated SPV, which issues credit-linked notes (“CLNs”) to investors.
Klarna pays a fee to the SPVs for the transfer of credit risk, which is recognized as incurred in funding
costs, see Note 17. This fee provides for a guarantee from the SPV to reimburse the Company for any
credit losses incurred within transfers of the credit risk associated with the mezzanine tranche.
In other transactions, Klarna enters into arrangements with consolidated SPVs, typically through 
warehouse financing facilities with an institutional lender, as the funder, and Klarna Bank AB, a subsidiary
of Klarna Group plc, as the borrower. In these structures, the SPV issues CLNs to the funder and advances
the proceeds to Klarna, which in turn pledges Referenced Pools as collateral. Credit risk for the Reference
Pool is separated into two tranches: a junior tranche retained by Klarna and a senior tranche transferred to
the funder through the consolidated SPV.
The CLNs are recognized within Notes Payables and Other Borrowings and are classified and
measured at amortized cost using the effective interest method. Interest and senior expenses related to
the facility are recognized within funding costs, see Note 17.
In both structures, Klarna retains the contractual rights to the cash flows and substantially all of the
associated risks and rewards of ownership of the receivables within the Reference Pool. Accordingly, the
receivables are not derecognized and continue to be recognized in the statement of financial position.
Should the Company experience credit losses exceeding the retained tranche and fall within the
transferred tranche, it would be entitled to recoveries consistent with that contractual reimbursement
right. The Company’s estimated credit losses for the Reference Pools was below the contractual range of
the transferred tranches for the periods presented. Accordingly, no claims have been made against the
SPVs in respect of the reporting periods.
Forward flow securitization
Klarna enters into forward flow loan sale arrangements with unconsolidated SPVs whereby specified
pools of consumer receivables (“Eligible Receivables”) are transferred to the SPVs.
Klarna classifies the Eligible Receivables into either fair value through OCI (“FVOCI”), or fair value
through profit or loss (“FVTPL”) on the basis of both (a) Klarna’s business model for managing the assets,
and (b) the contractual cash flow characteristics of the financial assets.
Eligible Receivables classified and measured at FVOCI are subsequently remeasured at fair value and
changes therein are recognized in other comprehensive income, except for interest income, impairment,
and foreign exchange, until the assets are sold. Interest income is recognized using the effective interest
method, in the same manner as for financial assets measured at amortized cost, until derecognition
requirements are met. Eligible Receivables classified and measured at FVTPL are subsequently
remeasured at fair value and changes therein are recognized in the statements of profit or loss.
Expected credit losses (“ECL”) on Eligible Receivables measured at FVOCI do not reduce the carrying
amount of the financial assets, which remain at fair value. Instead, the ECLis recognized in other
comprehensive income as an accumulated impairment amount, with a corresponding charge to profit or
loss.
Klarna derecognizes receivables upon transferring the contractual rights to the cash flows and
substantially all associated risks and rewards. The transfers are deemed to occur on the sale date, at
which point, the derecognition criteria are satisfied.
Upon disposal of Eligible Receivables measured at FVOCI, the cumulative gains or losses previously
recognized in other comprehensive income, including the accumulated impairment amount are
reclassified from other comprehensive income to the statements of profit or loss. Upon disposal of Eligible
Receivables measured at FVTPL, gains and losses are recognized in the statements of profit or loss.
Gains and losses from disposals of Fair Financing receivables are recognized within revenue as Gain
on sale of consumer receivables, and losses from disposals of Pay Later receivables are recognized within
Funding costs, reflecting the nature and underlying characteristics of the sold eligible receivables. See
Note 4 and Note 17.
Klarna may continue to service certain sold receivables on behalf of the SPVs in exchange for
receiving a servicing income from providing professional services such as cash flow collection and credit
risk management in the event of customer defaults. We recognize this servicing fee within Transaction and
service revenue. The servicing fee is typically calculated daily by applying a fixed percentage to the
outstanding loan principal balance. The servicing fee represents a fair market fee, and no servicing asset
or liability is recognized in the financial statements. See Note 4.
Fair value measurement Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the
most advantageous market to which Klarna has access at that date.
When available, Klarna measures fair value using the quoted price in an active market. If a quoted price
in an active market is not available, the Group uses valuation methods that maximize the use of relevant
observable inputs and minimize the use of unobservable inputs to determine fair value.
The fair value of a financial instrument on initial recognition is generally best evidenced by its
transaction price (i.e., the fair value of consideration paid or received). If Klarna determines that the
transaction price differs from the fair value and the fair value is not evidenced by a quoted price in an
active market for an identical asset or liability nor based on a valuation method where unobservable inputs
are considered to be insignificant in relation to the difference, then the financial instrument is initially
measured at fair value, adjusted to defer the difference between the fair value on initial recognition and
the transaction price. Subsequently, that difference is recognized in profit or loss on an appropriate basis
over the life of the instrument but no later than when the valuation is wholly supported by observable
market data or the transaction is settled.
All assets and liabilities for which fair value is measured or disclosed in these consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole.
Level 1
Level 1 in the fair value hierarchy consists of assets and liabilities where the inputs used in the
valuation are unadjusted quoted prices from active markets for identical assets or liabilities.
Level 2
Level 2 consists of assets and liabilities where the significant inputs used for valuation are derived
from directly or indirectly observable market data available over the entire period of the instrument’s life.
Such inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for
identical instruments in inactive markets and observable inputs other than quoted prices such as interest
rates and yield curves, implied volatilities and credit spreads.
Level 3
Level 3 includes estimated values based on assumptions and assessments where one or more
significant inputs are not based on observable market information.
Klarna recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Repurchase agreements Repurchase agreements
Repurchase agreements are used to obtain liquidity and fluctuate over time based on many factors,
including market conditions, consumer receivables and consumer deposit growth and balance sheet
management activities.
Treasury bills and other interest-bearing securities that are sold under agreements to repurchase at a
specified future date are not derecognized from the balance sheet as Klarna retains substantially all of the
risks and rewards of ownership. Assets under repurchase agreements are transferred to the counterparty,
and the counterparty has the right to sell or re-pledge the assets. Such securities are kept on the balance
sheet and pledged as collateral when the securities have been transferred and cash consideration has
been received. Payment received is recognized under notes payable and other borrowings. The difference
between the sale and repurchase price is accrued over the life of the agreement using the effective
interest method and recognized within funding costs in the consolidated statements of profit or loss.
Derivative instruments and hedge accounting Derivative instruments and hedge accounting
Derivative instruments are recognized in the balance sheet on their trade date and are measured at
fair value, both initially and in subsequent periods. Derivative instruments are presented in other assets or
notes payable and other borrowings. Changes in the fair value of derivative instruments are included in
funding costs in the consolidated statements of profit or loss.
The Group uses hedge accounting for fair value hedges to manage the interest rate risk of liabilities.
Changes in the fair value of derivatives that are designated and qualify as fair value hedging
instruments are included in funding costs, together with any changes in the fair value of the hedged
liability that are attributable to the hedged risk. Any residual mismatch between the hedging instrument
and the hedged item is recognized as ineffective.
When hedging interest rate risk, any interest accrued or paid on both the hedging instrument and the
hedged item is included in funding costs. If the hedge no longer meets the criteria for hedge accounting,
the adjustment to the carrying amount of a hedged item for which the effective interest method is used is
amortized to the consolidated statements of profit or loss over the period for which the item was hedged.
If the hedged item is sold or repaid, the unamortized fair value adjustment is recognized immediately in
funding costs.
Consumer deposits Consumer deposits
Consumer deposits are initially recorded at fair value and then at amortized cost and with application
of the effective interest method. Where a consumer deposit is in a qualifying fair value hedge relationship,
its carrying value is adjusted for changes in fair value attributable to the hedged risk. All consumer
deposits are interest-bearing.
Klarna offers certain consumer deposit arrangements under which funds are held on behalf of
consumers by third-party financial institutions. Under these arrangements, consumer deposit balances
that are not controlled by Klarna are not recognized in the consolidated balance sheet.
Payables to merchants Payables to merchants
Payables to merchants arise when Klarna facilitates payment transactions for merchants and holds the
corresponding funds on their behalf. The settlement cycle is dependent on the counterparty, but is usually
within a few working days of the transaction. As a result, Klarna records a liability towards the merchant,
representing the money owed to them. Payables to merchants are recognized at amortized cost. On
settlement, the Group derecognizes these amounts from the balance sheet.
Leasing Leasing
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. The length of a lease term includes options to extend or terminate the lease when it is
reasonably certain that the Group will exercise those options. The Group applies judgment in evaluating
whether it is reasonably certain to exercise extension or termination options. For most leases, the Group
has determined that the lease term does not include additional periods after the initial period.
A right-of-use asset and a lease liability are recognized at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
initial direct costs, incentive payments, restoration costs and lease payments before the commencement
date. The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the remaining lease payments that are
not paid at the commencement date. As most leases do not provide an implicit interest rate, the Group
uses the incremental borrowing rate at the lease commencement date in determining the present value of
lease payments.  
The lease liability is remeasured when there is a change in future lease payments arising, for example,
from a change in an index or rate, a reassessment of extension, termination or purchase options, or a
change in the amount expected to be payable under a residual value guarantee. If a remeasurement of the
lease liability occurs, a corresponding adjustment to the carrying amount of the right-of-use asset is made.
Lease payments included in the measurement of the lease liability are fixed payments, variable lease
payments that depend on an index or rate, amounts expected to be payable under a residual value
guarantee and the exercise price under a purchase option, if applicable. The Group excludes payments for
related services and other components of a lease. The Group presents right-of-use assets in property and
equipment and lease liabilities in other liabilities in the balance sheet.
The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases
and leases of low-value assets, primarily relating to IT equipment and short-term office rentals. Payments
for such leases are recognized as an expense on a straight-line basis over the lease term.
Business combinations Business combinations
Business combinations are accounted for using the acquisition method. Identifiable assets acquired
and liabilities assumed are measured initially at their fair values at the acquisition date. The excess of the
consideration transferred and the acquisition-date fair value of any previous equity interest in the
acquiree, over the fair value of the identifiable net assets acquired is recognized as goodwill. Acquisition-
related costs, other than those incurred for the issuance of debt or equity instruments, are charged to the
consolidated statement of profit or loss as they are incurred.
Divestitures Divestitures
Non-current assets or disposal groups are classified as held for sale when their carrying amount is
expected to be recovered principally through a sale transaction rather than through continuing use. The
classification is made when the asset or disposal group is available for immediate sale in its present
condition, and the sale is highly probable within one year. Upon such classification, the assets or disposal
group are measured at the lower of their carrying amount and fair value less costs to sell.
The gain or loss on divestment is determined as the difference between the consideration received,
net of transaction costs, and the carrying value of the net assets disposed of. The gain or loss is
recognized within other income (expense) in the statements of profit or loss. Where goodwill has been
allocated to the disposed operation, typically measured based on the relative values of the disposed
operation, such goodwill is included in the carrying amount of the operation when determining the gain or
loss on disposal.
An operation is classified as discontinued when it represents a separate major line of business or
geographical area of operations that either has been disposed of or is classified as held for sale.
For foreign operations, cumulative foreign currency translation differences previously recognized in
other comprehensive income are reclassified to the statements of profit or loss upon divestment. This
reclassification is included as part of the gain or loss on disposal.
Goodwill and intangible assets Goodwill and intangible assets
Goodwill
Goodwill represents the excess of consideration paid over the fair value of the identifiable net assets
acquired in a business combination. Goodwill is not amortized but is reviewed for impairment annually and
more frequently if an event occurs or circumstances change that would more likely than not reduce the
fair value of a reporting unit below its carrying value. Impairment of goodwill is not reversed. The Group
monitors goodwill for impairment considerations at the operating segment level. In the event of a disposal
that qualifies as a business, or where there is a significant reorganization of the business, goodwill is
allocated based upon relative fair values.
Trademarks, tradenames, licenses and other customer-related intangible assets
Identifiable intangible assets following business combinations include trademarks, tradenames,
licenses, developed technology and customer relationships. Acquired intangible assets are recorded at
fair value on the date of acquisition and amortized over their estimated useful lives, generally 3-20 years.
The Group reviews the carrying amounts of intangible assets for impairment at the asset group level
whenever events or changes in circumstances indicate that the carrying amount of the asset group may
not be recoverable.
Capitalized development costs
Costs associated with IT systems, software and licenses, whether developed internally or acquired, are
recognized as intangible assets when the following criteria are met:
It is technically feasible to complete the intangible asset so that the asset will be available for use
or sale;
Adequate resources are available to complete the development;
There is an intention to complete and use the intangible asset for the provision of services;
Use of the intangible asset will generate probable future economic benefits; and
Expenditures attributable to the intangible asset can be measured reliably.
Depreciation is computed using the straight-line method over the estimated useful lives of the
depreciable capitalized development costs and licenses (generally, 3-5 years) and reported within
depreciation, amortization and impairments and in technology and product development in the
consolidated statements of profit or loss depending on the nature of the assets. Costs related to
development activities that do not satisfy the above criteria, including for maintenance, are expensed as
incurred.
Impairment
Goodwill is tested for impairment annually. This is tested by estimating the recoverable amount, which
is the higher of the fair value less costs of disposal and the value in use. If the recoverable amount is lower
than the carrying amount, the asset is written down. See Note 11 for further information on the
measurement of goodwill and significant assumptions used in the annual impairment test.
Intangible assets with finite useful lives undergo impairment testing whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
Property and equipment Property and equipment
Property and equipment is stated at historical cost less accumulated depreciation and impairment.
Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable
assets, generally, by applying the following useful lives to each class of property and equipment:
Equipment, tools and fixtures and fittings ...............................
5 years
Computers and other machinery ..............................................
3 years
Leasehold improvements............................................................
The shorter of lease term and useful life
If there is an indication that the recoverable value is less than the carrying amount, an impairment
review is completed and any impairment loss is recognized within depreciation, amortization and
impairments in the consolidated statements of profit or loss. The cost and accumulated depreciation for
property and equipment that is sold, retired or otherwise disposed of are derecognized and the resulting
gains or losses are recorded in the consolidated statements of profit or loss.
Treasury shares Treasury shares
Shares in the Company that are held by wholly owned subsidiaries or other Group entities are
classified as treasury shares. Amounts paid to repurchase the Company’s own shares, including any
directly attributable incremental costs (net of related income tax effects), are recognized as a deduction
from equity. The repurchased shares are presented as treasury shares and remain deducted from equity
until they are either cancelled or reissued. These shares are deducted from the issued and weighted
average number of shares in calculating earnings per share. Dividends received on treasury shares are
eliminated on consolidation, and no gain or loss is recognized in profit or loss or other comprehensive
income on the purchase, sale, reissue, or cancellation of such shares.
Revenue Recognition Revenue Recognition
Transaction and service revenue
Revenue is recognized when control of the promised goods or services is transferred to customers, in
an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods
or services. The product offerings from which revenues are recognized do not differ in any significant way
between geographical markets.
Transaction revenue
Transaction revenue includes merchant revenue and advertising revenue. Merchant revenue refers to
fees paid by our merchants, generated when consumers transact on our network. It includes merchant
fees, interchange revenue and fees for settling disputes. Merchant revenue is derived from the volume of
transactions we process multiplied by the fees we charge, which vary among our geographies. Our pricing
is a combination of value-based and fixed pricing, charged either ad valorem (proportional to the
estimated value of goods and services purchased on our network) or fixed fees on each transaction, or a
mix of both. Where consumers return merchandise or goods and merchants process a refund, merchant
fees charged for the original transaction are not returned to the merchant.
Our contracts with merchants consist of a master agreement including terms, conditions and pricing. 
We are not obligated to perform under the contract until a transaction occurs and thus each transaction
represents a separate performance obligation to the merchant as our customer. Our service offering
comprises a single performance obligation to merchants to facilitate transactions with consumers. The
transaction price is recognized at the point in time when the merchant successfully confirms the
transaction, which is when the terms of the contract are fulfilled. We provide a reduction of merchant fees
to certain merchants based on performance measures, including volume of processed transactions. The
nature of our contracts may give rise to variable consideration, which may be constrained. We estimate the
expected transaction volumes at the beginning of the period and include the estimated rebates in the
transaction price as a reduction of merchant revenue. We also enter into contracts with certain merchants
to expand our user base and market presence and for brand promotion through co-marketing activities, as
detailed in section Promotional and marketing arrangements below.
Advertising revenue is earned from merchants who place advertisements on our network, including
sponsored search, affiliate programs and brand ads. We enter into contracts for advertising either directly
with merchants or through other third parties. The transaction price is determined based on the
advertising model, with fees that may be fixed or variable, typically based on the number of impressions
delivered or actions taken by users, such as clicks or purchases. Revenue from impression-based ads is
recognized in the period when an ad is displayed to users. For action-based ads, revenue is generally
recognized at a point in time, when a specified action, such as a click or purchase, occurs.
Our contracts for advertising services are separate from other merchant contracts and include a single
performance obligation. For advertising revenue generated through other third parties, we recognize
revenue on a gross basis if we are the principal and on a net basis if we are the agent. This assessment is
based on whether we control the service before it is delivered to the customer.
Consumer service revenue
Consumer service revenue refers to revenue we earn from consumer fees, primarily consisting of
certain administrative fees, including reminder fees and fees for issuing one-time cards. Consumers may
be charged a fee, being a fixed amount that constitutes the transaction price and recognized at the point
in time that the consumer is charged. This fee income is earned in relation to the Company’s ordinary
activities.
Consumer service revenue also includes subscription revenue. Subscription revenue represents
monthly subscription fees related to a single performance obligation for a bundle of services and are
recognized over the subscription period as those services are provided.
Distribution partner referral arrangements
We enter into contracts with third-party partners to distribute our payment solutions to our merchants.
For these contracts, we evaluate who our customer is and if we are acting as the principal or agent in the
specific arrangement. Generally, our customer is considered to be the merchant and we are considered to
be the principal in these arrangements, while third-party partners are determined to be an agent in the
transaction. We recognize incremental costs of obtaining a contract in accordance with IFRS 15 “Revenue
from Contract with Customers” for the commission paid to these third-party partners. These expenses are
classified within sales and marketing expenses in the consolidated statements of profit or loss. During
2025, 2024 and 2023, the Company recognized $109 million, $81 million and $59 million, respectively,
related to these commissions within sales and marketing expenses.
Promotional and marketing arrangements
We enter into contracts with certain merchants and other partners to expand our user base and
market presence, and for brand promotion through co-marketing activities, in which Klarna provides cash,
share warrants, or both as consideration. We evaluate if the consideration payable is in exchange for a
distinct good or service. Where the payment is for a distinct good or service, it is recognized as sales and
marketing expenses. If a payment is not for a distinct good or service, it is recognized as a reduction of the
transaction price. We recognize the expense of such services as incurred.  When the consideration
represents a payment against which economic benefits are expected to be realized over a future period,
we recognize a commercial agreement asset. These assets are amortized over the period of the contract
for when the services are expected to be provided, which is typically between 3-5 years.
We also offer promotions to consumers, including cashback, with the purpose of acquiring new
consumers, promoting the Klarna brand, the use of the Klarna app and payment options. These promotions
typically represent a reduction on the total amount collected from consumers. Where we assess there is
no explicit or implicit expectation for promotions to be provided, we recognize within sales and marketing
expenses. Where we assess there is an expectation, the cost of the promotion is recognized as a reduction
in the revenue earned from the transaction, with any excess of the cost of the promotion above the
revenue recognized within sales and marketing expenses.
Interest income
Interest income includes interest earned when consumers choose to spread the cost of transactions
over time through one of our interest-bearing financing products or to delay the cost of transactions with
our payment flexibility features, such as “snooze.” We also recognize interest income related to
incremental fees earned from certain merchants for providing interest-free promotional loans to their
consumers.
Interest income on financial assets measured at amortized cost, as well as “snooze” fees charged, is
recognized in profit or loss using the effective interest method.
Interest income also includes interest from debt securities. See Note 8.
From time to time, we may enter into contracts with merchants under which we pay a fee for their role
as intermediary in arranging a consumer financing facility. We recognize such fees as a reduction of
interest income. During 2025, 2024 and 2023, the Group recognized $12 million, $10 million and $13 million
as a reduction of interest income, respectively.
Operating expenses Operating expenses
Processing and servicing costs
Processing and servicing costs primarily consist of the following and include cost of fulfilling a
contract: authentication costs to verify user identities, scoring costs related to purchasing credit and fraud
data from various bureaus, distribution costs related to direct communication with consumers,
commissions paid to third parties for debt collection and payment fees to credit card companies and
financial institutions. Processing and servicing costs are expensed as incurred. 
Provision for credit losses
Impairment losses from consumer receivables are reported as Provision for credit losses.
Provision for credit losses for the period consist of realized credit losses, provisions for credit losses
for granted credit, less reversal of provisions for credit losses made previously. Realized credit losses are
losses whose amount is, for example, determined via bankruptcy, a composition arrangement, a statement
by an enforcement authority or the sale of receivables.
Funding costs
Funding costs include interest that we pay on our consumer deposits, calculated using the effective
interest method, and securitization costs, including fair value adjustments on Pay Later receivables held at
fair value through profit and loss related to forward flow agreements, and premiums paid in connection
with our synthetic securitization transactions.
Technology and product development
Technology and product development expenses primarily consist of personnel-related costs for
technology functions as well as other expenses, including hosting, software licenses, external service
providers, hardware costs and amortization of internally developed and acquired technology assets.
Sales and marketing
Sales and marketing expenses primarily consist of personnel costs, general marketing and promotional
activities costs, referral commissions, costs related to sponsorships and partnerships, and costs related to
consumer promotional programs.
Customer service and operations
Customer service and operations expenses primarily consist of personnel costs for customer support
functions and outsourced assistance to help with purchases, account management, returns and merchant
disputes.
General and administrative
General and administrative expenses consist of personnel costs for directors and executives, legal and
human resources, and finance functions, lease expenses related to short-term leases, low-value assets,
and variable lease expenses, professional services costs and merchant and other losses.
Income taxes Income taxes
Income taxes consist of current tax and deferred tax. Income taxes are reported directly in the
consolidated statement of profit or loss except when the underlying transaction is reported directly
against equity or other comprehensive income, in which case the accompanying tax also is reported in
equity or other comprehensive income. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted at the reporting date in the countries where the Group operates
and generates taxable income.
Deferred tax is reported according to the balance sheet method for all taxable temporary differences
between an asset’s or a liability’s tax base and its carrying amount in the balance sheet. Deferred tax
assets are reported for deductible temporary differences to the extent it is probable that the taxable profit
will be available against which the deductible temporary difference can be utilized. Deferred tax assets
and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
The Group assesses on an ongoing basis as well as at the end of the year the possibility of recognizing
deferred tax assets related to tax losses carried-forward. Deferred tax assets attributable to tax losses
carried forward are reported only if it is probable that they will be used towards taxable profits in the
foreseeable future. Significant management judgment is required to determine the amount of deferred tax
assets that can be recognized, based upon the probability of taxable profits being available in the future
and the quantum of taxable profits that are forecasted to arise. These judgments include management’s
expectations of the growth of profit before tax in different jurisdictions, forecasted revenues and
expenses and the timing of the reversal of taxable temporary differences.
Uncertain tax positions are measured on an ongoing basis, and the method is determined by taking all
known facts and circumstances into account.
Share-based payments Share-based payments
Klarna offers equity-based programs to employees and certain third-party contributors, including
merchants, partners and service providers.
Employee Restricted Share Unit Program and Individual Contributor Share Warrants and Share Options
The Group grants share-based awards in the form of restricted share units (“RSUs”), share warrants
and options, to certain individual contributors, including employees, executive officers and directors.
Restricted share units granted to employees generally vest on a graded vesting schedule over a four years
period. The share warrants and options are subject to graded vesting over a term of typically four to five
years. These arrangements are equity-settled and are accounted for as equity-settled share-based
payments.
For share-based awards granted to certain individual contributors, including employees as well as
executive officers and directors, the services rendered are measured with reference to the grant-date fair
value of the equity instruments using a Black-Scholes model. The cost of the share-based payments
granted to employees is recognized over the vesting period, which represents the period the service
conditions are fulfilled.
The Group also grants ordinary shares through direct share issuances to employees, executive officers
and directors. The shares are accounted for as equity-settled share-based payments. Typically there are
no vesting conditions or restrictions placed on the awards and, accordingly, the related share-based
compensation expense, based on the grant-date fair value of the awards, is recognized immediately.
The share-based payment expenses related to awards granted to individual contributors, including
employees, executive officers and directors are recognized under technology and product development,
sales and marketing, customer service and operations or general and administrative expenses depending
on the function of the related employee or individual contributor in the consolidated statements of profit
or loss. The employment vesting condition is a non-market based condition and a forfeiture estimate is
factored into the assumption of how many equity instruments are expected to vest.
Any related social security charges relating to share-based payments are recognized as an expense
during the corresponding period based on the fair value that serves as the basis for a payment of social
security charges. The expense is recognized under the function of the related employee or individual
contributor in the consolidated statements of profit or loss. In many jurisdictions, tax authorities levy taxes
on share-based compensation transactions with employees that give rise to a personal tax liability for the
employee. In some cases, Klarna is required to withhold the tax due and to settle it with the tax authority
on behalf of the employees. To fulfill this obligation, the terms of Klarna’s restricted share unit
arrangements permit the Group to withhold the number of shares that are equal to the monetary value of
the employee’s tax.
Partner Share Warrants
Klarna has granted share warrants to certain partners, including merchants and other service
providers, in return for services. Share-based payments to partners are generally measured at the fair
value of the goods or services received and measured at the time when such goods and services are
received. If the fair value of goods and services cannot be reliably measured, the fair value of the equity
instruments is used. We recognize commercial agreement assets where the consideration paid represents
a future economic benefit, and these assets are amortized over the relevant performance period within
the commercial agreement and recognized within sales and marketing expenses where the payment is in
exchange for a distinct service or as a reduction to transaction prices if in exchange for no distinct service.
Further information relating to share-based payment transactions is presented in Note 22
Provisions Provisions
The Group recognizes provisions for present obligations arising from past events when payment of the
obligations is probable and can be reliably estimated. Refer to Note 15 for information regarding the
Group’s provisions.
Klarna operates in a regulatory and legal environment that involves an element of litigation risk
inherent to its operations, and from time to time Klarna may be party to litigation, arbitration and regulatory
investigations and proceedings arising during the ordinary course of business. When Klarna can reliably
measure the outflow of economic benefits in relation to a specific case and considers such outflow to be
probable, a provision is recorded. Given the subjectivity and uncertainty of determining the probability and
amount, a number of factors are assessed, including legal advice, the stage of the matter and historical
evidence from similar incidents. Judgment is required in concluding such assessments.
Employee Benefits Employee Benefits
Employee benefits include all forms of consideration provided by the Group in exchange for services
rendered by employees, including post-employment pension plans. The Group’s pension plans are defined
contribution plans, which means that contributions are made to an independent legal entity according to a
fixed pension plan. These contributions are recognized as personnel costs in the period they apply to.
After the contributions are made, the Group has no legal or other obligations. Employee benefits expenses
are composed of:
2025
2024
2023
Salaries and other remuneration ..................................................................
$(417)
$(393)
$(379)
Statutory and contractual social security expenses ................................
(102)
(113)
(109)
of which: pension expenses ...........................................................................
(25)
(25)
(26)
Total employee benefits ....................................................................................
$(520)
$(506)
$(488)
v3.25.4
Accounting principles (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure Of Significant Accounting Policies [Abstract]  
Schedule of useful lives or depreciation rates, property, plant and equipment Property and equipment is stated at historical cost less accumulated depreciation and impairment.
Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable
assets, generally, by applying the following useful lives to each class of property and equipment:
Equipment, tools and fixtures and fittings ...............................
5 years
Computers and other machinery ..............................................
3 years
Leasehold improvements............................................................
The shorter of lease term and useful life
Schedule of employee benefits
2025
2024
2023
Salaries and other remuneration ..................................................................
$(417)
$(393)
$(379)
Statutory and contractual social security expenses ................................
(102)
(113)
(109)
of which: pension expenses ...........................................................................
(25)
(25)
(26)
Total employee benefits ....................................................................................
$(520)
$(506)
$(488)
v3.25.4
Risk management and management of capital (Tables)
12 Months Ended
Dec. 31, 2025
Risk Management and Management of Capital [Abstract]  
Disclosure of nature and extent of risks arising from financial instruments The table below shows the net average currency exposure and the effects of a 10% change in
foreign exchange rates on the exposure of the group as of the end of the period.
December 31, 2025
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
11
22
13
12
58
Effect of 10% change ......................................
(1)
(2)
(1)
(1)
(6)
December 31, 2024
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
18
14
10
22
63
Effect of 10% change ......................................
(2)
(1)
(1)
(2)
(6)
December 31, 2023
EUR
USD
GBP
Other
Total
Exposure
Net average currency exposure ...................
29
11
4
28
72
Effect of 10% change ......................................
(3)
(1)
(3)
(7)
The table below shows the change in the EVE after applying a parallel shift to the yield curve.
December 31, 2025
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
10
(28)
10
6
1
(1)
200 bps parallel shift in interest
rates ......................................................
(10)
26
(9)
(6)
(1)
1
December 31, 2024
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
4
(34)
3
6
1
(20)
200 bps parallel shift in interest
rates ......................................................
(4)
32
(2)
(6)
(1)
19
December 31, 2023
SEK
EUR
USD
GBP
Other
Total
Exposure
-200 bps parallel shift in interest
rates ......................................................
5
(43)
5
4
(29)
200 bps parallel shift in interest
rates ......................................................
(5)
41
(5)
(4)
27
Disclosure of maturity analysis for non-derivative financial liabilities The tables below show the undiscounted funding obligations including interest by contractual maturity:
December 31, 2025
<12 months
1-5 years
>5 years
Total
Consumer deposits ............................................................
$11,043
$2,294
$
$13,337
Notes payable and other borrowings .............................
450
876
240
$1,565
Lease liabilities ...................................................................
26
54
5
85
Total ......................................................................................
$11,518
$3,224
$245
$14,987
December 31, 2024
<12 months
1-5 years
>5 years
Total
Consumer deposits ............................................................
$7,681
$2,109
$
$9,790
Notes payable and other borrowings .............................
234
219
245
698
Lease liabilities ...................................................................
23
61
9
93
Total .......................................................................................
$7,938
$2,389
$254
$10,581
v3.25.4
Operating segments (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of operating segments [abstract]  
Disclosure of geographical areas
2025
2024
2023
Geographical breakdown
United States .....................................................................................................
$1,243
$850
$609
Germany .............................................................................................................
848
755
620
United Kingdom .................................................................................................
442
348
268
Other countries .................................................................................................
976
858
779
Revenue ...............................................................................................................
$3,509
$2,811
$2,276
Klarna’s non-current assets, composed of property and equipment, goodwill, intangible assets and
other assets that are expected to be recovered more than twelve months after the reporting period: 
December 31,
2025
December 31,
2024
December 31,
2023
Non-current assets
Sweden ...............................................................................................................
$1,284
$412
$1,017
Germany .............................................................................................................
180
194
234
United States .....................................................................................................
100
101
155
United Kingdom .................................................................................................
199
167
151
Other countries .................................................................................................
232
326
200
Total non-current assets ...................................................................................
$1,995
$1,200
$1,757
Disclosure of disaggregation of revenue The following table presents Klarna’s revenue disaggregated by category:
2025
2024
2023
Transaction revenue ........................................................................................
$2,103
$1,792
$1,531
Consumer service revenue ............................................................................
397
344
237
Gain on sale of consumer receivables .........................................................
73
0
0
Interest income .................................................................................................
937
675
508
Revenue ..............................................................................................................
$3,509
$2,811
$2,276
Disclosure of disaggregation of interest income The following table presents Klarna’s interest income by category:
Interest income
2025
2024
2023
Fair Financing ....................................................................................................
$617
$383
$318
"Snooze" fees ....................................................................................................
161
128
96
Debt securities ..................................................................................................
134
144
75
Incremental merchant fees ............................................................................
25
20
19
Interest income ..................................................................................................
$937
$675
$508
v3.25.4
Cash and cash equivalents (Tables)
12 Months Ended
Dec. 31, 2025
Cash and cash equivalents [abstract]  
Disclosure of detailed information of cash and cash equivalents The Group’s cash and cash equivalents consisted of:
December 31,
2025
December 31,
2024
Cash held at central banks ...........................................................................................................
$2,578
$2,466
Treasury bills held at central banks ............................................................................................
543
272
Other bank deposits .......................................................................................................................
682
505
Total cash and cash equivalents ....................................................................................................
$3,803
$3,243
v3.25.4
Consumer receivables (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of financial assets [abstract]  
Disclosure of reconciliation of consumer receivables The below table summarizes consumer receivables for the years ended December 31, 2025
and 2024:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ..............................................................................
$4,604
$(272)
$4,332
Pay Later receivables ......................................................................................
6,347
(220)
6,127
Total .....................................................................................................................
$10,951
$(492)
$10,459
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ........................................................................
$3,085
$(131)
$2,954
Pay Later receivables ................................................................................
5,388
(201)
5,187
Total ...............................................................................................................
$8,473
$(332)
$8,141
The below
tables reconcile the Group’s classification of Fair Financing and Pay Later consumer receivables by stage
for the opening and closing balances:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$2,893
$140
$53
$3,085
New assets originated or purchased .............................
11,046
98
17
11,161
Assets repaid1......................................................................
(9,128)
(385)
(69)
(9,581)
Transfers to stage 1 ............................................................
473
(466)
(7)
Transfers to stage 2 ...........................................................
(1,151)
1,166
(15)
Transfers to stage 3 ...........................................................
(45)
(320)
364
Amounts written off ...........................................................
(26)
(21)
(203)
(249)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(2)
(11)
(23)
(36)
Other adjustments2 ............................................................
206
15
4
225
Gross carrying amount as of December 31, 2025 ............
$4,267
$216
$121
$4,604
____________
1  Assets repaid includes the sale of an existing portfolio of Fair Financing receivables within the period
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$5,059
$227
$102
$5,388
New assets originated or purchased .............................
55,477
69
13
55,559
Assets repaid ......................................................................
(53,591)
(1,049)
(183)
(54,823)
Transfers to stage 1 ............................................................
169
(164)
(5)
Transfers to stage 2 ...........................................................
(1,795)
1,797
(1)
Transfers to stage 3 ...........................................................
(25)
(623)
648
Amounts written off ...........................................................
(31)
(21)
(324)
(376)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(109)
(109)
Other adjustments1 ............................................................
673
27
8
708
Gross carrying amount as of December 31, 2025 ............
$5,936
$263
$149
$6,347
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2024 ..................
$7,753
$497
$144
$8,394
New assets originated or purchased .............................
55,836
163
18
56,017
Assets repaid ......................................................................
(52,841)
(1,730)
(242)
(54,813)
Transfers to stage 1 ............................................................
816
(799)
(17)
Transfers to stage 2 ...........................................................
(3,067)
3,080
(13)
Transfers to stage 3 ...........................................................
(19)
(784)
803
Amounts written off ...........................................................
(27)
(38)
(402)
(467)
Proceeds received from the sale of consumer
receivables ..........................................................................
(20)
(135)
(155)
Other adjustments .............................................................
(499)
(3)
(1)
(503)
Gross carrying amount as of December 31, 2024 ...........
$7,952
$366
$155
$8,473
The activity in the Group’s allowance for credit losses recognized for Fair Financing and Pay Later
consumer receivables, based on the above stage classifications, is detailed in the below table:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(69)
$(26)
$(36)
$(131)
New assets originated or purchased .............................
(318)
(20)
(11)
(349)
Assets repaid ......................................................................
227
66
52
345
Transfers to stage 1 ............................................................
(50)
46
4
Transfers to stage 2 ...........................................................
109
(117)
8
Transfers to stage 3 ...........................................................
1
182
(183)
Other movements in ECL allowance ..............................
(29)
(193)
(69)
(291)
Amounts written off ...........................................................
3
9
142
154
Other adjustments1 ............................................................
(1)
1
Allowance as of December 31, 2025 .................................
$(127)
$(52)
$(93)
$(272)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(77)
$(57)
$(67)
$(201)
New assets originated or purchased .............................
(383)
(19)
(7)
(409)
Assets repaid ......................................................................
455
126
116
697
Transfers to stage 1 ............................................................
(7)
3
4
Transfers to stage 2 ...........................................................
168
(169)
1
Transfers to stage 3 ...........................................................
1
345
(346)
Other movements in ECL allowance ..............................
(227)
(294)
(99)
(620)
Amounts written off ...........................................................
5
15
313
333
Other adjustments1 ............................................................
(8)
(6)
(6)
(20)
Allowance as of December 31, 2025 .................................
$(73)
$(56)
$(91)
$(220)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2024 .......................................
$(139)
$(87)
$(85)
$(311)
New assets originated or purchased .............................
(551)
(26)
(15)
(592)
Assets repaid ......................................................................
612
172
162
946
Transfers to stage 1 ............................................................
(54)
44
10
Transfers to stage 2 ...........................................................
178
(185)
7
Transfers to stage 3 ...........................................................
2
402
(404)
Impact on ECL from change in credit risk ....................
(215)
(419)
(143)
(777)
Amounts written off ...........................................................
4
20
365
389
Other adjustments .............................................................
19
(5)
(1)
13
Allowance as of December 31, 2024 .................................
$(144)
$(84)
$(104)
$(332)
Settlement and trade receivables are composed of:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables
454
(1)
453
Merchant receivables
92
(25)
67
Debt collection receivables
20
20
Other receivables
40
40
Total
606
(26)
580
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables ........................................................
$368
$
-
1
$368
Merchant receivables .......................................................................................
128
(17)
-
2
5
111
Debt collection receivables .............................................................................
8
0
8
Other receivables ...............................................................................................
6
0
6
Total .....................................................................................................................
$510
$(17)
$493
v3.25.4
Settlement and trade receivables (Tables)
12 Months Ended
Dec. 31, 2025
Trade and other receivables [abstract]  
Disclosure of reconciliation of trade receivables The below table summarizes consumer receivables for the years ended December 31, 2025
and 2024:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ..............................................................................
$4,604
$(272)
$4,332
Pay Later receivables ......................................................................................
6,347
(220)
6,127
Total .....................................................................................................................
$10,951
$(492)
$10,459
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Fair Financing receivables ........................................................................
$3,085
$(131)
$2,954
Pay Later receivables ................................................................................
5,388
(201)
5,187
Total ...............................................................................................................
$8,473
$(332)
$8,141
The below
tables reconcile the Group’s classification of Fair Financing and Pay Later consumer receivables by stage
for the opening and closing balances:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$2,893
$140
$53
$3,085
New assets originated or purchased .............................
11,046
98
17
11,161
Assets repaid1......................................................................
(9,128)
(385)
(69)
(9,581)
Transfers to stage 1 ............................................................
473
(466)
(7)
Transfers to stage 2 ...........................................................
(1,151)
1,166
(15)
Transfers to stage 3 ...........................................................
(45)
(320)
364
Amounts written off ...........................................................
(26)
(21)
(203)
(249)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(2)
(11)
(23)
(36)
Other adjustments2 ............................................................
206
15
4
225
Gross carrying amount as of December 31, 2025 ............
$4,267
$216
$121
$4,604
____________
1  Assets repaid includes the sale of an existing portfolio of Fair Financing receivables within the period
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2025 ..................
$5,059
$227
$102
$5,388
New assets originated or purchased .............................
55,477
69
13
55,559
Assets repaid ......................................................................
(53,591)
(1,049)
(183)
(54,823)
Transfers to stage 1 ............................................................
169
(164)
(5)
Transfers to stage 2 ...........................................................
(1,795)
1,797
(1)
Transfers to stage 3 ...........................................................
(25)
(623)
648
Amounts written off ...........................................................
(31)
(21)
(324)
(376)
Proceeds received from the sale of uncollectible
consumer receivables .......................................................
(109)
(109)
Other adjustments1 ............................................................
673
27
8
708
Gross carrying amount as of December 31, 2025 ............
$5,936
$263
$149
$6,347
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount as of January 1, 2024 ..................
$7,753
$497
$144
$8,394
New assets originated or purchased .............................
55,836
163
18
56,017
Assets repaid ......................................................................
(52,841)
(1,730)
(242)
(54,813)
Transfers to stage 1 ............................................................
816
(799)
(17)
Transfers to stage 2 ...........................................................
(3,067)
3,080
(13)
Transfers to stage 3 ...........................................................
(19)
(784)
803
Amounts written off ...........................................................
(27)
(38)
(402)
(467)
Proceeds received from the sale of consumer
receivables ..........................................................................
(20)
(135)
(155)
Other adjustments .............................................................
(499)
(3)
(1)
(503)
Gross carrying amount as of December 31, 2024 ...........
$7,952
$366
$155
$8,473
The activity in the Group’s allowance for credit losses recognized for Fair Financing and Pay Later
consumer receivables, based on the above stage classifications, is detailed in the below table:
Fair Financing receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(69)
$(26)
$(36)
$(131)
New assets originated or purchased .............................
(318)
(20)
(11)
(349)
Assets repaid ......................................................................
227
66
52
345
Transfers to stage 1 ............................................................
(50)
46
4
Transfers to stage 2 ...........................................................
109
(117)
8
Transfers to stage 3 ...........................................................
1
182
(183)
Other movements in ECL allowance ..............................
(29)
(193)
(69)
(291)
Amounts written off ...........................................................
3
9
142
154
Other adjustments1 ............................................................
(1)
1
Allowance as of December 31, 2025 .................................
$(127)
$(52)
$(93)
$(272)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Pay Later receivables
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2025 .......................................
$(77)
$(57)
$(67)
$(201)
New assets originated or purchased .............................
(383)
(19)
(7)
(409)
Assets repaid ......................................................................
455
126
116
697
Transfers to stage 1 ............................................................
(7)
3
4
Transfers to stage 2 ...........................................................
168
(169)
1
Transfers to stage 3 ...........................................................
1
345
(346)
Other movements in ECL allowance ..............................
(227)
(294)
(99)
(620)
Amounts written off ...........................................................
5
15
313
333
Other adjustments1 ............................................................
(8)
(6)
(6)
(20)
Allowance as of December 31, 2025 .................................
$(73)
$(56)
$(91)
$(220)
____________
Other adjustments are primarily driven by fluctuations in the USD foreign exchange rate.
Stage 1
Stage 2
Stage 3
Total
Allowance as of January 1, 2024 .......................................
$(139)
$(87)
$(85)
$(311)
New assets originated or purchased .............................
(551)
(26)
(15)
(592)
Assets repaid ......................................................................
612
172
162
946
Transfers to stage 1 ............................................................
(54)
44
10
Transfers to stage 2 ...........................................................
178
(185)
7
Transfers to stage 3 ...........................................................
2
402
(404)
Impact on ECL from change in credit risk ....................
(215)
(419)
(143)
(777)
Amounts written off ...........................................................
4
20
365
389
Other adjustments .............................................................
19
(5)
(1)
13
Allowance as of December 31, 2024 .................................
$(144)
$(84)
$(104)
$(332)
Settlement and trade receivables are composed of:
December 31, 2025
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables
454
(1)
453
Merchant receivables
92
(25)
67
Debt collection receivables
20
20
Other receivables
40
40
Total
606
(26)
580
December 31, 2024
Gross Carrying
Amount
Allowance for
ECL
Net Carrying
Amount
Payment service providers receivables ........................................................
$368
$
-
1
$368
Merchant receivables .......................................................................................
128
(17)
-
2
5
111
Debt collection receivables .............................................................................
8
0
8
Other receivables ...............................................................................................
6
0
6
Total .....................................................................................................................
$510
$(17)
$493
v3.25.4
Debt securities (Tables)
12 Months Ended
Dec. 31, 2025
Debt Securities1 [Abstract]  
Summary of debt securities in issue Debt securities are composed of:
December 31,
2025
December 31,
2024
Treasury bills chargeable at central banks ...............................................................................
$1,365
$401
Mandatory deposits at central banks .........................................................................................
93
42
Bonds and other interest bearing securities ............................................................................
60
11
Total ...................................................................................................................................................
$1,518
$454
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Presentation of leases for lessee [abstract]  
Disclosure of quantitative information about right-of-use assets The following table presents lease expenses and expenses for short-term and low-value leases
recognized in 2025, 2024 and 2023:
2025
2024
2023
Depreciation of right-of-use assets ..............................................................
(15)
(16)
(28)
Impairments of right-of-use assets ...............................................................
(16)
(6)
(32)
Interest expense for lease liabilities .............................................................
(2)
(3)
(4)
Total right-of-use lease cost .............................................................................
(33)
(25)
(64)
Expenses relating to short-term leases .......................................................
(9)
(10)
(7)
Total short-term and low-value leases ............................................................
(9)
(10)
(7)
v3.25.4
Divestitures (Tables)
12 Months Ended
Dec. 31, 2025
Divestitures [Abstract]  
Disclosure of analysis of single amount of disposed operation
October 1, 2024
Consideration received or receivable: ......................................................................................................................
Cash ...............................................................................................................................................................................
$195
Fair value of contingent consideration ...................................................................................................................
Less: transaction costs ..............................................................................................................................................
(4)
Total disposal consideration ......................................................................................................................................
191
Carrying amount of net assets sold .........................................................................................................................
(20)
Gain on sale before income tax and reclassification of foreign currency translation reserve ..........................
171
Gain on sale after income tax .....................................................................................................................................
$171
v3.25.4
Goodwill and Intangible assets (Tables)
12 Months Ended
Dec. 31, 2025
Intangible assets and goodwill [abstract]  
Disclosure of intangible assets and goodwill As of December 31, 2025 and 2024, goodwill and intangible assets consisted of
the following:
Goodwill
Trademarks,
Tradenames
& Licenses
Capitalized
development
expenses
Other
intangible
assets
Total
Cost as of January 1, 2025 ...............................
$626
$117
$451
$287
$1,481
Additions ...........................................................
27
27
Sales/disposals ...............................................
Currency translation difference ..................
72
22
88
42
224
Cost as of December 31, 2025 .........................
$698
$139
$566
$329
$1,732
Amortization as of January 1, 2025 ................
$
$(32)
$(266)
$(112)
$(410)
Amortization for the year ..............................
(5)
(69)
(14)
(88)
Sales/disposals ...............................................
Currency translation difference ..................
(6)
(54)
(12)
(72)
Amortization as of December 31, 2025 ..........
$
$(43)
$(389)
$(138)
$(570)
Impairment as of January 1, 2025 ...................
$(13)
$(8)
$(47)
$(14)
$(82)
Impairment for the year ................................
(2)
(2)
Sales/disposals ...............................................
Currency translation difference ..................
(1)
(9)
(10)
Impairment as of December 31, 2025 ............
$(13)
$(9)
$(58)
$(14)
$(94)
Carrying amount as of December 31, 2025 ...
$685
$87
$119
$177
$1,068
Goodwill
Trademarks,
Tradenames
& Licenses
Capitalized
development
expenses
Other
intangible
assets
Total
Cost as of January 1, 2024 ................................
$680
$127
$468
$313
$1,588
Additions ............................................................
44
44
Sales/disposals ................................................
(20)
(21)
(5)
(46)
Currency translation difference ...................
(34)
(10)
(40)
(21)
(105)
Cost as of December 31, 2024 .........................
$626
$117
$451
$287
$1,481
Amortization as of January 1, 2024 .................
$
$(21)
$(226)
$(94)
$(341)
Amortization for the year ...............................
(13)
(71)
(26)
(110)
Sales/disposals ................................................
10
3
13
Currency translation difference ...................
2
21
5
28
Amortization as of December 31, 2024 ...........
$
$(32)
$(266)
$(112)
$(410)
Impairment as of January 1, 2024 ...................
$(13)
$(8)
$(25)
$(1)
$(47)
Impairment for the year .................................
(36)
(13)
(49)
Sales/disposals ................................................
11
11
Currency translation difference ...................
3
3
Impairment as of December 31, 2024 .............
$(13)
$(8)
$(47)
$(14)
$(82)
Carrying amount as of December 31, 2024 ....
$613
$77
$138
$161
$989
v3.25.4
Property and equipment (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of detailed information about property, plant and equipment [abstract]  
Disclosure of reconciliation of changes in property, plant and equipment, including right-of-use assets calculated using the straight-line method by applying various useful lives to each class of property and
equipment. At December 31, 2025 and 2024, property and equipment consisted of the following:
Leasehold
improvements
Equipment
Right-of-use
assets
Total
Cost value as of January 1, 2025 ........................................
12
53
178
243
Additions ..............................................................................
3
3
Sales/disposals ...................................................................
(2)
(7)
(9)
Remeasurement .................................................................
(3)
(3)
Currency translation difference ......................................
2
9
31
42
Cost value as of December 31, 2025 ..................................
14
63
199
276
Depreciation as of January 1, 2025 ...................................
(9)
(39)
(77)
(125)
Depreciation for the year .................................................
(3)
(15)
(18)
Sales/disposals ...................................................................
1
7
8
Currency translation difference ......................................
(1)
(7)
(16)
(24)
Depreciation as of December 31, 2025..............................
(10)
(48)
(101)
(159)
Impairment as of January 1, 2025 ......................................
(1)
(3)
(29)
(33)
Impairment for the year ....................................................
(3)
(2)
(16)
(21)
Sales/disposals ...................................................................
Currency translation difference ......................................
(1)
(2)
(3)
Impairment as of December 31, 2025 ................................
(4)
(6)
(47)
(57)
Carrying amount as of December 31, 2025 .......................
9
51
60
Leasehold
improvements
Equipment
Right-of-use
assets
Total
Cost value as of January 1, 2024 .........................................
$14
$60
$226
$300
Additions ...............................................................................
1
1
Sales/disposals ...................................................................
(1)
(4)
(31)
(36)
Remeasurement ..................................................................
(1)
(1)
Currency translation difference ......................................
(1)
(4)
(16)
(21)
Cost value as of December 31, 2024 ..................................
$12
$53
$178
$243
Depreciation as of January 1, 2024 ....................................
$(10)
$(38)
$(95)
$(143)
Depreciation for the year ..................................................
(1)
(7)
(16)
(24)
Sales/disposals ...................................................................
1
3
27
31
Currency translation difference ......................................
1
3
7
11
Depreciation as of December 31, 2024 ..............................
$(9)
$(39)
$(77)
$(125)
Impairment as of January 1, 2024 ......................................
$(2)
$(3)
$(30)
$(35)
Impairment for the year ....................................................
(6)
(6)
Sales/disposals ...................................................................
3
3
Currency translation difference ......................................
1
4
5
Impairment as of December 31, 2024 ................................
$(1)
$(3)
$(29)
$(33)
Carrying amount as of December 31, 2024 .......................
$2
$11
$72
$85
v3.25.4
Other assets (Tables)
12 Months Ended
Dec. 31, 2025
Miscellaneous assets [abstract]  
Summary of other assets Other assets consisted of the following:
December 31,
2025
December 31,
2024
Current tax assets ...........................................................................................................................
$18
$21
VAT receivables ..............................................................................................................................
41
37
Commercial agreement assets ....................................................................................................
155
65
Derivatives ........................................................................................................................................
21
10
Accrued income ..............................................................................................................................
70
78
Prepaid expenses ...........................................................................................................................
49
28
Equity investments .........................................................................................................................
15
24
Collateral for derivatives ...............................................................................................................
14
69
Securitization partner receivable ................................................................................................
54
Other receivables ............................................................................................................................
50
32
Total ...................................................................................................................................................
$487
$364
v3.25.4
Notes payable and other borrowings (Tables)
12 Months Ended
Dec. 31, 2025
Notes Payable And Other Borrowings [Abstract]  
Disclosure of notes payable and other borrowings notes payable and other borrowings consisted of the following:
December 31,
2025
December 31,
2024
Liabilities to financial institutions ................................................................................................
$163
$132
Commercial papers ........................................................................................................................
84
13
Derivatives ........................................................................................................................................
13
61
Senior unsecured bonds ...............................................................................................................
326
136
Subordinated liabilities ..................................................................................................................
184
171
Warehouse financing facility ........................................................................................................
589
Total ...................................................................................................................................................
$1,359
$513
____________
The warehouse financing facility refers to issued credit-linked notes (“CLNs”), see Note 16.
v3.25.4
Other liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Miscellaneous liabilities [abstract]  
Disclosure of other liabilities The Group’s other liabilities as of December 31, 2025 and 2024 consisted of:
December 31,
2025
December 31,
2024
Lease liabilities ................................................................................................................................
$80
$87
Commercial agreement liabilities ................................................................................................
40
31
Income and payroll tax payables .................................................................................................
28
32
Provisions ..........................................................................................................................................
13
6
Card scheme liabilities ...................................................................................................................
54
46
Payable to SPV1 ...............................................................................................................................
44
15
Other liabilities .................................................................................................................................
99
38
Total ...................................................................................................................................................
$358
$255
____________
Refer to Note 16 for further details on payable to SPV.
v3.25.4
Structured entities (Tables)
12 Months Ended
Dec. 31, 2025
Structured Entities [Abstract]  
Disclosure of interests in unconsolidated structured entities The following table shows the carrying amount of Klarna’s recorded interest in its consolidated
balance sheet as at December 31, 2025 and 2024, and represented the maximum exposure to risk
associated with its interest in the unconsolidated structured entities. The maximum exposure reflects the
total potential loss the Group could incur from its involvement, regardless of the likelihood of that loss
being incurred.
December 31,
2025
December 31,
2024
Consumer receivables at fair value through OCI .....................................................................
$386
$
Consumer receivables at fair value through profit and loss .................................................
400
2
Pledged assets under forward flow arrangements1 .................................................................
2
Total assets .......................................................................................................................................
$786
$4
Payable to SPV2 ...............................................................................................................................
44
15
Total liabilities ...................................................................................................................................
$44
$15
____________
The pledged assets are included within bonds and other interest-bearing securities, see Note 19.
The Company’s payable to SPV are included within other liabilities, see Note 15.
v3.25.4
Funding costs (Tables)
12 Months Ended
Dec. 31, 2025
Expenses by nature [abstract]  
Disclosure of components of interest expense The Group’s funding costs for the years ended December 31, 2025, 2024 and 2023 were as follows:
2025
2024
2023
Consumer deposits
$(330)
$(343)
$(190)
Fair value adjustment on loans sold and held for sale
(163)
(30)
Other cost of securitisations
(32)
(34)
(22)
Interest-bearing securities
(30)
(26)
(24)
Liabilities to credit institutions
(30)
(17)
(13)
Subordinated liabilities
(19)
(17)
(6)
Other funding costs
(63)
(36)
(42)
Total
$(667)
$(503)
$(297)
v3.25.4
Derivatives (Tables)
12 Months Ended
Dec. 31, 2025
Derivatives Instruments [Abstract]  
Disclosure of detailed information about fair value and notional amounts of derivative instruments The Group’s derivatives are composed of:
December 31, 2025
Fair value
Nominal
amount
Derivatives designated in a hedged relationship
Positive
Negative
Interest rate swaps ...........................................................................................
$2
$(1)
$2,883
Total .....................................................................................................................
$2
$(1)
$2,883
Fair value
Nominal
amount
Derivatives not designated in a hedged relationship
Positive
Negative
Currency forwards ............................................................................................
$20
$(12)
$5,413
Total .....................................................................................................................
$20
$(12)
$5,413
December 31, 2024
Fair value
Nominal
amount
Derivatives designated in a hedged relationship
Positive
Negative
Interest rate swaps ...........................................................................................
$4
$(1)
$3,805
Total .....................................................................................................................
$4
$(1)
$3,805
Fair value
Nominal
amount
Derivatives not designated in a hedged relationship
Positive
Negative
Currency forwards ............................................................................................
$6
$(60)
$3,588
Total .....................................................................................................................
$6
$(60)
$3,588
Disclosure of detailed information about hedged items
December 31, 2025
Carrying amount
Change in fair
value used to
calculate hedge
ineffectiveness
Ineffectiveness
recognized in
funding costs
Fair value hedges:
Hedging instrument and
ineffectiveness
Nominal
amount
Positive
Negative
Interest rate risk .........................
$2,883
$2
$(1)
$(3)
$
Total ..............................................
$2,883
$2
$(1)
$(3)
$
December 31, 2024
Carrying amount
Change in fair
value used to
calculate hedge
ineffectiveness
Ineffectiveness
recognized in
funding costs
Fair value hedges:
Hedging instrument and
ineffectiveness
Nominal
amount
Positive
Negative
Interest rate risk .........................
$3,805
$4
$(1)
$(5)
$
Total ..............................................
$3,805
$4
$(1)
$(5)
$
December 31,
2025
December 31,
2024
Fair value hedges: Designated hedged item
Consumer deposits .....................................................................................................................
$2,883
$3,805
Of which: the accumulated amount of fair value adjustment ..........................................
$(1)
$6
Disclosure of maturity of the nominal amount of hedges instruments
Maturity 2025
Maturity 2024
Within 3
months
> 3 months
and < 12
months
> 12
months
Within 3
months
> 3 months
and < 12
months
> 12
months
Fair value hedges: Maturity of the nominal
amount of the hedge instrument
Interest rate risk ..............................................
$898
$1,557
$428
$833
$2,000
$972
Average fixed interest rate ...........................
2.2%
1.9%
1.9%
3.5%
2.8%
2.2%
v3.25.4
Pledged assets, guarantees and commitments (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of assets pledged, Guarantees And Commitments [Abstract]  
Disclosure of detailed information about pledged assets The following table provides details of the Group’s pledged assets.
December 31,
2025
December 31,
2024
Pledged assets
Assets pledged for own liabilities
Pledged consumer receivables ....................................................................................................
$2,319
$
Pledged treasury bills chargeable at central banks, etc., and pledged bonds and
other interest-bearing securities .................................................................................................
2
2
Other pledged assets .....................................................................................................................
13
3
Total ...................................................................................................................................................
$2,334
$5
Disclosure of detailed information about commitments and guarantees
December 31,
2025
December 31,
2024
Commitments for loan funding ....................................................................................................
$3,963
$1,655
Guarantees .......................................................................................................................................
Total ...................................................................................................................................................
$3,963
$1,655
v3.25.4
Fair value measurement of financial assets and liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Measurement [Abstract]  
Disclosure of fair value measurement of liabilities The following table shows the Group’s financial assets and liabilities measured at fair value on a
recurring basis and identifies which of the three valuation levels the assets and liabilities have been
classified into as of December 31, 2025 and 2024. For description of the fair value levels, see Note 2. No
transfers between levels have been made during 2025 or 2024.
December 31, 2025
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through P&L ..
400
400
Consumer receivables at fair value through OCI ..
386
386
Derivatives .....................................................................
$
$21
$
$21
Equity investments .......................................................
7
8
15
Total financial assets .....................................................
$7
$21
$794
$822
Liabilities
Derivatives .....................................................................
$
$13
$
$13
Convertible notes .........................................................
Total financial liabilities .................................................
$
$13
$
$13
December 31, 2024
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through OCI ..
$
$
$
$
Consumer receivables at fair value through P&L ..
2
2
Derivatives .....................................................................
10
10
Equity investments .......................................................
9
15
24
Total financial assets .....................................................
$9
$10
$17
$36
Liabilities
Derivatives .....................................................................
$
$61
$
$61
Convertible notes .........................................................
Total financial liabilities .................................................
$
$61
$
$61
Disclosure of fair value measurement of assets The following table shows the Group’s financial assets and liabilities measured at fair value on a
recurring basis and identifies which of the three valuation levels the assets and liabilities have been
classified into as of December 31, 2025 and 2024. For description of the fair value levels, see Note 2. No
transfers between levels have been made during 2025 or 2024.
December 31, 2025
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through P&L ..
400
400
Consumer receivables at fair value through OCI ..
386
386
Derivatives .....................................................................
$
$21
$
$21
Equity investments .......................................................
7
8
15
Total financial assets .....................................................
$7
$21
$794
$822
Liabilities
Derivatives .....................................................................
$
$13
$
$13
Convertible notes .........................................................
Total financial liabilities .................................................
$
$13
$
$13
December 31, 2024
Financial Instruments
Level 1
Level 2
Level 3
Total
Assets
Consumer receivables at fair value through OCI ..
$
$
$
$
Consumer receivables at fair value through P&L ..
2
2
Derivatives .....................................................................
10
10
Equity investments .......................................................
9
15
24
Total financial assets .....................................................
$9
$10
$17
$36
Liabilities
Derivatives .....................................................................
$
$61
$
$61
Convertible notes .........................................................
Total financial liabilities .................................................
$
$61
$
$61
Disclosure of analysis of movements in level 3 assets and liabilities The following tables show a reconciliation of the opening and closing balances of Level 3 financial
assets and liabilities which are recorded at fair value.
Financial assets
Equity
investments
Consumer
receivables at
fair value
through P&L
Consumer
receivables at
fair value
through OCI
Balance as of January 1, 2024 .....................................................................
$26
$
$
Receivables originated to be sold ...........................................................
3,261
Gain/(loss) in statement of profit or loss (1) ..........................................
(11)
(30)
of which: unrealized gain/(loss) ...............................................................
(11)
of which: realized gain/(loss) ....................................................................
(30)
Receivables sold to third parties .............................................................
(3,229)
Balance as of December 31, 2024 ...............................................................
$15
$2
$
Receivables originated to be sold
17,246
1,147
Receivables sold to third parties .............................................................
(16,684)
(465)
Consumer receivables repaid ..................................................................
(333)
Gain/(loss) in statement of profit or loss1 ..............................................
(7)
(164)
37
of which: unrealized gain/(loss) ...............................................................
(7)
12
of which: realized gain/(loss) ....................................................................
(164)
25
Balance as of December 31, 2025 ...............................................................
$8
$400
$386
____________
Fair value gains and losses recognized in the statement of profit or loss are included in other income (loss).
Disclosure of financial assets and liabilities, at amortized cost The following tables show the fair value of financial instruments carried at amortized cost. They do
not include financial assets and financial liabilities not measured at fair value where the carrying
amount approximates fair value, which includes cash and cash equivalents, loans to credit institutions
(included in debt securities), consumer receivables, settlement and trade receivables, payables to
merchants, repurchase agreement liabilities (included in notes payable and other borrowings) and other
liabilities.
Financial Instruments
December 31, 2025
Assets
Carrying
Amount
Level 1
Level 2
Level 3
Balance at Fair
Value
Treasury bills chargeable at
central banks .................................
$1,908
$1,909
$
$
$1,909
Bonds and other interest
bearing securities .........................
60
60
60
Total financial assets .....................
$1,968
$1,969
$
$
$1,969
Liabilities
Consumer deposits .......................
$13,003
$
$13,188
$
$13,188
Subordinated liabilities ................
184
206
206
Senior unsecured bonds .............
326
327
327
Commercial papers ......................
84
84
84
Total financial liabilities .................
$13,597
$
$13,806
$
$13,805
Financial Instruments
December 31, 2024
Assets
Carrying
Amount
Level 1
Level 2
Level 3
Balance at Fair
Value
Treasury bills chargeable at
central banks ..................................
$673
$668
$
$
$668
Bonds and other interest
bearing securities ..........................
11
11
11
Total financial assets ......................
$684
$679
$
$
$679
Liabilities
Consumer deposits ........................
$9,510
$
$9,671
$
$9,671
Subordinated liabilities .................
171
175
175
Senior unsecured bonds ..............
136
136
136
Commercial papers .......................
13
14
14
Total financial liabilities ..................
$9,830
$
$9,996
$
$9,996
Disclosure of gains or losses on financial instruments The table below represents net results from categories of the following financial instruments for the
years ending December 31, 2025 and 2024.
2025
2024
Financial instruments mandatory measured at fair value through profit or loss .......
$(127)
$(152)
Financial assets measured at amortized cost ....................................................................
$2,567
2,091
Financial liabilities measured at amortized cost ...............................................................
$(611)
(527)
Currency exchange gains/losses ..........................................................................................
$(102)
78
Total .............................................................................................................................................
$1,726
$1,490
v3.25.4
Issued capital and reserves (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of classes of share capital [abstract]  
Disclosure of classes of share capital As at December 31, 2025, our issued and outstanding share capital consists of 377,507,910 ordinary
shares and 328,136,589 Class B shares as per below table:
Ordinary
shares
Class B shares
Class C shares
Deferred
shares
Deferred
shares
Deferred
shares
Deferred
shares
Nominal value
$0.00010
$0.00010
$0.00010
$0.00073
$11.35013
$0.28000
$0.00010
As of January 01,
2024
364,018,908
364,018,908
Shares issued
1,277,664
1,277,664
1
As of December
31, 2024
365,296,572
365,296,572
1
Shares issued
12,211,338
369,911,294
257,772
369,911,294
Redesignation
(41,774,705)
41,774,705
Capital
reduction
(365,554,344)
(369,911,294)
(1)
(41,774,705)
As of December
31, 2025
377,507,910
328,136,589
v3.25.4
Share-based payments (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of terms and conditions of share-based payment arrangement [abstract]  
Explanation of effect of share-based payments on entity's profit or loss The following table presents share-based payment costs, inclusive of social security charges,
recognized in 2025, 2024 and 2023 in the consolidated statements of profit or loss:
Year Ended December 31,
2025
2024
2023
Employee restricted share unit program ....................................................
$(75)
$(40)
$(18)
Business acquisition-related awards ...........................................................
(2)
(4)
Share warrants and share options ................................................................
(72)
(45)
(22)
Direct share issuance ......................................................................................
(10)
(7)
Share-based payment costs ............................................................................
$(157)
$(94)
$(44)
less: amounts recognized as reduction of revenue ..................................
$1
1
1
Share-based payments expense .....................................................................
$(156)
$(93)
$(43)
Disclosure of number and weighted average exercise prices of other equity instruments The table below includes additional details regarding RSUs, share warrants and options, issued by
Klarna Group plc as of, and for the year ended, December 31, 2025.  The increase in instruments
outstanding during 2025 reflects the establishment of the Company's post-IPO equity incentive framework,
including the Omnibus Incentive Plan, the Klarna Group plc RSU Program, and the C Share Awards Plan,
each as described in Item 6. The Class C share options column relates exclusively to awards granted to Mr.
Siemiatkowski:
Klarna Group plc RSU
program
Share warrants and options
issued by Klarna Group plc
Share options to acquire C
Class shares issued by Klarna
Group plc
Number
Weighted
average fair
value at grant
Number
Weighted
average
exercise
price1
Number2
Weighted
average
exercise
price
January 1, 2023 .......................
$
$
$
Granted during the year ......
Exercised during the year ...
Forfeited during the year ....
December 31, 2023 .................
$
$
$
Granted during the year ......
6,100,140
46.0
Exercised during the year ...
Forfeited during the year ....
December 31, 2024 .................
$
6,100,140
$46.0
$
Granted during the year ......
1,026,951
34.2
24,909,751
57.0
17,505,672
45.9
Exercised during the year ...
(2,400,000)
Amended during the year3 ..
(1,477,164)
38.2
2,941,236
19.1
Forfeited during the year ....
(28,044)
34.0
December 31, 2025 .................
998,907
$34.2
27,132,727
$60.6
20,446,908
$42.0
____________
Where share options were granted in SEK, the input has been converted to USD using the average exchange rate for the period
for presentation purposes.
two Class C share options entitle the recipient to acquire, at the recipient's election, either one ordinary share or two Class C
shares on exercise. Weighted average exercise prices for Class C share options are expressed per Class C share; the equivalent
exercise price expressed per ordinary share is double the figures shown. All Class C share options outstanding as of December 31,
2025 were granted exclusively to Mr. Siemiatkowski under the C Share Awards Plan described in Item 6.
3 In 2025, the terms of 1,477,164 share options originally granted to Mr. Siemiatkowski in the fourth quarter of 2024 were
amended to allow such options to be exercised into 2,941,236 Class C shares (or 1,470,618 ordinary shares), reflecting the conversion
ratio under which two Class C share options correspond to one ordinary share. The amendment did not reduce the exercise price of
the underlying award; the weighted average exercise price of $19.1 per Class C share shown above is equivalent to $38.2 per ordinary
share, consistent with the original grant terms. The modification did not result  in an incremental share-based payment charge.
The table below includes additional details regarding RSUs and share warrants, issued by a subsidiary
of Klarna Group plc, as of, and for the year ended, December 31, 2025:
Legacy RSU program
Share warrants issued by a
subsidiary of  Klarna Group plc
Number
Weighted
average fair
value at grant1
Number
Weighted
average
exercise price2
January 1, 2023 ......................................................................
7,988,295
$6.0
1,933,083
$515.0
Granted during the year .....................................................
7,081,803
4.2
1,102,024
578.0
Released during the year ...................................................
(2,411,162)
6.3
Exercised during the year ..................................................
(65,346)
76.0
Forfeited during the year ...................................................
(2,450,832)
5.1
(417,518)
226.0
December 31, 2023 ...............................................................
10,208,104
$4.9
2,552,243
$538.0
Granted during the year .....................................................
22,659,832
4.4
360,590
515.0
Released during the year ...................................................
(3,164,977)
5.3
Exercised during the year ..................................................
(126,580)
162.0
Forfeited during the year ...................................................
(3,291,313)
4.7
(278,719)
505.0
December 31, 2024 ...............................................................
26,411,646
$4.5
2,507,534
$543.0
Granted during the year .....................................................
123,335
10.1
Released during the year ...................................................
(8,225,629)
5.3
Exercised during the year ..................................................
(90,000)
231.0
Repurchased during the year ...........................................
(105,646)
441.0
Amended during the year ..................................................
Forfeited during the year ...................................................
(3,712,137)
5.0
(84,367)
631.0
December 31, 2025 ...............................................................
14,597,215
$5.1
2,227,521
$605.0
Equivalent of Klarna Group plc Shares
3,649,304
$20.4
26,730,252
$50.4
____________
Legacy RSUs granted in SEK have been converted to USD using the average exchange rate for each period for presentation
purposes.
Where share warrants were granted in SEK, the input has been converted to USD using the average exchange rate for the
period for presentation purposes.
Disclosure of number and weighted average exercise prices of share options The table below includes additional details regarding RSUs, share warrants and options, issued by
Klarna Group plc as of, and for the year ended, December 31, 2025.  The increase in instruments
outstanding during 2025 reflects the establishment of the Company's post-IPO equity incentive framework,
including the Omnibus Incentive Plan, the Klarna Group plc RSU Program, and the C Share Awards Plan,
each as described in Item 6. The Class C share options column relates exclusively to awards granted to Mr.
Siemiatkowski:
Klarna Group plc RSU
program
Share warrants and options
issued by Klarna Group plc
Share options to acquire C
Class shares issued by Klarna
Group plc
Number
Weighted
average fair
value at grant
Number
Weighted
average
exercise
price1
Number2
Weighted
average
exercise
price
January 1, 2023 .......................
$
$
$
Granted during the year ......
Exercised during the year ...
Forfeited during the year ....
December 31, 2023 .................
$
$
$
Granted during the year ......
6,100,140
46.0
Exercised during the year ...
Forfeited during the year ....
December 31, 2024 .................
$
6,100,140
$46.0
$
Granted during the year ......
1,026,951
34.2
24,909,751
57.0
17,505,672
45.9
Exercised during the year ...
(2,400,000)
Amended during the year3 ..
(1,477,164)
38.2
2,941,236
19.1
Forfeited during the year ....
(28,044)
34.0
December 31, 2025 .................
998,907
$34.2
27,132,727
$60.6
20,446,908
$42.0
____________
Where share options were granted in SEK, the input has been converted to USD using the average exchange rate for the period
for presentation purposes.
two Class C share options entitle the recipient to acquire, at the recipient's election, either one ordinary share or two Class C
shares on exercise. Weighted average exercise prices for Class C share options are expressed per Class C share; the equivalent
exercise price expressed per ordinary share is double the figures shown. All Class C share options outstanding as of December 31,
2025 were granted exclusively to Mr. Siemiatkowski under the C Share Awards Plan described in Item 6.
3 In 2025, the terms of 1,477,164 share options originally granted to Mr. Siemiatkowski in the fourth quarter of 2024 were
amended to allow such options to be exercised into 2,941,236 Class C shares (or 1,470,618 ordinary shares), reflecting the conversion
ratio under which two Class C share options correspond to one ordinary share. The amendment did not reduce the exercise price of
the underlying award; the weighted average exercise price of $19.1 per Class C share shown above is equivalent to $38.2 per ordinary
share, consistent with the original grant terms. The modification did not result  in an incremental share-based payment charge.
The table below includes additional details regarding RSUs and share warrants, issued by a subsidiary
of Klarna Group plc, as of, and for the year ended, December 31, 2025:
Legacy RSU program
Share warrants issued by a
subsidiary of  Klarna Group plc
Number
Weighted
average fair
value at grant1
Number
Weighted
average
exercise price2
January 1, 2023 ......................................................................
7,988,295
$6.0
1,933,083
$515.0
Granted during the year .....................................................
7,081,803
4.2
1,102,024
578.0
Released during the year ...................................................
(2,411,162)
6.3
Exercised during the year ..................................................
(65,346)
76.0
Forfeited during the year ...................................................
(2,450,832)
5.1
(417,518)
226.0
December 31, 2023 ...............................................................
10,208,104
$4.9
2,552,243
$538.0
Granted during the year .....................................................
22,659,832
4.4
360,590
515.0
Released during the year ...................................................
(3,164,977)
5.3
Exercised during the year ..................................................
(126,580)
162.0
Forfeited during the year ...................................................
(3,291,313)
4.7
(278,719)
505.0
December 31, 2024 ...............................................................
26,411,646
$4.5
2,507,534
$543.0
Granted during the year .....................................................
123,335
10.1
Released during the year ...................................................
(8,225,629)
5.3
Exercised during the year ..................................................
(90,000)
231.0
Repurchased during the year ...........................................
(105,646)
441.0
Amended during the year ..................................................
Forfeited during the year ...................................................
(3,712,137)
5.0
(84,367)
631.0
December 31, 2025 ...............................................................
14,597,215
$5.1
2,227,521
$605.0
Equivalent of Klarna Group plc Shares
3,649,304
$20.4
26,730,252
$50.4
____________
Legacy RSUs granted in SEK have been converted to USD using the average exchange rate for each period for presentation
purposes.
Where share warrants were granted in SEK, the input has been converted to USD using the average exchange rate for the
period for presentation purposes.
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period The inputs used
within the model for the share warrants and options granted were:
Share warrants and share options
2025
2024
2023
Expected volatility (%) .......................................................................................
37% - 38%
37%
35% - 37%
Risk-free interest rate (%) ................................................................................
3.6% - 4.4%
2.0% - 2.8%
2.6% - 3.3%
Expected term (years) .......................................................................................
4.5 - 5.5
2.9 - 4.5
2.8 - 5.3
Weighted average share price for instruments issued by subsidiary of
Klarna Group plc (in USD)1 ................................................................................
N/A
337
216
Weighted average share price for instruments issued by Klarna
Group plc (in USD) ..............................................................................................
40
34
N/A
____________
Where share warrants in 2025, 2024 and 2023 were granted in SEK, the input has been converted to USD using the average
exchange rate for the year for presentation purposes.
v3.25.4
Information on related parties (Tables)
12 Months Ended
Dec. 31, 2025
Disclosure of transactions between related parties [abstract]  
Summary of Transactions With Related Parties
Salaries and other remuneration to the board and senior management
2025
2024
2023
Basic salary/fee ................................................................................................
$13
$13
$10
Fixed equity-based compensation ...............................................................
36
32
Variable equity-based compensation ..........................................................
48
18
1
Other variable-based compensation ............................................................
1
1
2
Other benefits ...................................................................................................
1
1
Pension expenses .............................................................................................
1
1
1
Total .....................................................................................................................
$99
$65
$14
v3.25.4
Income taxes (Tables)
12 Months Ended
Dec. 31, 2025
Major components of tax expense (income) [abstract]  
Disclosure of income tax, effective tax and deferred taxes The table below represents income tax (expense) benefit, effective tax rate, deferred tax assets and
deferred tax liabilities for the years ending December 31, 2025, 2024 and 2023:
Income tax (expense) benefit
2025
2024
2023
Current tax
Tax expense for the year ................................................................................
$(25)
$(20)
$(16)
Adjustment of tax attributable to previous years ......................................
(1)
3
Total .....................................................................................................................
$(26)
$(20)
$(13)
Deferred tax
Deferred tax .......................................................................................................
$(6)
$8
$73
Total .....................................................................................................................
$(6)
$8
$73
Income tax (expense) benefit ...........................................................................
$(32)
$(12)
$60
Effective tax rate
2025
2024
2023
Profit (loss) before taxes .................................................................................
$(241)
$33
$(304)
Income tax calculated in accordance with national tax rates
applicable in each country .............................................................................
(21)
(7)
60
Non-taxable revenues .....................................................................................
27
3
2
Non-deductible expenses ...............................................................................
(15)
(37)
(39)
Taxable income not booked in profit or loss ..............................................
(6)
(2)
(7)
Deductible expenses not booked in profit or loss ....................................
7
11
4
Unrecognized taxable losses .........................................................................
(26)
12
(34)
Effect of change in tax rate ............................................................................
1
2
Losses carried forward recognized ..............................................................
5
6
72
Adjustments of tax attributable to previous years ....................................
(4)
2
Tax (expense) benefit ........................................................................................
$(32)
$(12)
$60
Effective tax rate ................................................................................................
13.4%
(36.7)%
(19.7)%
Disclosure of deferred tax assets and liabilities
Deferred taxes
December 31,
2025
December 31,
2024
Deferred tax asset ..........................................................................................................................
$36
$33
Deferred tax liability .......................................................................................................................
(2)
(1)
Total ...................................................................................................................................................
$34
$32
Comprising: ......................................................................................................................................
Losses carried forward .................................................................................................................
71
55
Allowance for credit losses ..........................................................................................................
12
19
Intangible assets .............................................................................................................................
(78)
(57)
Other ..................................................................................................................................................
30
15
Total ...................................................................................................................................................
$34
$32
v3.25.4
Net profit (loss) per share (Tables)
12 Months Ended
Dec. 31, 2025
Earnings per share [abstract]  
Earnings per share The computation of loss per share for the respective periods is as follows:
2025
2024
2023
Numerator:
Net profit (loss) attributable to shareholders of Klarna Group plc ........
$(294)
$3
$(249)
Denominator:
Weighted average number of ordinary shares - basic .............................
370,654,083
363,993,690
362,090,644
Dilutive potential ordinary shares .................................................................
418,379
Weighted average number of ordinary shares - diluted ..........................
370,654,083
364,412,068
362,090,644
Net profit (loss) per share attributable to shareholders of Klarna Group
plc:
Basic ....................................................................................................................
$(0.79)
$0.01
$(0.69)
Diluted .................................................................................................................
$(0.79)
$0.01
$(0.69)
v3.25.4
Corporate information (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 22, 2025
Sep. 10, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of classes of share capital [line items]          
Proceeds from issue of ordinary shares   $ 169,000      
Underwriting discounts and other offering costs   22,410      
Share issue related cost   8,500 $ 8,500 $ 0 $ 0
Initial public offering (IPO)          
Disclosure of classes of share capital [line items]          
Share issue related cost   $ 8,500      
Ordinary shares          
Disclosure of classes of share capital [line items]          
IPO, offering share (USD per share)   $ 40.00 $ 40.00    
Ordinary shares | Initial public offering (IPO)          
Disclosure of classes of share capital [line items]          
Number of shares issued through capital increase (in shares)   5,000,000      
Ordinary shares | IPO, selling shareholders          
Disclosure of classes of share capital [line items]          
Number of shares issued through capital increase (in shares)   29,311,274      
Ordinary shares | IPO, underwriters          
Disclosure of classes of share capital [line items]          
Number of shares issued through capital increase (in shares) 5,146,691        
v3.25.4
Accounting principles - Basis of preparation and consolidation (Details)
Mar. 06, 2025
Disclosure Of Significant Accounting Policies [Abstract]  
Stockholders' equity, stock split, conversion ratio 8.3333%
v3.25.4
Accounting principles - Consumer Receivales (Details) - Fair Financing receivables
12 Months Ended
Dec. 31, 2025
Minimum  
Disclosure of financial assets [line items]  
Consumer receivables, installment plan, period 3 months
Maximum  
Disclosure of financial assets [line items]  
Consumer receivables, installment plan, period 48 months
v3.25.4
Accounting principles - Goodwill and intangible assets (Details)
12 Months Ended
Dec. 31, 2025
Minimum | Trademarks, Tradenames & Licenses  
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]  
Useful life measured as period of time, intangible assets other than goodwill 3 years
Minimum | Capitalized development expenses  
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]  
Useful life measured as period of time, intangible assets other than goodwill 3 years
Maximum | Trademarks, Tradenames & Licenses  
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]  
Useful life measured as period of time, intangible assets other than goodwill 20 years
Maximum | Capitalized development expenses  
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]  
Useful life measured as period of time, intangible assets other than goodwill 5 years
v3.25.4
Accounting principles - Summary of Useful Lives for Property, Plant and Equipment (Details)
12 Months Ended
Dec. 31, 2025
Equipment, tools and fixtures and fittings  
Disclosure of detailed information about property, plant and equipment [line items]  
Useful lives, property, plant and equipment 5 years
Computers and other machinery  
Disclosure of detailed information about property, plant and equipment [line items]  
Useful lives, property, plant and equipment 3 years
v3.25.4
Accounting principles - Revenue recognition (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Sales and marketing expense $ 414 $ 328 $ 381
Revenue, reduction of interest income, merchant fees $ 12 10 13
Minimum      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Useful life of contract 3 years    
Maximum      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Useful life of contract 5 years    
Distribution partner referral arrangements      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Sales and marketing expense $ 109 $ 81 $ 59
v3.25.4
Accounting principles - Share-based payments (Details)
12 Months Ended
Dec. 31, 2025
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Share-based payment arrangements, vesting period 4 years
Restricted share units  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Share-based payment arrangements, vesting period 4 years
Share warrants and share options | Minimum  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Share-based payment arrangements, vesting period 4 years
Share warrants and share options | Maximum  
Disclosure of terms and conditions of share-based payment arrangement [line items]  
Share-based payment arrangements, vesting period 5 years
v3.25.4
Accounting principles - Summary of employee benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure Of Significant Accounting Policies [Abstract]      
Salaries and other remuneration $ (417) $ (393) $ (379)
Statutory and contractual social security expenses (102) (113) (109)
Pension expenses (25) (25) (26)
Total employee benefits $ (520) $ (506) $ (488)
v3.25.4
Risk management and management of capital - Foreign currency exposures explanatory (Details) - Currency risk - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of nature and extent of risks arising from financial instruments [line items]      
Reasonably possible change in risk variable, percent 10.00%    
Net average currency exposure $ 58 $ 63 $ 72
Effect of 10% change (6) (6) (7)
EUR      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
Net average currency exposure 11 18 29
Effect of 10% change (1) (2) (3)
USD      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
Net average currency exposure 22 14 11
Effect of 10% change (2) (1) (1)
GBP      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
Net average currency exposure 13 10 4
Effect of 10% change (1) (1) 0
Other      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
Net average currency exposure 12 22 28
Effect of 10% change $ (1) $ (2) $ (3)
v3.25.4
Risk management and management of capital - Interest rate exposures explanatory (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates, percent (2.00%)    
200 bps parallel shift in interest rates 2.00%    
Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates $ (1) $ (20) $ (29)
200 bps parallel shift in interest rates 1 19 27
SEK | Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates 10 4 5
200 bps parallel shift in interest rates (10) (4) (5)
EUR | Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates (28) (34) (43)
200 bps parallel shift in interest rates 26 32 41
USD | Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates 10 3 5
200 bps parallel shift in interest rates (9) (2) (5)
GBP | Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates 6 6 4
200 bps parallel shift in interest rates (6) (6) (4)
Other | Interest rate risk      
Disclosure of nature and extent of risks arising from financial instruments [line items]      
-200 bps parallel shift in interest rates 1 1 0
200 bps parallel shift in interest rates $ (1) $ (1) $ 0
v3.25.4
Risk management and management of capital - Undiscounted funding obligations (Details) - Liquidity risk - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Undiscounted Funding Obligations [Line Items]    
Consumer deposits $ 13,337 $ 9,790
Notes payable and other borrowings 1,565 698
Lease liabilities 85 93
Total 14,987 10,581
Not later than one year    
Undiscounted Funding Obligations [Line Items]    
Consumer deposits 11,043 7,681
Notes payable and other borrowings 450 234
Lease liabilities 26 23
Total 11,518 7,938
1-5 years    
Undiscounted Funding Obligations [Line Items]    
Consumer deposits 2,294 2,109
Notes payable and other borrowings 876 219
Lease liabilities 54 61
Total 3,224 2,389
>5 years    
Undiscounted Funding Obligations [Line Items]    
Consumer deposits 0 0
Notes payable and other borrowings 240 245
Lease liabilities 5 9
Total $ 245 $ 254
v3.25.4
Operating segments - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Disclosure of operating segments [line items]      
Number of operating segments | segment 1    
Number of reportable segments | segment 1    
Revenue from rendering of advertising services $ 190 $ 180 $ 157
Gain on sale of consumer receivables 73 0 0
Reclassification to the statement of profit and loss 25 0 0
Revenue from reminder fees 261 254 $ 198
Revenue from subscription 29 $ 6  
Fair Financing      
Disclosure of operating segments [line items]      
Interest income from consumer receivables at fair value through other comprehensive income 20    
Consumer receivables      
Disclosure of operating segments [line items]      
Reclassification to the statement of profit and loss 25    
Consumer receivables | Fair Financing receivables      
Disclosure of operating segments [line items]      
Consumer receivables, amount sold $ 1,600    
v3.25.4
Operating segments - Disclosure of geographical areas (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of geographical areas [line items]      
Revenue $ 3,509 $ 2,811 $ 2,276
Non-current assets 1,995 1,200 1,757
Sweden      
Disclosure of geographical areas [line items]      
Non-current assets 1,284 412 1,017
United States      
Disclosure of geographical areas [line items]      
Revenue 1,243 850 609
Non-current assets 100 101 155
Germany      
Disclosure of geographical areas [line items]      
Revenue 848 755 620
Non-current assets 180 194 234
United Kingdom      
Disclosure of geographical areas [line items]      
Revenue 442 348 268
Non-current assets 199 167 151
Other countries      
Disclosure of geographical areas [line items]      
Revenue 976 858 779
Non-current assets $ 232 $ 326 $ 200
v3.25.4
Operating segments - Disclosure of disaggregation of revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue $ 3,509 $ 2,811 $ 2,276
Transaction revenue      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue 2,103 1,792 1,531
Consumer service revenue      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue 397 344 237
Gain on sale of consumer receivables      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue 73 0 0
Interest income      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue $ 937 $ 675 $ 508
v3.25.4
Operating segments - Disclosure of disaggregation of interest income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Interest income $ 937 $ 675 $ 508
Fair Financing      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Interest income 617 383 318
"Snooze" fees      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Interest income 161 128 96
Debt securities      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Interest income 134 144 75
Incremental merchant fees      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Interest income $ 25 $ 20 $ 19
v3.25.4
Cash and cash equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash and cash equivalents [abstract]        
Cash held at central banks $ 2,578 $ 2,466    
Treasury bills held at central banks 543 272    
Other bank deposits 682 505    
Total cash and cash equivalents $ 3,803 $ 3,243 $ 2,391 $ 1,694
v3.25.4
Consumer receivables - Summary of consumer receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Consumer receivables      
Disclosure of financial assets [line items]      
Financial assets $ 10,459 $ 8,141  
Fair Financing receivables      
Disclosure of financial assets [line items]      
Financial assets 4,332 2,954  
Pay Later receivables      
Disclosure of financial assets [line items]      
Financial assets 6,127 5,187  
Gross Carrying Amount      
Disclosure of financial assets [line items]      
Financial assets   8,473 $ 8,394
Gross Carrying Amount | Consumer receivables      
Disclosure of financial assets [line items]      
Financial assets 10,951 8,473  
Gross Carrying Amount | Fair Financing receivables      
Disclosure of financial assets [line items]      
Financial assets 4,604 3,085  
Gross Carrying Amount | Pay Later receivables      
Disclosure of financial assets [line items]      
Financial assets 6,347 5,388  
Allowance for ECL      
Disclosure of financial assets [line items]      
Financial assets   (332) $ (311)
Allowance for ECL | Consumer receivables      
Disclosure of financial assets [line items]      
Financial assets (492) (332)  
Allowance for ECL | Fair Financing receivables      
Disclosure of financial assets [line items]      
Financial assets (272) (131)  
Allowance for ECL | Pay Later receivables      
Disclosure of financial assets [line items]      
Financial assets $ (220) $ (201)  
v3.25.4
Consumer receivables - Reconciliation of changes in loss allowance and in gross carrying amount (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Financing receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance $ 2,954  
Financial assets at ending balance 4,332 $ 2,954
Pay Later receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 5,187  
Financial assets at ending balance 6,127 5,187
Carrying Amount    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 8,473 8,394
New assets originated or purchased   56,017
Assets repaid   (54,813)
Transfers to stage 1   0
Transfers to stage 2   0
Transfers to stage 3   0
Amounts written off   (467)
Proceeds received from the sale of consumer receivables   (155)
Other adjustments   (503)
Financial assets at ending balance   8,473
Carrying Amount | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 7,952 7,753
New assets originated or purchased   55,836
Assets repaid   (52,841)
Transfers to stage 1   816
Transfers to stage 2   (3,067)
Transfers to stage 3   (19)
Amounts written off   (27)
Proceeds received from the sale of consumer receivables   0
Other adjustments   (499)
Financial assets at ending balance   7,952
Carrying Amount | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 366 497
New assets originated or purchased   163
Assets repaid   (1,730)
Transfers to stage 1   (799)
Transfers to stage 2   3,080
Transfers to stage 3   (784)
Amounts written off   (38)
Proceeds received from the sale of consumer receivables   (20)
Other adjustments   (3)
Financial assets at ending balance   366
Carrying Amount | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 155 144
New assets originated or purchased   18
Assets repaid   (242)
Transfers to stage 1   (17)
Transfers to stage 2   (13)
Transfers to stage 3   803
Amounts written off   (402)
Proceeds received from the sale of consumer receivables   (135)
Other adjustments   (1)
Financial assets at ending balance   155
Carrying Amount | Fair Financing receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 3,085  
New assets originated or purchased 11,161  
Assets repaid (9,581)  
Transfers to stage 1 0  
Transfers to stage 2 0  
Transfers to stage 3 0  
Amounts written off (249)  
Proceeds received from the sale of consumer receivables (36)  
Other adjustments 225  
Financial assets at ending balance 4,604 3,085
Carrying Amount | Fair Financing receivables | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 2,893  
New assets originated or purchased 11,046  
Assets repaid (9,128)  
Transfers to stage 1 473  
Transfers to stage 2 (1,151)  
Transfers to stage 3 (45)  
Amounts written off (26)  
Proceeds received from the sale of consumer receivables (2)  
Other adjustments 206  
Financial assets at ending balance 4,267 2,893
Carrying Amount | Fair Financing receivables | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 140  
New assets originated or purchased 98  
Assets repaid (385)  
Transfers to stage 1 (466)  
Transfers to stage 2 1,166  
Transfers to stage 3 (320)  
Amounts written off (21)  
Proceeds received from the sale of consumer receivables (11)  
Other adjustments 15  
Financial assets at ending balance 216 140
Carrying Amount | Fair Financing receivables | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 53  
New assets originated or purchased 17  
Assets repaid (69)  
Transfers to stage 1 (7)  
Transfers to stage 2 (15)  
Transfers to stage 3 364  
Amounts written off (203)  
Proceeds received from the sale of consumer receivables (23)  
Other adjustments 4  
Financial assets at ending balance 121 53
Carrying Amount | Pay Later receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 5,388  
New assets originated or purchased 55,559  
Assets repaid (54,823)  
Transfers to stage 1 0  
Transfers to stage 2 0  
Transfers to stage 3 0  
Amounts written off (376)  
Proceeds received from the sale of consumer receivables (109)  
Other adjustments 708  
Financial assets at ending balance 6,347 5,388
Carrying Amount | Pay Later receivables | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 5,059  
New assets originated or purchased 55,477  
Assets repaid (53,591)  
Transfers to stage 1 169  
Transfers to stage 2 (1,795)  
Transfers to stage 3 (25)  
Amounts written off (31)  
Proceeds received from the sale of consumer receivables 0  
Other adjustments 673  
Financial assets at ending balance 5,936 5,059
Carrying Amount | Pay Later receivables | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 227  
New assets originated or purchased 69  
Assets repaid (1,049)  
Transfers to stage 1 (164)  
Transfers to stage 2 1,797  
Transfers to stage 3 (623)  
Amounts written off (21)  
Proceeds received from the sale of consumer receivables 0  
Other adjustments 27  
Financial assets at ending balance 263 227
Carrying Amount | Pay Later receivables | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance 102  
New assets originated or purchased 13  
Assets repaid (183)  
Transfers to stage 1 (5)  
Transfers to stage 2 (1)  
Transfers to stage 3 648  
Amounts written off (324)  
Proceeds received from the sale of consumer receivables (109)  
Other adjustments 8  
Financial assets at ending balance 149 102
Allowance for ECL    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (332) (311)
New assets originated or purchased   (592)
Assets repaid   946
Transfers to stage 1   0
Transfers to stage 2   0
Transfers to stage 3   0
Other movements in ECL allowance   (777)
Amounts written off   389
Other adjustments   13
Financial assets at ending balance   (332)
Allowance for ECL | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (144) (139)
New assets originated or purchased   (551)
Assets repaid   612
Transfers to stage 1   (54)
Transfers to stage 2   178
Transfers to stage 3   2
Other movements in ECL allowance   (215)
Amounts written off   4
Other adjustments   19
Financial assets at ending balance   (144)
Allowance for ECL | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (84) (87)
New assets originated or purchased   (26)
Assets repaid   172
Transfers to stage 1   44
Transfers to stage 2   (185)
Transfers to stage 3   402
Other movements in ECL allowance   (419)
Amounts written off   20
Other adjustments   (5)
Financial assets at ending balance   (84)
Allowance for ECL | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (104) (85)
New assets originated or purchased   (15)
Assets repaid   162
Transfers to stage 1   10
Transfers to stage 2   7
Transfers to stage 3   (404)
Other movements in ECL allowance   (143)
Amounts written off   365
Other adjustments   (1)
Financial assets at ending balance   (104)
Allowance for ECL | Fair Financing receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (131)  
New assets originated or purchased (349)  
Assets repaid 345  
Transfers to stage 1 0  
Transfers to stage 2 0  
Transfers to stage 3 0  
Other movements in ECL allowance (291)  
Amounts written off 154  
Other adjustments 0  
Financial assets at ending balance (272) (131)
Allowance for ECL | Fair Financing receivables | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (69)  
New assets originated or purchased (318)  
Assets repaid 227  
Transfers to stage 1 (50)  
Transfers to stage 2 109  
Transfers to stage 3 1  
Other movements in ECL allowance (29)  
Amounts written off 3  
Other adjustments (1)  
Financial assets at ending balance (127) (69)
Allowance for ECL | Fair Financing receivables | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (26)  
New assets originated or purchased (20)  
Assets repaid 66  
Transfers to stage 1 46  
Transfers to stage 2 (117)  
Transfers to stage 3 182  
Other movements in ECL allowance (193)  
Amounts written off 9  
Other adjustments 1  
Financial assets at ending balance (52) (26)
Allowance for ECL | Fair Financing receivables | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (36)  
New assets originated or purchased (11)  
Assets repaid 52  
Transfers to stage 1 4  
Transfers to stage 2 8  
Transfers to stage 3 (183)  
Other movements in ECL allowance (69)  
Amounts written off 142  
Other adjustments 0  
Financial assets at ending balance (93) (36)
Allowance for ECL | Pay Later receivables    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (201)  
New assets originated or purchased (409)  
Assets repaid 697  
Transfers to stage 1 0  
Transfers to stage 2 0  
Transfers to stage 3 0  
Other movements in ECL allowance (620)  
Amounts written off 333  
Other adjustments (20)  
Financial assets at ending balance (220) (201)
Allowance for ECL | Pay Later receivables | Financial instruments not credit-impaired | Stage 1    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (77)  
New assets originated or purchased (383)  
Assets repaid 455  
Transfers to stage 1 (7)  
Transfers to stage 2 168  
Transfers to stage 3 1  
Other movements in ECL allowance (227)  
Amounts written off 5  
Other adjustments (8)  
Financial assets at ending balance (73) (77)
Allowance for ECL | Pay Later receivables | Financial instruments not credit-impaired | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (57)  
New assets originated or purchased (19)  
Assets repaid 126  
Transfers to stage 1 3  
Transfers to stage 2 (169)  
Transfers to stage 3 345  
Other movements in ECL allowance (294)  
Amounts written off 15  
Other adjustments (6)  
Financial assets at ending balance (56) (57)
Allowance for ECL | Pay Later receivables | Stage 3 | Lifetime expected credit losses    
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items]    
Financial assets at beginning balance (67)  
New assets originated or purchased (7)  
Assets repaid 116  
Transfers to stage 1 4  
Transfers to stage 2 1  
Transfers to stage 3 (346)  
Other movements in ECL allowance (99)  
Amounts written off 313  
Other adjustments (6)  
Financial assets at ending balance $ (91) $ (67)
v3.25.4
Consumer receivables - Additional information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Pledged consumer receivables    
Disclosure of financial assets [line items]    
Amounts written off $ 173 $ 241
v3.25.4
Settlement and trade receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Total      
Trade And Other Receivables [Line Items]      
Financial assets $ 580 $ 493  
Payment service providers receivables      
Trade And Other Receivables [Line Items]      
Financial assets 453 368  
Merchant receivables      
Trade And Other Receivables [Line Items]      
Financial assets 67 111  
Debt collection receivables      
Trade And Other Receivables [Line Items]      
Financial assets 20 8  
Other receivables      
Trade And Other Receivables [Line Items]      
Financial assets 40 6  
Gross Carrying Amount      
Trade And Other Receivables [Line Items]      
Financial assets   8,473 $ 8,394
Gross Carrying Amount | Total      
Trade And Other Receivables [Line Items]      
Financial assets 606 510  
Gross Carrying Amount | Payment service providers receivables      
Trade And Other Receivables [Line Items]      
Financial assets 454 368  
Gross Carrying Amount | Merchant receivables      
Trade And Other Receivables [Line Items]      
Financial assets 92 128  
Gross Carrying Amount | Debt collection receivables      
Trade And Other Receivables [Line Items]      
Financial assets 20 8  
Gross Carrying Amount | Other receivables      
Trade And Other Receivables [Line Items]      
Financial assets 40 6  
Allowance for ECL      
Trade And Other Receivables [Line Items]      
Financial assets   (332) $ (311)
Allowance for ECL | Total      
Trade And Other Receivables [Line Items]      
Financial assets (26) (17)  
Allowance for ECL | Payment service providers receivables      
Trade And Other Receivables [Line Items]      
Financial assets (1) 0  
Allowance for ECL | Merchant receivables      
Trade And Other Receivables [Line Items]      
Financial assets (25) (17)  
Allowance for ECL | Debt collection receivables      
Trade And Other Receivables [Line Items]      
Financial assets 0 0  
Allowance for ECL | Other receivables      
Trade And Other Receivables [Line Items]      
Financial assets $ 0 $ 0  
v3.25.4
Debt securities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Securities In Issue [Line Items]    
Debt securities $ 1,518 $ 454
Treasury bills chargeable at central banks    
Debt Securities In Issue [Line Items]    
Debt securities 1,365 401
Mandatory deposits at central banks    
Debt Securities In Issue [Line Items]    
Debt securities 93 42
Bonds and other interest bearing securities    
Debt Securities In Issue [Line Items]    
Debt securities $ 60 $ 11
v3.25.4
Leases - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of quantitative information about right-of-use assets [line items]      
Impairments of right-of-use assets $ 16 $ 6 $ 32
Office Space      
Disclosure of quantitative information about right-of-use assets [line items]      
Impairments of right-of-use assets $ 16 $ 6 $ 32
v3.25.4
Leases - Information about right-of-use assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Presentation of leases for lessee [abstract]      
Depreciation of right-of-use assets $ (15) $ (16) $ (28)
Impairments of right-of-use assets (16) (6) (32)
Interest expense for lease liabilities (2) (3) (4)
Total right-of-use lease cost (33) (25) (64)
Expenses relating to short-term leases (9) (10) (7)
Total short-term and low-value leases $ (9) $ (10) $ (7)
v3.25.4
Divestitures - Additional Information (Details)
merchant in Thousands, $ in Millions
Oct. 01, 2024
USD ($)
merchant
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Disclosure Of Analysis Of Single Amount Of Disposed Operation [Line Items]          
Goodwill   $ 685 $ 613    
Settlement and trade receivables   580 493    
Other assets   487 364    
Cash and cash equivalents   3,803 3,243 $ 2,391 $ 1,694
Accounts payable and accrued expenses   655 572    
Other liabilities   $ 358 $ 255    
KCO          
Disclosure Of Analysis Of Single Amount Of Disposed Operation [Line Items]          
Number of merchants | merchant 24        
Cash $ 195        
Gain on sale after income tax 171        
Maximum future contingent consideration receivable 28        
Goodwill 20        
Settlement and trade receivables 4        
Other assets 1        
Cash and cash equivalents 8        
Accounts payable and accrued expenses 2        
Payables to merchants 56        
Other liabilities 4        
Intercompany receivables $ 49        
v3.25.4
Divestitures - Disclosure of analysis of single amount of disposed operation (Details) - KCO
$ in Millions
Oct. 01, 2024
USD ($)
Disclosure Of Analysis Of Single Amount Of Disposed Operation [Line Items]  
Cash $ 195
Fair value of contingent consideration 0
Transaction costs (4)
Total disposal consideration 191
Carrying amount of net assets sold (20)
Gain on sale before income tax and reclassification of foreign currency translation reserve 171
Gain on sale after income tax $ 171
v3.25.4
Goodwill and Intangible assets - Schedule intangible assets and goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period $ 989  
Intangible assets and goodwill at end of period 1,068 $ 989
Goodwill    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 613  
Intangible assets and goodwill at end of period 685 613
Trademarks, Tradenames & Licenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 77  
Intangible assets and goodwill at end of period 87 77
Capitalized development expenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 138  
Intangible assets and goodwill at end of period 119 138
Other intangible assets    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 161  
Intangible assets and goodwill at end of period 177 161
Cost value    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 1,481 1,588
Additions 27 44
Sales/disposals 0 (46)
Currency translation difference 224 (105)
Intangible assets and goodwill at end of period 1,732 1,481
Cost value | Goodwill    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 626 680
Sales/disposals 0 (20)
Currency translation difference 72 (34)
Intangible assets and goodwill at end of period 698 626
Cost value | Trademarks, Tradenames & Licenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 117 127
Additions 0 0
Sales/disposals 0 0
Currency translation difference 22 (10)
Intangible assets and goodwill at end of period 139 117
Cost value | Capitalized development expenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 451 468
Additions 27 44
Sales/disposals 0 (21)
Currency translation difference 88 (40)
Intangible assets and goodwill at end of period 566 451
Cost value | Other intangible assets    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 287 313
Additions 0 0
Sales/disposals 0 (5)
Currency translation difference 42 (21)
Intangible assets and goodwill at end of period 329 287
Accumulated amortisation    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (410) (341)
Amortization for the year (88) (110)
Sales/disposals 0 13
Currency translation difference (72) 28
Intangible assets and goodwill at end of period (570) (410)
Accumulated amortisation | Goodwill    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period 0 0
Sales/disposals 0 0
Currency translation difference 0 0
Intangible assets and goodwill at end of period 0 0
Accumulated amortisation | Trademarks, Tradenames & Licenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (32) (21)
Amortization for the year (5) (13)
Sales/disposals 0 0
Currency translation difference (6) 2
Intangible assets and goodwill at end of period (43) (32)
Accumulated amortisation | Capitalized development expenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (266) (226)
Amortization for the year (69) (71)
Sales/disposals 0 10
Currency translation difference (54) 21
Intangible assets and goodwill at end of period (389) (266)
Accumulated amortisation | Other intangible assets    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (112) (94)
Amortization for the year (14) (26)
Sales/disposals 0 3
Currency translation difference (12) 5
Intangible assets and goodwill at end of period (138) (112)
Accumulated impairment    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (82) (47)
Impairment for the year (2) (49)
Sales/disposals 0 11
Currency translation difference (10) 3
Intangible assets and goodwill at end of period (94) (82)
Accumulated impairment | Goodwill    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (13) (13)
Impairment for the year 0 0
Sales/disposals 0 0
Currency translation difference 0 0
Intangible assets and goodwill at end of period (13) (13)
Accumulated impairment | Trademarks, Tradenames & Licenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (8) (8)
Impairment for the year 0 0
Sales/disposals 0 0
Currency translation difference (1) 0
Intangible assets and goodwill at end of period (9) (8)
Accumulated impairment | Capitalized development expenses    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (47) (25)
Impairment for the year (2) (36)
Sales/disposals 0 11
Currency translation difference (9) 3
Intangible assets and goodwill at end of period (58) (47)
Accumulated impairment | Other intangible assets    
Reconciliation of changes in intangible assets and goodwill [abstract]    
Intangible assets and goodwill at beginning of period (14) (1)
Impairment for the year 0 (13)
Sales/disposals 0 0
Currency translation difference 0 0
Intangible assets and goodwill at end of period $ (14) $ (14)
v3.25.4
Goodwill and Intangible assets - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Oct. 01, 2024
Dec. 31, 2025
Dec. 31, 2024
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]      
Impairment for the year   $ 0  
Forecast plan period   2 years 2 years
Extrapolated forecast period   5 years 5 years
Growth rate beyond initial cash flow projections   3.50% 3.50%
Discount rate   11.20% 12.50%
Goodwill | KCO      
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]      
Goodwill disposal $ 20    
v3.25.4
Property and equipment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period $ 85  
Property, plant and equipment including right-of-use assets at the end of the period 60 $ 85
Right-of-use assets    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 72  
Property, plant and equipment including right-of-use assets at the end of the period 51 72
Leasehold improvements | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 2  
Property, plant and equipment including right-of-use assets at the end of the period 0 2
Equipment | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 11  
Property, plant and equipment including right-of-use assets at the end of the period 9 11
Cost value    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 243 300
Additions 3 1
Sales/disposals (9) (36)
Remeasurement (3) (1)
Currency translation difference 42 (21)
Property, plant and equipment including right-of-use assets at the end of the period 276 243
Cost value | Right-of-use assets    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 178 226
Additions 0 0
Sales/disposals (7) (31)
Remeasurement (3) (1)
Currency translation difference 31 (16)
Property, plant and equipment including right-of-use assets at the end of the period 199 178
Cost value | Leasehold improvements | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 12 14
Additions 0 0
Sales/disposals 0 (1)
Remeasurement 0 0
Currency translation difference 2 (1)
Property, plant and equipment including right-of-use assets at the end of the period 14 12
Cost value | Equipment | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period 53 60
Additions 3 1
Sales/disposals (2) (4)
Remeasurement 0 0
Currency translation difference 9 (4)
Property, plant and equipment including right-of-use assets at the end of the period 63 53
Accumulated depreciation    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (125) (143)
Depreciation for the year (18) (24)
Sales/disposals 8 31
Currency translation difference (24) 11
Property, plant and equipment including right-of-use assets at the end of the period (159) (125)
Accumulated depreciation | Right-of-use assets    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (77) (95)
Depreciation for the year (15) (16)
Sales/disposals 7 27
Currency translation difference (16) 7
Property, plant and equipment including right-of-use assets at the end of the period (101) (77)
Accumulated depreciation | Leasehold improvements | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (9) (10)
Depreciation for the year 0 (1)
Sales/disposals 0 1
Currency translation difference (1) 1
Property, plant and equipment including right-of-use assets at the end of the period (10) (9)
Accumulated depreciation | Equipment | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (39) (38)
Depreciation for the year (3) (7)
Sales/disposals 1 3
Currency translation difference (7) 3
Property, plant and equipment including right-of-use assets at the end of the period (48) (39)
Accumulated impairment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (33) (35)
Impairment for the year (21) (6)
Sales/disposals 0 3
Currency translation difference (3) 5
Property, plant and equipment including right-of-use assets at the end of the period (57) (33)
Accumulated impairment | Right-of-use assets    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (29) (30)
Impairment for the year (16) (6)
Sales/disposals 0 3
Currency translation difference (2) 4
Property, plant and equipment including right-of-use assets at the end of the period (47) (29)
Accumulated impairment | Leasehold improvements | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (1) (2)
Impairment for the year (3) 0
Sales/disposals 0 0
Currency translation difference 0 1
Property, plant and equipment including right-of-use assets at the end of the period (4) (1)
Accumulated impairment | Equipment | Property, plant and equipment    
Disclosure of detailed information about property, plant and equipment [line items]    
Property, plant and equipment including right-of-use assets at the beginning of the period (3) (3)
Impairment for the year (2) 0
Sales/disposals 0 0
Currency translation difference (1) 0
Property, plant and equipment including right-of-use assets at the end of the period $ (6) $ (3)
v3.25.4
Other assets - Summary of other assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Miscellaneous assets [abstract]    
Current tax assets $ 18 $ 21
VAT receivables 41 37
Commercial agreement assets 155 65
Derivatives 21 10
Accrued income 70 78
Prepaid expenses 49 28
Equity investments 15 24
Collateral for derivatives 14 69
Securitization partner receivable 54 0
Other receivables 50 32
Total $ 487 $ 364
v3.25.4
Other assets - Additional Information (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Miscellaneous assets [abstract]  
Commercial agreement, fair market value $ 85
Commercial agreement assets, outstanding $ 75
v3.25.4
Notes payable and other borrowings - Disclosure of notes payable and other borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of detailed information about borrowings [line items]    
Commercial papers $ 84 $ 13
Derivatives 13 61
Subordinated liabilities 184 171
Total 1,359 513
Liabilities to financial institutions    
Disclosure of detailed information about borrowings [line items]    
Borrowings 163 132
Senior unsecured bonds    
Disclosure of detailed information about borrowings [line items]    
Borrowings 326 136
Warehouse financing facility    
Disclosure of detailed information about borrowings [line items]    
Borrowings $ 589 $ 0
v3.25.4
Notes payable and other borrowings - Additional Information (Details)
kr in Millions, $ in Millions, € in Billions
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2025
SEK (kr)
Dec. 31, 2025
EUR (€)
Jun. 18, 2025
USD ($)
Jun. 18, 2025
SEK (kr)
Jun. 24, 2024
USD ($)
Jun. 24, 2024
SEK (kr)
Apr. 19, 2024
USD ($)
Mar. 21, 2024
USD ($)
Mar. 21, 2024
SEK (kr)
Aug. 16, 2023
USD ($)
Aug. 16, 2023
SEK (kr)
May 16, 2023
USD ($)
May 16, 2023
SEK (kr)
Disclosure of detailed information about borrowings [line items]                                
Notes payable and other borrowings redeemed $ 86.0 $ 169.0 $ 150.0                          
Interest expense on borrowings 30.0 17.0 13.0                          
Swedish Medium Term Note Program (SMTN)                                
Disclosure of detailed information about borrowings [line items]                                
Maximum amount of notes authorised 1,100.0     kr 10,000                        
Notes payable and other borrowings redeemed 0.0 34.0 66.0                          
Issued notes repurchased 0.0 8.0                            
Euro Medium Term Note Program (EMTN)                                
Disclosure of detailed information about borrowings [line items]                                
Maximum amount of notes authorised 3,100.0       € 3                      
Senior Unsecured Bonds, 500 million due 2026, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount                     $ 49.5 kr 500        
Senior Unsecured Bonds, 750 million due 2026, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount               $ 74.2 kr 750              
Senior Unsecured Bonds, 250 million due 2027, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount               $ 24.7 kr 250              
Senior Unsecured Bonds, 600 million due 2027, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount           $ 65.0 kr 600                  
Senior Unsecured Bonds, 900 million due 2028, EMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount           $ 98.0 kr 900                  
Senior Unsecured Notes                                
Disclosure of detailed information about borrowings [line items]                                
Interest expense on borrowings $ 10.0 $ 5.0 $ 4.0                          
Subordinated Liabilities, 500 million due 2033                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount                             $ 50.0 kr 500
Subordinated Liabilities, 250 million due 2033                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount                         $ 25.0 kr 250    
Subordinated Liabilities, 100 million due 2034                                
Disclosure of detailed information about borrowings [line items]                                
Nominal amount                   $ 100.0            
Stockholm Interbank Offered Rate (STIBOR) | Senior Unsecured Bonds, 500 million due 2026, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis                     2.50% 2.50%        
Stockholm Interbank Offered Rate (STIBOR) | Senior Unsecured Bonds, 750 million due 2026, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis               1.80% 1.80%              
Stockholm Interbank Offered Rate (STIBOR) | Senior Unsecured Bonds, 250 million due 2027, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis               2.10% 2.10%              
Stockholm Interbank Offered Rate (STIBOR) | Senior Unsecured Bonds, 600 million due 2027, SMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis           1.60% 1.60%                  
Stockholm Interbank Offered Rate (STIBOR) | Senior Unsecured Bonds, 900 million due 2028, EMTN program                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis           1.80% 1.80%                  
Stockholm Interbank Offered Rate (STIBOR) | Subordinated Liabilities, 500 million due 2033                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis                             7.50% 7.50%
Stockholm Interbank Offered Rate (STIBOR) | Subordinated Liabilities, 250 million due 2033                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis                         7.50% 7.50%    
Secured Overnight Financing Rate (SOFR) | Subordinated Liabilities, 100 million due 2034                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis                   7.00%            
Minimum | Reference rate | Subordinated Liabilities                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis 7.00%     7.00% 7.00%                      
Maximum | Reference rate | Subordinated Liabilities                                
Disclosure of detailed information about borrowings [line items]                                
Borrowings, adjustment to interest rate basis 7.50%     7.50% 7.50%                      
v3.25.4
Other liabilities - Disclosure of accrued expenses and other liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Miscellaneous liabilities [abstract]    
Lease liabilities $ 80 $ 87
Commercial agreement liabilities 40 31
Income and payroll tax payables 28 32
Provisions 13 6
Card scheme liabilities 54 46
Payable to SPV 44 15
Other liabilities 99 38
Total $ 358 $ 255
v3.25.4
Other liabilities - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities [Line Items]    
Net provision $ 0 $ 0
Gross transaction value, exposure $ 889 778
Maximum    
Other Liabilities [Line Items]    
Contingent liabilities, exposure   $ 130
v3.25.4
Structured entities - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
tranche
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Disclosure of unconsolidated structured entities [line items]      
Consolidated structured entities, Reference pool, number of tranches | tranche 2    
Unconsolidated structured entities, reference pool, number of tranches | tranche 3    
Expense from securitized liabilities $ 32.0 $ 34.0 $ 22.0
Consumer receivables 10,459.0 8,141.0  
Transaction and service revenue 2,500.0 2,136.0 1,768.0
Synthetic securitization transactions      
Disclosure of unconsolidated structured entities [line items]      
Expense from securitized liabilities 30.7 32.3 21.9
Consumer receivables 1,300.0 2,100.0 $ 1,700.0
Forward flow securitization      
Disclosure of unconsolidated structured entities [line items]      
Assets transferred to structured entities, at time of transfer 18,000.0 3,300.0  
Total assets 786.0 2.0  
Transaction and service revenue 12.2 1.6  
Receivables recognised by SPV $ 2,940.0 $ 867.0  
Forward flow securitization | Minimum      
Disclosure of unconsolidated structured entities [line items]      
Commitment term 2 years    
Commitment amount $ 750.0    
Forward flow securitization | Maximum      
Disclosure of unconsolidated structured entities [line items]      
Commitment term 3 years    
Commitment amount $ 1,000.0    
v3.25.4
Structured entities - Disclosure of interests in unconsolidated structured entities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of unconsolidated structured entities [line items]    
Consumer receivables at fair value through OCI $ 386 $ 0
Consumer receivables at fair value through profit and loss 400 2
Pledged assets under forward flow arrangements 2,334 5
Payable to SPV 44 15
Forward flow securitization    
Disclosure of unconsolidated structured entities [line items]    
Consumer receivables at fair value through OCI 386 0
Consumer receivables at fair value through profit and loss 400 2
Pledged assets under forward flow arrangements 0 2
Total assets 786 4
Payable to SPV 44 15
Total liabilities $ 44 $ 15
v3.25.4
Funding costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Expenses by nature [abstract]      
Consumer deposits $ (330) $ (343) $ (190)
Fair value adjustment on loans sold and held for sale (163) (30) 0
Other cost of securitisations (32) (34) (22)
Interest-bearing securities (30) (26) (24)
Liabilities to credit institutions (30) (17) (13)
Subordinated liabilities (19) (17) (6)
Other funding costs (63) (36) (42)
Total $ (667) $ (503) $ (297)
v3.25.4
Derivatives - Additional information (Details) - USD ($)
$ in Billions
Dec. 31, 2025
Dec. 31, 2024
Derivatives    
Disclosure of detailed information about hedging instruments [line items]    
Nominal amount $ 8.3 $ 7.4
v3.25.4
Derivatives - Summary of detailed information about fair value and notional amounts of derivative instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of detailed information about hedging instruments [line items]    
Positive $ 21 $ 10
Negative (13) (61)
Derivatives designated in a hedged relationship | Interest rate swaps    
Disclosure of detailed information about hedging instruments [line items]    
Positive 2 4
Negative (1) (1)
Nominal amount 2,883 3,805
Derivatives not designated in a hedged relationship | Currency forwards    
Disclosure of detailed information about hedging instruments [line items]    
Positive 20 6
Negative (12) (60)
Nominal amount $ 5,413 $ 3,588
v3.25.4
Derivatives - Summary of detailed information about hedged items (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Disclosure of detailed information about hedged items [line items]    
Positive $ 21 $ 10
Negative (13) (61)
Consumer deposits | Fair value hedges    
Disclosure of detailed information about hedged items [line items]    
Consumer deposits 2,883 3,805
Accumulated amount of fair value adjustment $ (1) $ 6
Interest rate swaps | Fair value hedges    
Disclosure of detailed information about hedged items [line items]    
Nominal amount 2,883 3,805
Positive $ 2 $ 4
Negative (1) (1)
Change in fair value used to calculate hedge ineffectiveness (3) (5)
Ineffectiveness recognized in funding costs $ 0 $ 0
v3.25.4
Derivatives - Summary of maturity of the nominal amount of the hedge instrument (Details) - Interest rate swaps - Fair value hedges - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of detailed information about hedging instruments [line items]    
Interest rate risk 2,883 3,805
Within 3 months    
Disclosure of detailed information about hedging instruments [line items]    
Interest rate risk 898 833
Average fixed interest rate 2.20% 3.50%
Later than three months and not later than one year    
Disclosure of detailed information about hedging instruments [line items]    
Interest rate risk 1,557 2,000
Average fixed interest rate 1.90% 2.80%
Later than one year    
Disclosure of detailed information about hedging instruments [line items]    
Interest rate risk 428 972
Average fixed interest rate 1.90% 2.20%
v3.25.4
Pledged assets, guarantees and commitments - Summary of detailed information about pledged assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Pledged assets $ 2,334 $ 5
Pledged consumer receivables    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Pledged assets 2,319 0
Pledged treasury bills chargeable at central banks, etc., and pledged bonds and other interest-bearing securities    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Pledged assets 2 2
Other pledged assets    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Pledged assets $ 13 $ 3
v3.25.4
Pledged assets, guarantees and commitments - Summary of detailed information about commitments and guarantees (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Total $ 3,963 $ 1,655
Commitments for loan funding    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Total 3,963 1,655
Guarantees | Guarantees    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Total $ 0 $ 0
v3.25.4
Pledged assets, guarantees and commitments - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Contingent liabilities and commitments $ 3,963 $ 1,655
Commitments for loan funding    
Disclosure of assets pledged, Guarantees And Commitments [Line Items]    
Contingent liabilities and commitments $ 3,963 $ 1,655
v3.25.4
Fair value measurement of financial assets and liabilities - Summary of fair value measurement of assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets $ 822 $ 36  
Total financial liabilities 13 61  
Recurring fair value measurement | Derivatives      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 13 61  
Recurring fair value measurement | Convertible notes      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Level 1 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 7 9  
Total financial liabilities 0 0  
Level 1 | Recurring fair value measurement | Derivatives      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Level 1 | Recurring fair value measurement | Convertible notes      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Level 2 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 21 10  
Total financial liabilities 13 61  
Level 2 | Recurring fair value measurement | Derivatives      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 13 61  
Level 2 | Recurring fair value measurement | Convertible notes      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Level 3 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 794 17  
Total financial liabilities 0 0  
Level 3 | Recurring fair value measurement | Derivatives      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Level 3 | Recurring fair value measurement | Convertible notes      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial liabilities 0 0  
Consumer receivables at fair value through P&L | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 400 2  
Consumer receivables at fair value through P&L | Level 1 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Consumer receivables at fair value through P&L | Level 2 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Consumer receivables at fair value through P&L | Level 3      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 400 2 $ 0
Consumer receivables at fair value through P&L | Level 3 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 400 2  
Consumer receivables at fair value through OCI | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 386 0  
Consumer receivables at fair value through OCI | Level 1 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Consumer receivables at fair value through OCI | Level 2 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Consumer receivables at fair value through OCI | Level 3 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 386 0  
Derivatives | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 21 10  
Derivatives | Level 1 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Derivatives | Level 2 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 21 10  
Derivatives | Level 3 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Equity investments | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 15 24  
Equity investments | Level 1 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 7 9  
Equity investments | Level 2 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 0 0  
Equity investments | Level 3      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets 8 15 $ 26
Equity investments | Level 3 | Recurring fair value measurement      
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]      
Total financial assets $ 8 $ 15  
v3.25.4
Fair value measurement of financial assets and liabilities -Summary of analysis of movements in level 3 assets and liabilities (Details) - Level 3 - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Equity investments    
Changes in fair value measurement, assets [abstract]    
Financial assets at beginning balance $ 15 $ 26
Receivables originated to be sold 0 0
Gain/(loss) in statement of profit or loss (7) (11)
of which: unrealized gain/(loss) (7) (11)
of which: realized gain/(loss) 0 0
Receivables sold to third parties 0 0
Consumer receivables repaid 0  
Financial assets at ending balance 8 15
Consumer receivables at fair value through P&L    
Changes in fair value measurement, assets [abstract]    
Financial assets at beginning balance 2 0
Receivables originated to be sold 17,246 3,261
Gain/(loss) in statement of profit or loss (164) (30)
of which: unrealized gain/(loss) 0 0
of which: realized gain/(loss) (164) (30)
Receivables sold to third parties (16,684) (3,229)
Consumer receivables repaid 0  
Financial assets at ending balance 400 2
Consumer receivables at fair value through OCI    
Changes in fair value measurement, assets [abstract]    
Financial assets at beginning balance 0 0
Receivables originated to be sold 1,147 0
Gain/(loss) in statement of profit or loss 37 0
of which: unrealized gain/(loss) 12 0
of which: realized gain/(loss) 25 0
Receivables sold to third parties (465) 0
Consumer receivables repaid (333)  
Financial assets at ending balance $ 386 $ 0
v3.25.4
Fair value measurement of financial assets and liabilities - Summary of financial assets and liabilities, at amortized cost (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost $ 1,518 $ 454
Consumer deposits 13,003 9,510
Level 1    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Total financial assets 1,969 679
Consumer deposits 0 0
Subordinated liabilities 0 0
Total financial liabilities 0 0
Level 1 | Senior unsecured bonds    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 0 0
Level 1 | Commercial papers    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 0 0
Level 2    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Total financial assets 0 0
Consumer deposits 13,188 9,671
Subordinated liabilities 206 175
Total financial liabilities 13,806 9,996
Level 2 | Senior unsecured bonds    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 327 136
Level 2 | Commercial papers    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 84 14
Level 3    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Total financial assets 0 0
Consumer deposits 0 0
Subordinated liabilities 0 0
Total financial liabilities 0 0
Level 3 | Senior unsecured bonds    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 0 0
Level 3 | Commercial papers    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 0 0
Carrying Amount    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Total financial assets 1,968 684
Consumer deposits 13,003 9,510
Subordinated liabilities 184 171
Total financial liabilities 13,597 9,830
Carrying Amount | Senior unsecured bonds    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 326 136
Carrying Amount | Commercial papers    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 84 13
Balance at Fair Value    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Total financial assets 1,969 679
Consumer deposits 13,188 9,671
Subordinated liabilities 206 175
Total financial liabilities 13,805 9,996
Balance at Fair Value | Senior unsecured bonds    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 327 136
Balance at Fair Value | Commercial papers    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments issued at amortised cost 84 14
Treasury bills chargeable at central banks | Level 1    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 1,909 668
Treasury bills chargeable at central banks | Level 2    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 0 0
Treasury bills chargeable at central banks | Level 3    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 0 0
Treasury bills chargeable at central banks | Carrying Amount    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 1,908 673
Treasury bills chargeable at central banks | Balance at Fair Value    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 1,909 668
Bonds and other interest bearing securities | Level 1    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 60 11
Bonds and other interest bearing securities | Level 2    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 0 0
Bonds and other interest bearing securities | Level 3    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 0 0
Bonds and other interest bearing securities | Carrying Amount    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost 60 11
Bonds and other interest bearing securities | Balance at Fair Value    
Disclosure Of Fair Values Of Financial Instruments Carried At Amortised Cost [Line Items]    
Debt instruments held at amortised cost $ 60 $ 11
v3.25.4
Fair value measurement of financial assets and liabilities - Summary of gains or losses on financial instruments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value Measurement [Abstract]    
Financial instruments mandatory measured at fair value through profit or loss $ (127) $ (152)
Financial assets measured at amortized cost 2,567 2,091
Financial liabilities measured at amortized cost (611) (527)
Currency exchange gains/losses (102) 78
Total $ 1,726 $ 1,490
v3.25.4
Issued capital and reserves - Schedule of issued and outstanding share capital (Details) - $ / shares
12 Months Ended
Sep. 10, 2025
Sep. 09, 2025
Dec. 31, 2025
Dec. 31, 2024
Ordinary shares        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)     $ 0.00010  
Number of shares issued, beginning period (in shares)     365,296,572 364,018,908
Shares issued     12,211,338 1,277,664
Redesignation      
Capital reduction     0  
Number of shares issued, ending period (in shares)     377,507,910 365,296,572
Class B shares        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share) $ 0.0001 $ 0.0001 $ 0.00010  
Number of shares issued, beginning period (in shares)     0 0
Shares issued   369,911,294 369,911,294 0
Redesignation 41,774,705   (41,774,705)  
Capital reduction      
Number of shares issued, ending period (in shares)     328,136,589 0
Class C shares        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)     $ 0.00010  
Number of shares issued, beginning period (in shares)     0 0
Shares issued     0 0
Redesignation      
Capital reduction     0  
Number of shares issued, ending period (in shares)     0 0
Deferred shares, type 1        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)     $ 0.00073  
Number of shares issued, beginning period (in shares)     365,296,572 364,018,908
Shares issued     257,772 1,277,664
Redesignation      
Capital reduction     (365,554,344)  
Number of shares issued, ending period (in shares)     0 365,296,572
Deferred shares, type 2        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)   $ 11.35013 $ 11.35013  
Number of shares issued, beginning period (in shares)     0 0
Shares issued   369,911,294 369,911,294 0
Redesignation      
Capital reduction     (369,911,294)  
Number of shares issued, ending period (in shares)     0 0
Deferred shares, type 3        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)     $ 0.28000  
Number of shares issued, beginning period (in shares)     1 0
Shares issued     0 1
Redesignation      
Capital reduction     (1)  
Number of shares issued, ending period (in shares)     0 1
Deferred shares, type 4        
Disclosure of classes of share capital [line items]        
Nominal value (in USD per share)     $ 0.00010  
Number of shares issued, beginning period (in shares)     0 0
Shares issued     0 0
Redesignation     41,774,705  
Capital reduction     (41,774,705)  
Number of shares issued, ending period (in shares)     0 0
v3.25.4
Issued capital and reserves - Additional Information (Details)
1 Months Ended 12 Months Ended
Sep. 10, 2025
USD ($)
$ / shares
shares
Sep. 09, 2025
$ / shares
shares
Mar. 06, 2025
USD ($)
$ / shares
shares
Nov. 30, 2025
USD ($)
Sep. 30, 2025
USD ($)
Jan. 31, 2025
shares
Dec. 31, 2025
USD ($)
shares
vote
$ / shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Jun. 30, 2025
USD ($)
Disclosure of classes of share capital [line items]                    
Maximum aggregate nominal share capital authorized                   $ 367,502.51
Stockholders' equity, stock split, conversion ratio     8.3333%              
Share issue related cost $ 8,500,000           $ 8,500,000 $ 0 $ 0  
Capital reduction [1]             $ 1,000,000      
Common equity tier 1 capital ratio minimum             7.00%      
Proceeds from issuing other equity instruments             $ 0 142,000,000 0  
Payments of other equity instruments             0 0 24,000,000  
AT1 Securities                    
Disclosure of classes of share capital [line items]                    
Proceeds from issuing other equity instruments             0 142,000,000 27,000,000  
Payments of other equity instruments             0 $ 0 $ 24,000,000  
Additional paid in capital                    
Disclosure of classes of share capital [line items]                    
Increase (decrease) through capitalization         $ (4,200,000,000)          
Capital reduction [1]             4,579,000,000      
Share capital                    
Disclosure of classes of share capital [line items]                    
Increase (decrease) through capitalization         $ 4,200,000,000          
Retained earnings                    
Disclosure of classes of share capital [line items]                    
Capital reduction       $ 4,600,000,000     $ (4,579,000,000) [1]      
Issued capital and additional paid-in capital                    
Disclosure of classes of share capital [line items]                    
Capital reduction       $ (4,600,000,000)            
Initial public offering (IPO)                    
Disclosure of classes of share capital [line items]                    
Share issue related cost $ 8,500,000                  
Ordinary shares                    
Disclosure of classes of share capital [line items]                    
Number of votes | vote             1      
Amount distributed to shareholders     $ 10,000,000.0       $ 10,000,000.0      
Increase through issuance of equity (in shares) | shares             12,211,338 1,277,664    
Nominal value (in USD per share) | $ / shares             $ 0.00010      
Number of options granted (in shares) | shares             299,572      
Redesignation | shares                  
Ordinary shares | Restricted share units                    
Disclosure of classes of share capital [line items]                    
Number of options granted (in shares) | shares             2,563,600      
Ordinary shares | Employee Equity Program                    
Disclosure of classes of share capital [line items]                    
Number of options granted (in shares) | shares             1,948,166      
Ordinary shares | Warrants                    
Disclosure of classes of share capital [line items]                    
Number of options exercised (in shares) | shares             2,400,000      
Ordinary shares | Initial public offering (IPO)                    
Disclosure of classes of share capital [line items]                    
Increase through issuance of equity (in shares) | shares 5,000,000                  
Class B shares                    
Disclosure of classes of share capital [line items]                    
Number of votes | vote             10      
Class B to deferred shares automatic conversion , period             20 years      
Increase through issuance of equity (in shares) | shares   369,911,294         369,911,294 0    
Nominal value (in USD per share) | $ / shares $ 0.0001 $ 0.0001         $ 0.00010      
Redesignation | shares 41,774,705           (41,774,705)      
Class C shares                    
Disclosure of classes of share capital [line items]                    
Amount distributed to shareholders     $ 5,000,000.0       $ 5,000,000.0      
Increase through issuance of equity (in shares) | shares             0 0    
Nominal value (in USD per share) | $ / shares             $ 0.00010      
Redesignation | shares                  
Deferred shares                    
Disclosure of classes of share capital [line items]                    
Increase through issuance of equity (in shares) | shares     365,445,384     148,812        
Nominal value (in USD per share) | $ / shares     $ 0.0007333              
Deferred shares, type 2                    
Disclosure of classes of share capital [line items]                    
Increase through issuance of equity (in shares) | shares   369,911,294         369,911,294 0    
Nominal value (in USD per share) | $ / shares   $ 11.35013         $ 11.35013      
Redesignation | shares                  
[1] During the year a capital reduction of $4.6 billion resulting in a reallocation from share capital and additional paid in capital to retained earnings. See Note 21
v3.25.4
Share-based payments - Schedule of share-based payment expense recognized in profit or loss (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of terms and conditions of share-based payment arrangement [abstract]      
Employee restricted share unit program $ (75) $ (40) $ (18)
Business acquisition-related awards 0 (2) (4)
Share warrants and share options (72) (45) (22)
Direct share issuance (10) (7) 0
Share-based payment costs (157) (94) (44)
Amount recognized as reduction of revenue 1 1 1
Share-based payments expense $ (156) $ (93) $ (43)
v3.25.4
Share-based payments - Schedule of number and weighted average exercise prices of other equity instruments (Details)
12 Months Ended
Dec. 31, 2025
shares
$ / shares
Dec. 31, 2024
shares
$ / shares
Dec. 31, 2023
shares
$ / shares
Ordinary shares      
Reconciliation of Share Options [Roll Forward]      
Granted during the year (in shares) 299,572    
Number of shares entitled (in shares) 1    
Ordinary shares | Chief Executive Officer      
Reconciliation of Share Options [Roll Forward]      
Amended during the year (in shares) (1,470,618)    
Share options, class C      
Reconciliation of Share Options [Roll Forward]      
Number of shares entitled (in shares) 2    
Share options, class C | Chief Executive Officer      
Reconciliation of Share Options [Roll Forward]      
Granted during the year (in shares) 17,505,672    
Amended during the year (in shares) (2,941,236)    
Weighted average fair value, granted during period (in us dollar per share) | $ / shares $ 91.8    
Weighted average fair value, amended during period (in us dollar per share) | $ / shares $ 91.8    
Restricted share units      
Reconciliation of Other Equity Instruments [Roll Forward]      
Number of other equity instruments outstanding at beginning of period (in shares) 0 0 0
Granted during the year (in shares) 1,026,951 0 0
Exercised during the year (in shares) 0 0 0
Amended during the year (in shares) 0    
Forfeited during the year (in shares) (28,044) 0 0
Number of other equity instruments outstanding at end of period (in shares) 998,907 0 0
Weighted average fair value, outstanding at beginning of period (in us dollar per share) | $ / shares $ 0 $ 0 $ 0
Weighted average fair value, granted during period (in us dollar per share) | $ / shares 34.2 0 0
Weighted average fair value, exercised during period (in us dollar per share) | $ / shares 0 0 0
Weighted average fair value, amended during period (in us dollar per share) | $ / shares 0    
Weighted average fair value, forfeited during period (in us dollar per share) | $ / shares 34.0 0 0
Weighted average fair value, outstanding at end of period (in us dollar per share) | $ / shares $ 34.2 $ 0 $ 0
Number of other equity instruments outstanding at end of period, equivalent of Klarna Group plc Shares (in shares) 3,649,304    
Weighted average fair value, outstanding at end of period, equivalent of Klarna Group plc Shares (in us dollar per share) | $ / shares $ 20.4    
Restricted share units | Ordinary shares      
Reconciliation of Share Options [Roll Forward]      
Granted during the year (in shares) 2,563,600    
Restricted share units | Klarna Group PLC subsidiary      
Reconciliation of Other Equity Instruments [Roll Forward]      
Number of other equity instruments outstanding at beginning of period (in shares) 26,411,646 10,208,104 7,988,295
Granted during the year (in shares) 123,335 22,659,832 7,081,803
Released during the year (in shares) (8,225,629) (3,164,977) (2,411,162)
Exercised during the year (in shares) 0 0 0
Repurchased during the year (in shares) 0    
Amended during the year (in shares) 0    
Forfeited during the year (in shares) (3,712,137) (3,291,313) (2,450,832)
Number of other equity instruments outstanding at end of period (in shares) 14,597,215 26,411,646 10,208,104
Weighted average fair value, outstanding at beginning of period (in us dollar per share) | $ / shares $ 4.5 $ 4.9 $ 6.0
Weighted average fair value, granted during period (in us dollar per share) | $ / shares 10.1 4.4 4.2
Weighted average fair value, released during period (in us dollar per share) | $ / shares 5.3 5.3 6.3
Weighted average fair value, exercised during period (in us dollar per share) | $ / shares 0 0 0
Weighted average fair value, repurchased during period (in us dollar per share) | $ / shares 0    
Weighted average fair value, amended during period (in us dollar per share) | $ / shares 0    
Weighted average fair value, forfeited during period (in us dollar per share) | $ / shares 5.0 4.7 5.1
Weighted average fair value, outstanding at end of period (in us dollar per share) | $ / shares $ 5.1 $ 4.5 $ 4.9
Share warrants and share options      
Reconciliation of Share Options [Roll Forward]      
Number of options outstanding at beginning of period (in shares) 6,100,140 0 0
Granted during the year (in shares) 24,909,751 6,100,140 0
Exercised during the year (in shares) (2,400,000) 0 0
Amended during the year (in shares) (1,477,164)    
Forfeited during the year (in shares) 0 0 0
Number of options outstanding at end of period (in shares) 27,132,727 6,100,140 0
Weighted average exercise price outstanding, beginning balance (in us dollar per share) | $ / shares $ 46.0 $ 0 $ 0
Weighted average fair value, granted during period (in us dollar per share) | $ / shares 57.0 46.0 0
Weighted average fair value, exercised during period (in us dollar per share) | $ / shares 0 0 0
Weighted average fair value, amended during period (in us dollar per share) | $ / shares 38.2    
Weighted average fair value, forfeited during period (in us dollar per share) | $ / shares 0 0 0
Weighted average exercise price outstanding, ending balance (in us dollar per share) | $ / shares $ 60.6 $ 46.0 $ 0
Share warrants and share options | Ordinary shares      
Reconciliation of Share Options [Roll Forward]      
Number of shares received per two Class C award vested (in shares) 1    
Share warrants and share options | Share options, class C      
Reconciliation of Share Options [Roll Forward]      
Number of shares received per two Class C award vested (in shares) 2    
Share options, class C      
Reconciliation of Share Options [Roll Forward]      
Number of options outstanding at beginning of period (in shares) 0 0 0
Granted during the year (in shares) 17,505,672 0 0
Exercised during the year (in shares) 0 0 0
Amended during the year (in shares) 2,941,236    
Forfeited during the year (in shares) 0 0 0
Number of options outstanding at end of period (in shares) 20,446,908 0 0
Weighted average exercise price outstanding, beginning balance (in us dollar per share) | $ / shares $ 0 $ 0 $ 0
Weighted average fair value, granted during period (in us dollar per share) | $ / shares 45.9 0 0
Weighted average fair value, exercised during period (in us dollar per share) | $ / shares 0 0 0
Weighted average fair value, amended during period (in us dollar per share) | $ / shares 19.1    
Weighted average fair value, forfeited during period (in us dollar per share) | $ / shares 0 0 0
Weighted average exercise price outstanding, ending balance (in us dollar per share) | $ / shares $ 42.0 $ 0 $ 0
Warrants      
Reconciliation of Share Options [Roll Forward]      
Repurchased during the year (in shares) (1,267,752)    
Number of share options outstanding at end of period, equivalent of Klarna Group plc Shares (in shares) 26,730,252    
Weighted average fair value, outstanding at end of period, equivalent of Klarna Group plc Shares (in us dollar per share) | $ / shares $ 50.4    
Warrants | Ordinary shares      
Reconciliation of Share Options [Roll Forward]      
Exercised during the year (in shares) (2,400,000)    
Warrants | Klarna Group PLC subsidiary      
Reconciliation of Share Options [Roll Forward]      
Number of options outstanding at beginning of period (in shares) 2,507,534 2,552,243 1,933,083
Granted during the year (in shares) 0 360,590 1,102,024
Released during the year (in shares) 0 0 0
Exercised during the year (in shares) (90,000) (126,580) (65,346)
Repurchased during the year (in shares) (105,646)    
Amended during the year (in shares) 0    
Forfeited during the year (in shares) (84,367) (278,719) (417,518)
Number of options outstanding at end of period (in shares) 2,227,521 2,507,534 2,552,243
Weighted average exercise price outstanding, beginning balance (in us dollar per share) | $ / shares $ 543.0 $ 538.0 $ 515.0
Weighted average fair value, granted during period (in us dollar per share) | $ / shares 0 515.0 578.0
Weighted average fair value, released during period (in us dollar per share) | $ / shares 0 0 0
Weighted average fair value, exercised during period (in us dollar per share) | $ / shares 231.0 162.0 76.0
Weighted average fair value, repurchased during period (in us dollar per share) | $ / shares 441.0    
Weighted average fair value, amended during period (in us dollar per share) | $ / shares 0    
Weighted average fair value, forfeited during period (in us dollar per share) | $ / shares 631.0 505.0 226.0
Weighted average exercise price outstanding, ending balance (in us dollar per share) | $ / shares $ 605.0 $ 543.0 $ 538.0
Share options | Chief Executive Officer      
Reconciliation of Share Options [Roll Forward]      
Amended during the year (in shares) (1,477,164)    
v3.25.4
Share-based payments - Additional Information (Details)
1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2025
shares
May 31, 2024
USD ($)
shares
Jun. 30, 2025
USD ($)
Dec. 31, 2025
USD ($)
shares
program
$ / shares
Dec. 31, 2024
USD ($)
shares
$ / shares
Dec. 31, 2023
USD ($)
shares
$ / shares
Dec. 31, 2020
shares
Sep. 10, 2025
$ / shares
Mar. 31, 2025
USD ($)
Dec. 31, 2022
shares
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment, social security expense | $       $ (9,000,000) $ (13,000,000) $ (300,000)        
Share-based payment, excluding social security expense | $       $ 148,000,000 81,000,000 44,000,000        
Share-based payment arrangements, vesting period       4 years            
Share-based payments expense | $       $ 156,000,000 93,000,000 $ 43,000,000        
Expected dividend, share options granted | $       0            
Commercial agreement | Sales and marketing expenses                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Fair value of shares from share-based payment transactions | $       233,000,000 $ 17,900,000          
Commercial agreement | Sales and marketing expenses | Consumer acquisition services                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Fair value of shares from share-based payment transactions | $       50,000,000            
Commercial agreement | Sales and marketing expenses | Brand awareness services                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Fair value of shares from share-based payment transactions | $       $ 183,000,000            
Management                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       8,834,736 400,065          
Weighted average fair value, granted during period (in us dollar per share) | $ / shares       $ 104            
Number of other equity instruments granted (in shares)       108,960 216,468          
Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares entitled (in shares)       1            
Number of options granted (in shares)       299,572            
IPO, offering share (USD per share) | $ / shares       $ 40.00       $ 40.00    
Ordinary shares | Chief Executive Officer                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Amended during the year (in shares)       1,470,618            
Share options, class C                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares entitled (in shares)       2            
Share options, class C | Chief Executive Officer                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       17,505,672            
Weighted average fair value, granted during period (in us dollar per share) | $ / shares       $ 91.8            
Weighted average fair value, amended during period (in us dollar per share) | $ / shares       $ 91.8            
Amended during the year (in shares)       2,941,236            
Restricted share units                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of share-based payment arrangements programs | program       2            
Share-based payment arrangements, vesting period       4 years            
Number of other equity instruments granted (in shares)       1,026,951 0 0        
Number of other equity instruments outstanding in share-based payment arrangement       998,907 0 0       0
Restricted share units | Klarna Group PLC subsidiary                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of other equity instruments granted (in shares)       123,335 22,659,832 7,081,803        
Number of other equity instruments released (in shares)       8,225,629 3,164,977 2,411,162        
Number of other equity instruments outstanding in share-based payment arrangement       14,597,215 26,411,646 10,208,104       7,988,295
Restricted share units | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       2,563,600            
Legacy RSU Program                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment arrangements, vesting period             4 years      
Share-based payment arrangements, vesting percentage             25.00%      
Share exchange ratio       0.25 0.25 0.24        
Legacy RSU Program | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares received per award vested (in shares)             1      
Klarna Group PLC RSU                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment arrangements, vesting period       4 years            
Share-based payment arrangements, vesting percentage       25.00%            
Klarna Group PLC RSU | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares received per award vested (in shares)       1            
Share warrants and share options                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share exchange ratio       12 12 12        
Number of options granted (in shares)       24,909,751 6,100,140 0        
Weighted average fair value, granted during period (in us dollar per share) | $ / shares       $ 57.0 $ 46.0 $ 0        
Weighted average fair value, amended during period (in us dollar per share) | $ / shares       $ 38.2            
Amended during the year (in shares)       1,477,164            
Number of options exercised (in shares)       2,400,000 0 0        
Share warrants and share options | Minimum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment arrangements, vesting period       4 years            
Share warrants and share options | Maximum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment arrangements, vesting period       5 years            
Share warrants and share options | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares received per award vested (in shares)       1            
KHAB Warrants                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of share options repurchased and not vested in share-ased payment arrangement (in shares)       6,456            
KHAB Warrants | Sales and marketing expenses                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payments expense | $       $ 100,000            
Warrants                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options repurchased (in shares)       1,267,752            
Share repurchase, amount | $       $ 17,200,000            
Weighted average remaining contractual life       4 years 2 months 12 days 3 years          
Number of share options exercisable (in shares)       2,145,590 1,299,360          
Warrants | Minimum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 34 $ 34          
Warrants | Maximum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 51 $ 51          
Warrants | Commercial agreement                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of other equity instruments granted (in shares)       15,740,059 1,299,360          
Number of options vested (in shares)       3,910,393            
Number of options exercised (in shares)       2,400,000            
Share-based payment arrangement, requisite service period       5 years            
Share-based payments expense | $       $ 27,000,000            
Deferred expense to be recognized from share-ased payment transactions | $       $ 75,000,000            
Current tax liabilities | $                 $ 48,000,000  
Decrease in current tax liability | $     $ 22,000,000              
Warrants | Management                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options repurchased (in shares)       17,500            
Warrants | Employee                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Employee restricted share unit program | $       $ 0            
Warrants | Klarna Group PLC subsidiary                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       0 360,590 1,102,024        
Weighted average fair value, granted during period (in us dollar per share) | $ / shares       $ 0 $ 515.0 $ 578.0        
Weighted average fair value, amended during period (in us dollar per share) | $ / shares       $ 0            
Amended during the year (in shares)       0            
Number of options exercised (in shares)       90,000 126,580 65,346        
Number of options repurchased (in shares)       105,646            
Weighted average remaining contractual life       1 year 10 months 24 days 2 years 8 months 12 days 3 years 6 months        
Number of share options exercisable (in shares)       0 40,000 51,500        
Weighted average fair value at measurement date, share options granted | $         $ 17 $ 16        
Warrants | Klarna Group PLC subsidiary | Minimum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 0.10 $ 0.10 $ 0.10        
Warrants | Klarna Group PLC subsidiary | Maximum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 1,508 $ 1,508 $ 1,508        
Warrants | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options exercised (in shares)       2,400,000            
Warrants | Ordinary shares | Commercial agreement                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of shares received per award vested (in shares)       1 1          
Share options                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payment arrangements, vesting period       4 years            
Weighted average remaining contractual life       3 years 4 months 24 days 3 years 7 months 6 days          
Number of share options exercisable (in shares)       2,935,177 1,460,856          
Weighted average fair value at measurement date, share options granted | $       $ 53 $ 9          
Share options | Minimum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 38 $ 38          
Share options | Maximum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 114 $ 114          
Share options | Chief Executive Officer                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Amended during the year (in shares)       1,477,164            
Share options, class C                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       17,505,672 0 0        
Weighted average fair value, granted during period (in us dollar per share) | $ / shares       $ 45.9 $ 0 $ 0        
Weighted average fair value, amended during period (in us dollar per share) | $ / shares       $ 19.1            
Amended during the year (in shares)       (2,941,236)            
Number of options exercised (in shares)       0 0 0        
Weighted average remaining contractual life       3 years 8 months 12 days            
Number of share options exercisable (in shares)       9,523,581 0          
Weighted average fair value at measurement date, share options granted | $       $ 29            
Share options, class C | Minimum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 19            
Share options, class C | Maximum                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Range of exercise prices (USD per share) | $ / shares       $ 57            
Equity-related instruments, business acquisition                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of other equity instruments released (in shares)   329,484                
Weighted average fair value at measurement date, other equity instruments granted (in USD per share) | $   $ 51                
Number of other equity instruments outstanding in share-based payment arrangement         0          
Employee Equity Program                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Share-based payments expense | $           $ 0        
Number of ordinary shares held (in shares) 28,762                  
Number of ordinary shares exchanged (in shares) 1,948,166                  
Employee Equity Program | Klarna Holding AB                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of ordinary shares held (in shares)         28,762 31,122        
Number of ordinary shares exchanged (in shares)         2,347 10,693        
Employee Equity Program | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of options granted (in shares)       1,948,166            
Direct Share Issuance                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Number of other equity instruments granted (in shares)       150,760 216,468          
Direct Share Issuance | Ordinary shares                    
Disclosure of terms and conditions of share-based payment arrangement [line items]                    
Weighted average fair value at measurement date, other equity instruments granted (in USD per share) | $       $ 34 $ 34          
v3.25.4
Share-based payments - Schedule of indirect measurement of fair value of goods or services received, other equity instruments granted during period (Details) - Share warrants and share options
12 Months Ended
Dec. 31, 2025
shares
$ / shares
Dec. 31, 2024
shares
$ / shares
Dec. 31, 2023
shares
$ / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]      
Expected volatility (%)   37.00%  
Weighted average share price for instruments issued (in USD) | $ / shares $ 40 $ 34  
Minimum      
Disclosure of terms and conditions of share-based payment arrangement [line items]      
Expected volatility (%) 37.00%   35.00%
Risk-free interest rate (%) 3.60% 2.00% 2.60%
Expected term (years) | shares 4.5 2.9 2.8
Maximum      
Disclosure of terms and conditions of share-based payment arrangement [line items]      
Expected volatility (%) 38.00%   37.00%
Risk-free interest rate (%) 4.40% 2.80% 3.30%
Expected term (years) | shares 5.5 4.5 5.3
Klarna Group PLC subsidiary      
Disclosure of terms and conditions of share-based payment arrangement [line items]      
Weighted average share price for instruments issued (in USD) | $ / shares   $ 337 $ 216
v3.25.4
Information on related parties - Additional Information (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
shares
$ / shares
Dec. 31, 2024
USD ($)
shares
$ / shares
Dec. 31, 2023
USD ($)
shares
$ / shares
Sep. 10, 2025
$ / shares
Disclosure of transactions between related parties [line items]        
Key management personnel compensation | $ $ 99.0 $ 65.0 $ 14.0  
Share-based payment arrangements, vesting period 4 years      
Share warrants and share options        
Disclosure of transactions between related parties [line items]        
Number of options granted (in shares) 24,909,751 6,100,140 0  
Weighted average fair value, granted during period (in us dollar per share) | $ / shares $ 57.0 $ 46.0 $ 0  
Number of share options amended (in shares) 1,477,164      
Share options        
Disclosure of transactions between related parties [line items]        
Share-based payment arrangements, vesting period 4 years      
Warrants        
Disclosure of transactions between related parties [line items]        
Number of options repurchased (in shares) 1,267,752      
Share options, class C | Share warrants and share options        
Disclosure of transactions between related parties [line items]        
Number of shares received per two Class C award vested (in shares) 2      
Ordinary shares        
Disclosure of transactions between related parties [line items]        
Number of options granted (in shares) 299,572      
IPO, offering share (USD per share) | $ / shares $ 40.00     $ 40.00
Ordinary shares | Share warrants and share options        
Disclosure of transactions between related parties [line items]        
Number of shares received per two Class C award vested (in shares) 1      
Management        
Disclosure of transactions between related parties [line items]        
Number of other equity instruments granted (in shares) 108,960 216,468    
Number of options granted (in shares) 8,834,736 400,065    
Weighted average fair value, granted during period (in us dollar per share) | $ / shares $ 104      
Weighted average fair value, granted during period (in us dollar per share) | $ / shares $ 104      
Management | Warrants        
Disclosure of transactions between related parties [line items]        
Number of options repurchased (in shares) 17,500      
Chief Executive Officer | Share options        
Disclosure of transactions between related parties [line items]        
Number of share options amended (in shares) 1,477,164      
Chief Executive Officer | Share options, class C        
Disclosure of transactions between related parties [line items]        
Number of options granted (in shares) 17,505,672      
Weighted average fair value, granted during period (in us dollar per share) | $ / shares $ 91.8      
Number of share options amended (in shares) 2,941,236      
Chief Executive Officer | Ordinary shares        
Disclosure of transactions between related parties [line items]        
Number of share options amended (in shares) 1,470,618      
Milkywire AB | Sustainability-related services        
Disclosure of transactions between related parties [line items]        
Services received, related party transactions | $ $ 0.9 $ 0.7 $ 0.9  
Milkywire AB | Carbon credit purchases        
Disclosure of transactions between related parties [line items]        
Services received, related party transactions | $ 0.5 1.0    
WRLD foundation        
Disclosure of transactions between related parties [line items]        
Donations and subsidies expense | $ $ 2.3 $ 3.8 $ 5.5  
v3.25.4
Information on related parties - Summary of compensation to the board of directors and senior management (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disclosure of transactions between related parties [abstract]      
Basic salary/fee $ 13 $ 13 $ 10
Fixed equity-based compensation 36 32 0
Variable equity-based compensation 48 18 1
Other variable-based compensation 1 1 2
Other benefits 1 1 0
Pension expenses 1 1 1
Total $ 99 $ 65 $ 14
v3.25.4
Income taxes - Disclosure of income tax, effective tax and deferred taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current tax      
Tax expense for the year $ (25) $ (20) $ (16)
Adjustment of tax attributable to previous years (1) 0 3
Total (26) (20) (13)
Deferred tax      
Deferred tax (6) 8 73
Income tax (expense) benefit (32) (12) 60
Effective tax rate      
Profit (loss) before taxes (241) 33 (304)
Income tax calculated in accordance with national tax rates applicable in each country (21) (7) 60
Non-taxable revenues 27 3 2
Non-deductible expenses (15) (37) (39)
Taxable income not booked in profit or loss (6) (2) (7)
Deductible expenses not booked in profit or loss 7 11 4
Unrecognized taxable losses (26) 12 (34)
Effect of change in tax rate 1 2 0
Losses carried forward recognized 5 6 72
Adjustments of tax attributable to previous years (4) 0 2
Income tax (expense) benefit $ (32) $ (12) $ 60
Effective tax rate 13.40% (36.70%) (19.70%)
v3.25.4
Income taxes - Disclosure of deferred tax assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]    
Deferred tax assets $ 36 $ 33
Deferred tax liability (2) (1)
Total 34 32
Losses carried forward    
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]    
Total 71 55
Allowance for credit losses    
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]    
Total 12 19
Intangible assets    
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]    
Total (78) (57)
Other    
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]    
Total $ 30 $ 15
v3.25.4
Income taxes - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Major components of tax expense (income) [abstract]      
Deferred tax expense (benefit) $ 6 $ (8) $ (73)
Losses carried forward recognized 5 6 $ 72
Unused tax losses for which no deferred tax asset recognised 2,100 1,400  
Deductible temporary differences for which no deferred tax asset is recognised $ 163 $ 0  
v3.25.4
Net profit (loss) per share (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings per share [abstract]      
Net profit (loss) attributable to shareholders of Klarna Group plc $ (294) $ 3 $ (249)
Weighted average number of ordinary shares - basic (in shares) 370,654,083 363,993,690 362,090,644
Dilutive potential ordinary shares (in shares) 0 418,379 0
Weighted average number of ordinary shares - diluted (in shares) 370,654,083 364,412,068 362,090,644
Net profit (loss) per share attributable to shareholders of Klarna Group plc, basic (in USD per share) $ (0.79) $ 0.01 $ (0.69)
Net profit (loss) per share attributable to shareholders of Klarna Group plc, diluted (in USD per share) $ (0.79) $ 0.01 $ (0.69)