Swedish fintech Klarna reported a 20% rise in Q2 revenue year-on-year on a like-for-like basis, reaching US$823 million, with adjusted operating profit up US$1 million to US$29 million.

The number of active customers for the Swedish fintech firm climbed to 111 million, up 31% from last year.

Klarna, known for its buy now, pay later service, halted its plans for a US IPO in April due to recession fears and uncertainty over tariffs, according to people familiar with the matter.

The company has not provided a new timeline for the potential listing.

Bloomberg previously reported that Klarna’s IPO could happen as early as September, citing unnamed sources.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Fintech valuations face dramatic reset as funding environment tightens

Klarna’s delayed IPO reflects a broader industry recalibration that has significantly impacted fintech valuations across the sector.

The company’s valuation dropped from $45.6 billion to $6.7 billion, mirroring an industry-wide contraction where fintech funding decreased by 50% in 20231.

This shift extends beyond individual companies. Global fintech funding in the first half of 2025 recorded $44.7 billion, marking the lowest six-month period since H1 20202.

The funding downturn has shifted investor priorities, with venture capital now focusing on profitability over rapid growth, particularly affecting capital-intensive sectors like buy-now-pay-later services3.

Higher interest rates have also contributed to this shift, with early-stage fintech funding in the U.S. and Canada dropping 21% as investors become more selective about risk3.

2️⃣ Long-term fintech opportunity remains massive despite current headwinds

While Klarna faces near-term IPO uncertainty, the company operates in a sector with significant potential for growth.

Fintech currently captures only 2% of the $12.5 trillion global financial services revenue pool, but this share is projected to grow to 7% by 20304.

Recent Klarna developments