Klarna reported a 15% rise in first-quarter revenue on Monday and returned to profit as the UK announced plans to tighten regulation on buy now, pay later lenders.
The Swedish fintech posted $701 million in revenue and a $3 million adjusted profit, compared with a $2 million loss a year earlier, excluding the sale of its checkout business.
The results follow Klarna’s decision last month to pause its planned US initial public offering, citing economic uncertainty and tariff concerns.
The company made no mention of the IPO in its earnings update but said it is monitoring shifts in the business environment.
The UK, one of Klarna’s key markets, said Monday it will introduce new rules from next year aimed at protecting consumers from unregulated lending.
Klarna’s US revenue rose 33%, helped by partnerships with Walmart, DoorDash and eBay.