Klarna (KLAR) Q4 2025 Earnings Call Transcript

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Date

Thursday, February 19, 2026 at 8:30 a.m. ET

Call participants

• Chief Executive Officer — Sebastian Siemiatkowski
• Chief Financial Officer — Niclas Neglen
• Chief Corporate Affairs Officer — Philippa Bolz
• Chief Product Officer — Christopher Svensson

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Takeaways

• Active Consumers -- 180,000,000, up 28% year over year.
• Merchants -- 966,000, up 42% year over year, with the addition of 285,000 merchants in 2025.
• Gross Merchandise Volume (GMV) -- $38.7 billion for the quarter, above the top end of guidance.
• Revenue -- $1 billion, up 38%, surpassing prior guidance.
• Transaction Margin Dollars (TMD) Before Provisions -- $622 million, up 31% year over year, and up $107 million versus the prior quarter.
• Transaction Margin Dollars After Provisions -- $372 million, up 17% year over year, and up 28% sequentially from Q3.
• Provisioning Impact -- CEO Siemiatkowski said, "This quarter’s transaction margin dollar result did not land where we guided," citing faster lending growth as the primary driver of the shortfall relative to guidance.
• Loan Origination Economics -- For $2.5 billion of U.S. fair financing portfolio originated in the quarter, $80 million in provisions were booked upfront, alongside $40 million in revenue, generating an immediate $40 million headwind, but yielding $180 million in future interest income.
• Fair Financing GMV Growth -- Currently growing at an annualized 165% rate.
• Loan Sales -- $73 million in gain on forward flow sale recognized in the quarter as part of capital-efficient growth strategy.
• Klarna card adoption -- 4,200,000 active card users, up 288% year over year.
• Consumer deposits -- $13 billion, up 37% year over year.
• Klarna banking customers -- 15,800,000, an increase of 101% year over year.
• ARPU and engagement -- Average revenue per user across the total base is $30, with approximately 10 annual transactions; for Klarna banking customers, ARPU is $107 with 28.5 annual transactions, and average deposits rise from $64 (payer) to $475 (banking customer).
• Charge-off rates -- Klarna banking customer charge-off rate at 1.1% versus 0.6% for payers; both below the 4%-5% typical at standard credit card banks.
• U.S. fair financing product charge-offs -- Stable at 3%-4%.
• Revenue per employee -- $1,240,000 in 2025, a 3.6x increase since 2022.
• Adjusted operating expenses -- Declined 8% since 2022.
• Credit loss provisions -- Declined from 0.72% of GMV in Q3 to 0.65% in Q4.
• Subscription revenue -- Already has 3,500,000 subscribers, with revenues expected to build through 2026.
• 2026 guidance and margins -- GMV and revenue growth expected to be in line with 2025, and adjusted operating income margins anticipated to exceed 6.9%.
• Fair financing outlook -- Absolute volume to accelerate in 2026, though year-over-year growth rates may naturally decelerate as the base expands.
• Forward flow transactions -- Additional sales are expected in 2026, beginning with a smaller transaction than Q4's SEK 1,600,000,000.
• Funding cost outlook -- CFO Neglen stated funding costs are "expect that to decline in line with forward interest rates, assuming that they are correct."

Summary

Klarna Group (NYSE:KLAR) presented significant expansion across customer, merchant, and banking product metrics, with revenue growth outpacing guidance, while management acknowledged that transaction margin dollar growth did not meet prior guidance.

• Management directly acknowledged a shortfall in transaction margin dollars relative to prior expectations, linking it to accelerated loan originations and associated upfront provisioning expenses, but highlighted the expected future profit capture as cohorts mature.
• The company demonstrated stable credit performance and cited declining credit loss provisions as a percentage of GMV, despite rapid lending growth.
• Guidance for 2026 calls for sustained double-digit growth in GMV and revenue, increased transaction margin momentum in the second half, and further gains from capital-light loan sales, while operating income margins are set to improve beyond 6.9%.
• CEO Siemiatkowski stressed, "delivering on profitability is a key priority," noting the compounding effect of maturing lending cohorts on revenue.
• CFO Neglen specified that transaction margin dollars as a percentage of GMV is expected to remain broadly consistent with recent levels, as the company continues to prioritize rapid scaling and loan sales.
• Growth in Klarna card and subscription products, alongside rising banking customer adoption, is contributing to increased ARPU and deeper consumer engagement.
• Loan sales recognized as gain on sale, and expanded forward flow agreements are expected to support profitability improvements into 2026.

Industry glossary

• Fair financing: Klarna Group's non-revolving installment loan product offered to consumers, typically at fixed or low interest, distinct from standard revolving credit.
• Forward flow: The ongoing sale of originated loan portfolios to third parties, often enabling earlier revenue and cost recognition for balance sheet management.
• Klarna card: Klarna's branded physical or virtual payment card for consumer transactions, supporting debit, Pay Now, and Pay Later activity.
• Transaction margin dollars (TMD): Klarna's gross profit from transaction activity, calculated both before and after credit loss provisions.

Full Conference Call Transcript

Sebastian Siemiatkowski: Thank you for joining Klarna Group plc’s Q4 earnings call. Klarna Group plc is accelerating its growth of our banking relationships and our revenue per customer. Millions of consumers are adopting more of our services: the Klarna card, Klarna card, Klarna card, Klarna card, Klarna card, Klarna card, our well-known Buy Now, Pay Later services. Now this is exactly what we had planned for and wanted to achieve. And in Q4 2025, the adoption of these products accelerated beyond our expectations. As we scale this business, delivering on profitability is a key priority. In Q4, we delivered. Active consumers reached 180,000,000, up 28% year over year. Merchants grew to 966,000, up 42% year over year.

GMV came in at $38,700,000,000, above the top end of our guidance. And revenue grew 38% to over $1,000,000,000, also beating guidance. Now, let us put these numbers in perspective. We are a bank with an exceptional network that is growing at 38% revenue year over year. In 2025, we did over $127,000,000,000 worth of volume across 26 markets and across three continents. And we are growing exceptionally well on every top line metric, cementing our U.S. as well as our global leadership position. Transaction margin dollars before provisions grew 31% to $622,000,000, an acceleration of $107,000,000 versus prior quarter, and after provisions, transaction margin dollar was $372,000,000, up 17% year over year and up 28% sequentially from Q3.

Now, the factor transaction margin accelerated quarter over quarter points to the compounding nature of our model. As more of our cohorts mature, revenue is compounding at a faster rate. Now, I want to be direct and transparent. This quarter’s transaction margin dollar result did not land where we guided. We take that seriously. The acceleration in lending growth is the primary driver of that outcome. Now, let us look at an in-search-of example of that to understand the impact I am speaking about. In this example, we have about $1,000,000,000 of loans originated.

The lifetime profit of these loans, you can see on the left-hand side, is $100,000,000 in revenue while your provision would be about $40,000,000, and you would have other cost of $25,000,000, resulting in a net profit of $35,000,000. Now like all banks, we recognize these loan cohorts over a period of time. In the first quarter, as you can see on the right-hand side, we would recognize a fraction of the revenue, but we would recognize all of the expected provisioning upfront. This results in a first quarter transaction margin dollar drag of $25,000,000, as you can see. During the remaining quarters, we recognized the remaining revenue as well as the other costs.

So the resulting lifetime net profit remains the same, $35,000,000. It is simply spread over time. And we see a $60,000,000 positive impact on the P&L for the remaining quarters. This effect in the first quarter happens even when the underlying economics are strong and credit quality is stable. This is value creation that is deferred. For every provision we book today, we gain a future profit stream. Now let us take a Klarna example. For $2,500,000,000 of U.S. fair financing portfolio originated this quarter, Q4 2025, we booked $80,000,000 in provisions upfront and we recognized $40,000,000 in revenue.

So yes, this quarter that is a $40,000,000 headwind, but there is an additional $180,000,000 of interest income still to come while the cost expected credit losses have been provisioned for already. Just to repeat, faster growth, faster adoption, means lower upfront transaction margins and operating profit. So when you look at our Q4 transaction margin dollars of $372,000,000, this primarily reflects the fact that the adoption of our expanding set of banking services are growing faster than we expected, including fair financing, GMV currently growing at 165% annually.

At the same time, to support our accelerating growth in a capital efficient manner, we have ramped up our loan sales, and in Q4 2025, we initiated our first fair financing forward flow, with $73,000,000 of gain on sales recognized in Q4 2025. Continuing this strategy will further accelerate our profitability improvement in 2026. Now, let me speak to exactly what that growth looks like and why we are so confident in our strategy. Our partnership strategy, described in our previous earnings call, continues to compound and support our long-term strategy of being ubiquitous everywhere as our payments network expands its acceptance points. Over the year, we added 285,000 merchants, up 42% year over year.

We continued to scale our default relationship with Stripe. We began the default-on rollout with Nexi through Paytrail. And we expanded Apple Pay and Google Pay into additional markets. We also launched new partnerships with Emirates, LEGO, Vinted, and StockX, while further deepening our Vinted, StockX, with large global merchants such as Walmart, Lufthansa, and Etsy. At the same time, we are accelerating our product ubiquity, ensuring that we have relevant payment options wherever the consumer shops. We doubled the amount of merchants where fair financing is available, and continued to expand our Pay in Full product to almost half of our total merchant base.

The benefit of building that network, close to 1,000,000 merchants globally across 26 markets online and offline, is that we have already captured the hardest thing to win, the consumers’ everyday spend. The checkout moments where trust is built, and that is the foundation. And now we are leveraging it. Once you have the everyday spending relationship, once the consumer is using Klarna Group plc 10, 15, 20 times a year at checkout, the step into a banking relationship is natural, low friction, and extraordinarily cost effective. There is no cold start. We already know these customers, and they already trust us. And in Q4, this played out at an accelerating pace.

Active card users grew to 4,200,000, up 288% year over year. Consumer deposits reached $13,000,000,000, up 37%. And our most engaged consumers, the Klarna banking customers, reached 15,800,000, growing at 101% over year. This growth is not linear, it is compounding as we build deep relationship with our consumers. Let us deep-dive into a comparison of that total consumer base versus the banking consumers that have adopted more of those banking products. Our base of 180,000,000 Klarna Group plc consumers is growing at 28% year over year and transacts about 10 times a year with us. They have an average revenue per user of about $30.

But now look at what happens when that relationship expands into a deeper banking relationship. Those 15,800,000 consumers transact nearly three times as often (28.5 times a year) with an ARPU of $107. The average deposits jumps from $64 for our paying customers to $475 for our banking customers. In credit balances, remain modest. Compare that to any credit card bank that would usually be at about $6,500 or 10 times as much. And the charge-off rate moves from 0.6% to just 1.1%, a fraction of the 4% to 5% you would see at normal standard credit card banks. So more engagement, more revenue, disciplined risk.

That is the conversion we are driving, and it is why we are leaning into this growth despite the near-term provisioning drag. Now, this expansion of our banking product is built on our transaction relationship with our consumers and the knowledge we have built around risk management for the past 20 years. Our proprietary underwriting systems that we have developed underwrite every single transaction, we do not issue revolving credit, and we leverage our deep understanding of our consumers’ spending habits as well as external data. The result is consistent and stable charge-off profiles, as evidenced by the stable 3% to 4% charge-off rates for our U.S. fair financing product.

And we are delivering all of this with a fundamentally different operating model. Leaning into technology allows Klarna Group plc to deliver a range of services with a headcount that is a fraction of the size of a traditional bank. Klarna Group plc’s success is built on talent density and relentless focus on efficiency, and we believe this is a lasting competitive advantage. Now look at this, revenue per employee now reached $1,240,000 in 2025, a 3.6 times increase since 2022, and, critically, we have reinvested some of these savings back into our talent. That is the operating leverage that compounds alongside the banking growth I have just described.

Since 2022, we have accelerated our revenue, growing 104%, at the same time managing our adjusted operating expenses effectively, as it has declined by 8%. In 2026, we expect to continue to expand revenues faster than our operating costs, as we focus on building the consumer bank of the future. As we provide 2026 guidance for the first time, we are incorporating this growth trajectory and the associated timing effects while being disciplined and realistic in how we frame expectations. The underlying trajectory, revenue compounding, cohorts maturing, a lean cost base, give us confidence in the path ahead. Thank you.

Philippa Bolz: Thank you for that presentation. We will start with three questions from SEE Technologies. The first question is from Shubayan. When are you planning to become profitable? Klarna Group plc’s share price has declined since the IPO and investors are not happy. What changes do you think may be needed in the organization or the products?

Sebastian Siemiatkowski: That is a great question. So as our illustrative example showed, this is how the dynamics work in general. Every additional $1,000,000,000 in loans that we add in a single quarter will reduce TMD, or transaction margin dollars, by something like $25,000,000 that same quarter, but it will increase transaction margin dollars by $60,000,000 in the upcoming quarters. So the more we grow in these books, the more we are generating for the future. So the real question is simply, do we want to make more money, even if it means slightly less today to make significantly more tomorrow? You might also, though, ask, obviously, for how long. Well, the good news is we have natural cushions.

As we sell more loan portfolios, where revenue and cost are recognized immediately, the timing effect diminishes. We did $4,500,000,000 in fair financing, winning deals like Walmart and rolling out across all Stripe merchants and so forth. So as these growth rates obviously eventually will normalize, so will this dynamic. Some of you may even remember JPMorgan Chase faced this. Jamie Dimon famously said on the Sapphire card that he wished he had taken twice the losses. This was 2017. Slightly different rules, but same concept. So the question becomes, given that we can issue those additional loans, should we? And as a shareholder at least, my answer is an absolute yes.

Klarna Group plc has issued over half $1,000,000,000,000 in loans over 20 years with record low losses across that entire period. That is a proven underwriting machine. When we have the opportunity to deploy that machine and create significant value, we should. In addition to that, to answer the question even more specifically, Niclas will speak about our guidance soon to give you a more concrete answer for this year.

Philippa Bolz: Thank you. The second question is from Mark. How will you prioritize capital allocation between reinvestment, debt reduction, and shareholder returns over the next 12 to 24 months?

Sebastian Siemiatkowski: Well, I think we are seeing really fantastic growth here, and we are seeing an amazing acceleration in the adopt of our banking products. And you may at the same time, some of you may have picked up that we have rapid product announcements, and we are basically quickly closing any feature gaps to both neobanks and incumbents alike. All of this while being disciplined on costs. So the outcome of this translates to more revenue and more profit. And when it is in the books, we can also discuss what we will do with it.

Philippa Bolz: And the third and final question is from Adam. With the 102% surge in credit loss provisions reported in Q3 2025 still weighing on sentiment, what are the latest delinquency trends? And how confident are you that provisions will stabilize or decline as a percentage of GMV heading into 2026?

Sebastian Siemiatkowski: Thanks, Philippa. That is a great question.

Niclas Neglen: From a credit perspective, what we are seeing is actually stability, not a deterioration. Provision for credit losses actually declined in Q4 versus Q3, from 0.72% of GMV to 0.65%. And that really reflects both a stable delinquency trend and an impact of the increased loan sales, as Sebastian previously explained.

Philippa Bolz: Thank you. We will now move to questions from the analysts. Our first question comes from Sanjay Sakhrani at KBW. Please go ahead.

Operator: Thanks. Thank you. Good morning.

Will Nance: Appreciate all the commentary. Niclas, do you mind just digging a little bit deeper into this quarter’s impact from the excess loan growth? I am just trying to parse apart sort of the provision related to credit versus the provision related to growth that sort of speaks to that mitigating impact on transaction margin dollars. And then maybe if you could talk about how it might affect 2026, that would be great too.

Niclas Neglen: Great. Thanks. Hi, Sanjay. Thanks for your question. Look, I mean, in Q4 2025, and I think the dynamics here are twofold. Right? You are seeing very strong growth and seasonality that drove significantly higher pay later volumes. And those are on our non-interest-bearing loan product. Right? These are actually classified as sold or held for sale as part of the cost of funds, which you can see in the broken out report that you have on the CFO letter. Right? And these loans are actually primarily sold through our forward flow programs. And so those loans are measured at fair value.

And so the result is that you get a fair value adjustment that is substantially offset by a corresponding reduction in the provisions for credit losses. And while you then see the credit losses that we have today, primarily then driven by fair financing. And if you think about it, right, and we have broken out the fair financing volume as well in the back end of the paper. But, ultimately, what you are seeing is a mix shift towards fair financing that was stronger than what we had expected, as we are seeing more and more banking consumers coming with more banking product with us. And that is really what has been driving that.

For 2026, you know, we have guidance there, and I can take you through the details of that. But, ultimately, we are seeing similar trends there. You know, year to date in January, we are seeing, you know, good, moderately stronger growth than in Q4 2025. And so I think we are heading in that right direction from that perspective.

Philippa Bolz: Perfect. Thank you so much. Great. Maybe just one follow-up for

Operator: Yep.

Philippa Bolz: Okay. Go ahead. Go ahead.

Will Nance: Go ahead, Sanjay. Sorry. I did not know if I could ask two. Maybe just one quick follow-up for Sebastian. I mean, maybe just how you feel like the Walmart rollout has played out, if you are happy with it and sort of any traction otherwise you are seeing in the United States? Thank you.

Sebastian Siemiatkowski: No. I think Walmart is obviously one great accomplishment, and it is looking really well when you look at the rollout. But I think that what excites me the most is the strategy that we set up that we are executing on, which is to become truly third-party network and rely even stronger on the distribution of our partners, be it JPMorgan Chase, Stripe, Adyen, and so forth. And that is why you are seeing these acceptance points and merchant numbers coming up so much.

This is also why you are seeing fair financing growth because not all of our merchants historically had that, and the way we now work with our distributors is we try to make sure that they offer all of our payment methods. So not only is it about number of merchants that accept us, it is also about making sure that Pay Now, Pay Later, as well as fair financing is available at every checkout. So there is always a relevant payment option independently of what the retailer might be selling, everything from furniture to games. And that is really what is the foundation of this growth. But at the same point of time, it is early days.

A lot of these large distributors of ours are still implementing, still taking us live, and so forth. And that is why we are very pleased about this because we know that this will continue to drive very solid growth for us in the coming years. So, very happy about what we have seen so far with Walmart and also generally seeing the effect of this both in the U.S. and then globally as well.

Philippa Bolz: Perfect. Thank you so much. Thank you. The next question comes from Will Nance at Goldman Sachs. Please go ahead, Will.

Will Nance: Hey, guys. Good morning. Thank you

Operator: you for taking the questions here. I was wondering if we could drill down into the transaction margin, I expect for the coming year. As we look at the guidance that you guys have laid out, it seems like transaction margin is coming in 10% or so below current consensus expectations. And I hear you on sort of the front-loading impact provisions in GMV. But when we look at the first quarter, you know, GMV was, you know, much closer to the guide, whereas transaction margin was something like, you know, three, four points below.

So, like, I guess, with that context, can you talk about the transaction margin trajectory that you are expecting now versus what you had previously expected? What are the changes, and how do you think about the path getting towards transaction 115 to 120 range where the company had operated historically prior to the big expansion in lending?

Operator: Thank you.

Niclas Neglen: Sure, Will. Thanks a lot for the question. I appreciate that. Maybe just before kind of answering you specifically, I think it is good for me to just take you through our thoughts on the guidance and how we have kind of thought about it. So I will start with that a little bit. Start with the first quarter, right? So we have, like I said, already entered 2026 with a strong momentum. We are tracking modestly ahead of Q4 2025 levels already. The banking products, fair financing, the Klarna card, etcetera, remains the primary driver of growth, and we are seeing that continued strong adoption. Right? So that is one element of what we are seeing into 2026. Right?

Our forward flow programs, which are providing that kind of capital-light foundation for the sustained higher growth, we actually expect to continue to execute some of these agreements throughout the year, including one in Q1, and that is actually reflected in our transaction margin dollars and our adjusted operating income ranges for Q1 as well. Transaction margin dollars as a percentage of GMV is also expected to be broadly consistent with Q4 2025 as we continue that investment to supporting the rapid scaling. Right?

And so what you should be able to see then when we get into 2026 in full year, right, you are going to see that GMV growth and revenue growth in line with 2025, which, in the context of $127,000,000,000 worth of volume this year, I think is very healthy growth. As a mix, maturing fair financing cohorts increase, what you are going to see is revenue compounding through the year and transaction margin growth accelerating into the second half. And that is really the natural payoff of that upfront provisioning model, which you highlighted yourself. Right?

So adjusted operating income margins is expected then to become greater than about 6.9% as we continue to have that revenue and TMD outpace the growth of our operating costs. Right? So ultimately, in very simple terms, when you look at transaction margin dollars, it is really a mix question of the geographies we are growing in, but also in regards to how much fair financing that we are doing as part of that banking evolution that Sebastian spoke about.

Will Nance: That is great. Appreciate all that color. And just you mentioned the offloading dynamics starting in the first quarter likely continuing for the year. Wondering if you could provide your latest thoughts on just expected offloading on the fair financing book in the U.S., maybe relative to the amount of loans sold in the quarter? Is there any kind of parameters around percentage of production sold that you guys are targeting for the full year as we just try to true up that part of the model? Thank you. Yes. We are not going to give exact guidance

Niclas Neglen: because, you know, we are really commercial in the way that we think about it. We have some great partners that we work with in this regard, but we also want to be sure that we balance it. Right? So my expectation is that, you know, we are looking at a transaction in Q1. If you look at Q4, we sold about SEK 1,600,000,000. This transaction will be slightly smaller than that. Right? And so what we will see is through the year, as and when it makes sense to do these sales, we will be executing them. And that might change depending on quarter to quarter. So that is probably the best I can answer at this stage.

Will Nance: Got it. Thank you for taking the questions.

Operator: You are welcome. Thank you so much.

Philippa Bolz: Over to our next question, which comes from Jason Kupferberg at Wells Fargo. Please go ahead.

Jason Kupferberg: Hi, guys. Thanks for taking the question. So can you just talk maybe a little bit more specifically about what you are embedding in the guidance for 2026 for fair financing?

Will Nance: Specifically just in terms of loan growth there? I mean, you are lap Walmart later this year, but would love to get a sense of what is assumed in the initial outlook here.

Niclas Neglen: Yeah. So we are not going to give a specific split, but what I can say is that we are going to, from an absolute volume base, accelerate in comparison to 2025. Now as we go through the year, just given the fact that we started where we started and have been scaling so quickly, the year-over-year percentage comps through the year will kind of pan out or kind of decelerate to some extent. Right? But that is from a percentage perspective. On an absolute basis, we are continuing to compound.

Will Nance: Okay. Understood. And then, maybe one for Sebastian.

Jason Kupferberg: Just big picture on Agentic Commerce. I think a lot of debate out there about what, you know, branded button presentment and prominence might look like in a truly agentic world where transactions are being completed natively on an AI platform. How is Klarna Group plc thinking about that?

Christopher Svensson: Preparing for it? Obviously, you guys have announced some partnerships, but we would just love to get a sense of what your crystal ball is in terms of what, you know, consumer checkout experience might look like in that scenario down the road? Thank you.

Sebastian Siemiatkowski: Thank you, Jason. Fantastic question. Look, I think there are many ways to answer that. I will try to keep it short. But first and foremost is that we have believed that this is the evolution of e-commerce for a long period of time. That has been part of our thinking. As a consequence of that, we have thought it was very important to have the partnerships and distribution of people like Stripe and Adyen, since those are often the companies that people go to implement the Gen2 Commerce. And so by making ourselves default and always available in all these points, that makes us, like, always available in those points as well.

In addition to that, you see things that we launched with Apple Pay and Google Pay makes us again available everywhere where those are being used, which again then gives us additional coverage in this. But then, obviously, we also, you know, we also court the big AI companies, and I cannot promise anything there, but, like, obviously, that is part of what we do as well. In that sense. I think the additional thing that I find very promising is that the conviction that we have, which is that Buy Now, Pay Later is a healthier form of credit than credit cards, the fact that it is interest free, fixed installments, and so forth, this is truth.

And then, you know, sometimes people write about different things in media, this and that. But the truth is if you go and ask even, you know, the big AI companies, which form of credit should I be using, which is the one that is most healthy, it will recognize the benefits that Buy Now, Pay Later provides. And so we think the fact that we have a healthier product also means that even AI will recommend to rather use this one than revolve at 30%. Right? So I think, like, all of these combined, we feel that we are very well prepared and that we are in a great position as this Agentic Commerce rolls out.

Christopher Svensson: Appreciate it. Thanks.

Philippa Bolz: Our next question comes from Harshita Rawat at Bernstein.

Operator: Hi. Good morning. Hi, so I want to ask about, I want to ask about the competitive environment. Some of your peers have talked about intensified dynamics in Europe and the U.S. Maybe talk about what you are seeing in the market. And then also, maybe comment separately on the consumer, kind of, I think there is concern around, you know, continued kind of pressure on the low-income consumer. What are you seeing, hearing from your customer base both in the U.S. and Europe? Thank you.

Sebastian Siemiatkowski: Hey, Harshita. I will jump in on that one. Let us start with competitive. I feel very, very confident on this topic. And the reason I can come back to what we said about our partnerships. It was always very critical to me to become a global payment solution. So many times we talk to merchants in different markets, and they look for global solutions. Now Klarna Group plc is perceived as a global solution, which means that we get tremendous benefit from working with everyone from an H&M to a Shein to a Walmart to a Sephora.

The fact is that they can work with one party that can offer Pay Now, Buy Now, Pay Later, and fair financing across all of these jurisdictions. Big home electronics manufacturers. None of that has never been possible before. So the geographic coverage means a lot when it comes to signing these deals, and it is unparalleled. Nobody else in the industry has the geographical coverage of Klarna Group plc.

You will always find individual companies in individual markets, but that is just giving us such a tremendous strategic advantage that we see, and that is also super critical when we work with the Stripes and the Adyens of the world because there it is also, for them, much more interesting to launch with somebody that can offer their services at such high global coverage. So I feel very, very confident in our continuous ability to grow and preserve margins throughout. Now when it comes to the consumer, we are very confident and feel very solid here as well.

What we are seeing is that, again, the audience that uses our product is an audience that is what we call self-aware avoiders. These are financially conscious both American consumers and European consumers who are actively keeping away from credit cards, who are borrowing much less. Their average balance may be, you know, on a credit card, people would have $4,500 as you saw in our presentation. A Klarna paying customer has $100. A Klarna banking customer may have $400 or $500, so it is actually, you know, 10%. And so these are financially conscious customers.

They enjoy the fact that our products are zero interest, fixed installments, they find them as a healthier alternative, and they are also keeping their economy in better shape. So we see, you know, good performance. We see that they are shopping as they used to, they are spending as they used to, and they are also borrowing responsibly, which we appreciate and find is important.

Philippa Bolz: Thank you, Sebastian. Thank you, Harshita. The next question comes from Darrin Peller at Wolfe Research. Please go ahead.

Jason Kupferberg: Hey, guys. Thanks. You know, I really just want to go in a little bit more, maybe Sebastian, on the fullest. But basically, the idea of where you believe the right balance should be between lending and interest income and transactional streams just as far as the company’s longer term goals. I understand it is demand driven to some degree and to the most degree, but

Darrin Peller: anything you could help us with on where you see that sort of leveling off. Then, Niclas, just maybe on a short-term basis, we are also trying to understand where we expect to see the inflection on provisions offloaded to a degree. It actually does help the TMD grow at a faster rate this year potentially.

Sebastian Siemiatkowski: You want to start, Niclas? Yeah. Sure. Thanks, Darrin.

Niclas Neglen: I appreciate it. I think it is a good question. If you look at it, what we actually are looking at from a TMD perspective is a significant uptick in growth. Right? And you have seen that kind of sequential increase both from Q3 into Q4 now, right, with TMD. And I think as we continue to compound through the year, like I said earlier, Q1 definitely still has a lot of that rapid growth coming in. And then you start kind of cycling into an absolute growth balance, but then the percentages from a comp perspective kind of recede a bit into the second half of the year. Right? Which is kind of what I said.

So I think that is kind of the short answer to that. And I think you are going to see that continuous TMD acceleration through kind of the second half of the year, as I said earlier.

Philippa Bolz: Thank you, Niclas. Sorry, Darrin, would you mind just repeating your question for Sebastian?

Darrin Peller: Yeah. I was just trying to figure out what you guys think is the right mix, sort of in a steady state. Obviously, you are in hypergrowth right now around fair financing and your banking products. But trying to get a better sense of where you think that should level off, where you would like it to level off. Thinking about interest income as a percentage of the mix of the business versus other revenue streams.

Sebastian Siemiatkowski: Yeah. It is a great question.

Operator: You know, that is, I think, as a rule of thumb, even for myself, when I look at those

Sebastian Siemiatkowski: provision for credit losses, the rule of thumb is that 80% of it is associated for kind of forward-looking, while 20% is kind of backwards-looking. So to your point, obviously, as we are growing fair financing right now, and we are kind of in that phase of that being a high-growth product at this point in time. But I do not think that this is necessarily always going to be the case. When we compare ourselves to other neobanks, some of the other neobanks, you know, are much, most of them are much smaller on the lending side and much bigger on deposits, on subscriptions, on tiers, etcetera.

So, you know, partially what we are seeing right now is just the effect of the strategy that we implemented a few years back to have our partners distribute us. And you saw that number as well in the presentation, that, you know, still only about 200,000 merchants offer fair financing of the total 800,000, so there will probably be some continuous growth there as more and more offer that product. But I am very keen on growing the other revenue lines as well, the marketing revenue, the subscriptions revenue, and so forth. And I think that finding a healthy balance, as well as depositing revenues as well.

So I think over time, it is probably going to skew more again towards the other revenue lines, but that is a little bit forward, more, takes a bit longer time. It takes time, obviously, because we are a fairly big bank by now. So, like, even if we make changes to our products and so forth, before you fully see that materialize in the numbers is a little bit further out.

Christopher Svensson: Right.

Operator: Okay. You. Thank you. Thank you, Darrin. Next

Philippa Bolz: question comes from Tianxin Huang at JPMorgan.

Darrin Peller: Hi. Thanks so much. I want to ask on the

Will Nance: on the processing cost side, if you do not mind, the model question. Lots of moving pieces I know with partner and product ramps as we have discussed here. But how should that processing line trend in relation to GMV? Any insight there to share? Thank you.

Niclas Neglen: Sure. Yes. Thanks, Tianxin. I think the reality is, partially, this is a mix question with regards to how much volume is coming in from the U.S., etcetera, as well as the type of product that you take on and the tender of that product. So in the short term, you are going to see something similar to this that you have seen through 2025. But I think the evolution of this in the longer term or medium to long term, right, is very much one of the, and you have heard Sebastian say this before, one of our focus areas is really to find ways to improve that line. Right?

And so we are, you know, actively looking to find ways to get that trend line to move in the opposite direction, not only purely from a mix perspective, but actually getting things like, now that we have a current account, we have the balance, etcetera, and we are starting to see refunds come into our account, which obviously then reduces the requirement for us to use other rails. What we have slightly working against that right now is also that we have more card issuance, right, as more and more consumers are using us. So, to some extent, similar to the fair financing upfront provisioning, we are making some investments here with now over 4,200,000 active card users. Right?

We are seeing a lot of growth, and that obviously has a bit of cost in the upfront. But what we actually are creating is a very sticky consumer that is going to help us then to be able to, you know, drive more of the transactions within our own rails, which will help to reduce the processing and servicing line.

Sebastian Siemiatkowski: And I think to add to that quickly, Tianxin, is that, I mean, in this case, we are coming from Europe where payment and funding costs were virtually zero or very low. And then we move into the U.S., and we have seen significant growth. We know, looking at other fintechs and competitors that are larger and originating in the U.S., that there are smart ways to fix this. But it is, you know, it is going to be a continuous focus for us to do that, obviously. Because to your point, there is tons of potential in there, but we need to execute it, implement it, and see the results in the financials.

Darrin Peller: Understood. Right. So it is a work in progress. Good to know. Thanks. But I just

Will Nance: quickly on the, I think, Niclas, you mentioned stable delinquency trends. Looks like from the charts in the shareholder letter that some of the newer vintages on the delinquency side are a little steeper and higher than prior vintages.

Mihir Bhatia: I am just curious if there is any surprises there or want to better understand those.

Niclas Neglen: Yep. No. There are no surprises there. Right? If you look at it again, you have to understand that we are obviously ramping quite quickly through these processes. But at the same time, you are seeing that it is very much within the trend base that we expected. And as you go, your models, as you scale, get better and better. And you can see, that is why I actually included not only 60 days past due view, right, which we have been showing consistently, but I also show you the 30 days past due. We can see that those trends are normalizing over time. Right? And I think that is a really key point here. Right?

We underwrite every single transaction. We have been doing this for 20 years. Yes, we are scaling the business, but what we are actually doing is doing that in a very disciplined fashion. And we have the ability with our low average order values and short durations to be able to manage and flex these models consistently. That is really what we are showing on that page. I think in addition to that, what is also important is

Sebastian Siemiatkowski: that the way we think about it is that we prefer starting with Buy Now, Pay Later and Pay Now with small value transactions, $50, $100, build a big audience of customers that we get to know, that we have underwritten, that we have seen their payments performance, and then we are scaling like we are doing now for our financing where a large proportion of those fair financing volumes are existing customers that we already have relationships with and we have been underwriting for a few years.

And that is a critical part of our thesis, which we think is very special to Klarna Group plc, that it is important for us to be in those daily transactions both because it grows a stronger relationship with the customer, but also means that we know them better, we follow them for a longer period of time, and it helps a lot in the underwriting position. Yeah.

Niclas Neglen: I would say that the vast majority of our fair financing that is being underwritten is with consumers that have had other types of products in advance.

Mihir Bhatia: Right. Appreciate your thoughts. Thank you.

Operator: Thanks. Thank you.

Philippa Bolz: Moving on to Mihir Bhatia from Bank of America. Please go ahead.

Mihir Bhatia: Hi. Thank you for taking my question. Maybe first question I had, I just wanted to start on Klarna card. Can you just talk a little bit more about how consumers are using the card? Is it actually becoming a top-of-the-wallet card? Or is it just being pulled out more for financing transactions? Are you seeing differences in geographies or the types of customers in how they are using the card?

Sebastian Siemiatkowski: Yeah. Hey, Mihir. It is Sebastian. So we are excited about it a lot. I mean, I think that I probably, I was trying to find a bank issuer that had launched a card with this kind of number of active users on such short period of time since this basically started rolling out in summer. I think it is actually unprecedented, which is pretty cool. We see very good usage of this product both in the U.S. and Europe. What we are happy to see is that it is not, to your point, only, or as you mentioned, it is not just being used for, like, a Pay Later or fair financing card.

It actually has a very healthy proportion that is being used for debit transactions, for day-to-day spend. Which is exactly what we wanted to do. So when we think about this again, like, when we move consumers that we call them the Klarna payers to the Klarna bankers, we want them to adopt more of our financial products. And that is both deposits, debit spending, as well as credit to some degree, and other, the subscription tiers and the loyalty cards and the cashback offers that we do and so forth. So we are very optimistic about what we have seen so far in regards to that.

Niclas Neglen: I would just add something there, Sebastian. I think it is a really critical point to make that what we are seeing is high-teens growth even in established markets like Sweden, where we have 80% population penetration. And that is very much because of the card. Right? You are seeing that people are adopting us both online and offline here, and I think that is a very unique positioning for us to find ways to grow with our customers in the way that Sebastian described, but also then ability to expand that monetization opportunity as well.

Mihir Bhatia: Got it. Thank you. And then if I could just follow up, I want to go back to the questions around the trajectory of transaction margin as a percent of GMV or revenues, however you want to answer it. But, look, I think I hear you regarding the mix and the fair financing growth pressuring 2025 margins a bit. But I guess, like, when does the delayed profit from the back book start to offset some of that growth? Like, how are you thinking about those margins maybe as you go out a couple of years? Where do you think transaction margins should settle out?

Like, your competitors obviously have given some guidance and was just wondering if you have a view on that, where transaction margin as a percent of GMV should settle out medium to long term? Okay. So I think TMD, generally speaking, right, is

Niclas Neglen: now moving towards, and we are not going to give, like, longer-term guidance beyond 2026. But I think we gave some frameworks previously, and we have talked about the range of somewhere between 1.5%, 2 percentage points. But again, like, the key thing here is the mix of the revenues that we have got. Right? And so, you know, the way I would think about this is that we can really, really think about what is the trajectory of the fair financing element of this and how that is moving forward and scaling. And I think as we get an understanding of the abilities of balances of this, we will see how those things proceed.

Operator: Thank you. Okay.

Philippa Bolz: Moving on to Robert. One maybe I can add something on the topic, just as it is like

Sebastian Siemiatkowski: I mean, generally speaking, Klarna Group plc has always seen over my 20 years that you either go through high growth phases. When you go through high growth phases, you always see slight temporary deterioration in GMV, in margins, etcetera. And then as you kind of mature a little bit and growth comes down, then, you know, profit and transaction margin dollars return. So this is always a continuous discussion because you grow faster, then as we have seen, for example, the accounting that was described and so forth, and this always results in these kinds of effects. So that creates a lot of confidence for me. Sorry. I think

Niclas Neglen: yeah, that is a much better answer to the question. I think from the perspective of long-term guidance, I think the key thing is we are focusing on 2026 right now, and how we are thinking about transaction margin there is really how you should all be thinking about it.

Philippa Bolz: Thank you. Moving on to Robert Wildhack at Autonomous Research. Please go ahead.

Christopher Svensson: Hi, guys. You have talked a lot about the upfront provision

Jason Kupferberg: for banking services. And I guess in the letter, those banking services include fair financing. You have also got some products in there that, at least to me, would seem lower loss like the card and savings. So that is, I think, the thing I am having trouble understanding is, like, how does fair financing was always going to grow this year, but then you are going to also grow into products that would seem to have

Darrin Peller: you know, a lower blended loss content, yet there is more pressure

Jason Kupferberg: on the transaction margin, not pressure, but it does not go up as much in 2026. So how do you square those two things?

Sebastian Siemiatkowski: Yeah. Yeah. Thank you, Robert. Great question. Look, I think that two things are important here. What surprised us was the embracement of fair financing among our customer base. So more people took up this product than we expected, and hence, on the transaction margin dollar, we saw more negative pressure because of that upfront booking, which is the primary driver of that. So that is it. But to your point, we are also seeing all these other products growing really well: the card, the subscriptions. Now, ironically, they also come with a slight additional cost. For example, every time we issue a card, there is cost associated with that at the front end of it.

So each one of those, but those effects are obviously more limited. So we think that you are going to see a positive impact that is going to come as those products have also been growing. I mean, the subscription products and so forth. So I feel quite optimistic here on this topic as well. I do not know if you want to add anything, Niclas. Yeah. No. I agree.

Niclas Neglen: I mean, the subscription, we are already seeing a huge amount of coming in. We have about 3,500,000 already, and we are seeing that just expand on a monthly basis. So those revenues will start building up over time through 2026 as well.

Christopher Svensson: Okay. And then I see the negative fair value adjustment

Jason Kupferberg: on Pay Later in the funding costs. Yeah. Given the short duration there and your ability to grow deposits and the balance sheet capacity you have, what is the benefit of selling

Will Nance: Pay Later at a discount?

Niclas Neglen: So the vast majority of the economics of that actually sits in the merchant discount rate. Right? And so the purpose of this is really from a liquidity as well as from a capital perspective. We have done a few of those, we may do some more in the future. But, ultimately, the key thing here is really to be able to balance how much return I get from every asset that I get in. So there is also a value, to Sebastian’s earlier point, of holding fair financing that generates a higher yield as well.

So it is constantly a mix of ensuring that we keep ourselves capital light, that we can continue to grow and expand as much as possible. But we want every tool in the toolkit, and that is why we have leveraged this type of transaction.

Philippa Bolz: Thank you. Thank you. Moving on to Nate Svensson at Deutsche Bank Securities. Please go ahead.

Will Nance: Hi. Thanks for the question. Maybe I will sneak in two here. There have been some questions on the competitive environment, Agentic placement. Maybe a related question on that is just the topic of exclusivity, which I think is probably worth exploring in light of some recent comments

Darrin Peller: from your competitors in the U.S. I guess our understanding is that

Mihir Bhatia: exclusivity

Darrin Peller: is more the exception than the rule in the industry. Obviously, you guys have Walmart. I guess, in light of what we are hearing from competitors, do you think that dynamic is going to change? Is Klarna Group plc going to try to go after more exclusive deals, or is something like Walmart once again kind of more of the exception than the rule? And then briefly, maybe this one is for Niclas. Just on funding costs, I know earlier in the Q&A, talking about funding costs moving from Europe to the U.S., that went up again quarter over quarter in 4Q, presumably because of the continued fast growth in the U.S.

Just wondering how we should think about funding costs as a percentage of GMV in 2026 as the year progresses?

Sebastian Siemiatkowski: I can start. Hi, Nate. Thank you for the question. Look, I think that this exclusivity, I mean, sometimes it makes sense to sign those, but I always tell my sales guys that, like, the best competitive advantage comes if we are the most preferred payment method in the checkout by the consumers. And so as much as sometimes it could make sense tactically to enter such deals, we do not mind being side by side with others, just like Visa has been side by side with Mastercard or Amex has been side by side with them, for a long period of time. Instead, what we focus on primarily is that there is always customer preference.

And we know by experience that there are some merchants that even offer three options, for example, within the Buy Now, Pay Later space, and we see that we grab the highest share of checkout among consumers. And that to me is the primary thing to keep an eye on. Then tactically, occasionally, it could make sense to be exclusive, nonexclusive, etcetera.

But also, in addition, I mean, we see what is amazing now with Apple Pay, for example, is that, you know, anyone in the U.S. that has any card from any bank can use Klarna Group plc Buy Now, Pay Later, as an example, on any merchant without, you know, so I think that is the right way to think about it. Build consumer preference is the key long-term strategic objective. Over to you, Niclas.

Niclas Neglen: Yeah. Great. Look, reality is if you look into some of the details in the notes, you can see that what you will see with cost of funds, because we model it in accordance with the forward views on interest rates, etcetera, you would expect that to decline in line with forward interest rates, assuming that they are correct. Right? And that is really how we model it. And then, like I said, you know, we have a stable outlook with regards to the forward flows that we are doing. So, you know, those are there already, practically speaking. So to me, that should support an improvement over time, depending obviously on the interest rate base that you see. Right?

So that is simply where I would say. I think the key thing is also just to note on your comment with regards to the U.S., I think it is important to appreciate that it is not really just the fact that we are moving or we are expanding more volume in the U.S. It is actually expanding our volume across the board. Right? We have very, very healthy growth both in Southern Europe, but also, like I mentioned earlier, in our established markets because we are expanding those banking services that we were speaking about.

Will Nance: Excellent. Okay. Thanks, guys.

Philippa Bolz: Thank you. Your next question comes from James Faucette at Morgan Stanley. Please go ahead, James.

Christopher Svensson: Thank you very much. Appreciate all the commentary here. I wanted to

Jason Kupferberg: follow up on a couple of

Christopher Svensson: points that were made earlier.

Operator: I guess on

Christopher Svensson: want to go back to the TMD and that kind of thing. Is there a point

Darrin Peller: and I recognize that the pace of fair financing growth will naturally drive DQs higher, but wondering if you could talk to us about how we should be thinking about a delinquency high watermark you might, if you got to that, you might feel like you were compelled to pull back on GMV. Just helping us

Mihir Bhatia: bracket

Darrin Peller: how we should think about that, especially as you continue to ramp

Christopher Svensson: your financing and some of the other initiatives?

Sebastian Siemiatkowski: I will let Niclas answer that. Hey, James. But again, like, I think it is important to remember Klarna Group plc, under the time I have been here, has underwritten half $1,000,000,000,000 with, you know, record low credit losses for that. Right? So we have an extremely strong confidence in our underwriting, in our proprietary models and so forth. And as we have highlighted here, we see this as predominantly a question about timing than anything else, and that is the same that we think about here going forward. So, yeah, so I think that is a beginning. And maybe you want to jump in more specific? Hi, James.

Niclas Neglen: I think the key thing when you want to think about this is that because we, firstly, underwrite relatively low average order values and we do so on very short tenors, we have the ability to constantly adjust the portfolio, which is what we do. So it is not so much a question of like, oh, well, there is this bar for something. It is more a question of how comfortable do we feel with those continuous cohorts that we are looking at. And we are not just looking at cohorts on a quarter or a month or something. We are looking at the cohorts literally on a weekly basis, right, and understanding the performance of that.

And that is what we have been doing for 20 years. That is what we are going to continue to do. And so I think, you know, we have evidenced historically, we have talked about it before with regards to how can we adjust this and what are the impacts of those adjustments as we go along. So that is really how we think about it. And obviously, we are always trying to keep an eye on that profitability and ensuring we do this in a balanced fashion. Right? And I think we have evidenced that we can do so over the last 20 years. Yep. I think, like, underwrite

Sebastian Siemiatkowski: primarily to existing customers. Keep low average balances per customer, like, again, $100 versus $500 on the banking versus, like, the big banks being at, like, $5,000 on a credit card. So keep, like, keep low tickets on average, and then have very short duration in general compared to other banks. Right? Like, sit with credit card volumes that are commitments for, like, continuously. We have very, very short durations and have great abilities to adjust our underwriting to macroeconomic conditions.

James Faucette: Got it. And then I wanted to follow up on more of a thematic question. Most of this conversation today has been around kind of the mechanics here, but any initial takes on how unit economics in agentic e-commerce will evolve for Klarna Group plc, especially in

Operator: an environment where

James Faucette: it seems like some of the labs are charging merchants as much as 4% or more.

Sebastian Siemiatkowski: No. I do not think really we have a comment on that. I mean, again, what we have seen is that, like, we have great distribution and we are growing, and we generally still see U.S. as a higher-margin opportunity because Europe is used to seeing lower cost of payments, and that is where we have been coming and competing from. So

Philippa Bolz: Thank you, James. Got it. Appreciate it. Next question comes from Harry Bartlett at Rothschild & Co. Redburn.

Will Nance: Hi, Sebastian. Hi, Niclas.

Harry Bartlett: Had a question on the GMV guide. I mean, it implies a kind of a minor decel, but I just wanted to touch on your comments around the U.S., fair financing, Klarna card, all kind of coming in above your expectations and year-on-year acceleration. So I guess does that imply that maybe there is a bit of an offset in some other products or other regions, and maybe you could just give us some color there.

Niclas Neglen: Sure. Thanks. Hi, Harry. Look, when you look at 2025 versus 2026, we are literally growing at the same pace off the back of, you know, a significant amount of volume. Right? So ultimately, when we look at these guides for 2026, like I said before, we are very much focused on ensuring that we continue to grow at those paces across all these markets. And I think we are seeing very good growth across all of them.

Sebastian Siemiatkowski: Yeah. And I would just start again, this is, we are coming a little bit to the theme here, Harry. Look, looking at Klarna Group plc, we set out as an ambition to grow a global retail bank. And when I look at the quarter, I see that we are on a fantastic trajectory towards that. You know, we have almost 180,000,000 users globally, growing at 28%. We have 15,000,000 now banking, growing at over 100%. We are seeing all the different new revenue lines such as subscriptions, such as the card, and also fair financing growing at a very, very healthy rate.

And I think it is very likely that Klarna Group plc, if it continues on this trajectory, will become one of the major retail banks in the world. I mean, if you even look at the current card growth rate, and you just say that you extrapolate that forward, you are very soon to be one of the bigger issuers of credit cards and cards in the world. So I think that is, you know, we are very excited about what we are seeing. And then we

Philippa Bolz: Thank you. We now have time for one final question, which comes from Timothy Chiodo at UBS. Please go ahead.

Operator: Hi, Tim.

Jason Kupferberg: Great. Thanks a lot. I want to

Christopher Svensson: thank you. I want to hit one around

Jason Kupferberg: TAM expansion and the topic of

Christopher Svensson: 0% loans to consumers, merchant funded, so the longer term. You mentioned earlier,

Jason Kupferberg: talking about sort of starting with

Will Nance: smaller loans for new customers as you build them, assuming in the U.S. market.

Jason Kupferberg: But as we look at TAM expansion going to higher-income consumers, maybe with better credit profiles,

James Faucette: it is a bigger topic for your competitor. I was hoping you could just give an update on where this sits within your mix of GMV and where it could go in terms of

Christopher Svensson: offering longer-term Pay Later merchant-funded loans

Jason Kupferberg: to consumers. And then I have a follow-up on the U.S. business. Alright.

Sebastian Siemiatkowski: Thank you. That is a great question. Look, I do not think it is necessarily a smaller topic with us. We just have a lot of topics to cover. So I think that, from our perspective, our experience from Europe is that Klarna Group plc over time becomes an everyday spending partner for every consumer. I mean, you have to remember in a lot of our original markets, the German-speaking ones or the Nordic ones, we are seeing, like, a population penetration of, like, 70%, 80% or 50%. So it is really everyone using this product of every background type. And we believe that the same will over time happen in the U.S. as well.

And then you will adjust your offering. 0% financing, that is a fantastic offering, and we see great demand among global retailers and global brands, again, because they are looking for that kind of offering across the globe. They want to work with a provider that can do that with them in all markets. If you are an electronics or a phone manufacturer or whatever it might be, you find it interesting that you can sign one contract and work with one team and then get this live in more than 20 markets.

So very much of a big priority for Sykes, who is not here, our Chief Commercial Officer, but not necessarily what we covered mostly today on the call. So yes. The last question, maybe, Niclas, I do not know if— Hey, Tim. You did not ask—

Jason Kupferberg: Oh, no. You did not ask the last one, Tim. Sorry.

Jason Kupferberg: That is okay. Thanks. Yeah. It was on the U.S. volume growth. If there were any undercurrents that you could talk about, we would have expected a slightly faster growth in the U.S.

Christopher Svensson: Q4, given

Will Nance: Q3 had a partial contribution from Walmart and Q4 had a

Jason Kupferberg: complete or full or close to full contribution from Walmart.

Will Nance: And we are just wondering if there were other factors that might have

Jason Kupferberg: led to that lack of acceleration in U.S. volumes.

Sebastian Siemiatkowski: I must say that I am happy to hear that you have high expectations on us. Personally, I am very, very pleased with the performance in the U.S. And, but what I do know is that when it comes to all these big strategic partnerships like that, there is always, you know, there is always fixing this, fixing that, little bit extra, this and that, and you work on kind of continuously doing that. And that will continue to happen in regards to all these partnerships, both the ones you mentioned as well as the ones I have been talking about, like the Stripes of the world and the Adyens of the world and so forth.

So there is continuous more work getting done there, and we are seeing fantastic results.

Philippa Bolz: And with that, thank you. We conclude the call. Thank you so much, everyone.

Niclas Neglen: Everybody, thank you so much.

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