Klarna Continues to Drive Capital Efficiency With $518 Million Securitization to Support $12 Billion of Lending

Key Terms

significant risk transfer financial

Significant risk transfer is an accounting and regulatory concept that describes when a company shifts enough insurance or financial risk to another party so that the original holder no longer bears meaningful exposure to potential losses. It matters to investors because whether a transaction qualifies changes how liabilities, capital requirements, and earnings volatility are reported—similar to moving a heavy backpack from a hiker to a porter, which changes how the hiker’s condition appears on the trail.

securitization financial

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

forward-flow financial

A forward-flow is a standing agreement under which one party regularly sells or transfers future assets or revenue streams to another party over a set period, rather than as a one-time sale. Investors care because it creates a predictable, ongoing source or outflow of cash—like a subscription or recurring delivery—so it affects a company’s short-term liquidity, long-term revenue visibility and risk profile.

warehouse financing financial

Warehouse financing is a short-term loan arrangement where a lender advances money against a company’s stock of goods or recently originated loans so the company can keep operating until those assets are sold or packaged for longer-term funding. Think of it like a temporary storage locker loan that frees up cash now by using inventory or loan pools as collateral. For investors, it matters because changes in warehouse financing can quickly affect a company’s cash flow, leverage and vulnerability to funding disruptions.

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NEW YORK--(BUSINESS WIRE)-- Klarna, the global digital bank and flexible payments provider, has completed a $518 million Significant Risk Transfer, freeing up capital to support strong consumer demand for its products.

The 3-year agreement supports $12 billion in additional lending and forms part of Klarna's wider capital-efficiency program, which pairs SRTs with forward-flow and warehouse financing to support growth in a capital-lighter way.

The transaction is the second SRT Klarna has completed with the investor, reflecting continued strong institutional demand for exposure to Klarna’s industry-leading lending.

"Demand for our products continues to grow and transactions like this let us fund it efficiently, while an existing investor returning for a second securitization is a real vote of confidence in the quality of our underwriting,” Klarna Chief Financial Officer Niclas Neglén said.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, growth objectives and market opportunities. Words such as "believe," "expect," "anticipate," "intend," "plan," "will," "may," "could," "estimate," and similar expressions identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied. Forward-looking statements reflect our views as of the date of this release and are based on information currently available to us. We undertake no obligation to update any forward-looking statements, except as required by law. Actual results may differ materially from those anticipated. Investors should not place undue reliance on these forward-looking statements and should review the risk factors in our filings with the SEC for a more complete discussion of risks.

Category: Investor News

View source version on businesswire.com: https://www.businesswire.com/news/home/20260716729788/en/

Media contact
press@klarna.com

Source: Klarna Group plc