Swedish fintech giant Klarna is walking a financial tightrope. Despite strong revenue growth in Q1 2025, the company is seeing sharp losses from unpaid consumer loans—particularly in the United States—raising fresh concerns about the financial health of its user base. The company's revenue boom is being undermined by rising defaults, a troubling sign as Klarna recently paused its planned US IPO in April, citing fears over the economic fallout of President Donald Trump's tariff policies.
