‘You’ve lost $100 million’: Spike questions Klarna’s business model
May 21, 2025, 10:58 AM | Updated: 1:06 pm
A graphic of the Klarna logo. (Photo courtesy of Getty Images)
(Photo courtesy of Getty Images)
Swedish payment company Klarna, known for its buy-now, pay-later services for everyday purchases like food, reported a $99 million net loss in Q1 2025, more than double the $47 million loss from the same period last year, according to CNBC.
“I think it’s a useful business if run correctly,” Spike said. “But clearly, if you’ve lost $100 million in the first three months of 2025, you are not doing it.”
Spike O’Neill, co-host of “The Jake and Spike Show” on KIRO Newsradio, raised concerns about Klarna’s business model, specifically questioning its long-term sustainability and why borrowers aren’t required to provide collateral for their loans.
Mounting losses raise doubts about Klarna’s sustainability
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Despite mounting losses, Klarna continues to see growth on other fronts. Revenue rose 13% year over year to $701 million. The firm now boasts 100 million active users and has expanded its global network to 724,000 partners.
Co-host Jake Skorheim says the service sounds instrumental but has some concerns regarding predatory lending practices.
“I’m not saying this is them. I question whether it’s predatory because you’re marketing to somebody who cannot afford to buy a burrito right now,” Jake said.
Listen to the full conversation below:
