Klarna Returns to Profitability as More Shoppers Borrow

Klarna Bank AB reported its first quarterly operating profit in four years as it attracted more consumers to buy-now-pay-later loans, giving the firm a boost as it lays the groundwork for an initial public offering.

The Stockholm-based fintech reported an operating profit of 130 million Swedish kronor ($12 million) for the three months through September, while revenue rose by about 30% to 6 billion kronor. It’s the firm’s first profitable result since the second quarter of 2019.