Klarna vs Monzo: Revenue, Profit and Business Model
Klarna reported $3.5B of revenue in FY2025 and a net loss of $273M. Monzo reported ~$2.2B of revenue in FY2026 and ~$115.2M of net income.
Latest financial snapshot
Financial summary
Klarna
Klarna's revenue grew from $2.28 billion in 2023 to $2.81 billion in 2024 and $3.51 billion in 2025, according to its 2025 Form 20-F. Net income swung from a $244 million loss in 2023 to a $21 million profit in 2024, then back to a $273 million loss in 2025, even as adjusted operating profit reached $65 million. Q4 2025 was its first billion-dollar quarter at $1.082 billion of revenue on $38.7 billion of GMV. In Q2 2026, revenue rose 27% to $1.042 billion, transaction margin dollars rose 42% to $446 million and net income was $9 million, against a $53 million loss a year earlier. The market cap was about $5.2 billion in late September 2026, well below the roughly $15 billion valuation at its September 2025 IPO.
Monzo
Monzo spent its first years losing money while it grew a free account base. After a 2020 down-round, it added paid subscriptions, lending and business plans, and higher interest rates in 2022 and 2023 lifted income on its deposit base. It posted its first annual profit in FY2024 (~$20.3 million (£15.4 million) pre-tax on ~$1.16 billion (£880 million) revenue), then ~$79.9 million (£60.5 million) on about $1.58 billion (£1.2 billion) in FY2025. In FY2026 revenue rose 39% to ~$2.24 billion (£1.7 billion), gross profit passed ~$1.32 billion (£1 billion) for the first time, statutory pre-tax profit reached ~$115 million (£87.3 million) and adjusted pre-tax profit ~$228 million (£172.6 million). Operating expenses grew more than a third to ~$1.22 billion (£925.5 million) as it invested in staff and expansion.
Revenue and profit by year
Klarna
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $3.5B | -$273M | -7.8% | +24.8% | Source |
| FY2024 | $2.8B | $21M | 0.7% | +23.5% | Source |
| FY2023 | $2.3B | -$244M | -10.7% | — | Source |
Where the revenue comes from
Klarna
- Merchant fees
Fees charged to merchants on Klarna transactions; the largest source of revenue.
- Consumer interest and fees
Interest on Fair Financing and other credit products, plus late fees where permitted.
- Card and memberships
Interchange from the Klarna Card and subscription revenue from Memberships, which grew more than 600% in Q2 2026.
- Advertising and other
Sponsored placements and affiliate revenue in the Klarna app.
Monzo
- Net interest income
Not disclosed
Interest on deposits held with the Bank of England and on personal loans, overdrafts and Monzo Flex balances.
- Subscriptions
Not disclosed
Monthly fees for Monzo Extra, Perks and Max and paid Monzo Business plans.
- Interchange and other fees
Not disclosed
Card interchange, partner commissions and investment and pension platform fees.
Business model and strategy
Klarna
How it makes money
Klarna earns money on both sides of a purchase. Merchants pay Klarna a fee on each transaction because offering installments tends to lift conversion and basket size; Klarna pays the merchant upfront and carries the repayment risk (its published US standard rate for Pay in 4 has been 3.29% plus $0.30).
Growth strategy
Klarna calls itself an 'everyday finance network'. The strategy has three parts: distribution through large acquirers and platforms (J.P. Morgan Payments went live in August 2026), higher-frequency products such as the Klarna Card and paid Memberships (2 million subscribers in Q2 2026, eight times a year earlier), and higher-yield lending such as Fair Financing, which 256,000 merchants offered by Q2 2026.
Competitive advantage
Klarna's edge is scale and funding. It reaches more than 120 million active consumers and over 1.2 million merchants in 26 markets, and distribution deals with payment platforms such as J.P. Morgan Payments, Stripe and Adyen switch Klarna on for merchants without a new integration.
Monzo
How it makes money
Monzo makes money in four main ways. First, net interest income: it earns interest on customer deposits placed with the Bank of England and on its loan book of personal loans, overdrafts and Monzo Flex credit. Second, subscriptions: customers pay monthly for Monzo Extra, Perks and Max plans, which bundle perks such as insurance and higher savings rates.
Growth strategy
Monzo's growth strategy has three parts: get more UK customers to make Monzo their main account, sell them more products (loans, Flex, savings, investments, pensions and paid plans), and expand into Europe using its EU banking licence, starting with Ireland. In April 2026 it chose to exit the US, saying it would focus on its home market and Europe; about 50 roles were affected.
Competitive advantage
Monzo's edge is a combination of brand, scale and low-cost growth. It reports that 79% of new customers arrive by word of mouth, it holds a full UK banking licence that lets it fund lending with cheap deposits, and it runs on its own cloud-based core banking system rather than legacy mainframes, which lets it ship features quickly.
Questions about Klarna vs Monzo
Which company has higher revenue — Klarna Group plc or Monzo Bank Limited?
Klarna Group plc reported $3.5B (FY2025), while Monzo Bank Limited reported ~$2.2B (FY2026). By last reported revenue, Klarna Group plc is the larger business, with Monzo Bank Limited reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Klarna Group plc vs Monzo Bank Limited?
Klarna Group plc has a market capitalisation of $5.2B. A public market cap figure for Monzo Bank Limited was not available (it may be privately held).
Which is more financially efficient — Klarna Group plc or Monzo Bank Limited?
Klarna Group plc generates $1.24M / employee in revenue per employee, while Monzo Bank Limited generates $425k / employee. Klarna Group plc shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Klarna Group plc and Monzo Bank Limited make money?
Klarna Group plc and Monzo Bank Limited generate revenue in fundamentally different ways. Klarna Group plc: Klarna earns money on both sides of a purchase. Monzo Bank Limited: Monzo makes money in four main ways.
Is Klarna Group plc bigger than Monzo Bank Limited?
By last reported revenue, Klarna Group plc ($3.5B (FY2025)) is the larger company compared to Monzo Bank Limited (~$2.2B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Klarna vs Monzo overview