Operator

Hello, everyone, and welcome to Klarna's First Quarter 2026 Earnings Call.

During this call, we will discuss our business outlook and make forward-looking statements. These statements are based on our current expectations and assumptions as of today. Actual results may differ materially due to various risks and uncertainties, including those described in our most recent filings with the SEC.

During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website as well as filed with the SEC.

Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period in 2025. [Operator Instructions] Before we move to Q&A, we will begin with a brief presentation.

Sebastian Siemiatkowski
Co-Founder, CEO & Director

Good morning, everyone, and thank you for joining. This quarter was a good quarter. We delivered above the high end of every line. Revenue, $1.012 billion, up 44%. Transaction margin, $389 million, up 44%. Adjusted operating profit, $68 million against $3 million a year ago, and net income turned positive.