Goodwill and Intangible assets

12 Months Ended

Dec. 31, 2025

Klarna’s intangible assets include capitalized development expenses and assets acquired as a result of

its business combinations. As of December 31, 2025 and 2024, goodwill and intangible assets consisted of

the following:


	Goodwill	Trademarks, Tradenames & Licenses	Capitalized development expenses	Other intangible assets	Total
Cost as of January 1, 2025 ...............................	$626	$117	$451	$287	$1,481
Additions ...........................................................	—	—	27	—	27
Sales/disposals ...............................................	—	—	—	—	—
Currency translation difference ..................	72	22	88	42	224
Cost as of December 31, 2025 .........................	$698	$139	$566	$329	$1,732

Amortization as of January 1, 2025 ................	$—	$(32)	$(266)	$(112)	$(410)
Amortization for the year ..............................	—	(5)	(69)	(14)	(88)
Sales/disposals ...............................................	—	—	—	—	—
Currency translation difference ..................	—	(6)	(54)	(12)	(72)
Amortization as of December 31, 2025 ..........	$—	$(43)	$(389)	$(138)	$(570)

Impairment as of January 1, 2025 ...................	$(13)	$(8)	$(47)	$(14)	$(82)
Impairment for the year ................................	—	—	(2)	—	(2)
Sales/disposals ...............................................	—	—	—	—	—
Currency translation difference ..................	—	(1)	(9)	—	(10)
Impairment as of December 31, 2025 ............	$(13)	$(9)	$(58)	$(14)	$(94)

Carrying amount as of December 31, 2025 ...	$685	$87	$119	$177	$1,068


	Goodwill	Trademarks, Tradenames & Licenses	Capitalized development expenses	Other intangible assets	Total
Cost as of January 1, 2024 ................................	$680	$127	$468	$313	$1,588
Additions ............................................................	—	—	44	—	44
Sales/disposals ................................................	(20)	—	(21)	(5)	(46)
Currency translation difference ...................	(34)	(10)	(40)	(21)	(105)
Cost as of December 31, 2024 .........................	$626	$117	$451	$287	$1,481

Amortization as of January 1, 2024 .................	$—	$(21)	$(226)	$(94)	$(341)
Amortization for the year ...............................	—	(13)	(71)	(26)	(110)
Sales/disposals ................................................	—	—	10	3	13
Currency translation difference ...................	—	2	21	5	28
Amortization as of December 31, 2024 ...........	$—	$(32)	$(266)	$(112)	$(410)

Impairment as of January 1, 2024 ...................	$(13)	$(8)	$(25)	$(1)	$(47)
Impairment for the year .................................	—	—	(36)	(13)	(49)
Sales/disposals ................................................	—	—	11	—	11
Currency translation difference ...................	—	—	3	—	3
Impairment as of December 31, 2024 .............	$(13)	$(8)	$(47)	$(14)	$(82)

Carrying amount as of December 31, 2024 ....	$613	$77	$138	$161	$989

As of December 31, 2025, the Group’s goodwill primarily related to goodwill originated from

acquisitions in 2021 and 2022, including PriceRunner Group AB, Stocard GmbH and Sofort GmbH.

Impairment testing of Goodwill and Intangible assets

The Group conducted its annual goodwill impairment test as of October 1, 2025. No impairment losses

were identified, as the recoverable amount, measured as value in use, exceeded the carrying amount.

The impairment test is performed at the operating segment level, which is the lowest level at which

goodwill is monitored and assessed for internal management purposes, by comparing the carrying amount

of the net assets, including goodwill, with the recoverable amount.

In 2025 and 2024, the Group assessed impairment by calculating value in use, based on estimated

future financials from the operating segment. The Group uses a two-year forecast based on its business

plan which is extrapolated out to a five-year timeframe. Cash flows beyond the five-year period are

determined using an estimated terminal growth rate of 3.5% . Key assumptions and inputs include discount

rate, growth rate and profitability. The discount rate used in 2025 and 2024 was 11.2% and 12.5%,

respectively.

On October 1, 2024, the Group completed the divestment of KCO to a consortium of investors, to which

goodwill of $20 million was allocated using a relative value approach. See Note 10.