Klarna stock falls following lowered 2026 revenue guidance

Klarna reported second-quarter results that exceeded analyst expectations, including a revenue increase of 27% to $1.04 billion and a net profit of $9 million, compared to a loss in the previous year. Despite these strong earnings, the company's stock experienced a significant decline on Wall Street, dropping as much as 20% in premarket trading following a lowered full-year guidance.

CEO Sebastian Siemiatkowski attributed the reduced outlook for 2026 revenue and gross merchandise value (GMV) to weakening consumer confidence in Germany, Klarna’s largest European market, and various currency headwinds. While the company is seeing continued growth in the United States, the cautious macroeconomic environment in Germany has prompted adjustments to its long-term projections.

In addition to financial shifts, Klarna announced upcoming leadership changes, including the departure of CFO Niclas Neglén and CMO David Sandström in early 2027. The company is also expanding its footprint through a new partnership with Apple for leasing services and is navigating a legal dispute involving its subsidiary, Pricerunner, and Google.