Home / News
Klarna Stock Plunges 22% After Downgrading Revenue, GMV Forecasts
• Klarna's stock price plummeted 22% after it cut its 2026 revenue and gross merchandise volume (GMV) guidance.
• The lowered outlook is attributed to a sustained retail slowdown and weak consumer sentiment in Germany, its largest market.
• Despite the guidance cut, Klarna reported an unexpected Q2 profit of $0.01 per share and a 27% year-over-year revenue increase.
• The company noted a significant improvement in loan delinquency rates, with accounts over 30 days late decreasing by more than 20 basis points.
Shares of Swedish fintech giant Klarna plummeted by 22% in volatile trading Thursday, a stark reaction to the company's decision to downgrade its medium-term financial forecasts. The buy-now, pay-later pioneer now anticipates its 2026 gross merchandise volume (GMV) to reach between $149 billion and $151 billion, a reduction from its prior projection of $155 billion. Concurrently, its revenue forecast for the year has been trimmed to a range of $4.08 billion to $4.16 billion, down from the earlier $4.34 billion guidance.
The company directly linked the revised, softer outlook to deteriorating economic conditions in its core European market. "Our guidance simply assumes Germany stays softer rather than recovering," stated outgoing Chief Financial Officer Niclas Neglén. He highlighted that depressed consumer sentiment and a slowdown in retail sales within Germany, Klarna's largest market by volume, are primary headwinds. This news overshadowed a separate announcement that Neglén will depart the firm after a six-year tenure.
This guidance revision stands in sharp contrast to Klarna's stronger-than-expected second-quarter performance. The company reported a surprise quarterly profit, with earnings per share of $0.01 surpassing analyst expectations for a $0.06 per share loss. Revenue for the period surged 27% year-over-year to $1.04 billion, also exceeding consensus estimates. Furthermore, Klarna reported a meaningful improvement in credit quality, with the number of consumer loans delinquent by over 30 days falling by more than 20 basis points sequentially.
Looking ahead, Klarna's strategic focus appears to be shifting toward expansion in the United States to counterbalance European weakness. CFO Neglén indicated that the company expects "GMV growth in the US to be strong in the second half as we scale five significant integrations." The company also noted that its customers carry an average balance of $124, suggesting its service remains accessible to a broad consumer base even as it manages credit risk in an uncertain macroeconomic environment.