Klarna Lowers Financial Outlook Amid Weak Consumer Spending in Germany
Klarna Group has revised its financial outlook for 2026, citing weaker consumer spending in Germany, the company's largest market by merchandise volume. The firm now expects gross merchandise volume (GMV) to range between $149 billion and $151 billion this year, down from a previous forecast of over $155 billion. A significant portion of the slowdown is attributed to currency exchange rate fluctuations that cost Klarna approximately $600 million. The company also announced leadership changes as CFO Niclas Neglén will leave in early 2027, along with CMO David Sandström. TD Cowen analysts described the quarterly results and guidance as negative across key metrics like revenue and transaction margin dollars. Klarna's shares fell about 20% following the announcement. Klarna is also seeking to expand its banking operations in the U.S., having applied for an industrial bank charter in Utah, a move that aligns with similar efforts by BNPL competitors such as PayPal and Affirm.
Topics: buy now pay later consumer spending currency exchange rates executive changes