Klarna Stock Drops 22% After Revised Guidance Amid Slower German Retail Sales
Klarna (KLAR) stock fell sharply by 22% following the company's revised financial guidance, which missed Wall Street expectations. The Swedish buy-now-pay-later firm lowered its projected gross merchandise value for 2026 to between $149 billion and $151 billion from a prior forecast of $155 billion. Revenue guidance was also reduced to $4.08–$4.16 billion, down from the previous estimate of $4.34 billion. Klarna attributed this softer outlook primarily to slower retail sales in Germany, its largest market by volume. Despite these revisions, Klarna reported a surprise profit for Q2 2026 with earnings per share (EPS) at $0.01 compared to an expected loss of $0.06. Revenue rose 27% year-over-year to $1.04 billion, exceeding estimates. The company also noted improved consumer loan performance, as delinquency rates dropped by over 20 basis points quarter-to-quarter. Klarna's CFO, Niclas Neglén, who is leaving the firm after six years, stated that while Germany remains sluggish, he expects strong GMV growth in the U.S. during the second half of the year.
Tickers: $KLAR
Topics: buy-now-pay-later consumer sentiment GMV guidance Klarna revenue forecast