Klarna Shares Plunge as Full-Year Revenue Outlook Disappoints

Klarna Group plc (NYSE: KLAR) shares fell 14.4% in pre-market trading on August 18, 2026, after the fintech company lowered its full-year revenue outlook despite stronger-than-expected second-quarter results. Revenue rose 27% year over year to $1.042 billion, exceeding the $992.82 million consensus. Adjusted earnings per share were $0.01, versus expectations for a $0.05 loss. Gross merchandise volume increased 18% to $36.6 billion, including 27% U.S. growth. Adjusted operating income rose 214% to $91 million, while operating income reached $27 million versus a $46 million loss in Q2 2025. Net income was $9 million, compared with a $53 million loss. Klarna now expects 2026 revenue of $4.08 billion to $4.16 billion, below the $4.42 billion analyst consensus at the midpoint of $4.12 billion. Management cited approximately $600 million of currency-translation headwinds and a more measured transaction-volume outlook in Germany, its largest market by volume. Third-quarter revenue is forecast at $940 million to $980 million, with adjusted operating income of $5 million to $15 million. Transaction margin dollars rose 42% to $446 million, or 42.8% of revenue. Full-year transaction-margin guidance increased to $1.62 billion to $1.65 billion, approximately 1.09% of GMV, from prior guidance above 1.04%. Adjusted operating income guidance remained $280 million to $300 million. More than 120 million active consumers drove 24% growth in revenue per active consumer. Memberships reached 2 million subscribers, eight times the year-earlier level, while subscription revenue increased more than 600%. Klarna Card active users reached 6.5 million across 16 countries, versus 1.3 million a year earlier. Merchants exceeded 1.2 million, up 54%. J.P. Morgan Payments now distributes Klarna’s pay-in-full, interest-free installments and longer-term financing. Fair Financing merchants rose 107% to 256,000, and Klarna and Apple launched Apple Upgrade. Credit-loss provisions improved to 0.52% of GMV from 0.56%; about 90% of funding comes from consumer deposits, and U.S. Fair Financing 30-plus-day delinquencies fell 20 basis points quarter over quarter. CFO Niclas Neglén and CMO David Sandström are expected to leave in early 2027. Klarna has begun searching for a New York-based CFO, adding execution risk to the currency and Germany-related concerns.