Klarna Group’s shares dropped more than 18% at the market open on Tuesday after the company lowered its full-year 2026 revenue guidance and flagged weaker-than-expected second-half volume trends.
The Stockholm-based fintech reported second-quarter revenue of $1.04 billion, up 27% year-over-year and ahead of the $992.82 million consensus estimate. Adjusted earnings per share came in at $0.01, beating expectations of a loss of $0.05. Gross merchandise volume rose 18% to $36.6 billion, while the number of merchants on the platform surged 54% to over 1.2 million.
CEO Sebastian Siemiatkowski highlighted strong consumer engagement, noting that over 120 million consumers now use Klarna, with revenue per active user climbing 24%. Transaction margin dollars increased 42% year-over-year to $446 million, representing 42.8% of revenue. The company raised its full-year transaction margin dollar guidance to $1.62-$1.65 billion, though Goldman Sachs analysts noted concerns over the implied margin trajectory for the second half of the year.
Klarna trimmed its 2026 revenue guidance to a range of $4.08 billion to $4.16 billion, with a midpoint of $4.12 billion, falling short of the $4.42 billion consensus. The company cited approximately $600 million in currency translation headwinds and a more cautious outlook for German volumes, its largest market by transaction volume. Adjusted operating income guidance for the full year remained unchanged at $280-$300 million.
Third-quarter revenue is expected to reach $940-$980 million, with adjusted operating income of $5-$15 million. Leadership transitions were also announced, with CFO Niclas Neglén and CMO David Sandström set to depart in early 2027. A search for a New York-based CFO is underway, though both executives will remain in their roles during the transition period.
Goldman Sachs analyst Will Nance warned that the second-half volume reset and margin guidance could weigh on investor sentiment, despite the company’s first-half outperformance.
