Klarna’s U.S.-listed shares tumbled 22.81% to $15.06 on Tuesday after the Swedish fintech slashed its annual revenue forecast and flagged weaker-than-expected performance in Germany, its largest market.
The company now expects annual revenue between $4.08 billion and $4.16 billion, down from its prior guidance of $4.34 billion. The downward revision follows a surprise profit in the second quarter, though analysts noted the outlook was dampened by broader macroeconomic pressures and a recently terminated partnership with financial services provider Pagaya.
Traders also highlighted the termination of the Pagaya collaboration as an additional headwind, compounding concerns over Klarna’s growth trajectory. The company’s shares had already been under pressure amid rising competition in the buy-now-pay-later sector and shifting consumer spending patterns.
In a separate announcement, Klarna said it would refill the roles of Chief Financial Officer and Chief Marketing Officer at the start of 2027, signaling potential leadership changes ahead. The moves underscore the challenges facing the fintech as it seeks to stabilize operations and restore investor confidence following the forecast cut and stock decline.
