BNPL Fintech Klarna Group's Shares Plunged Sharply On Updated Guidance

Klarna (NYSE:KLAR) reported a $9M Q2 profit, up from a $53M loss last year, with revenue rising 27% to $1.04B. Despite this, shares fell 23% due to lowered full-year forecasts for GMV and revenue, citing slower growth in Germany. The company raised its transaction-margin-dollar forecast to $1.62B-$1.65B, indicating stronger transaction economics.

Klarna CMO David Sandström to depart early 2027. Microsoft AI CMO Andréa Mallard leaves after six months. Gap Inc. hires Justin Breton and Pam Kaufman for 'Fashiontainment'. Vuori names Carey Collins Krug as CMO.

Klarna reported a 27% revenue increase for Q2, driven by partnerships with 1.2 million merchants and growth in financing and subscriptions. Gross merchandise volume (GMV) rose 18%, with buy now, pay later accounting for 75% of GMV. Despite this, Klarna downgraded its full-year outlook due to currency impacts and softer European demand, particularly in Germany. Its share price has fallen 20% since its IPO.

Klarna (KLAR) fell 5% to $13.94, Affirm (AFRM) dropped 3% to $74.94, while PayPal (PYPL) rose 1.4% to $62.12. Klarna cut its 2026 revenue forecast due to weaker German consumer spending, despite Q2 revenue growth of 27%. PayPal raised its full-year earnings guidance, showing resilience in its broader payments business.

Klarna (KLAR) reported Q2 EPS of $0.01, beating estimates, with revenue up 27% YoY to $1.04B. It posted a net profit of $9M but cut full-year revenue guidance to $4.08B–$4.16B due to weak German retail spending. Shares fell 2.19% to $14.73. The company is seeking a New York-based CFO, signaling a strategic shift.

Klarna's stock fell 22% after lowering its 2026 revenue and GMV forecasts due to slowing retail sales in Germany. The company now expects GMV of $149B-$151B and revenue of $4.08B-$4.16B, down from prior estimates. Despite this, Q2 earnings beat expectations with a $0.01 EPS and 27% revenue growth.