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Klarna shares fall 20% after guidance cut tied to weaker Germany retail
The Swedish buy-now, pay-later firm reduced its 2026 GMV outlook to $149 billion to $151 billion and guided revenue of $4.08 billion to $4.16 billion, citing softer retail sales and consumer sentiment in Germany.
Klarna’s stock dropped about 20% in early trading after the company trimmed its guidance following its latest earnings update, with investors focusing on revenue and gross merchandise volume expectations that missed prior forecasts, according to Yahoo Finance.
The Swedish buy-now, pay-later provider now expects 2026 GMV to range from $149 billion to $151 billion, down from its previous forecast of $155 billion. It also guided 2026 revenue to $4.08 billion to $4.16 billion, below prior guidance of $4.34 billion, and pointed to a slowdown in retail sales and depressed consumer sentiment in Germany, its largest market by volume.
Klarna said the guidance change assumes conditions in Germany stay softer rather than recovering. The company reported second-quarter results that included EPS of $0.01, topping expectations for a $0.06 per-share loss, and revenue of $1.04 billion, up 27% year over year and above the $996 million estimate.
Despite the outlook cut, Klarna reported that the number of consumers delinquent on their loans for more than 30 days declined by more than 20 basis points quarter over quarter. It also said its customers have an average balance of $124, and noted that CFO Niclas Neglén is departing after six years.