Earnings
Home›Earnings›Results›Klarna profit rises, but stock falls on trimmed 2026 o…
Klarna profit rises, but stock falls on trimmed 2026 outlook
Klarna cut its 2026 GMV forecast to $149 billion to $151 billion and lowered revenue guidance, citing weaker expectations for Germany, its biggest volume market.
Klarna Group plc posted second-quarter net income of $9 million, reversing a $53 million loss a year earlier, and kept itself profitable after a positive first-quarter result, according to Yahoo Finance. Revenue rose 27% to $1.04 billion, and transaction margin dollars increased 42% to $446 million, with U.S. GMV growing 27% versus 18% companywide.
Despite the improved quarter, Klarna shares closed 22.8% lower as investors focused on softer expectations for the rest of 2026. The company reduced its gross merchandise volume outlook to $149 billion to $151 billion from above $155 billion, and lowered its revenue forecast to $4.08 billion to $4.16 billion from above $4.34 billion.
Management pointed to weaker expectations for Germany, its largest market by volume, and said currency movements accounted for about $600 million of the GMV guidance reduction. It also noted credit loss provisions declined to 0.52% of GMV from 0.56%, and transaction margin dollars increased to 42.8% of revenue, more than 4.5 percentage points higher than a year earlier.
Klarna raised its full-year transaction-margin-dollar forecast to $1.62 billion to $1.65 billion and expects company-defined non-IFRS adjusted operating income of $280 million to $300 million. Yahoo Finance said the key question for the company is whether stronger transaction economics can offset slower growth expectations, especially in Germany.