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Affirm shares fall after Klarna cuts 2026 guidance
The guidance cut followed Klarna’s forecast for 2026 gross merchandise volume of $149 billion to $151 billion, and Affirm’s next earnings call will be seen as a test of whether it signals broader consumer-credit stress.
Affirm shares slipped after Klarna dropped its 2026 volume and revenue outlook, with Klarna forecasting full-year gross merchandise volume of $149 billion to $151 billion, down from more than $155 billion, and revenue of $4.08 billion to $4.16 billion, down from $4.34 billion, according to Yahoo Finance.
Klarna’s warning was not described as uniform across its business, as its second-quarter revenue rose 27%, overall volume increased 18%, and U.S. volume grew 27%. Klarna attributed the softer outlook mainly to weaker German retail conditions, and noted currency translation reduced projected volume by about $600 million.
Affirm shares rebounded 5.1% the next session after the initial 1.3% drop on August 18. Ahead of Affirm’s August 27 earnings report, Yahoo Finance highlighted that Affirm’s fiscal third-quarter gross merchandise volume rose 35% to $11.6 billion and revenue increased 33% to $1.04 billion.
The outlet also pointed to Affirm’s growth drivers, including active consumers up 22% to 26.8 million and active merchants up 44% to 515,000, plus Affirm Card volume up 146% to $2.1 billion and active cardholders more than doubling to 4.4 million. It cited funding capacity reaching $28.2 billion in March, up from $23.3 billion a year earlier, and said the company estimated funding arrangements could support more than $65 billion of annual volume.