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Klarna shares slide after full-year outlook cut despite Q2 profit
Klarna reduced its 2026 revenue outlook to $4.08 billion to $4.16 billion, down from a prior forecast above $4.34 billion.
Klarna Group plc shares (NYSE:KLAR) were on track for their worst week as a public company, falling more than 30% over five trading days through August 21, after the company released its second-quarter results on August 18.
Yahoo Finance reported that Klarna’s Q2 performance beat expectations on most reported metrics, with revenue of $1.04 billion up 27% year over year and earnings of $0.01 per share, compared with an anticipated net loss of $0.05. However, the stock dropped as much as 22% in the session of the report, marking the worst single-day fall since its IPO.
The main issue was Klarna’s full-year outlook. The company cut its 2026 revenue guidance to a range of $4.08 billion to $4.16 billion from a prior forecast above $4.34 billion, and it lowered its full-year gross merchandise volume projection to $149 billion to $151 billion from a previous floor above $155 billion, citing weaker consumer spending and retail conditions in Germany, along with unfavorable foreign exchange effects.
After the initial plunge, the stock briefly stabilized but continued lower over the following week, with Klarna trading down more than 50% year-to-date, according to Yahoo Finance. Insider Monkey’s hedge fund database showed 38 hedge funds held positions at the end of Q2, versus 40 at the end of the prior quarter, though the data does not capture post-earnings moves.