Klarna Stock Plummets on Weak 2026 Revenue Forecast

Klarna Group plc saw its shares decline by 14.4% in pre-market trading on August 20, 2026. The drop followed the release of full-year 2026 revenue guidance that fell below analyst expectations. This outlook overshadowed the company's second-quarter performance, which exceeded forecasts.

During the second quarter, Klarna reported revenue of $1.04 billion, marking a 27% increase year-over-year and surpassing the consensus estimate of $992.82 million. Adjusted earnings per share were $0.01, better than the anticipated loss of $0.05 per share.

Despite the strong quarterly results, the company revised its full-year 2026 revenue outlook downward to a range of $4.08 billion to $4.16 billion. The midpoint of this forecast is $4.12 billion, significantly lower than the $4.42 billion anticipated by analysts.

Klarna attributed this adjustment to approximately $600 million in currency translation headwinds. Additionally, a more conservative forecast for transaction volumes in Germany, the company's largest market, contributed to the revised outlook. For the third quarter, Klarna projected revenue between $940 million and $980 million.

On a positive note, Klarna raised its expectations for transaction margin dollars, a key profitability metric. These dollars increased by 42% year-on-year in the second quarter, reaching $446 million, representing 42.8% of revenue. The full-year forecast for transaction margin dollars is now between $1.62 billion and $1.65 billion.

CEO Sebastian Siemiatkowski highlighted the growth in consumer engagement, with over 120 million consumers using Klarna, leading to a 24% increase in revenue per active consumer and a 42% rise in transaction margin dollars. The company also expanded its network, with gross merchandise volume reaching $36.6 billion in the quarter, an 18% increase. The merchant network grew by 54% to over 1.2 million businesses.