Klarna Group plc (KLAR) shares suffered a sharp selloff on Tuesday after the company reported mixed second-quarter results, cut full-year revenue guidance, and announced the departures of two top executives.
In premarket trading, the stock dropped as much as 20% before trimming losses to about 14%. Klarna said CFO Niclas Neglén and CMO David Sandström would leave the company but remain through early 2027 while successors are found. The search for a New York-based CFO is already underway, while no replacement for the CMO role has been announced.
Q2 revenue hit $1.04 billion, up 27% year-over-year and above the $992.82 million consensus. Adjusted EPS of $0.01 beat expectations for a $0.05 loss. Gross merchandise volume rose 18% to $36.6 billion, and the number of merchants on the platform surged 54% to over 1.2 million. Transaction margin dollars increased 42% year-over-year to $446 million, equal to 42.8% of revenue.
However, the company lowered its full-year 2026 revenue outlook to $4.08 billion to $4.16 billion, compared with the $4.42 billion analyst consensus. Management pointed to about $600 million in currency translation headwinds and softer volume expectations in Germany, its largest market. Third-quarter revenue guidance of $940 million to $980 million also came in well below Wall Street’s $1.11 billion forecast.
Before the report, Klarna stock had already slipped 6.1% to $19.53 on Monday on unusually light volume. Investors were also watching Klarna’s U.S. banking license bid after applications were filed with the Utah Department of Financial Institutions and the FDIC in early July. Needham analyst Kyle Peterson has cautioned that since Klarna has had a European banking license since 2017, the EPS benefit from a U.S. charter may be relatively limited.
CEO Sebastian Siemiatkowski highlighted consumer engagement, saying more than 120 million consumers now use Klarna and revenue per active consumer grew 24%. Still, the guidance cut and executive departures overshadowed the top-line beat, marking one of the steepest single-day moves since the company’s New York Stock Exchange debut earlier this year.
